Shares of luxury and branded lifestyle products provider Tapestry (NYSE:TPR) are trending marginally lower today after the company posted lower-than-anticipated fourth-quarter numbers.
In Q4, the company’s top line remained largely flat at $1.62 billion but missed the Street’s estimates by $30 million. Concurrently, EPS at $0.95 too came in lower than expectations by $0.01. Nonetheless, the figure was significantly higher than last year’s EPS of $0.78.
This enhanced bottom line came on the back of a 350-basis point expansion in Tapestry’s gross margins during the quarter. Importantly, its recent $8.5 billion acquisition of Capri Holdings further boosts its portfolio of brands which includes iconic names such as Coach, Kate Spade, and Stuart Weitzman.
The company had a cash pile of $742 million at the end of the quarter and bought back shares worth $700 million during the year. Impressively, it has boosted the quarterly dividend by 17% to $0.35 per share and anticipates doling out $1.40 per share in dividend for fiscal 2024.
For the full-year 2024, Tapestry sees revenue landing at about $6.9 billion with EPS anticipated in the range of $4.10 and $4.15.
Overall, the Street has a $51.20 consensus price target on Tapestry alongside a Moderate Buy consensus rating. This points to an attractive 49.1% potential upside in the stock.
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