Why Tapestry Stock Jumped 10% Today
Shares of Tapestry (NYSE: TPR), a retailer that owns the Coach, Kate Spade, and Stuart Weiztman brands, rose roughly 10% on Thursday. The big story was the company's fiscal first-quarter 2022 earnings update, which hit Wall Street before the open of trading today. It was pretty good reading, but it was the outlook for the rest of the year that likely got investors so excited.
Tapestry's first quarter revenue came in at $1.48 billion, up 26% from a year ago and 9% higher than pre-pandemic levels. Digital sales increased 50% year over year.
Regional highlights included North American sales growth of 40% and growth of 25% in China. Gross profit margin increased to 72.2% from 70.8%. And adjusted earnings per share (EPS) came in at $0.82, up from $0.58 a year ago. Analysts had been calling for EPS of $0.69 so Tapestry soundly beat the Street's number. Investors tend to like that sort of thing.
Source Fool.com
