Core Insights - Karthik Sarma, a prominent investor and former Tiger Cub, has shifted his investment focus from Nvidia to Tapestry, a luxury handbag company, indicating a strategic pivot away from AI-related stocks [2][10]. Investment Strategy - Sarma typically holds positions for the long term but recently sold his Nvidia shares after holding them for less than two years, capitalizing on significant price appreciation [3][5]. - The decision to sell Nvidia was influenced by its rising valuation, with the forward P/E ratio exceeding 40, prompting Sarma to take profits [6][8]. Company Performance - Nvidia remains a leading player in the GPU market, but competition may impact its market share in the coming years [7]. - Tapestry, which owns brands like Coach and Kate Spade, has seen Coach account for nearly 80% of its sales, with expectations for improved profitability through strategic management of its brands [11][12]. Financial Metrics - Tapestry's management anticipates free cash flow of $1.3 billion for the current year, an increase from $1.1 billion the previous year, supporting share repurchase initiatives [13]. - Tapestry's stock trades at a forward P/E of 18, significantly lower than Nvidia's 38, although it represents the highest valuation for Tapestry in years [14].

Core Insights - Tapestry, Inc.'s omnichannel strategy enhances customer engagement and drives revenue growth and profitability through the integration of digital and physical retail channels [1][6] Financial Performance - In Q3 of fiscal 2025, direct-to-consumer sales increased by 9% year-over-year, with digital sales growing in the mid-teens and brick-and-mortar sales seeing mid-single-digit growth [2] - Total net sales reached $1,584.6 million, marking a 6.9% year-over-year increase and an 8% growth on a constant-currency basis [2] Customer Engagement - The omnichannel model improves customer experience and captures full-price demand across various touchpoints, particularly appealing to Gen Z consumers through innovative retail formats [3] - Tapestry acquired over 1.2 million customers in North America in Q3, with two-thirds being Gen Z and Millennials, indicating strong future lifetime value [5] Marketing Strategy - Marketing investments have increased to nearly 10% of sales, up from 3-4% pre-pandemic, focusing on effective media planning and emotional storytelling [4] Valuation Metrics - Tapestry is currently trading at a forward P/E multiple of 16.93X, which is lower than the Retail-Apparel and Shoes industry's average of 17.99X and the Retail-Wholesale sector's average of 24.97X [7] Stock Performance - Tapestry's shares have risen by 44.3% over the past three months, outperforming the Zacks industry growth of 25.5% and the S&P 500 index's growth of 18.2% during the same period [11] - The stock closed at $92.21, near its 52-week high of $93.48, and is trading above its 50 and 200-day SMAs of $80.65 and $67.92, respectively [14] Earnings Estimates - The Zacks Consensus Estimate for Tapestry's earnings has increased by seven cents to $5.05 per share for the current fiscal year, indicating a year-over-year growth of 17.7% [16]

Group 1 - FGI Industries Ltd. is part of the Retail-Wholesale group, which ranks 12 out of 16 in the Zacks Sector Rank [2] - FGI Industries Ltd. has a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook for the stock [3] - The Zacks Consensus Estimate for FGI's full-year earnings has increased by 100% in the past quarter, reflecting improved analyst sentiment [4] Group 2 - FGI Industries Ltd. has returned 5.2% year-to-date, outperforming the Retail-Wholesale sector average return of 4.1% [4] - FGI belongs to the Retail - Home Furnishings industry, which is ranked 90 in the Zacks Industry Rank, while this industry has seen an average loss of 8.6% this year [6] - Tapestry, another stock in the Retail-Wholesale sector, has a year-to-date return of 41.2% and a Zacks Rank of 2 (Buy) [5][6] Group 3 - Both FGI Industries Ltd. and Tapestry are expected to continue their strong performance, making them noteworthy for investors in the Retail-Wholesale sector [7]

Core Insights - Tapestry, Inc. (TPR) is focusing on international expansion as a key growth strategy, reporting an 8% increase in international revenues at constant currency for Q3 fiscal 2025 [1][9] - Europe has shown exceptional performance with a 35% revenue growth rate, driven by strong local consumer demand and significant customer acquisition, particularly among Gen Z [2][9] - The Asia-Pacific region saw a 4% revenue increase, with Greater China achieving 5% growth, attributed to targeted marketing towards younger consumers and strong brand positioning [3][9] International Growth - Tapestry's supply chain is diversified, with approximately 70% of manufacturing outside China, primarily in Vietnam, Cambodia, and the Philippines, which helps mitigate geopolitical risks [4] - Digital sales have grown at a mid-teens rate, now accounting for about 30% of total revenues, complementing the mid-single-digit growth in brick-and-mortar retail [5] - The Coach brand is a significant driver of international momentum, with successful collections resonating with global consumers, especially Gen Z [6] Financial Outlook - The company raised its fiscal 2025 revenue outlook to $6.95 billion, indicating a 4% growth from the previous year, with expectations of 30% growth in Europe and low-single-digit growth in Greater China [7][9] - TPR is currently trading at a forward P/E multiple of 16.08X, which is below the industry average of 17.41X and the Retail-Wholesale sector's average of 24.33X [8] Stock Performance - TPR shares have increased by 18.4% over the past three months, outperforming the Zacks industry growth of 7.3% and the S&P 500 index's growth of 5.2% [11] - As of the latest close, TPR stock is trading at $87.26, which is 4% below its 52-week high of $90.85 [12] Earnings Estimates - The Zacks Consensus Estimate for TPR's earnings has been revised upward, with current fiscal year estimates at $5.05 per share, reflecting a year-over-year growth of 17.7% [15]

Core Insights - Coach has successfully rebranded and attracted younger consumers, with over two-thirds of nearly 900,000 new customers in North America being Gen Z and millennials [1][2] - The company reported a 15% revenue growth year-over-year and achieved a gross margin of 77.1% [2] - Coach's market capitalization increased by approximately 140% from January 2020 to January 2025 [5] Brand Strategy - The focus on the "timeless Gen Z client" has led to positive outcomes for Coach, enhancing its brand image and market presence [1][2] - Successful product launches, such as the Brooklyn, Tabby, and Rogue handbags, have contributed to Coach's resurgence, with the Brooklyn being named the hottest fashion product of Q4 last year [3] - Demand for Coach products on the global shopping platform Lyst increased by 332% year-over-year [3] Customization and Innovation - Coach has embraced customization, allowing customers to purchase and create personalized bag charms, with searches for related items on Pinterest growing significantly [4] - The introduction of immersive concept stores, Coach Play, and the expansion into hospitality with Coach Coffee shops reflect the brand's innovative approach [4] Market Position - Coach is recognized for transforming from a mediocre mall brand to a credible luxury contender, showcasing its ability to elevate brand perception in a competitive market [3][6] - The timing of Coach's strategy aligns well with consumer sentiments regarding value for money in luxury goods [6]

Group 1 - Tapestry has seen a 27% year-to-date increase, outperforming the S&P 500's 2% return and Ralph Lauren's 15% growth, driven by strong Q3 earnings and an upward adjustment to FY2025 forecasts [3] - The company has raised revenue and EPS expectations due to improving gross margins and appeal to younger consumers [3] - Despite the positive outlook, Tapestry stock is considered fully valued at approximately $83, with limited upside potential due to mediocre long-term fundamentals [3][4] Group 2 - Tapestry's revenue growth has been modest, with a three-year compound annual growth rate of only 1.0%, compared to the S&P 500's 5.5% [5] - Revenue increased by 2.7% over the past year to $6.9 billion, with Q3 2025 showing an 8% year-over-year growth, outpacing the S&P's 4.8% [5] - Profitability metrics include a 17.9% operating margin and a 12.5% net income margin, slightly above the S&P's 11.6% [6] Group 3 - Tapestry has a strong financial structure, with $4.1 billion in debt against a market capitalization of $17 billion, resulting in a manageable debt-to-equity ratio of 25.3% [6] - The company has a healthy 14.5% cash-to-assets ratio, allowing for investment and capital return [6] Group 4 - Tapestry has historically underperformed during market downturns, with significant declines during the 2022 inflation shock, 2020 COVID crash, and 2008 financial crisis [7] - The stock fell 46% during the 2022 inflation shock compared to the S&P 500's 25% drop, and 64% in the 2020 COVID crash versus 34% for the index [7] Group 5 - Overall, Tapestry rates neutrally on growth and profitability, strongly on financial stability, but very weakly on downturn resilience, leading to an uninspiring investment profile [8] - Despite recent gains and a seemingly fair valuation, the stock's unimpressive fundamentals and poor track record during market shocks render it risky [8]

Core Insights - Tapestry, Inc.'s Coach brand reported strong performance in Q3 of fiscal 2025, with net sales reaching $1.29 billion, marking a 13% year-over-year increase on a reported basis and 15% growth on a constant-currency basis, reinforcing its leadership in the accessible luxury segment [1][9] Financial Performance - Coach achieved a record gross margin of 79% in Q3, driven by operational efficiency and premium pricing power, with Average Unit Retail (AUR) growing in the mid-teens and now approximately 70% higher than in 2019 [2][9] - The leather goods segment experienced strong double-digit growth, particularly from the Tabby and New York collections, with key products selling out quickly [3][9] Strategic Initiatives - The "One Coach" strategy, which aligns product and pricing across outlet and full-price channels, has enhanced consumer engagement and margin expansion [3] - Tapestry has upgraded its fiscal 2025 revenue guidance to $6.95 billion, indicating a 4% growth from the previous year, surpassing earlier expectations of 3% growth [4] Regional Performance - Sales growth expectations include 3-4% in North America, around 30% in Europe, low-single digits in Greater China, and high-single digits in other parts of Asia, with an anticipated operating margin expansion of 100 basis points year-over-year [5] Earnings Forecast - Earnings per share are projected to be $5.00, reflecting high-teens percentage growth from the previous year, exceeding earlier estimates of $4.85-$4.90 [5] - The Zacks Consensus Estimate for the current fiscal year's earnings has increased to $5.05 per share, indicating year-over-year growth of 17.7% [12] Stock Performance - Tapestry's shares have increased by 27.1% over the past six months, outperforming the broader Retail-Apparel and Shoes industry, which declined by 16.8% [6] - The stock is currently trading above its 50 and 200-day simple moving averages, indicating positive market sentiment and investor confidence [10]

Core Insights - Tapestry Inc is experiencing a growth split between its key brands, with Coach showing significant recovery and projected 32% upside for the overall company stock by year-end, while Kate Spade is underperforming [1][6] Group 1: Coach's Performance - Coach is the primary driver of Tapestry's growth, benefiting from a balanced multi-year revenue increase due to average unit retail price hikes and sustainable unit sales growth [2] - Handbag prices for Coach are increasing, supported by improved full-price selling and innovative product lines, reversing previous declines in unit sales [3] - The brand is attracting younger customers, particularly Gen-Z and Millennials, who are spending more and frequently returning, which also encourages older customers to re-engage [4] Group 2: Kate Spade's Challenges - Kate Spade has faced revenue declines this year, with management adopting a cautious approach due to uncertain macroeconomic conditions, and its fourth quarter guidance indicates a sales drop [5] - The brand is currently in a supporting role within Tapestry's portfolio, contrasting with Coach's expected low-double-digit growth [5] Group 3: Overall Outlook for Tapestry - Tapestry's potential upside is largely contingent on Coach's revival, driven by pricing power, customer rejuvenation, and category expansion, with a price target of $104 for investors to monitor [6]

Group 1 - Tapestry (NYSE: TPR) owns three fashion brands: Coach, Kate Spade New York, and Stuart Weitzman, primarily focusing on purses [1] - The brands under Tapestry have different product lines but share a common emphasis on handbags [1] Group 2 - The article does not provide specific financial data or performance metrics related to Tapestry or its brands [1]

Core Insights - Tmall's 618 pre-sale event showed strong growth in the apparel sector, with significant sales figures reported from May 16 to May 26, 2025 [1][32] - Major brands like Uniqlo, UR, and Bananain achieved remarkable sales, with nearly 345 brands surpassing 10 million in sales and around 1,088 brands seeing over 500% year-on-year growth [1][32] Sales Performance - Uniqlo, UR, and Bananain topped the overall sales rankings during the event [1][68] - Specific categories such as men's wear, women's wear, and footwear saw brands like Crocs, Ubras, and Coach leading their respective segments [1][68] Brand Strategies - Brands focused on user engagement, product strategies, and content upgrades, which provided strong growth drivers [32][62] - Bananain capitalized on the rising demand for summer sun protection products, successfully launching a range of sun hats that topped the outdoor category [32][62] Membership and Promotions - Brand membership contributed over 60% to the sales of well-known brands, with 88VIP members accounting for nearly 60% of transactions, reflecting a 40% growth [62][63] - Tmall offered a record number of consumer coupons during the event, enhancing the purchasing experience for high-value consumers [63][62] New Brands and Market Dynamics - The event also highlighted the success of smaller brands, with Holdoumen, Mmlg, and UNICA emerging as top new sellers [92][94] - New brands in various categories, including footwear and accessories, achieved significant sales, indicating a thriving platform ecosystem [92][94]