Wall Street expects a year-over-year increase in earnings on higher revenues when Tapestry (TPR) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 8, 2025, might help the stock move higher if these key numbers are better than expectations ...

Tapestry, Inc. (TPR) has experienced a remarkable jump in its share price over the past year. The stock has rallied 56.2%, significantly outpacing the Zacks Retail-Apparel and Shoes industry’s 6.8% decline. The company’s enhanced operational efficiency and growth initiatives have also helped it outperform the broader Retail-Wholesale sector and the S&P 500 index’s growth of 11.3% and 6.5%, respectively, during the same period.This remarkable surge has sparked curiosity among investors, leaving them to quest ...

Tapestry (TPR) shares rallied 11% in the last trading session to close at $67.28. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 15.8% loss over the past four weeks.U.S. stocks staged their biggest rally yesterday, after President Donald Trump announced a 90-day pause on reciprocal tariffs for all nations except China. Tapestry is demonstrating fundamental strength through solid revenue growth, driven by Coa ...

Core Viewpoint - Tapestry (TPR) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive earnings outlook that may lead to increased buying pressure and stock price appreciation [1][3]. Earnings Estimates and Revisions - Tapestry is expected to earn $4.91 per share for the fiscal year ending June 2025, reflecting a year-over-year increase of 14.5% [8]. - Over the past three months, the Zacks Consensus Estimate for Tapestry has risen by 6.4%, indicating a trend of increasing earnings estimates [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Tapestry to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10]. Market Dynamics - Changes in earnings estimates are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4][6]. - Rising earnings estimates and the corresponding rating upgrade for Tapestry indicate an improvement in the company's underlying business, which should be reflected in higher stock prices [5].

Tapestry, Inc. (TPR) stands out as a compelling value play within the Retail-Apparel and Shoes industry, trading at a forward 12-month price-to-earnings ratio of 12.08, down from the industry and the Retail-Wholesale sector average of 13.61 and 20.75, respectively. This undervaluation highlights its potential for investors seeking attractive entry points in the retail space. Moreover, TPR's Value Score of A underscores its appeal as an investment option.TPR Looks Attractive From a Valuation StandpointImage ...

Tapestry, Inc. (TPR) has experienced a remarkable jump in its stock price over the past six months. The stock has rallied 53.7%, significantly outpacing the Zacks Retail-Apparel and Shoes industry's 14.6% decline. The company's enhanced operational efficiency and growth initiatives have also helped it outperform the broader Retail-Wholesale sector's growth of 0.9% and the S&P 500 index's decline of 2.1% during the same period. This impressive uptick has left many investors wondering if they missed out on a ...

Core Viewpoint - Investors in the Retail - Apparel and Shoes sector should consider Tapestry (TPR) and On Holding (ONON) as potential value opportunities, with TPR currently presenting a better value option based on valuation metrics [1][7]. Valuation Metrics - TPR has a forward P/E ratio of 15, while ONON has a significantly higher forward P/E of 39.83 [5]. - TPR's PEG ratio is 1.71, indicating a more favorable valuation relative to its expected earnings growth compared to ONON's PEG ratio of 1.91 [5]. - TPR's P/B ratio stands at 11.41, whereas ONON's P/B ratio is 18.34, further highlighting TPR's superior valuation metrics [6]. Earnings Outlook - Both TPR and ONON have a Zacks Rank of 2 (Buy), indicating positive revisions to their earnings estimates and improving earnings outlooks [3][6]. - The Zacks Rank system emphasizes earnings estimates and revisions, which are crucial for value investors [2]. Value Grades - TPR has been assigned a Value grade of B, while ONON has received a Value grade of F, indicating a significant difference in perceived value between the two stocks [6].

Core Insights - Tapestry, Inc. (TPR) shares are currently trading 16.7% below their 52-week high, but the stock has gained 66.7% over the past year, outperforming the Zacks Retail-Apparel and Shoes industry's decline of 6.8% [1] - The company has shown enhanced operational efficiency and growth initiatives, leading to better performance compared to the broader Retail-Wholesale sector and the S&P 500 index [1] Stock Performance - TPR closed at $75.72, trading above its 100-day and 200-day moving averages of $68.09 and $55.17, indicating a positive market sentiment [4] - The stock's technical strength suggests sustained momentum and investor confidence in Tapestry's financial health [4] Brand Performance - Coach brand is a key growth driver, achieving an 11% year-over-year revenue increase in Q2 fiscal 2025, along with a 270-basis-point improvement in gross margin [7] - Tapestry announced the sale of its Stuart Weitzman brand for $105 million, allowing a focus on core brands like Coach and Kate Spade [8] Global Expansion - Tapestry's international strategy has led to significant revenue gains, particularly in Europe, which saw a 42% year-over-year revenue increase in Q2 [10] - Greater China returned to revenue growth with a 2% year-over-year rise, while the broader Asia-Pacific region (excluding China) experienced 11% growth [11] Digital and Direct-to-Consumer Strategies - DTC sales increased by 4% in Q2, driven by high-single-digit growth in digital sales [12] - AI-powered customer engagement has improved pricing strategies and attracted younger consumers, enhancing competitive positioning [13] Financial Outlook - Tapestry raised its FY25 revenue outlook to exceed $6.85 billion, reflecting a 3% year-over-year increase [14] - Projected EPS is now between $4.85 and $4.90, indicating a 13-14% increase from the prior year [15] Valuation - Tapestry is trading at a low forward P/E ratio of 14.57, below industry and sector averages, highlighting its potential as an attractive investment [16] - The company has a Value Score of A, indicating strong appeal for investors [16] Analyst Estimates - Analysts have positively revised Tapestry's EPS estimates, with the current fiscal year consensus at $4.91 per share, reflecting a year-over-year growth of 14.5% [19] - The sales estimates for the current and next fiscal years are pegged at $6.87 billion and $7.11 billion, implying growth of 3% and 3.4%, respectively [20] Investment Appeal - Tapestry is viewed as a compelling investment opportunity due to its digital strategies, strong brand performance, and strategic international expansion [22] - The company currently holds a Zacks Rank 2 (Buy), indicating favorable market conditions for investment [22]

Group 1: Company Performance - Tapestry (TPR) has gained approximately 12.5% year-to-date, outperforming the average loss of 2.6% in the Retail-Wholesale group [4] - The Zacks Consensus Estimate for TPR's full-year earnings has increased by 6.4% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3] - Tapestry belongs to the Retail - Apparel and Shoes industry, which has seen a decline of about 19.9% year-to-date, further highlighting TPR's relative strength [5] Group 2: Industry Context - The Retail-Wholesale sector includes 214 individual stocks and currently holds a Zacks Sector Rank of 8, reflecting the average performance of stocks within this sector [2] - The Retail - Apparel and Shoes industry, which includes Tapestry, is ranked 135 in the Zacks Industry Rank, indicating underperformance compared to other industries [5] - Another stock in the Retail-Wholesale sector, TripAdvisor (TRIP), has also outperformed the sector with a year-to-date return of 0.3% [4][6]

Core Insights - Tapestry, Inc. has entered into a definitive agreement to sell its Stuart Weitzman brand to Caleres, Inc. for $105 million in cash, with the transaction expected to close in the summer of 2025 [1] - The sale aligns with Tapestry's strategy to optimize its brand portfolio, allowing it to focus on core brands Coach and Kate Spade while ensuring Stuart Weitzman's growth under Caleres [2] - Caleres views the acquisition as a means to strengthen its market presence, planning to integrate Stuart Weitzman into its operations and maintain a commitment to quality craftsmanship and innovation [3] Tapestry's Brand Performance - In Q2 of fiscal 2025, Tapestry reported record quarterly revenues of $2.2 billion, reflecting a 5.3% year-over-year increase, primarily driven by a 10% improvement in Coach's performance [4] - Kate Spade experienced a 10% revenue decline in the same quarter, attributed to weakening consumer demand and challenges in customer acquisition, prompting Tapestry to implement a 15% reduction in handbag styles and increase marketing investments [5] - Stuart Weitzman faced a 16% revenue decline in Q2 on a constant-currency basis, mainly due to soft demand in Greater China and North America, as well as shipment timing issues [6] Tapestry's Strategic Direction - Tapestry is committed to long-term sustainable growth by enhancing its brand portfolio, improving digital capabilities, and optimizing operational efficiency [7] - The company is focusing on profitability by enhancing gross margins through disciplined expense management, optimized pricing strategies, and an efficient supply chain [8] - Tapestry is prioritizing direct-to-consumer channels and accelerating digital transformation to reinforce its position in the global fashion and accessories market [8] Stock Performance - Over the past three months, Tapestry's shares have gained 58.1%, significantly outperforming the industry and the S&P 500 index, which grew by 2.6% and 3.6%, respectively [9]