when

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div>
<p class="has-drop-cap">Tapestry, Inc. (NYSE: TPR), the parent company of Coach, Kate Spade, and Stuart Weitzman, has unveiled its financial performance for the <a href="https://www.businesswire.com/news/home/20240815203627/en/Tapestry-Inc.-Reports-Fourth-Quarter-and-Full-Year-Fiscal-2024-Results" target="_blank" aria-label="fourth quarter and full fiscal year ending June 29, 2024 (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">fourth quarter and full fiscal year ending June 29, 2024</a>. <br><br>The company reported net sales of $1.59 billion for the fourth quarter, a slight decrease from $1.62 billion in the same period last year. This 2% decline was primarily attributed to currency headwinds, which when excluded, showed sales approximately even with the previous year.</p>
<p>Gross profit for the quarter stood at $1.19 billion, translating to a gross margin of 74.9%, an improvement from 72.4% in the prior year. This increase was driven by operational improvements, lower freight expenses, and favorable foreign exchange rates. However, selling, general, and administrative (SG&amp;A) expenses rose to $956 million, representing 60.1% of sales on a reported basis, up from 55.5% last year. Despite this, the company managed to achieve an operating income of $235 million, with an operating margin of 14.8%.</p>
<p>Net income for the quarter was $159 million, with <a href="https://tokenist.com/investing/how-to-value-a-stock/" rel="noopener noreferrer nofollow" class="deco-link">earnings per diluted share (EPS)</a> of $0.68. On a non-GAAP basis, net income was $217 million, resulting in an EPS of $0.92. <br><br>This compares to a net income of $224 million and an EPS of $0.95 in the same period last year. The tax rate for the quarter was 20.7% on a reported basis and 16.8% on a non-GAAP basis, slightly higher than the 16.0% rate in the previous year.</p>
<h3 id="tapestry-inc-outperforms-expectations-in-fiscal-q4">Tapestry, Inc. Outperforms Expectations in Fiscal Q4</h3>
<p>The fourth quarter performance of Tapestry, Inc. exceeded market expectations in several key areas. Analysts had projected an EPS of $0.88 and revenue of $1.58 billion for the quarter. <br><br>The company outperformed these estimates, delivering an EPS of $0.92 on a non-GAAP basis and revenue of $1.59 billion. This positive variance highlights the company’s ability to navigate a challenging economic environment and underscores its operational efficiency.</p>
<p>The gross margin expansion to 74.9% from 72.4% in the previous year was a significant achievement, reflecting Tapestry’s effective cost management and strategic initiatives. Lower freight expenses and favorable currency movements played a crucial role in this margin improvement. However, the increase in SG&amp;A expenses, which rose to 60.1% of sales from 55.5%, indicates higher operational costs that the company needs to manage moving forward.</p>
<p>Despite the rise in SG&amp;A expenses, the company’s operating income and margin remained robust. The operating income of $235 million, though lower than the previous year’s $274 million, still reflects strong profitability. The net income of $159 million, while slightly down from $224 million last year, was bolstered by the company’s strategic focus on high-margin products and operational efficiencies.</p>
<div class="cta-referral"><img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async">
 <div class="cta-referral__text">
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">Telegram group&nbsp;and never miss a breaking story.</a></p>
 </div>
</div>
<h3 id="guidance">Guidance</h3>
<p>Looking ahead, Tapestry, Inc. has provided a financial outlook for fiscal 2025 that reflects cautious optimism amidst a dynamic market environment. The company expects revenue to be around $6.7 billion, representing growth compared to the prior year on a reported basis, despite an anticipated currency pressure of approximately 50 basis points. On a constant currency basis, revenue is expected to increase by approximately 1%.</p>
<p>The company also projects an operating margin expansion of around 50 basis points compared to the prior year. Net interest income is expected to be approximately $20 million, with a tax rate of around 19%. The weighted average diluted share count is estimated to be about 238 million shares. Earnings per diluted share are forecasted to be between $4.45 and $4.50, representing mid-single-digit growth compared to the prior year.</p>
<p>Free cash flow for fiscal 2025 is projected to be around $1.1 billion, excluding deal-related costs. This guidance incorporates a negative impact of $0.35 related to the suspension of share repurchase activity due to the proposed acquisition of Capri Holdings Limited and an estimated currency headwind of approximately $0.20 versus the company’s fiscal 2025 EPS target.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p>
<h3 id="br"><br></h3>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/tapestry-inc-trp-beats-market-expectations-with-eps-of-0-92-in-q4/">Tapestry, Inc. (TRP) Beats Market Expectations with EPS of $0.92 in Q4</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Tapestry, Inc. (TRP) Beats Market Expectations with EPS of $0.92 in Q4

Table of Contents

Tokenist

Other articles published on Aug 15, 2024

MetaMask Card Launched: Ready to Spend Crypto Instantly?

OpenOcean’s DEX Aggregator Hits Bitcoin’s Rootstock L2

Nasdaq and BlackRock Propose Options for Spot Ethereum ETF: SEC Decision Expected by April 2025

New DeFi protocol Nudge aims to unlock hidden value in users’ wallets

Ethereum’s Vitalik Makes Major ETH Transfer to Kraken

Franklin Templeton Unveils U.S. Money Fund on Arbitrum

Join our free newsletter for daily crypto updates!