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Tapestry (TPR) to Report Q4 Earnings: What's in the Offing?
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We expect Tapestry, Inc. (TPR - Free Report) to report year-over-year increases in both the top and the bottom line when it releases fourth-quarter fiscal 2023 earnings on Aug 17, before market open.
The Zacks Consensus Estimate for quarterly earnings has increased a penny to 96 cents per share over the past seven days. The same suggests an increase of about 23.1% from the year-earlier quarter’s figure. The consensus estimate of $1,667 million for quarterly revenues indicates growth of about 2.6% from the prior-year quarter’s tally.
In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 32.2%. Tapestry, which has announced plans to acquire Capri Holdings Limited, has a trailing four-quarter earnings surprise of 11.7%, on average. (Read more: Tapestry to Acquire Capri Holdings in a $8.5B Cash Deal)
Factors to Note
A consumer-centric approach, omnichannel capabilities, brand strength and an emphasis on high-growth areas are likely to have benefited Tapestry’s fourth-quarter performance. Its Acceleration Program has been a major contributing factor as well. The company has been focused on deepening engagement with consumers, creating innovative and compelling products and expanding digital and data analytics capabilities.
On its last earnings call, management had envisioned revenues of $6.7 billion to grow 3% year over year at constant currency. The company had guided earnings per share in the band of $3.85-$3.90, representing low-double-digit growth year over year on an adjusted basis. Management forecasted earnings between $3.70 per share and $3.75 per share. We note that the Zacks Consensus Estimate for Coach and Stuart Weitzman brands are pegged at $1,249 million and $73 million, respectively. These estimates show year-over-year growth of 3.3% and 1.4%, respectively.
However, a tough operating environment and foreign exchange headwinds are likely to have been a spoilsport. Management had cited that the earnings per share view includes a currency headwind of approximately 40 cents. Meanwhile, any deleverage in selling, general and administrative expenses are likely to have been added deterrents.
What Our Zacks Model Says
Our proven model predicts an earnings beat for Tapestry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
The company is expected to register bottom-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 15 cents suggests an increase of 275% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $1.18 billion, indicating a dip of 1.3% from the figure reported in the year-ago quarter. AEO has a trailing four-quarter earnings surprise of 9.2%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 2. The company is expected to register a bottom-line decrease when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests a drop of 17.1% from the year-ago quarter.
Casey's top line is anticipated to decline year over year. The consensus mark for revenues is pegged at $3.85 billion, indicating a drop of 13.5% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +1.43% and a Zacks Rank of 3. FIVE is likely to register top-line improvement when it reports second-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Five Below’s quarterly revenues is pegged at $760.5 million, calling for growth of 13.7% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of 83 cents suggests a 12.2% increase from the figure reported in the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 27.9%, on average.
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Tapestry (TPR) to Report Q4 Earnings: What's in the Offing?
We expect Tapestry, Inc. (TPR - Free Report) to report year-over-year increases in both the top and the bottom line when it releases fourth-quarter fiscal 2023 earnings on Aug 17, before market open.
The Zacks Consensus Estimate for quarterly earnings has increased a penny to 96 cents per share over the past seven days. The same suggests an increase of about 23.1% from the year-earlier quarter’s figure. The consensus estimate of $1,667 million for quarterly revenues indicates growth of about 2.6% from the prior-year quarter’s tally.
In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 32.2%. Tapestry, which has announced plans to acquire Capri Holdings Limited, has a trailing four-quarter earnings surprise of 11.7%, on average. (Read more: Tapestry to Acquire Capri Holdings in a $8.5B Cash Deal)
Factors to Note
A consumer-centric approach, omnichannel capabilities, brand strength and an emphasis on high-growth areas are likely to have benefited Tapestry’s fourth-quarter performance. Its Acceleration Program has been a major contributing factor as well. The company has been focused on deepening engagement with consumers, creating innovative and compelling products and expanding digital and data analytics capabilities.
On its last earnings call, management had envisioned revenues of $6.7 billion to grow 3% year over year at constant currency. The company had guided earnings per share in the band of $3.85-$3.90, representing low-double-digit growth year over year on an adjusted basis. Management forecasted earnings between $3.70 per share and $3.75 per share. We note that the Zacks Consensus Estimate for Coach and Stuart Weitzman brands are pegged at $1,249 million and $73 million, respectively. These estimates show year-over-year growth of 3.3% and 1.4%, respectively.
However, a tough operating environment and foreign exchange headwinds are likely to have been a spoilsport. Management had cited that the earnings per share view includes a currency headwind of approximately 40 cents. Meanwhile, any deleverage in selling, general and administrative expenses are likely to have been added deterrents.
What Our Zacks Model Says
Our proven model predicts an earnings beat for Tapestry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Tapestry, Inc. Price and EPS Surprise
Tapestry, Inc. price-eps-surprise | Tapestry, Inc. Quote
Tapestry has an Earnings ESP of +1.71% and a Zacks Rank of 3.
Other Stocks With the Favorable Combination
Here are a few other companies, which according to our model, also have the right combination to beat on earnings this reporting cycle:
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +11.07% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register bottom-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 15 cents suggests an increase of 275% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $1.18 billion, indicating a dip of 1.3% from the figure reported in the year-ago quarter. AEO has a trailing four-quarter earnings surprise of 9.2%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 2. The company is expected to register a bottom-line decrease when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests a drop of 17.1% from the year-ago quarter.
Casey's top line is anticipated to decline year over year. The consensus mark for revenues is pegged at $3.85 billion, indicating a drop of 13.5% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +1.43% and a Zacks Rank of 3. FIVE is likely to register top-line improvement when it reports second-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Five Below’s quarterly revenues is pegged at $760.5 million, calling for growth of 13.7% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of 83 cents suggests a 12.2% increase from the figure reported in the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 27.9%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.