Tapestry (NYSE:TPR) shares soared after exceeding analysts’ third-quarter expectations. The American luxury fashion company behind Coach and Kate Spade reported adjusted earnings of 78 cents per share, topping consensus estimates of 60 cents per share, according to FactSet. It posted revenue of $1.51 billion, which was higher than calls for $1.44 billion. In addition, Tapestry raised its full-year guidance, which was also better than what analysts expected.
Cash flow from operating activities for the third quarter was an inflow of $112 million compared to an outflow of $52 million in the prior year period.
In addition, the company is raising its Fiscal 2023 revenue and earnings outlook due to its outperformance in the third fiscal quarter.
Tapestry now expects the following for Fiscal 2023, which replaces all previous guidance: Revenue approaching $6.7 billion vs. consensus of $6.63B, which is in the area of prior year and includes approximately 320 basis points of FX pressure. On a constant currency basis, revenue is expected to grow approximately 3% versus last year.
Net interest expense was approximately $30 million.
CEO Joanne Crevoiserat commented, “Our strong third quarter results were significantly ahead of expectations, demonstrating the power of brand building, customer centricity, and our agile operating model. We delivered solid revenue gains, expanded both gross and operating margin, and drove robust earnings growth.”
Tapestry is a leading New York-based house of iconic accessories and lifestyle brands consisting of Coach, Kate Spade, and Stuart Weitzman. Its shares opened Thursday up $3.50, or 9.4%, to $40.63.
