- Tapestry Inc (NYSE:TPR), the New York-based house of lifestyle brands comprising Coach, Kate Spade, and Stuart Weitzman, reported a third-quarter FY23 sales growth of 5% Y/Y to $1.51 billion, beating the analyst consensus of $1.44 billion.
- EPS of $0.78 beat the analyst consensus of $0.59.
- Gross profit rose to $1.10 billion from $1.01 billion a year ago, with margins increasing 290 basis points to 72.8%.
- Operating margin expanded 320 basis points to 15.0%, and operating income for the quarter stood at $226 million.
- Tapestry held $652 million in cash and equivalents as of Apr 1, 2023. Inventory at the end of Q3 stood at $934 million. The company said it is now on track to end the fiscal year with inventory almost the same as in the prior year.
- Repurchase: Tapestry is on track to repurchase around $700 million in common stock in the current fiscal year. During the nine months of FY23, Tapestry spent $500 million to repurchase 13.1 million shares.
- Dividend: TPR continues to anticipate paying an annual dividend of $1.20 per share, representing a 20% increase compared to the prior year, totaling about $300 million.
- Outlook: Tapestry raised its FY23 EPS outlook to $3.85-$3.90 (from $3.70-$3.75 earlier) versus the consensus of $3.71.
- The company expects FY23 sales of $6.7 billion (prior view $6.6 billion) versus the consensus of $6.64 billion.
- Price Action: TPR shares are trading higher by 7.13% at $39.79 on the last check Thursday.
- Photo Via Company
Watching Catalent; Traders Circulating Possible Rumor Suggesting Gordon Haskett Saying Activist Could Be Pressing CTLT To Sell. Believes DHR “Still” Very Interested In Acquiring Catalent
Don't turn out the Catalent light just yet. The world may have been a little too quick to buy into the idea that Danaher (DHR) has lost interest in Catalent (CTLT). Bloomberg is responsible for that buy-in as it was the one to “report” on April 17 that DHR had stopped pursuing the CTLT. Strictly speaking, that may be the case as talks could have been shelved.
