Edward Berthelot/Getty Images Entertainment
Tapestry (NYSE:TPR) reported revenue rose 3% in FQ2 to $2.1B to edge past the consensus expectation. A 6% revenue gain for the Coach business to $1.45B during the quarter offset declines with the Kate Spade and Stuart Weitzman businesses. On a non-GAAP basis, operating income was $476M during the quarter vs. $418M a year ago. Operating margin was 22.8% vs 20.6% a year ago. EPS came in at $1.63 vs. $1.46 consensus and $1.36 a year ago.
On the balance sheet, Tapestry (TPR) ended the quarter with a cash position of $7.46B, inventory of $825M, and total borrowings of $7.74B. Cash flow from operating activities for FQ2 was an inflow of $827M, compared to an inflow of $633M a year ago.
Looking ahead, Tapestry (TPR) sees full-year revenue of $6.7B vs. $6.73B consensus and full-year EPS of $4.20 to $4.25 vs. $4.14 consensus.
On the M&A front, Tapestry (TPR) noted that it continues to work toward receiving required regulatory approvals. As publicly announced by the regulator, the State Administration for Market Regulation in China approved the transaction last month. Tapestry (TPR) said it remains confident in the ability to complete the transaction, with a close expected in calendar 2024, consistent with prior expectations.
Shares of Tapestry (TPR) rose 1.98% in premarket action. The apparel stock is up almost 10% on a year-to-date basis.