Tapestry shares surge 8%on upbeat outlook, strong Q4 results

NEW YORK - Luxury fashion house Tapestry Inc. (NYSE:TPR ) saw its shares jump 7.9% in premarket trading on Thursday after the company reported better-than-expected fourth quarter results and provided an optimistic outlook for fiscal 2025.

The Coach and Kate Spade parent posted adjusted earnings per share of $0.92 for the quarter ended June 29, beating the analyst consensus of $0.89. Revenue came in at $1.59 billion, slightly above estimates of $1.58 billion but down 2% YoY.

For fiscal 2025, Tapestry forecasts revenue of approximately $6.7 billion, ahead of Wall Street's projection of $6.65 billion. The company expects earnings per share of $4.45 to $4.50, representing mid-single digit growth compared to fiscal 2024.

"Our fourth quarter results exceeded expectations, capping a successful year," said CEO Joanne Crevoiserat. She noted the company delivered strong financial results against a "dynamic backdrop" in fiscal 2024.

Tapestry's flagship Coach brand achieved record annual revenue of over $5 billion in fiscal 2024. The company also highlighted gross margin expansion of 250 basis points and robust operating and free cash flow of over $1.1 billion for the year.

Looking ahead, management expressed confidence in driving growth and shareholder value, citing a "bold vision for the future" despite macroeconomic uncertainties.

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Source: Investing.com