Tapestry, Inc. Anticipates Strong Q2 Earnings Amid Record Stock Performance
Luxury retailer Tapestry, Inc. (TPR) is poised to release its fiscal second-quarter earnings for 2025 on Thursday, February 13, after demonstrating impressive market growth.
Expectations for Earnings Growth
Analysts forecast that TPR will report earnings of $1.72 per share on a diluted basis, representing a 5.5% increase from $1.63 per share in the same quarter last year. The company has a track record of exceeding Wall Street’s earnings per share (EPS) estimates over the last four quarters.
Full-Year Projections Show Promise
Looking ahead, analysts predict that TPR’s EPS for the full fiscal year will be $4.62, a 7.7% rise from last year’s $4.29. The EPS is expected to grow further to $5 in fiscal 2026, marking an 8.2% increase year over year.
Stock Performance Exceeds Market Benchmarks
Over the past 52 weeks, TPR shares have significantly outperformed the S&P 500, which recorded gains of 25%. TPR’s stock has surged by 102.1% during this same period, surpassing the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 32% increases.
Continued Growth Fuels Investor Confidence
Several factors contribute to TPR’s growth trajectory, including global expansion, operational efficiency, and strong cash flow. The company has successfully attracted younger consumers with its omnichannel strategy. Coach, its flagship brand, has driven this growth through effective marketing and margin expansion. In North America, TPR gained an impressive 1.4 million new customers, indicative of its broadening market appeal.
On November 7, following the release of its Q1 results, TPR shares rose by more than 3%. The adjusted EPS reached $1.02, a 9.7% improvement from the previous year, with revenues hitting $1.51 billion, surpassing expectations of $1.47 billion.
Analyst Ratings Reflect Optimism
Analysts show a moderately bullish outlook for TPR stock, assigning it a “Moderate Buy” rating overall. Among the 21 analysts covering the stock, 13 recommend a “Strong Buy,” one opts for a “Moderate Buy,” while seven suggest a “Hold.” Though TPR currently trades above its average price target of $68.78, the highest target of $87 indicates a potential upside of 17.5%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
