According to Zacks, “Shares of Tapestry have slid and underperformed the industry in the past three months. The stock came under pressure following the company’s lower-than-expected second-quarter fiscal 2019 results and soft view. While overall net sales improved marginally, earnings came in line with the year-ago period. The company’s performance did not live up to its expectation on account of volatile macroeconomic environment and geopolitical issues. Moreover, fall in Kate Spade sales was also not well perceived. Although management expects comps for the segment to improve in the second half, analysts remain skeptical about the turnaround. Further, Tapestry expects operating income and earnings per share to fall in the third quarter. Significant increase in SG&A expenses may be cited as one of the reasons behind the same. Nevertheless, we cannot ignore the company’s transformation initiatives revolving around product, stores and marketing.”
A number of other equities research analysts have also recently commented on TPR. Needham & Company LLC lowered their price objective on shares of Tapestry to $42.00 and set a buy rating on the stock in a research note on Friday, February 8th. ValuEngine cut shares of Tapestry from a sell rating to a strong sell rating in a research note on Thursday, March 14th. Credit Suisse Group lowered their price objective on shares of Tapestry from $54.00 to $45.00 and set an outperform rating on the stock in a research note on Friday, February 8th. Barclays set a $41.00 price objective on shares of Tapestry and gave the company a buy rating in a research note on Saturday, February 9th. Finally, TheStreet cut shares of Tapestry from a b- rating to a c+ rating in a research note on Thursday, March 7th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and twenty-two have issued a buy rating to the company’s stock. The company presently has a consensus rating of Buy and an average price target of $49.75.
Shares of NYSE TPR opened at $32.55 on Thursday. The stock has a market capitalization of $9.44 billion, a P/E ratio of 12.10, a price-to-earnings-growth ratio of 1.17 and a beta of 0.71. Tapestry has a 52 week low of $30.69 and a 52 week high of $55.50. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.94 and a current ratio of 2.62.
Tapestry (NYSE:TPR) last issued its quarterly earnings data on Thursday, February 7th. The luxury accessories retailer reported $1.07 EPS for the quarter, missing the Zacks’ consensus estimate of $1.11 by ($0.04). The business had revenue of $1.80 billion during the quarter, compared to analyst estimates of $1.86 billion. Tapestry had a net margin of 12.18% and a return on equity of 23.84%. Tapestry’s revenue was up .9% on a year-over-year basis. During the same period in the previous year, the company posted $1.07 earnings per share. As a group, equities research analysts expect that Tapestry will post 2.6 earnings per share for the current year.
The company also recently declared a quarterly dividend, which was paid on Monday, April 1st. Shareholders of record on Friday, March 8th were paid a dividend of $0.3375 per share. The ex-dividend date of this dividend was Thursday, March 7th. This represents a $1.35 annualized dividend and a dividend yield of 4.15%. Tapestry’s dividend payout ratio is currently 51.33%.
Several institutional investors have recently added to or reduced their stakes in TPR. Bank of New York Mellon Corp boosted its stake in shares of Tapestry by 0.7% during the 3rd quarter. Bank of New York Mellon Corp now owns 3,889,240 shares of the luxury accessories retailer’s stock worth $195,512,000 after purchasing an additional 28,796 shares during the last quarter. Martingale Asset Management L P boosted its position in shares of Tapestry by 253.8% in the third quarter. Martingale Asset Management L P now owns 26,235 shares of the luxury accessories retailer’s stock worth $1,319,000 after acquiring an additional 18,820 shares during the last quarter. Standard Life Aberdeen plc boosted its position in shares of Tapestry by 5.4% in the third quarter. Standard Life Aberdeen plc now owns 269,498 shares of the luxury accessories retailer’s stock worth $13,548,000 after acquiring an additional 13,754 shares during the last quarter. LPL Financial LLC boosted its position in shares of Tapestry by 17.7% in the third quarter. LPL Financial LLC now owns 25,453 shares of the luxury accessories retailer’s stock worth $1,280,000 after acquiring an additional 3,825 shares during the last quarter. Finally, Paloma Partners Management Co acquired a new stake in shares of Tapestry in the third quarter worth approximately $779,000. 90.87% of the stock is currently owned by institutional investors.
Tapestry Company Profile
Tapestry, Inc provides luxury accessories and lifestyle brands in the United States, Japan, China, Hong Kong, Macau, East Asia, Europe, Canada, Taiwan, South Korea, Malaysia, and Singapore. It operates through three segments: Coach, Kate Spade, and Stuart Weitzman. The company offers handbags, wallets, money pieces, wristlets and cosmetic cases, key rings, and charms, as well as address books, time management accessories, travel accessories, sketchbooks, and portfolios for women; and business cases, computer bags, messenger-style bags, backpacks, totes, wallets, card cases, travel organizers, belts, footwear, watches, sunglasses, novelty accessories, and ready-to-wear for men.
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