Luxury fashion brand, Tapestry, Inc. (NYSE:TPR), recently announced its quarterly dividend for the second quarter of 2017. The announcement comes shortly after Tapestry published its impressive Q1 earnings report which showed a significant increase in EPS and revenue compared to the previous year. The company’s healthy financial performance is likely due to its focus on premium products and lifestyle brands that cater to a discerning clientele.
The quarterly dividend amounts to $0.30 per share and will be given to stockholders of record on June 9th. The payout date for this dividend is June 26th, representing an annualized dividend of $1.20 with a yield of 2.72%. This announcement follows reports that Tapestry beat analyst estimates with a revenue of $1.51 billion in Q1, compared to the projected $1.44 billion.
Tapestry operates three main segments – Coach, Kate Spade and Stuart Weitzman, each catering to different market segments but all offering luxury accessories and lifestyle brands. The Coach segment handles global sales through various channels such as coach-operated stores, internet sales and shop-in-shops, wholesale deals with third-party distributors, among others. This segment has been particularly successful for Tapestry due to its popular brand image and extensive customer base.
It is not surprising then that analysts forecasted another strong quarter for Tapestry, with an expected earning per share of $3.88 by year-end when combined with previous results.
Overall, it seems that Tapestry continues to thrive in an industry where competitors may struggle at times due to economic downturns or fluctuations in consumer spending habits. With their focus on high-quality product offerings across multiple markets segments coupled with strategic partnerships around the world, it looks like Tapestry will continue making waves in the luxury fashion space for some time yet.
Investors should take note that while it is not guaranteed that dividends will always be paid, companies usually distribute dividends when their financials are healthy and in a good position to do so. For Tapestry investors, this announcement reflects positively on the company’s strong financial performance, making it an attractive investment option for those seeking a stable income or long-term growth.
TPR
Updated on: 21/05/2023
Financial Health
Neutral
Debt to equity ratio:
Price to earnings ratio:
Price to book ratio:
Social Sentiments
We did not find social sentiment data for this stock
Analyst Ratings
There are no analysts data to display
Tapestry: A Diverse Luxury Accessories Provider with Positive Momentum
Tapestry, the parent company of luxury brands Coach, Stuart Weitzman, and Kate Spade, has experienced a decrease in dividend by an average of 6.6% per year over the last three years. However, Tapestry has increased its dividend payout every year for the last decade and has a current dividend payout ratio of 28.4%, which indicates that its dividend is properly covered by earnings. Also, experts anticipate that the company will earn $4.16 per share next year, which means that Tapestry will continue to cover its annual dividend value of $1.20 with an expected future payout ratio of 28.8%.
On Friday, TPR stock opened at $44.13. The stock’s 50-day moving average price was at $41.03 while its 200-day moving average price was at $40.19 in addition to having a 1-year low record of $27.53 and a 1-year high of $47.48.
The luxury accessories provider Tapestry has a diverse range of products available through various business segments such as Coach, Kate Spade, and Stuart Weitzman product lines; distributed via proprietary and leased stores along with online platforms.
According to Bloomberg.com data available on their website on May 14th, three analysts had given Tapestry’s stock a hold rating while fifteen analysts had assigned it a buy rating with an average target price standing at $48.29.
Several institutional investors such as B.Riley Wealth Advisors Inc., Thrivent Financial for Lutherans, Hudson Bay Capital Management LP, Hancock Whitney Corp alongside First Trust Advisors LP have bought large stakes in the company recently with hedge funds accounting for about 92% ownerships of Tapestry’s stocks.
In conclusion, while certainly subject to fluctuation like any other publicly traded entity in this space during uncertain times economic-wise globally due to COVID-19 related disruptions particularly within retail sector, Tapestry appears to be a robust firm with an array of products within its stable that offers a lot of value to customers. Its stock has garnered decent interest among equities analysts because of its growth and positive momentum.
