What happened
Shares of Tapestry, Inc. (TPR 1.68%), a company with a collection of luxury brands including Coach, Kate Spade New York, and Stuart Weitzman, are trading 13% higher as of 12:57 p.m. EDT Tuesday, after the company released strong fourth-quarter results.
So what
Fourth-quarter and fiscal-year net sales jumped 31%, driven by organic growth and the Kate Spade acquisition. More specifically, fourth-quarter net sales reached $1.48 billion, slightly ahead of analysts' estimates, and adjusted earnings per share checked in at $0.60, also ahead of analysts' estimates calling for $0.57 per share.
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"Our strong fourth-quarter results capped an excellent FY18 performance for Tapestry, which demonstrated the power of our multi-brand model. We achieved our annual sales and operating income guidance, driving significant growth while earnings per share outpaced our forecast." said Victor Luis, Chief Executive Officer of Tapestry, in a press release.
Now what
The fourth quarter was a strong end to the fiscal year, with Tapestry recording positive comparable-store sales, thanks to strong performance in North America, and improving gross margins. Management anticipates full-year fiscal 2019 sales to range between $6.1 billion to $6.2 billion, ahead of average analyst estimates of $6.08 billion.
