Luxury fashion conglomerate Tapestry (NYSE:TPR) will be reporting earnings tomorrow before market hours. Here's what to look for.
Tapestry beat analysts' revenue expectations by 1.4% last quarter, reporting revenues of $2.08 billion, up 2.9% year on year. It was a mixed quarter for the company, with optimistic revenue guidance for the full year but a miss of analysts' earnings estimates.
Is Tapestry a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Tapestry's revenue to be flat year on year at $1.5 billion, slowing from the 5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.68 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tapestry has missed Wall Street's revenue estimates four times over the last two years.
Looking at Tapestry's peers in the apparel, accessories and luxury goods segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Kontoor Brands's revenues decreased 5.4% year on year, beating analysts' expectations by 3.8%, and Levi's reported a revenue decline of 7.8%, in line with consensus estimates. Kontoor Brands traded up 5.7% following the results while Levi's was also up 12.3%.
Read our full analysis of Kontoor Brands's results here and Levi's results here.
Growth stocks have seen elevated volatility as investors debate the Fed's monetary policy, and while some of the apparel, accessories and luxury goods stocks have fared somewhat better, they have not been spared, with share prices down 2.1% on average over the last month. Tapestry is down 8.7% during the same time and is heading into earnings with an average analyst price target of $50.6 (compared to the current share price of $38.98).
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