Tapestry Stock Fair Value – Tapestry’s Q3 Earnings Expected to Rise Despite Lower Revenues, According to Wall Street

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Tapestry ($NYSE:TPR), a leading luxury fashion company, is set to release its third quarter earnings report for September 2024. As investors eagerly await this update, Wall Street analysts have provided their predictions for the company’s financial performance. Despite a decline in revenues, Tapestry is expected to see a rise in earnings compared to the same quarter in the previous year. Tapestry, formerly known as Coach, Inc., is a global fashion company that owns popular brands such as Coach, Kate Spade, and Stuart Weitzman. The company’s stock has been steadily climbing over the past few years, with a strong focus on digital innovation and expanding its customer base. Despite these challenges, Wall Street remains optimistic about Tapestry’s performance in the upcoming quarter. Analysts predict that the company’s earnings will see a boost, citing cost-cutting measures and increased efficiency in operations as contributing factors. This is expected to offset the decline in revenues, which can be attributed to lower consumer spending and disruptions in supply chains due to the pandemic. Moreover, Tapestry has been actively working towards adapting to the changing market conditions and consumer behavior. The company has ramped up its e-commerce efforts and implemented new strategies to attract and retain customers. This has helped drive an increase in online sales and could potentially offset any loss in brick-and-mortar store sales.

Additionally, Tapestry has been expanding its presence in the Asian market, particularly in China, which has shown strong growth potential for luxury fashion brands. This shift towards international markets could also contribute to the expected rise in earnings for the company. As the company continues to navigate through the challenges posed by the pandemic, Wall Street remains optimistic about its long-term growth potential. Investors will be closely watching the upcoming report for any updates on Tapestry’s strategies and plans for the future.

Earnings

This prediction comes after the company’s earning report for FY2024 Q2 ending December 31, 2021, in which Tapestry earned a total revenue of 2141.2 million USD and a net income of 317.9 million USD. While this may seem like a promising result, it is important to note that there has been a 5.7% increase in total revenue compared to the previous year, but a 3.6% decrease in net income. This suggests that although Tapestry’s overall revenue has gone up, their profits have taken a hit. It is also worth mentioning that Tapestry’s total revenue has fluctuated over the past three years, reaching a high of 2141.2 million USD and a low of 2084.5 million USD. This indicates that the company’s performance may be affected by various factors such as market conditions and consumer behavior. This could be due to the company’s strong brand portfolio, which includes popular luxury brands such as Coach, Kate Spade, and Stuart Weitzman. Additionally, Tapestry has continued to invest in e-commerce and digital strategies, which could help boost their revenue in the coming months.

However, it is important to note that lower revenues can still have a significant impact on the company’s financial health. It will be interesting to see how Tapestry plans to address this issue and whether they will be able to maintain their profits in the long run. As always, investors should keep a close eye on Tapestry’s performance in the upcoming quarter to get a better understanding of the company’s financial stability and growth potential.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Tapestry. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Tapestry. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Tapestry. More…

Key Ratios Snapshot

Some of the financial key ratios for Tapestry are shown below. More…

Stock Price

According to recent reports from Wall Street, luxury fashion retailer TAPESTRY is expected to see an increase in their third quarter earnings, despite a slight decrease in revenues. Despite this dip in stock prices, analysts are remaining optimistic about TAPESTRY’s earnings for the third quarter. One factor that may have contributed to the lower revenues for TAPESTRY in the third quarter is the highly competitive nature of the luxury fashion market. With numerous other high-end brands vying for consumer attention and dollars, it can be challenging for any company to maintain consistent revenue growth. Despite this challenge, TAPESTRY remains a strong player in the luxury fashion industry, with a diverse portfolio of brands including Coach, Kate Spade, and Stuart Weitzman.

Their ability to appeal to a wide range of consumers and adapt to changing market trends has been key to their success. In addition to their strong brand portfolio, TAPESTRY has also made strategic investments in digital and e-commerce initiatives, which have helped drive sales and increase brand awareness. Overall, while TAPESTRY may have experienced a slight decline in stock prices and revenues, they are still expected to report strong earnings for the third quarter. With their continued focus on cost-cutting measures and strategic investments in digital capabilities, the company remains well-positioned to weather any challenges in the luxury fashion market and continue to deliver value to their shareholders. Live Quote…

Analysis – Tapestry Stock Fair Value

After conducting a thorough analysis of TAPESTRY‘s financials, GoodWhale has determined that the fair value of their stock is approximately $43.6. This was calculated using our proprietary Valuation Line, which takes into account various financial metrics and market trends. Currently, TAPESTRY’s stock is being traded at $47.48, which is 9.0% higher than our fair value estimate. This indicates that the stock is currently overvalued and may not be a good investment at its current price. One factor that may be contributing to the overvaluation of TAPESTRY’s stock is their recent financial performance. While they have shown consistent growth in revenue and earnings over the past few years, their most recent quarterly report showed a decrease in both metrics. This could be a cause for concern among investors and may explain the higher stock price. Additionally, it is worth noting that the retail industry as a whole has been facing challenges in recent years, with increasing competition from online retailers and changing consumer preferences. This could also contribute to the overvaluation of TAPESTRY’s stock, as investors may be optimistic about the company’s ability to navigate these challenges. Overall, while TAPESTRY may be a strong and successful company, GoodWhale believes that the current stock price does not accurately reflect its fair value. As such, we would caution investors against purchasing TAPESTRY stock at its current price and recommend waiting for a potential dip in the stock before considering investing. More…

Peers

In the luxury goods industry, Tapestry Inc. competes against companies like CCC SA, Prada SpA, and Nordstrom Inc. While each company has its own unique strengths, Tapestry Inc. has been able to compete effectively by offering a combination of high-quality products, exclusive designs, and excellent customer service. As a result, Tapestry Inc. has been able to maintain a loyal customer base and grow its business.

– CCC SA ($LTS:0LS5)

CCA SA is a Chile-based holding company engaged in the telecommunications sector. The Company’s main shareholder is América Móvil, S.A.B. de C.V. (AMX), through its subsidiary Telmex Internacional, S.A.B. de C.V. (Telmex). CCA SA’s subsidiaries include VTR Chile S.A., an operator of a pay television and Internet service; VTR Banda Ancha Ltda., a provider of broadband Internet; Willax TV Ltda., an over-the-air television broadcaster; Nextel Chile Ltda., a provider of digital mobile radio communications services; and Núcleo Ltda., a provider of telecommunications infrastructure.

– Prada SpA ($SEHK:01913)

Prada SpA is an Italian luxury fashion house that designs, manufactures, and markets men’s and women’s clothing, footwear, handbags, and other accessories. The company has a market cap of 96.72B as of 2022 and a Return on Equity of 11.91%. Prada was founded in 1913 by Mario Prada and is currently headed by Miuccia Prada. The company’s products are sold through its own boutiques, department stores, and online.

– Nordstrom Inc ($NYSE:JWN)

Nordstrom, Inc. is a leading fashion retailer offering quality apparel, shoes, and accessories for men, women, and children. Nordstrom operates more than 120 stores in the United States and Canada, and also has an e-commerce business. The company’s strong performance is due in part to its focus on customer service and providing a unique shopping experience. Nordstrom’s market cap is 3.15B as of 2022, and its ROE is 70.09%. Nordstrom is a publicly traded company on the Nasdaq stock exchange.

Summary

Wall Street analysts predict that Tapestry‘s earnings will increase compared to the same quarter last year, despite lower revenues. This suggests that the company has implemented cost-cutting measures or other strategies to improve profitability. Investors should pay attention to both the earnings and revenue numbers, as well as any commentary from the company on their future plans.

It will also be important to assess how Tapestry’s performance compares to industry peers and overall market trends. Any unexpected deviation from expectations could significantly impact the stock price, making it a stock to watch closely for investors.