Shares of Tapestry Inc. (TPR, Financial) jumped almost 2% on Tuesday after reporting first-quarter revenue of $1.36 billion and earnings of 40 cents per share. It beat analysts' earnings estimates by 3 cents, but fell $20 million short of revenue expectations.
“Fiscal first quarter revenue was consistent with our expectations. Our business internationally was stronger than in North America, where we managed continued industry headwinds," CEO Jide Zeitlin said. "Further, adjusted operating income and earnings per diluted share were better than forecast, including favorable expense timing. We repurchased $300 million of common stock during the quarter, underscoring our commitment to returning capital to shareholders.”
The gross profit for the quarter was $914 million, and the gross margin was 67.3%. On a non-GAAP basis, the gross profit was $919 million and the gross margin was 67.6%.
The operating income was $52 million and the operating margin was 3.8%. On a non-GAAP basis, the operating income was $167 million and the operating margin was 12.3%.
Looking ahead to fiscal 2020, the company expects revenue to increase at a low single-digit rate. It also projects net interest expenses for the year to be approximately $50 million.
During the second quarter, Philippe Laffont established a new position in the stock, buying 10,396 shares. John Hussman (Trades, Portfolio) and Ray Dalio (Trades, Portfolio) sold out of the stock. Richard Snow (Trades, Portfolio) boosted his holding by 133% to 118,140 shares, while John Rogers (Trades, Portfolio) increased his stake by 59% to 1,023,539 shares.
Shares of Allergan PLC (AGN, Financial) remained almost flat on Tuesday after the company posted third-quarter results. Revenue grew 3.6% from the prior-year quarter to $4.05 billion, beating expectations by $170 million. The company posted earnings of $4.25 per share, beating estimates by 5 cents.
"The third quarter 2019 results demonstrate our commitment to continued strong operational performance," CEO Brent Saunders said. "The core business has grown and has been bolstered by significant pipeline progress, with three new molecular entities currently under regulatory review."Â
During the quarter, the adjusted operating income declined 7.7% to $1.76 billion on the back of lower revenue and higher costs. Further, research and development expenses increased14% to $448.9 million due to pipeline progress.
Looking ahead to 2020, the company expects sales to be between $15.63 billion and $15.83 billion.
During the quarter ended Sept. 30, David Carlson (Trades, Portfolio) increased his holding by 8% to 519,900 shares, while Mario Gabelli (Trades, Portfolio) reduced his position by 20% to 83,674 shares and the Vanguard Health Care Fund (Trades, Portfolio) sold out of the stock.
Disclosure: The author holds no position in any stocks mentioned.
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