Tapestry (NYSE:TPR) stock rose 2.6% in premarket trading Thursday after the company unveiled better-than-anticipated earnings and revenue for the fiscal second quarter.
Concretely, the luxury fashion company posted earnings per share (EPS) of $1.63, topping the consensus estimates of $1.46. Quarterly revenue came in at $2.1 billion, also above the expectations of $2.05 billion.
Tapestry reported $824.9 million in inventory, compared to the estimated $880.7 million. Moreover, its gross margin improved by 300 basis points compared to the previous year.
Looking forward to fiscal year 2024, Tapestry raised its earnings guidance, and now expects annual earnings per diluted share of $4.20 to $4.25, compared to the $4.10 to $4.15 it forecasted earlier.
The firm anticipates revenue to be around $6.7 billion for the year, which is slightly below the consensus estimate of $6.73 billion.
Tapestry also plans to continue rewarding its shareholders, expecting to return approximately $325 million through dividends, which corresponds to an anticipated annual dividend rate of $1.40 per share. This represents a 17% increase from the previous year.
In addition, the company's Board of Directors has announced a quarterly cash dividend of $0.35 per common share, which will be payable on March 25, 2024, to shareholders of record as of March 8, 2024.
“Moving forward, we have an unwavering commitment to deliver sustainable growth and shareholder value,” said Tapestry CEO Joanne Crevoiserat.
“We will continue to put the consumer at the center of everything we do, building our brands for the future and harnessing our data-driven, customer engagement platform to enhance creativity, speed, and agility.”