Luxury brands diverge: Tapestry stock rises while Capri slides after earnings

  • 📰 CNBC
  • ⏱ Reading Time:
  • 47 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

Kate Spade owner Tapestry beat analyst expectations Thursday and raised its annual profit forecast, a day after Capri's disappointing third quarter earnings.

Tapestry's gains, sending the stock up over 3% Thursday, came a day afterreport. Capri shares fell more than 25% over the past two days after it lowered its fiscal fourth quarter and fiscal 2024 outlook, and it missed estimates across revenues, EPS and margins.

Tapestry has spent years retooling its brands and making them relevant for Gen Z and millennial consumers, said Ian Schatzberg, CEO and co-founder of brand agency General Idea, who has worked with Capri and Tapestry. Tapestry reported per-share earnings of $1.36 on Thursday, topping estimates of $1.27, according to a survey of analysts conducted by Refinitiv. Tapestry beat EPS estimates three times in the last four quarters.

Patel said the "primary culprit" of Capri's shortfall was a decline in wholesale business — which has been weak across the board for global brands due to inventory challenges. Schatzberg said a crucial component of Tapestry's success has been its emphasis on creating stories and narratives around its products. He anticipates fierce competition among accessible luxury companies over the next few years to pin down brand marketing and attract younger audiences.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Michael Kors parent Capri stock slides 19% premarket after earnings miss and soft guidanceCapri Holdings Ltd. stock slid 19% in premarket trade Wednesday, after the parent of Michael Kors, Jimmy Choo and Versace missed profit and revenue consensus...
Source: MarketWatch - 🏆 3. / 97 Read more »

Bain: China’s Luxury Market Contracted 10 Percent in 2022The consultancy firm expects growth in the sector to resume in 2023, with sales returning to the 2021 level as soon as the first half.
Source: wwd - 🏆 24. / 68 Read more »