Tapestry misses by $0.04, misses on revs; guides FY19 EPS below consensus, slightly lowers FY19 revs guidance
- Reports Q2 (Dec) earnings of $1.07 per share, excluding non-recurring items, $0.04 worse than the S&P Capital IQ Consensus of $1.11; revenues rose 0.9% year/year to $1.8 bln vs the $1.86 bln S&P Capital IQ Consensus.
- Net sales for Coach totaled $1.25 billion for the second fiscal quarter as compared to $1.23 billion in the prior year, an increase of 2% on a reported and constant currency basis. Global comparable store sales increased 1%, including a benefit of approximately 100 basis points driven by an increase in global e-commerce.
- Net sales for Kate Spade totaled $428 million for the second fiscal quarter as compared to $435 million in the prior year, a decrease of 1% on a reported and constant currency basis. Global comparable store sales declined 11%, including the positive impact of approximately 200 basis points from global e-commerce.
- Net sales for Stuart Weitzman totaled $124 million for the second fiscal quarter compared to $121 million reported in the same period of the prior year, an increase of 3% on a reported basis and 4% in constant currency.
- Inventory was $732 million at the end of quarter versus ending inventory of $666 million in the year ago period. The increase over prior year was primarily driven by regional distributor buyback activity over the past twelve months.
- Co issues downside guidance for FY19, sees EPS of $2.55-2.60, excluding non-recurring items, vs. $2.78 S&P Capital IQ Consensus. The Company also expects revenues for fiscal 2019 to increase low-to-mid-single-digit rate from fiscal 2018. Previous Guidance was for revs to increase at a mid-single-digit rate from fiscal 2018 to $6.1-$6.2 billion.
- Co added, "In light of our second quarter results and the uncertain global environment, we are updating our outlook for the balance of the fiscal year revising our adjusted earnings per diluted share outlook for FY19 to $2.55 to $2.60."
No comments:
Post a Comment