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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Active-Investors.com is currently working on the research report for Forward Industries, Inc. (NASDAQ: FORD), which also belongs to the Consumer Goods sector as the Company Tapestry. Do not miss out and become a member today for free to access this upcoming report at:
www.active-investors.com/registration-sg/'symbol=FORD
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Tapestry most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
www.active-investors.com/registration-sg/'symbol=TPR
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.
Cash Matters
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.
Outlook
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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