Luxury fashion conglomerate Tapestry (NYSE: TPR) will be reporting earnings this Thursday before market open. Here’s what to look for.
Tapestry met analysts’ revenue expectations last quarter, reporting revenues of $1.88 billion, up 8.9% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EBITDA estimates but full-year revenue guidance meeting analysts’ expectations.
Is Tapestry a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Tapestry’s revenue to grow 9.2% year on year, slowing from the 12.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Tapestry rarely misses Wall Street’s revenue estimates.
Looking at Tapestry’s peers in the consumer discretionary - apparel and accessories segment, some have already reported their Q3 results, giving us a hint as to what we can expect. VF Corp delivered year-on-year revenue growth of 1.2%, beating analysts’ expectations by 1.1%, and Levi's reported revenues up 4.3%, in line with consensus estimates. VF Corp traded up 7.6% following the results while Levi's was down 2.4%.
Read our full analysis of VF Corp’s results here and Levi’s results here.
There has been positive sentiment among investors in the consumer discretionary - apparel and accessories segment, with share prices up 4.7% on average over the last month. Tapestry is up 1.5% during the same time and is heading into earnings with an average analyst price target of $161.16 (compared to the current share price of $118.75).
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