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US Markets
Tapestry Raises Full-Year Outlook After Third-Quarter Beat; Stock Falls Amid Subdued Kate Spade Views
Tapestry (TPR) raised its fiscal 2026 outlook after delivering a third-quarter beat, but provided a subdued fourth-quarter sales guidance for its Kate Spade brand, sending the luxury fashion company's shares lower Thursday.The Coach parent now anticipates full-year adjusted revenue in the area of $7.95 billion, up from its previous outlook of more than $7.75 billion. Adjusted earnings are pegged at around $6.95 a share versus its prior guidance range of $6.40 to $6.45. The current consensus on FactSet is for non-GAAP EPS of $6.53 and sales of $7.83 billion.For the quarter ended March 28, non-GAAP EPS jumped to $1.66 from $1.03 a year earlier, while net sales climbed 21% to $1.92 billion. Wall Street's views were for $1.30 and $1.79 billion, respectively.For the ongoing quarter, the company projects EPS of about $1.20, Chief Financial Officer and Chief Operating Officer Scott Roe said on an earnings conference call Thursday, according to a FactSet transcript."For (the fourth quarter) specifically, our guidance embeds pro-forma revenue growth of low-double digits on both a reported and a constant currency basis," Roe told analysts. This incorporates a low-teens growth rate at Coach and a high-single-digit decline at Kate Spade, according to Roe.Tapestry shares were down 10% in afternoon trade.Sales at the Coach brand jumped 31% to $1.70 billion in the third quarter, while Kate Spade saw a 10% drop to $219.6 million.Although top-line trends at Kate Spade improved sequentially, they fell "slightly below expectations, which included pressure from our strategic pullback in promotions at retail," Chief Executive Joanne Crevoiserat said on the call."We also know that turnarounds take time and the path to long-term growth is not always linear," Crevoiserat said. "We are continuing to track the leading indicators of growth, informed by our success and learnings at Coach."In fiscal 2026, the company now expects to return $1.6 billion to shareholders through dividends and share buybacks, up from its previous outlook of $1.5 billion.Price: $131.48, Change: $-17.35, Percent Change: -11.66%
$TPR
Australia
Whirlpool Outlook Cut Comes as Iran War Drives Appliance Industry Downturn; Shares Tumble
Whirlpool (WHR) lowered its full-year guidance late Wednesday as record-low consumer sentiment triggered by the Iran war drove a downturn in the US appliance industry, company officials said Thursday.Shares of the appliance maker slumped 12% intraday Thursday. The stock is down 33% so far this year.The company now expects adjusted per-share earnings of $3 to $3.50 in 2026, compared with its previous estimate of $7. Analysts in a FactSet survey expect $4.83. Full-year revenue is pegged at about $15 billion, down from its prior guidance of $15.30 billion to $15.60 billion. Wall Street is looking for $15.26 billion."Consumer sentiment was already on a very low level by any historical standard, but the war in Iran amplified consumer concerns about the cost of living," Chief Executive Marc Bitzer said during an earnings call on Thursday, according to a FactSet transcript.US consumer sentiment plunged to a record low in April as near-term inflation expectations logged the biggest monthly increase in a year, the University of Michigan said last month. Energy prices have surged in the aftermath of the US-Israel war with Iran that has disrupted shipments through the Strait of Hormuz. A ceasefire between Washington and Tehran appears to be holding, with the two sides said to be closing in on a peace deal.Demand in the American appliance industry declined 7.4% in the first quarter, Bitzer told analysts."This level of industry decline is similar to what we have observed during the global financial crisis, and even higher than during other recessionary periods," he said. "While we do believe that the negative industry demand in March was somewhat of an outlier, we do not anticipate a full recovery and are now forecasting US industry demand being down by 5% on a full year base."Whirlpool reported a first-quarter adjusted loss of $0.56 per share late Wednesday, swinging from earnings of $1.70 per share a year earlier. The Street expected non-GAAP EPS of $0.38. Revenue fell 9.6% to $3.27 billion, falling short of the $3.44 billion consensus estimate."Our results in the first quarter were negatively impacted by the ongoing macroeconomic and geopolitical events that have developed since late February," Chief Financial Officer Roxanne Warner said on the Thursday call.Meanwhile, the company decided to suspend its quarterly dividend starting in the second quarter."This decision is critical to ensure we create the capacity on our balance sheet to pay down debt and fund organic growth," Warner said. Whirlpool expects to pay down more than $900 million of debt this year.The guidance cut and dividend suspension were likely needed to support Whirlpool's de-levering efforts, RBC Capital Markets analysts Mike Dahl said in a note emailed Thursday. However, these two actions may still may not be enough to "quickly fix leverage," Dahl said.Price: $47.17, Change: $-7.56, Percent Change: -13.81%
$WHR
Australia
Dutch Bros' Limited-Time Offers Contributed to Q1 Beat, But Competitive Overhang Remains, RBC Says
Dutch Bros' (BROS) solid underlying improvement continued in Q1, with limited-time offers contributing to the top and bottom line beat, but the competitive overhang remains, RBC Capital Markets said Thursday.While April same-store-sales growth of nearly 5% was only slightly above Street's 4.7% Q2 estimate, RBC believes there is room for upside given success of limited-time offers and merch drops in Q1, according to the note.Starbucks' (SBUX) North America same-store-sales acceleration in Q1 did not appear to affect Dutch Bros' traffic growth, though a competitive overhang remains, the firm said. Management also does not see any impact from Starbucks' Energy Refresher launch, the brokerage said.The company slightly raised its full-year unit growth outlook to more than 185 net adds from 181 previously, according to the firm. While Street estimates are unlikely to move much higher, RBC believes management sounded confident about potential upside.RBC maintained an outperform rating on Dutch Bros with a price target of $75.Shares of Dutch Bros fell more than 8% in Thursday trading.Price: $53.45, Change: $-5.61, Percent Change: -9.50%
$BROS