Tapestry (TPR) reported earnings on Thur 15 Aug 2019 (b/o)

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** charts after earnings **

Tapestry reports EPS in-line, misses on revs; guides Q1 EPS below consensus, revs below consensus; guides FY20 EPS below consensus, revs in-line; Q2 Coach comps +2%; Kate Spade comps -6% 

Reports Q4 (Jun) earnings of $0.61 per share, excluding non-recurring items, in-linewith the S&P Capital IQ Consensus of $0.61; revenues rose 2.0% year/year to $1.51 bln vs the $1.53 bln S&P Capital IQ Consensus.

Coach global comparable store sales increased 2%, including a benefit of approximately 150 basis points driven by an increase in global e-commerce.

Kate Spade global comparable store sales declined 6%, including the positive impact of approximately 600 basis points from global e-commerce

Co issues downside guidance for Q1, sees EPS of decline yr/yr from $0.48, excluding non-recurring items, vs. $0.53 S&P Capital IQ Consensus; sees Q1 revs of slightly below the prior year or below $1381.2 bln vs. $1.44 bln S&P Capital IQ Consensus.

Co issues guidance for FY20, sees EPS of even with FY19 or $2.57, excluding non-recurring items, vs. $2.85 S&P Capital IQ Consensus; sees FY20 revs of low single digits (cons +4.5%) vs. $6.3 bln S&P Capital IQ Consensus.

Guidance Details: The Company expects revenues for Fiscal 2020 to increase at a low-single-digit rate from Fiscal 2019 (Capital IQ consensus +4.5%). In addition, the Company projects earnings per diluted share to be approximately even with prior year. The primary change from the prior outlook is the expectation for more modest topline growth at Kate Spade in North America, impacting the Company's ability to leverage its strategic investments and fixed costs. Importantly, the Company continues to expect top and bottom line growth at Coach and profitability improvements at Stuart Weitzman in Fiscal 2020. Net interest expense for the year is expected to be $45 to $50 mln and the full year Fiscal 2020 tax rate is projected to be in the area of 17.5%. For the first fiscal quarter, the Company projects revenues to be slightly below prior year and earnings per diluted share to decline on a year-over-year basis. The outlook for the first fiscal quarter includes the continued impact of the Company's foundational strategic initiatives, including investments in new stores openings, distributor buybacks as well as systems.

The Company plans to return approximately $700 mln to shareholders in Fiscal 2020 through dividends and share repurchases.