Despite a Record Quarter, I'm Still Not Sold on Tapestry Stock
(NYSE: TPR) is the umbrella company that owns Coach, Kate Spade, and Stuart Weitzman. It is also looking to buy peer Capri Holdings (NYSE: CPRI), adding nameplates Versace, Jimmy Choo, and Michael Kors to the mix to create a giant luxury brand company.
It seems Tapestry is working from a position of strength, as well, given a strong top and bottom line showing in the fiscal first quarter of 2024. But dig a little, and there are some issues to worry about.
Sales chimed in at $1.5 billion at Tapestry in the fiscal first quarter of 2024. Gross margin improved by 250 basis points. Adjusted earnings of $0.93 per share were up 18% year over year. According to the headline of the earnings release, "Tapestry, Inc. delivers record first quarter revenue and EPS."
Source Fool.com
