: Tapestry stock falls after profit and sales beat expectations, but gross margin fell and outlook was downbeat #FinanceUSA #StockMarketNEWS Shares of Tapestry Inc. slid 4.2% in premarket trading Thursday,
@stockMarketNEWS 8 Days ago
Tapestry stock falls after profit and sales beat expectations, but gross margin fell and outlook was downbeat #FinanceUSA #StockMarketNEWS
Shares of Tapestry Inc. slid 4.2% in premarket trading Thursday, after the parent of Coach, Kate Spade and Stuart Weitzman branded luxury accessories reported fiscal third-quarter profit and sales that beat expectations, but gross margin that contracted and provided a downbeat earnings outlook. Net income rose to 2.7 million, or 46 cents a share, from .7 million, or 32 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 51 cents beat the FactSet consensus of 41 cents. Sales grew 11.3% to .44 billion, above the FactSet consensus of .42 billion. Coach sales rose 11% to .07 billion, topping the FactSet consensus of .06 billion, Kate Spade sales increased 19% to 1.5 million to beat expectations of 6.5 million and Stuart Weitzman sales rose 11% to .6 million to miss expectations of .5 million. Cost of sales jumped 19.6% to lower gross margin to 69.9% from 71.6%, hurt by increased freight costs. For fiscal 2022, the company expects revenue of approximately .7 billion and EPS "in the area of" .45, compared with the FactSet consensus for revenue of .75 billion and EPS of .61. The stock has plunged 34.7% year to date through Wednesday, while the S&P 500 has dropped 17.4%.