Tapestry, Inc. (NYSE:TPR) stock tumbled in premarket trading Thursday despite topping Wall Street forecasts for the fourth quarter, fueled by double-digit revenue growth at its flagship Coach brand.
The parent of Coach and Kate Spade posted adjusted earnings of $1.04 per share, ahead of the $1.02 consensus, on revenue of $1.72 billion, up 8% year-over-year and above expectations.
Coach saw strong handbag revenue growth, driven by a mid-teens AUR gain for the quarter and a low-double-digit gain for the year. This reflects compelling innovation and broad-based traction across its leather goods offerings.
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Tapestry’s overall revenue growth was led by a 14% (+13% constant currency) gain at the Coach Brand with $1.425 billion in revenues. Kate Spade revenues fell 13% to $252.6 …