NYSE$TPR

Tapestry, Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Tapestry's Q3 results were impacted by the COVID-19 pandemic, with net sales totaling $1.07 billion compared to $1.33 billion in the prior year. The company is taking mitigating actions to reinforce liquidity and financial flexibility.

Tapestry Inc. reported a significant weakening of results in the fiscal third quarter due to the global expansion of the novel coronavirus. Net sales totaled $1.07 billion, a decrease from $1.33 billion in the prior year. The company is implementing aggressive measures to maintain a strong financial position and adapt to changing consumer behaviors.

  • Net sales totaled $1.07 billion, compared to $1.33 billion in the prior year.
  • Gross profit was $616 million on a reported basis, with a gross margin of 57.4%.
  • Operating loss was approximately $685 million on a reported basis.
  • The company is taking aggressive actions to preserve liquidity and enhance financial flexibility, including SG&A savings, inventory management, and capex reduction.

Headline financials

Total Revenue

$1.07B

Previous: $1.33B-19.4%
EPS (adj)

-$0.27

Previous: $0.42-164.3%
Total Coach Stores

972

Previous: 989-1.7%
Total Kate Spade Stores

424

Previous: 427-0.7%
Capital Expenditures

-$173M

Previous: -$184M+6.1%
Free Cash Flow

-$850M

Previous: -$66.8M-1172.5%
Net Income

-$677M

Previous: $117M-676.7%
Operating Income

-$686M

Previous: $106M-747.9%
Gross Profit

$616M

Previous: $916M-32.7%
Cash & Equivalents

$743M

Previous: $1.08B-30.9%
Total Assets

$7.74B

Previous: $6.97B+11.1%
Stock-Based Comp

$13.2M

Previous: $22.3M-40.8%

Revenue & EPS history

Tapestry · Revenue · Quarterly

$1.07B

Q3 2020-19.4%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Tapestry · $1.07B total across 3 segments · Q3 2020

  • Total Coach
    $773M-19.9%
  • Total Kate Spade
    $250M-11.2%
  • Stuart Weitzman
    $50.7M-40.6%

Forward guidance

Due to the dynamic nature of the Covid-19 crisis and lack of visibility, the potential financial impact to our business cannot be accurately projected. Therefore, the Company is not providing guidance for its fiscal fourth quarter and full year 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.2%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.7%

Avg return

30 days after

56%

40 / 71 earnings

Positive

+18.8%

Q3 2022

Best reaction

-20.2%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+1.7%-12.0%-6.0%
Q2 2026+10.2%+17.9%+11.0%
Q1 2026-9.5%-6.7%+6.4%
Q3 2025+3.6%+11.8%+5.6%
Q2 2025+12.0%+10.9%+2.1%
Q1 2025+4.9%+2.8%+25.1%
Q4 2024+6.4%+6.4%+12.6%
Q3 2024+2.8%+8.0%+11.3%
Q2 2024+4.1%+5.8%+16.7%
Q1 2024+2.4%+11.1%+22.1%
Q4 2023+0.8%-14.2%-22.7%
Q3 2023+10.9%+12.8%+14.9%
Q2 2023+2.8%+4.4%-4.3%
Q1 2023+13.3%+12.0%+16.6%
Q4 2022-0.8%-1.6%+2.1%
Q3 2022+18.8%+24.5%+23.3%
Q2 2022-3.8%+0.0%-15.6%
Q1 2022+6.9%+7.0%+1.5%
Q4 2021-2.1%+4.5%-2.6%
Q3 2021+1.5%-3.9%-11.7%
Q2 2021+8.5%+10.8%+21.1%
Q1 2021+4.3%+12.9%+36.1%
Q4 2020+2.1%-1.7%+3.5%
Q3 2020-11.1%-13.4%-20.2%
Q2 2020-1.5%+0.7%-23.6%
Q1 2020-2.2%+2.7%-4.0%
Q4 2019-20.2%-15.8%+0.7%
Q3 2019+4.9%+0.1%-1.6%
Q2 2019-13.9%-10.1%-14.7%
Q1 2019+3.7%+4.9%-6.8%
Q4 2018+9.7%+8.3%+5.3%
Q3 2018-13.8%-14.2%-18.7%
Q2 2018+11.4%+9.1%+15.5%
Q1 2018-3.4%-1.6%+1.2%
Q4 2017-15.0%-15.7%-13.1%
Q3 2017+10.1%+10.1%+19.2%
Q2 2017+5.1%+2.2%+6.8%
Q1 2017-1.2%-1.5%+1.1%
Q4 2016-4.5%-5.1%-9.7%
Q3 2016+4.5%
Q2 2016+12.7%
Q1 2016+2.2%
Q4 2015+4.3%
Q3 2015-9.0%
Q2 2015+2.0%
Q1 2015-6.5%
Q4 2014+2.3%
Q3 2014-11.4%
Q2 2014-6.1%
Q1 2014-10.4%
Q4 2013-8.2%
Q3 2013+11.2%
Q2 2013-16.1%
Q1 2013+6.0%
Q4 2012-17.7%
Q3 2012-4.0%
Q2 2012+7.9%
Q1 2012-0.4%
Q4 2011+1.2%
Q3 2011+0.9%
Q2 2011+0.7%
Q1 2011-0.5%
Q4 2008-1.7%
Q4 2010-1.7%
Q3 2010-6.5%
Q3 2009-6.5%
Q2 2010-3.5%
Q2 2009-3.5%
Q1 2009+3.5%
Q4 2009+3.5%
Q1 2010+3.5%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro