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].

Core Viewpoint - Wall Street is facing significant losses due to uncertainty surrounding the new U.S. administration's economic tariffs, which are anticipated to increase consumer prices and negatively impact spending and the overall U.S. economy [1] Group 1: Market Trends - Investors are adopting a defensive stance, focusing on products that provide stability and safety in a volatile market, leading to increased interest in dividend stocks [2] - Dividend stocks are recognized for their ability to provide consistent income, which is crucial for wealth creation when equity market returns are uncertain [2] Group 2: Investment Strategy - Selecting stocks with a history of dividend growth can lead to a healthier portfolio with better capital appreciation potential compared to merely high-yield dividend stocks [3] - Stocks with strong dividend growth histories are typically from mature companies, making them less vulnerable to market fluctuations and providing a hedge against economic and political uncertainties [4] Group 3: Stock Selection Criteria - Key criteria for selecting dividend growth stocks include: - 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [6] - 5-Year Historical Sales Growth greater than zero, reflecting strong revenue growth [7] - 5-Year Historical EPS Growth greater than zero, showing solid earnings growth [7] - Next 3-5 Year EPS Growth Rate greater than zero, suggesting expected earnings growth to sustain dividend payments [7] - Price/Cash Flow less than the industry average, indicating undervaluation [8] - 52-Week Price Change greater than the S&P 500, ensuring better performance over the past year [8] - Top Zacks Rank of 1 (Strong Buy) or 2 (Buy), indicating strong potential for outperformance [8] - Growth Score of B or better, which, when combined with a strong Zacks Rank, offers the best upside potential [9] Group 4: Featured Stocks - Tapestry, Inc. (TPR) has an estimated earnings growth rate of 14.4% for the fiscal year ending June 2025 and a Zacks Rank 1 with a Growth Score of A [10] - Gildan Activewear Inc. (GIL) has an estimated earnings growth rate of 16% for this year and a Zacks Rank 2 with a Growth Score of B [11] - Broadcom Inc. (AVGO) has an expected earnings growth rate of 35.5% and a Zacks Rank 2 with a Growth Score of A [12]

Core Insights - Tapestry, Inc. (TPR) is identified as a compelling value play in the Retail-Apparel and Shoes industry, trading at a forward price-to-earnings ratio of 12.08, which is lower than the industry average of 13.61 and the Retail-Wholesale sector average of 20.75, indicating potential for attractive investment opportunities [1][3] - The company has a Value Score of A, enhancing its appeal as an investment option [1] Financial Performance - Coach, a key brand under Tapestry, reported an 11% increase in revenues for Q2 of fiscal 2025, with a 270-basis-point improvement in gross margin [5] - Tapestry's stock has surged 47.6% over the past year, significantly outperforming the broader industry, which declined 14%, and the S&P 500, which fell 2.1% during the same period [9] - The company has upgraded its fiscal 2025 revenue forecast to exceed $6.85 billion, reflecting a 3% year-over-year increase, surpassing the previous estimate of $6.75 billion [13] - Projected earnings per share (EPS) have been raised to a range of $4.85 to $4.90, indicating a 13-14% increase over the prior year [14] International Growth - Tapestry's international markets are crucial for revenue growth, with Europe experiencing a 42% year-over-year revenue increase [8] - Greater China saw a 2% rise in sales, while the Asia-Pacific region (excluding China) reported an 11% revenue increase, driven by strong performances in South Korea, Malaysia, Australia, and New Zealand [10] Digital and DTC Strategy - The company is investing in digital and direct-to-consumer (DTC) platforms, with DTC sales up 4% and profit margins improving across all distribution channels [11] - Tapestry is leveraging AI-driven customer engagement tools to enhance pricing precision and reduce reliance on discounting, appealing to younger consumers [12] Analyst Sentiment - Analysts have positively revised Tapestry's earnings estimates, with the consensus estimate for the current fiscal year increased by 27 cents to $4.91 per share, indicating a year-over-year growth of 14.5% [15] - The Zacks Consensus Estimate for fiscal 2025 sales is pegged at $6.87 billion, implying a 3% year-over-year growth [16] Overall Outlook - Tapestry is positioned as a strong investment opportunity in the retail and fashion space, with brand strength, global reach, and operational momentum, all at a modest valuation compared to industry peers [20]

Core Insights - Tapestry, Inc. (TPR) has seen a significant stock price increase of 53.7% over the past six months, outperforming the Zacks Retail-Apparel and Shoes industry's decline of 14.6% [1] - The stock closed at $70.41, approaching its 52-week high of $90.85 reached on February 18, 2025 [2] - Tapestry's operational efficiency and growth initiatives have contributed to its strong performance compared to the broader Retail-Wholesale sector and the S&P 500 index [1] Performance Metrics - Tapestry's stock is trading above its 100-day and 200-day simple moving averages of $69.29 and $55.89, indicating a positive market sentiment [5] - Coach, a key brand for Tapestry, reported an 11% increase in revenues in Q2 of fiscal 2025, with a 270-basis-point improvement in gross margin [8] - Tapestry's international strategy has led to a 42% year-over-year revenue increase in Europe and a 2% growth in Greater China [11][12] Strategic Developments - Tapestry announced the sale of its Stuart Weitzman brand to Caleres for $105 million, focusing on its core brands, Coach and Kate Spade [9] - The company is enhancing its digital and direct-to-consumer strategies, with DTC sales rising 4% in Q2, driven by strong digital sales [13] - AI-powered customer engagement is improving pricing strategies and attracting younger consumers, solidifying Tapestry's market position [14] Financial Outlook - Tapestry has raised its full-year revenue forecast to exceed $6.85 billion, reflecting a 3% year-over-year increase [15] - The company expects a 100-basis-point improvement in operating margin and EPS forecasted between $4.85 and $4.90, indicating a 13-14% increase from the prior year [16] - Analysts have positively revised EPS estimates, with the current fiscal year consensus at $4.91 per share, reflecting a year-over-year growth of 14.5% [19] Valuation Insights - Tapestry's forward 12-month P/E ratio is 13.53, lower than the industry average of 15.40 and the sector's 22.38, indicating potential undervaluation [17] - The company's Value Score of A highlights its attractiveness as an investment option [17] - The Zacks Consensus Estimate for Tapestry's sales for the current and next fiscal years is projected at $6.87 billion and $7.11 billion, respectively, implying year-over-year growth of 3% and 3.4% [20]

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]

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Portillo's Inc. (PTLO) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.Portillo's Inc. is one of 212 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Secto ...

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]

Core Viewpoint - Tapestry, Inc. (TPR) has demonstrated strong financial performance and growth potential, significantly outperforming the broader retail sector and showing resilience in international markets [1][18]. Group 1: Stock Performance - TPR shares reached a new 52-week high of $88.07, closing at $87.70, with a year-to-date rally of 34.2% compared to a 5.7% decline in the Zacks Retail-Apparel and Shoes industry [1]. - The stock is currently trading above its 50-day and 200-day simple moving averages of $50.50 and $69.77, indicating price stability and long-term bullish trends [3][4]. Group 2: Digital and DTC Growth - Tapestry's digital and direct-to-consumer (DTC) strategies have driven growth, with a 4% increase in DTC sales in the second quarter of fiscal 2025, supported by high-single-digit growth in digital sales [5][6]. - AI-driven customer engagement has improved pricing power and reduced reliance on promotions, enhancing the company's market positioning among younger consumers [6]. Group 3: Brand Performance - Coach brand remains a key growth driver, achieving an 11% year-over-year revenue increase in the fiscal second quarter, with a gross margin expansion of 270 basis points [7][8]. - The brand is expanding its market share in handbags, with successful collections like the Tabby and new Brooklyn and Empire bags [8]. Group 4: International Expansion - Tapestry's global strategy has resulted in significant revenue growth, particularly in Europe, where revenues increased by 42% year-over-year in the fiscal second quarter [9][10]. - Greater China returned to revenue growth with a 2% year-over-year increase, while APAC (excluding China) grew by 11%, highlighting the company's global execution strength [9][10]. Group 5: Financial Guidance - Tapestry raised its full-year revenue outlook to exceed $6.85 billion, reflecting a 3% year-over-year increase, surpassing previous guidance [11]. - Operating margin is expected to expand by 100 basis points, with earnings per share forecasted between $4.85 and $4.90, indicating 13-14% growth from the prior year [12]. Group 6: Valuation and Analyst Sentiment - TPR's forward 12-month P/E ratio is 17.00, lower than the industry and sector averages, indicating potential for attractive entry points for investors [13]. - Analysts have positively revised Tapestry's EPS estimates, with the current fiscal year consensus at $4.91 per share and the next fiscal year at $5.30 per share [16].