Stock Monitor: Forward Industries Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 20, 2017 / Active-Investors free earnings report on Tapestry, Inc. (NYSE: TPR) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/'symbol=TPR. Tapestry reported its first-quarter fiscal 2018 (Q1 FY18) results on November 07, 2017. The leading modern luxury accessories and lifestyle brand's gross profit increased 43.26% in the reported quarter. Register today and get free access to our complimentary member's area where many more reports are available:
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Earnings Highlights and Summary
During the first quarter of fiscal 2018, Tapestry reported net sales of $1.29 billion compared to $1.04 billion in Q1 FY17, advancing 24.22% due to the acquisition of Kate Spade and Co. in July 2017. Revenue numbers' missed analysts' estimates of $1.30 billion.
The Company's gross profit was $764.40 million in the reported quarter compared to $714.70 million in Q1 FY17, reflecting growth of 6.95%. On a non-GAAP basis, the Company had a gross profit of $852.80 million in the reported quarter compared to $715.10 million in Q1 FY17, advancing 19.30%. Tapestry incurred operating loss of $21.80 million in Q1 FY18 compared to an operating income of $165.90 million in Q1 FY17 due to the reduction in gross profit and increase in selling, general, and administrative (SG&A) expenses. On a non-GAAP basis, the Company had an operating income of $168.80 million in the reported quarter compared to $176.80 million in Q1 FY17, declining 4.50% y-o-y.
Tapestry incurred a net loss of $17.70 million in the reported quarter compared to a net income of $117.40 million in Q1 FY17. On a non-GAAP basis, the Company had net income of $120.00 million in the reported quarter compared to $126.00 million in Q1 FY18. Tapestry's diluted share for Q1 FY18 was a loss of $0.06 per share compared to earnings of $0.42 per share in Q1 FY17. The Company's adjusted earnings in the reported quarter were $0.42 per share which beat analysts' estimates of $0.36 per share.
Tapestry's Segment Details
Tapestry has three business segments, namely: (i) Coach, (ii) Kate Spade, and (iii) Stuart Weitzman.
The Coach segment's net sales were $923.70 million in Q1 FY18 compared to $950.10 million in Q1 FY17, declining by 2.78% on a y-o-y basis due to a decline in sales in North America and Asia as a result of traffic and inventory challenges. The segment's gross profit was $632.10 million compared to $663.60 million in Q1 FY18, decreasing by 4.75% on a y-o-y basis due to promotional activity. The segment's operating income was $198.30 million in the reported quarter compared to $232.30 million in Q1 FY18, reflecting a decline of 14.64%, due to higher SG&A expenses.
Due to the acquisition of Kate Spade in July 2017, Tapestry reported only Q1 FY18 figures for the Kate Spade segment with net sales of $268.80 million, gross profit of $76.30 million, and operating loss of $134.90 million.
The net sales of Stuart Weitzman reflected growth of 10.17% to $96.40 million in Q1 FY18 compared to $87.50 million in Q1 FY17. The segment's gross profit was $56.00 million in the reported quarter compared to $51.10 million in Q1 FY17, advancing 9.59%. The segment's operating income surged 115.38% to $8.40 million in Q1 FY18 compared to $3.90 million in Q1 FY17.
Tapestry had cash and cash equivalents of $1.37 billion on September 30, 2017, compared to $1.00 billion on October 01, 2016. The cash outflow from operating activities was $103.80 million in Q1 FY18 compared to a cash outflow of $38.10 million in Q1 FY17. On July 11, 2017, the Company completed the acquisition of Kate Spade and Co. for a purchase price of $2.40 billion.
In fiscal 2018, Tapestry anticipates revenues between $5.80 million to $5.90 million along with operating income growth in the range of 22.00% to 25.00%. The Company expects diluted earnings to be in the band of $2.35 to $2.40 per share in fiscal 2018.
Stock Performance Snapshot
December 19, 2017 - At Tuesday's closing bell, Tapestry's stock slightly fell 0.02%, ending the trading session at $43.48.
Volume traded for the day: 1.63 million shares.
Stock performance in the last month - up 4.37%; previous three-month period - up 10.19%; past twelve-month period - up 23.24%; and year-to-date - up 24.16%
After yesterday's close, Tapestry's market cap was at $12.36 billion.
Price to Earnings (P/E) ratio was at 26.99.
The stock has a dividend yield of 3.10%.
The stock is part of the Consumer Goods sector, categorized under the Textile - Apparel Footwear & Accessories industry.
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