- Tapestry’s net loss contracts to £224.50 million in the fourth quarter.
- The fashion firm registers £546 million in revenue in the recent quarter.
- The American multinational boasts £1.07 billion of cash at the end of Q4.
Tapestry Inc. (NYSE: TPR) published its quarterly financial results on Thursday that came in stronger than what experts had forecast. On the back of its hawkish performance in the fiscal fourth quarter, shares of the company were reported about 2.9% up in premarket trading on Thursday. Tapestry had reported £541 million of loss in the prior quarter.
Including the price action in premarket trading, Tapestry is now trading at £11.91 per share. In comparison, the stock was seen trading at as low as £8.08 per share in late March when COVID-19 pushed it into closing its stores temporarily. Interested in trading stocks in 2020? Here’s how you can easily buy shares online.
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Tapestry’s Q4 financial results versus analysts’ estimates
The parent organisation of prominent brands like Kate Spade, and Coach, reported £224.50 million of loss in the fourth quarter that translates to 81 pence a share. In comparison, Tapestry had recorded £113.77 million of net income or 38.94 pence per share in the same quarter last year.
On an adjusted basis, the luxury fashion holding company saw 19.09 pence of loss per share in the quarter that concluded on 27th June. In terms of revenue, Tapestry registered £546 million that was significantly lower than £1.15 billion in the comparable quarter of 2019.
According to FactSet, experts had forecast the company to print a lower £511.50 million in revenue in the fiscal fourth quarter. Their estimate for per-share loss was capped at a higher 42.76 pence. According to the Interim CEO Joanne Crevoiserat:
“While the backdrop remains volatile, it has not changed our long-term objectives. Rather, it has been a catalyst to accelerate our strategic agenda. Through our Acceleration Program, we are transforming into a world-class consumer centric organisation that is more agile and data-driven with a digital-first mindset.”
Tapestry boasts £1.07 billion of cash at the end of Q4
Tapestry also highlighted on Thursday that the majority of the stores that it directly owns were reopened in China in the recent quarter that helped it recover to the growth zone in the largest Asian economy.
The American multinational boasted £1.07 billion of cash as of the end of the fourth quarter including a revolving credit line that is valued at £534.50 million.
Tapestry tanked roughly 20% in the stock market last year. At the time of writing, the New York-based multinational fashion holding company is valued at £3.29 billion.