Tapestry beat on earnings expectations Thursday morning, but after the stock popped initially, it fell.
There were several glaring negatives on the earnings print, which was not expected to show much growth in the first place.
Here were the results: Earnings per share for the quarter came in at an adjusted 40 cents, beating Wall Street estimates of 37 cents.
But revenue missed expectations, coming in at $1.35 million against estimates of $1.37 billion.
Total revenue declined 2.1%.
EPS declined 16.6%.
After having risen 6% initially in premarket trading Thursday, the stock fell 0.45% to $26.51 a share.
Let's take a closer look at the results.
Kate Spade revenue, which generally comprises only about 3% of total revenue, contracted 6% year-over-year to $306 million.
Global same-store-sales fell 16%.
But the reason for the poor results in the segment are ominous, especially for a brand losing sway with customers.
"Global comparable store sales declined 16%, including the negative impact of approximately 200 basis points from global e-commerce," the company said on the earnings print.
Retailers across the map are jockeying for position in e-commerce, but some are able to execute on that sales channel.
Tapestry has not succeeded in the channel.
The Kate Spade segment also lost money on an operating basis.
Elsewhere, the Stuart Weitzman brand, saw revenue fall 9% to $87 million.
The majority of Tapestry's business, the Coach brand, saw revenue rise 1% to $966 million.
Same-store-sales rose 1%.
Providing a safety net for the stock, seemingly, was the upheld forward looking guidance.
Management expects full year 2020 revenue to increase in the low single digits in percentage terms. EPS is expected to be flat in 2020.
The stock is down 24% year-to-date.
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