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$TPR: Kate Spade Weakness Ate the Beat and Cut the Outlook
Tapestry shares plunge ~17% as Q2 guidance miss and soft Kate Spade comps outweigh the $1.32 EPS beat.
Key Points
- Q2 EPS of $1.32 beat consensus of $1.26, but shares fell ~17%.
- Kate Spade same-store sales missed expectations, signaling mid-tier luxury weakness.
- Full-year guidance lowered due to soft consumer discretionary demand.
- Market repricing Tapestry’s valuation multiple amid margin compression fears.
What To Watch
- Peer earnings from Capri Holdings ($CPRI) and Michael Kors ($MK) for sector confirmation.
- Next quarter’s same-store sales data for Kate Spade to assess trend reversal.
- Promotional activity levels and inventory clearance progress in Q3.