Yahoo Finance Interested In Tapestry Inc (NYSE:TPR)? Here’s How It Performed Recently
Examining how Tapestry Inc (NYSE:TPR) is performing as a company requires looking at more than just a years’ earnings. Below, I will run you through a simple sense check to build perspective on how Tapestry is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its luxury industry peers. View our latest analysis for Tapestry
How Did TPR’s Recent Performance Stack Up Against Its Past?
I look at the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This blend allows me to examine different stocks in a uniform manner using the most relevant data points. For Tapestry, its most recent trailing-twelve-month earnings is US$337.50M, which, relative to last year’s level, has plunged by a large -35.18%. Given that these values are somewhat nearsighted, I’ve determined an annualized five-year value for TPR’s net income, which stands at US$700.41M This doesn’t look much better, since earnings seem to have gradually been diminishing over time.
Why is this? Well, let’s look at what’s occurring with margins and if the whole industry is experiencing the hit as well. Revenue growth over the last few years, has been positive, yet earnings growth has been declining. This implies that Tapestry has been increasing expenses, which is harming margins and earnings, and is not a sustainable practice. Inspecting growth from a sector-level, the US luxury industry has been growing, albeit, at a subdued single-digit rate of 7.19% in the prior year, and 4.67% over the past half a decade. This suggests that whatever uplift the industry is enjoying, Tapestry has not been able to realize the gains unlike its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Usually companies that experience a prolonged period of diminishing earnings are undergoing some sort of reinvestment phase with the aim of keeping up with the recent industry expansion and disruption. I suggest you continue to research Tapestry to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for TPR’s future growth? Take a look at our free research report of analyst consensus for TPR’s outlook.
Financial Health: Is TPR’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2018. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
