Tapestry, Inc. (TPR) delivered better-than-expected financial results for the fourth quarter, exceeding analyst expectations and signaling a strong finish to the year. The company reported adjusted earnings per share of 92 cents, surpassing the consensus estimate of 88 cents. Quarterly sales reached $1.59 billion, a slight decrease of 2% year-over-year, but still outpacing the $1.58 billion estimate.
Looking ahead to fiscal 2025, Tapestry announced its intention to maintain the annual dividend rate at $1.40 per common share. The company also declared a quarterly cash dividend of 35 cents per share, payable on September 23. In terms of revenue, Tapestry anticipates approximately $6.7 billion in fiscal 2025, slightly lower than the $6.8 billion estimate. Earnings per share (EPS) are projected to fall between $4.45 and $4.50, compared to the $4.49 estimate.
JoAnne Crevoiserat, Tapestry’s Chief Executive Officer, expressed satisfaction with the company’s performance, highlighting the contributions of the global teams in driving innovation and consumer connections. She emphasized the company’s strategic advancements and strong financial results achieved amidst dynamic market conditions. Crevoiserat also expressed confidence in Tapestry’s future growth prospects and commitment to delivering shareholder value.
Following the earnings announcement, Tapestry’s stock rose 0.3% to $39.31 on Friday. Analysts responded with adjustments to their price targets. Wells Fargo analyst Ike Boruchow maintained an Overweight rating for Tapestry, lowering the price target from $52 to $50. JP Morgan analyst Matthew Boss also maintained an Overweight rating while reducing the price target from $54 to $51. Dana Telsey of Telsey Advisory Group reiterated an Outperform rating and retained a $54 price target for Tapestry.
