Everything You Need to Know About Capri, Tapestry, Deckers, Columbia and Skechers Ahead of Their Earnings Reports Next Week

The holiday results are in — or at least will be next week, when several major fashion and footwear companies are set to report their earnings for the winter months.

The firms represent a wide swath of the industry — from the luxury business (Capri and Tapestry) to outdoor (Columbia) to comfort and sport (Deckers and Skechers) — which should give a more crisp image of the consumer mindset in recent months, and where the industry stands heading into an uncertain 2021.

Below is a look at each company’s status heading into the latest quarter.

Capri Holdings Ltd.

Like many fashion purveyors, Capri Holdings Ltd. (CPRI) — parent company to Michael Kors, Jimmy Choo and Versace — has seen sales lag throughout the pandemic as shoppers opted for sweats and slippers over heels and dresses. During its fiscal Q2 ended Sept. 26, the company reported a 23% drop in revenue to $1.1 billion. Adjusted profits, meanwhile, were $137 million, or 90 cents per diluted share, down from $177 million or $1.16 per diluted share in the prior year.

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However, the firm did manage to outperform Wall Street expectations during the quarter. And its e-commerce business saw revenue spike 60% in the fall.

Market watchers have been bullish lately on the company’s growth opportunities. Analyst Camilo Lyon of BTIG chose Capri as one of his top stock picks for 2021, pointing to recent price increases for Kors and Jimmy Choo products, and more higher-margin sales in China.

And from a longer-term perspective, he believes Capri will benefit from a post-pandemic upswing. “It is well positioned to leverage the expected return in demand for fashion apparel and accessories,” he wrote in a note to investors in December.

Capri will report Q3 earnings results on Feb. 3.

After facing an unexpected leadership change last year, Tapestry Inc. (TPR) announced last fall that interim CEO Joanne Crevoiserat would take the post permanently, providing more stability to the company as it works to enact a turnaround plan for its Coach, Kate Spade and Stuart Weitzman brands.

For its most recent quarter ended Sept. 26, the company had mixed results, reporting a 14% decline in revenue to $1.17 billion; however, profits improved. Tapestry logged adjusted earnings per share of 58 cents on profits of $161 million, compared with the previous year’s earnings of 40 cents on profits of $114 million.

Crevoiserat credited the profit gains, in part, to strong traffic on its digital channels and growth in China.

For the recent holiday season, she said the company would lean into its strengths. “We are putting the consumer first, delivering innovative, relevant and beautifully crafted product, while staying true to the unique purpose of each of our brands,” Crevoiserat said on a call with analysts in October.

Tapestry will report fiscal Q2 earnings on Feb. 4.

Columbia Sportswear Co.

Though the outdoor market has benefited from a surge of interest from new customers seeking to experience the benefits of nature, Columbia Sportswear Co. (COLM) was walloped last fall by slow foot traffic to its brick-and-mortar stores. The company noted that its outposts in frequented travel destinations are “some of the most severely impacted” locations.

As a result, the firm announced it would permanently shut down a “small number” of stores, on top of the eight locations closed earlier in the year — moves that will hopefully stem some of the profit bleed.

For Q4 2020, the company predicted “continued sequential fundamental improvement,” with sales expected to sink 8% to 11% and earnings between $1.07 and $1.32 per share. It also forecast a 19% to 20% plunge in revenues for the full year, and EPS of $1.25 to $1.50.

Columbia will report Q4 earnings on Feb. 4.

Deckers Outdoor Corp.

The brand portfolio at Deckers Outdoor Corp. (DECK) was a major bright spot in the industry last year — on multiple fronts. The company’s flagship Ugg label has become a key element in the work-from-home wardrobe, posting a 2.5% gain in sales to $415.1 million during the fiscal Q2 ended Sept. 30.

But the consumer attention to outdoor and fitness activities also benefited Deckers’ Hoka One One sneaker label, which delivered a whopping 83.2% surge in revenues in Q2 to $143.1 million. And sales for sports-sandal brand Teva rose 20.5% to $27.7 million.

Overall, the company posted Q3 earnings of $3.58 per share, versus the prior year’s earnings of $2.71 per share and better than analysts’ predictions of earnings of $2.63 per share. Revenues also improved 15% to $623.5 million, compared with market watchers’ forecasts of $553.62 million.

The company has not provided guidance on the quarter, but it’s safe to say the holidays always tend to be a banner season for Ugg