Tapestry, Inc. (NYSE:TPR) Announces Quarterly Dividend of $0.46

Key Points

• Tapestry declared a quarterly dividend of $0.4625 per share, payable December 21 to shareholders of record December 4. The annualized dividend is $1.85, a yield of about 1.4%.
• The dividend appears well covered: Tapestry’s payout ratio is 34.3%, and analysts expect it to decline to 20.9% based on next year’s projected earnings.
• Quarterly results topped expectations, with EPS of $1.82 versus the $1.56 consensus and revenue of $1.89 billion versus $1.85 billion expected; revenue rose 11.1% year over year.

Tapestry, Inc. (NYSE:TPR - Get Free Report) declared a quarterly dividend on Thursday, November 5th. Stockholders of record on Friday, December 4th will be paid a dividend of $0.4625 per share by the luxury accessories retailer on Monday, December 21st. This represents a $1.85 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend is Friday, December 4th.

Tapestry has a payout ratio of 34.3% meaning its dividend is sufficiently covered by earnings. Analysts expect Tapestry to earn $8.84 per share next year, which means the company should continue to be able to cover its $1.85 annual dividend with an expected future payout ratio of 20.9%.

Tapestry Stock Up 7.2%

Shares of TPR stock opened at $134.29 on Friday. The stock's 50 day simple moving average is $117.21 and its 200 day simple moving average is $136.93. The company has a debt-to-equity ratio of 3.44, a quick ratio of 1.25 and a current ratio of 1.75. Tapestry has a twelve month low of $93.00 and a twelve month high of $164.80. The company has a market capitalization of $26.78 billion, a price-to-earnings ratio of 18.42, a PEG ratio of 1.58 and a beta of 1.44.

Tapestry (NYSE:TPR - Get Free Report) last announced its earnings results on Thursday, November 5th. The luxury accessories retailer reported $1.82 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.56 by $0.26. Tapestry had a return on equity of 254.95% and a net margin of 19.09%. The firm had revenue of $1.89 billion during the quarter, compared to analysts' expectations of $1.85 billion. During the same quarter in the prior year, the business earned $1.38 earnings per share. The company's revenue was up 11.1% on a year-over-year basis. As a group, research analysts predict that Tapestry will post 7.95 EPS for the current year.

Insider Buying and Selling at Tapestry

In related news, insider Denise Kulikowsky sold 5,810 shares of the stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $115.38, for a total value of $670,357.80. Following the completion of the sale, the insider owned 21,136 shares in the company, valued at approximately $2,438,671.68. This trade represents a 21.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Joanne C. Crevoiserat sold 27,761 shares of Tapestry stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $132.47, for a total value of $3,677,499.67. Following the sale, the chief executive officer directly owned 666,149 shares in the company, valued at approximately $88,244,758.03. This trade represents a 4.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.28% of the company's stock.

Institutional Trading of Tapestry

Hedge funds have recently modified their holdings of the company. BlackRock Inc. bought a new stake in shares of Tapestry during the second quarter worth $2,610,995,000. Bank of America Corp DE bought a new stake in Tapestry in the 2nd quarter valued at $771,309,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Tapestry by 53.8% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,169,602 shares of the luxury accessories retailer's stock valued at $317,586,000 after acquiring an additional 758,915 shares in the last quarter. Amundi lifted its position in Tapestry by 96.0% in the 1st quarter. Amundi now owns 1,769,905 shares of the luxury accessories retailer's stock valued at $249,751,000 after acquiring an additional 866,969 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in Tapestry in the 2nd quarter worth $175,291,000. Institutional investors own 90.77% of the company's stock.

Tapestry Company Profile

Tapestry, Inc is a global house of modern luxury accessories and lifestyle brands. The company's portfolio includes Coach, known for handbags, leather goods, footwear, apparel and accessories; Kate Spade New York, which offers handbags, accessories, apparel, footwear, home products and related lifestyle merchandise; and Stuart Weitzman, a designer and manufacturer of women's footwear.

Tapestry sells its products through company-operated stores, outlet locations, e-commerce websites, wholesale partners and select distributors.

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