Tapestry NYSE: TPR Stock Weekly Chart
Tapestry’s stock price tanked 22 percent on Thursday, after the company posted revenue that missed Wall Street expectations.
Our approach to stock analysis uses market cycles to project price action.
Based on its market cycles, we believe Tapestry (TPR), which owns luxury brands such as Coach and Kate Spade, has further downside risk.
Our view is that TPR is still in the declining phase of its current cycle with more time to go. The stock price has been in a long downtrend and patterns suggest declines into the fall, with no visible support until $12.
Tapestry Earnings Overview
The company reported earnings per share of $0.61 and total revenue of $1.51 billion, compared to analyst estimates of $0.61 and $1.53 billion. With regard to guidance, management now expects a decline in both earnings and revenue in the coming quarter.
Tapestry CEO Victor Luis explained that, “Kate Spade did not meet our expectations and more time is required to drive a positive inflection. We acknowledge that there are opportunities to improve performance and we are addressing those areas with a sense of urgency.”
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