Tapestry, Inc.’s (TPR) shares reached a new 52-week high of $88.07 last Friday before closing at $87.70. So far, TPR stock has rallied 34.2% against the Zacks Retail-Apparel and Shoes industry’s sharp 5.7% decline. The company’s ongoing operational efficiency and strategic efficiency have enabled it to outperform the broader Retail Wholesale sector and the S&P 500 index’s growth of 9.2% and 3.9%, respectively, during the same period. TPR Stock Year-to-Date PerformanceImage Source: Zacks Investment ResearchM ...

Core Insights - Tapestry has experienced significant stock growth, with shares more than doubling since January 2024, outperforming the S&P 500's 27% gain [2] - The company reported steady Q2 revenue of $2.2 billion, with a 10% year-over-year increase in Coach sales, while Kate Spade and Stuart Weitzman saw declines [3] - Tapestry has revised its fiscal 2025 guidance, expecting EPS between $4.85 and $4.90 and full-year revenue of $6.85 billion, reflecting a 3% year-over-year increase [4] Financial Performance - Tapestry's Q2 results included a record non-GAAP diluted EPS of $1.02, marking a 10% year-over-year increase, and a gross margin expansion of 280 basis points to 74.5% [3] - The company added over 2.7 million new customers in North America, primarily from Gen Z and Millennial demographics [3] - Projected revenues for fiscal 2024 are expected to reach $6.9 billion, reflecting a 4% year-over-year increase, with EPS forecasted at $4.85 [7] Market Position and Outlook - Tapestry's Coach brand is poised to benefit from China's economic expansion, with the luxury market in China projected to reach $178 billion by 2025 [5] - The company has a limited manufacturing footprint in China, which minimizes the impact of a new 10% tariff on Chinese imports [4] - Tapestry's stock has shown volatility over the past four years, with notable returns of 83% in 2024 [6]

Company Performance - Tapestry's shares have increased by 22.9% over the past month, reaching a new 52-week high of $88.07 [1] - Year-to-date, Tapestry has gained 34.2%, outperforming the Zacks Retail-Wholesale sector's 9.2% and the Zacks Retail - Apparel and Shoes industry's -5.7% [1] Earnings and Revenue Expectations - Tapestry has consistently exceeded earnings estimates, reporting EPS of $2 against a consensus estimate of $1.74 in its last earnings report [2] - For the current fiscal year, Tapestry is projected to achieve earnings of $4.91 per share on revenues of $6.87 billion, reflecting a 14.45% increase in EPS and a 3% increase in revenues [3] - The next fiscal year is expected to see earnings of $5.30 per share on $7.11 billion in revenues, indicating year-over-year changes of 7.95% and 3.42%, respectively [3] Valuation Metrics - Tapestry's current valuation metrics show a trading multiple of 17.9X current fiscal year EPS estimates, above the peer industry average of 15.3X [7] - On a trailing cash flow basis, Tapestry trades at 16.4X compared to the peer group's average of 8.2X, with a PEG ratio of 2.03 [7] Zacks Rank and Style Scores - Tapestry holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts [8] - The company has a Value Score of B, a Growth Score of A, and a Momentum Score of F, resulting in a combined VGM Score of A [6] Industry Comparison - Nordstrom, Inc. is a notable peer with a Zacks Rank of 2 (Buy) and a Value Score of A, indicating a competitive position within the industry [9] - Nordstrom is expected to post earnings of $2.01 per share on revenues of $14.99 billion for the current fiscal year, having beaten consensus estimates by 43.48% last quarter [10]

Company Overview - Tapestry, Inc., formerly known as Coach, Inc., is a designer and marketer of fine accessories and gifts for both women and men, operating in the United States and internationally [11] - The company offers a range of lifestyle products, including handbags, accessories, footwear, jewelry, seasonal apparel, sunwear, travel bags, fragrances, and watches [11] - Tapestry operates under three segments: Coach brand (76.4% of fiscal 2024 sales), Kate Spade & Company (20% of sales), and Stuart Weitzman (3.6% of sales) [11] Investment Ratings - Tapestry is rated 2 (Buy) on the Zacks Rank, indicating a positive outlook for the stock [12] - The company has a VGM Score of A, reflecting strong overall performance across value, growth, and momentum metrics [12] Financial Metrics - Tapestry's Value Style Score is B, supported by attractive valuation metrics such as a forward P/E ratio of 16.18, which is appealing to value investors [12] - In the last 60 days, eight analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.33 to $4.89 per share [12] - The company has an average earnings surprise of 11.9%, indicating a history of exceeding earnings expectations [12] Investment Consideration - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Tapestry is recommended for investors looking for potential investment opportunities [13]

Group 1 - Tapestry (TPR) has shown strong year-to-date performance, gaining approximately 21%, significantly outperforming the average gain of 8.9% in the Retail-Wholesale sector [4] - Tapestry is part of the Retail-Wholesale sector, which includes 212 stocks and currently holds a Zacks Sector Rank of 4, indicating a relatively lower performance compared to other sectors [2] - The Zacks Rank for Tapestry is 2 (Buy), reflecting a positive earnings outlook and strong analyst sentiment, with the consensus estimate for full-year earnings increasing by 8.2% in the past quarter [3][4] Group 2 - Tapestry belongs to the Retail - Apparel and Shoes industry, which consists of 42 companies and is currently ranked 76 in the Zacks Industry Rank, with an average loss of 4.7% this year [6] - Another stock in the Retail-Wholesale sector, Tempur Sealy (TPX), has also outperformed the sector with a year-to-date increase of 14.2% and holds a Zacks Rank of 2 (Buy) [5][6] - The Retail - Home Furnishings industry, to which Tempur Sealy belongs, is ranked 164 and has seen a gain of 4.9% this year, indicating a weaker performance compared to Tapestry's industry [6]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various resources like daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the short term [2] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score evaluates stocks based on price trends and earnings outlook changes, helping investors identify optimal buying opportunities [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking attractive value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential success [9] - Stocks with lower ranks but high Style Scores may still carry risks if their earnings forecasts are declining [10] Company Spotlight: Tapestry, Inc. - Tapestry, Inc., formerly known as Coach, Inc., designs and markets lifestyle products, operating under three segments: Coach (76.4% of sales), Kate Spade (20%), and Stuart Weitzman (3.6%) [11] - Tapestry holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong growth potential with an expected year-over-year earnings growth of 11.2% for the current fiscal year [12] - The company has seen positive earnings estimate revisions, with the Zacks Consensus Estimate increasing by $0.21 to $4.77 per share [12][13]

Have you looked into how Tapestry (TPR) performed internationally during the quarter ending December 2024? Considering the widespread global presence of this maker of high-end shoes and handbags, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of g ...

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Tapestry, Inc. (TPR) has reported impressive second-quarter fiscal 2025 results that exceeded the Zacks Consensus Estimate for both revenues and earnings.  Also, the top and bottom lines increased year over year. Driven by the fiscal second-quarter results, Tapestry has raised its fiscal 2025 outlook.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company delivered seamless and engaging omni-channel experiences, emphasizing brand appeal, consumer engagement and cultural relevance, ...

Tapestry, Inc. (NYSE:TPR) Q2 2025 Earnings Conference Call February 6, 2025 8:00 AM ET Company Participants Christina Colone - Global Head of Investor Relations Joanne Crevoiserat - Chief Executive Officer Scott Roe - Chief Financial Officer and Chief Operating Officer Todd Kahn - Chief Executive Officer and Brand President, Coach Conference Call Participants Robert Drbul - Guggenheim Securities Ike Boruchow - Wells Fargo Adrienne Yih - Barclays Matthew Boss - JPMorgan Lorraine Hutchinson - Bank of America ...