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]

Core Insights - Tapestry, Inc. reported strong third-quarter fiscal 2025 results, exceeding revenue and earnings estimates, with year-over-year growth prompting an increase in fiscal 2025 outlook [1][3][18] Financial Performance - Adjusted earnings were $1.03 per share, surpassing the Zacks Consensus Estimate of 89 cents, and reflecting a 27.2% increase from 81 cents in the prior year [3] - Net sales reached $1,584.6 million, exceeding the consensus estimate of $1,529 million, marking a 6.9% year-over-year increase and 8% growth on a constant-currency basis [3] - Consolidated gross profit was $1.21 billion, up 8.9% year over year, with a gross margin increase of 140 basis points to 76.1% [9] Customer Engagement and Growth - The company acquired over 1.2 million customers in North America, with Gen Z and Millennials making up approximately two-thirds of this new customer base [4] - Direct-to-consumer revenues grew 9% on a constant-currency basis, driven by a mid-teen increase in digital sales [5] Brand Performance - Coach's net sales were $1.29 billion, a 13% year-over-year increase, while Kate Spade's sales were $244.9 million, reflecting a 13% decline [6] - Stuart Weitzman's net sales totaled $46.2 million, marking an 18% year-over-year decrease [7] Regional Sales Insights - North America sales increased 9% year over year to $951.7 million, while European markets saw a 32% increase in revenues to $92.9 million [8] - Sales in Greater China improved 3% to $278.9 million, while Japan experienced an 8% decline [8] Cost and Margin Analysis - Adjusted operating income was $277.3 million, up 15.9% from the previous year, with an adjusted operating margin increase of 140 basis points to 17.5% [10] - Selling, general and administrative expenses totaled $928.5 million, up 7% year over year, remaining flat as a percentage of net sales at 58.6% [11] Future Outlook - Tapestry anticipates mid-single-digit revenue growth for the fiscal fourth quarter, with earnings per share expected to exceed 95 cents [16][17] - The company raised its fiscal 2025 revenue outlook to $6.95 billion, indicating 4% growth from the prior year [18] - Projected earnings per share for fiscal 2025 are forecasted at $5.00, implying high-teens percentage growth from the prior year [20]

Core Insights - Tapestry reported $1.58 billion in revenue for the quarter ended March 2025, marking a year-over-year increase of 6.9% and exceeding the Zacks Consensus Estimate by 3.66% [1] - The earnings per share (EPS) for the same period was $1.03, a significant increase from $0.81 a year ago, representing a surprise of 15.73% over the consensus estimate of $0.89 [1] Financial Performance - Tapestry's shares have returned +11.1% over the past month, slightly underperforming the Zacks S&P 500 composite's +11.3% change, with a current Zacks Rank of 3 (Hold) [3] - Geographic Net Sales in Greater China were reported at $278.90 million, slightly below the average estimate of $282.77 million, reflecting a year-over-year change of +3% [4] - North America net sales reached $951.70 million, surpassing the average estimate of $881.72 million, with a year-over-year increase of +8.9% [4] Segment Performance - Net Sales for Coach amounted to $1.29 billion, exceeding the estimated $1.22 billion, with a year-over-year change of +12.9% [4] - Stuart Weitzman reported net sales of $46.20 million, falling short of the average estimate of $51.92 million, representing a year-over-year decline of -17.7% [4] - Kate Spade's net sales were $244.90 million, below the average estimate of $252.63 million, indicating a year-over-year decrease of -12.8% [4] Operating Income - Operating income for Coach was reported at $420.10 million, exceeding the average estimate of $392.26 million [4] - Stuart Weitzman experienced an operating loss of -$5.60 million, slightly worse than the estimated loss of -$5.11 million [4]