Core Insights - Tapestry, Inc. (NYSE:TPR) is recognized as a must-buy dividend stock, appealing particularly to fashion-focused investors [2][4] Company Overview - Tapestry, Inc. is a New York-based fashion holding company, serving as the parent brand for Coach New York and Kate Spade, with each brand operating independently while leveraging shared resources [2] - Coach is identified as the main growth driver, contributing the largest share of total sales for the company [2] Strategic Focus - The company has centered its strategy on four key areas: effective brand portfolio management, strengthening its omni-channel approach, regional expansion, and driving product innovation [3] - These initiatives aim to enhance market presence, attract younger consumers (Millennials and Gen Z), and improve profitability through better margins and operational efficiency [3] Dividend Information - Tapestry declared a 14.3% increase in its quarterly dividend to $0.40 per share in August [4] - The company has a commendable 5-year dividend growth rate of over 16.5%, despite lacking a long-term dividend growth track record [4] - As of October 9, the stock has a dividend yield of 1.41% [4]

Core Points - Tapestry, Inc. will hold a conference call on November 6, 2025, at 8:00 a.m. (ET) to discuss its fiscal 2026 first quarter results [1] - The results will be reported via press release earlier that morning [1] - Investors can listen to the conference call by dialing 1-866-847-4217 or 1-203-518-9845 and providing the Conference ID 7269452 [1] - An audio webcast will also be available on the company's investor relations website [1] - A telephone replay of the conference call will be available for five days [1]

Core Insights - The George at Columbia, Tapestry Collection by Hilton, has officially opened in Harlem, combining local culture with the comfort of a globally recognized hotel brand [1][3] - The hotel aims to serve as a community hub, providing jobs and fostering partnerships with local businesses while offering a unique hospitality experience [2][4] Company Overview - The George features 139 guest rooms, a fitness center, a terrace lounge, and flexible meeting spaces, with two full-service restaurants expected to open in Spring 2026 [2][8] - The hotel is part of Hilton's Tapestry Collection, which includes over 170 independent hotels, each with a unique personality and design [3][10] Community Engagement - The hotel emphasizes local hiring and community-focused programming, aiming to create a welcoming environment for both guests and local residents [4][8] - The George is positioned as a gathering spot that honors Harlem's artistic legacy and cultural significance [3][4] Amenities and Features - Guests will enjoy amenities such as complimentary high-speed Wi-Fi, a heated outdoor pool set to open in Summer 2026, and access to Hilton Honors benefits [2][5] - The hotel incorporates design elements inspired by Harlem's history, featuring rich earth tones and art deco finishes [2][3] Location and Accessibility - The George is located at 412 West 126th Street, Harlem, New York, and reservations can be made through Hilton's official channels [6][8]

Core Viewpoint - The previous investment stance on Tapestry (NYSE: TPR) was a hold rating due to the belief that revenue growth acceleration would not occur in the near term [1] Group 1: Investment Strategy - The investment approach focuses on long-term investments while also incorporating short-term shorts to identify alpha opportunities [1] - The strategy is based on bottom-up analysis, examining the fundamental strengths and weaknesses of individual companies [1] - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Core Insights - The best-performing stock over the past year among well-known companies was Tapestry Inc. (TPR), a luxury fashion group, rather than technology or cryptocurrency stocks [2][3] - Tapestry's share price increased by +136.65% in the last 12 months, significantly outperforming Bitcoin (+68.15%), Nvidia (+43.66%), and the S&P 500 (+15.64%) [3] Company Performance - Tapestry Inc. is recognized for its brands including Coach, Kate Spade, and Stuart Weitzman [2] - The company's remarkable stock performance is notable as it operates in the consumer discretionary sector, which is typically viewed as cyclical and vulnerable to economic fluctuations [3]

Company Performance - Tapestry, Inc. concluded fiscal 2025 with record results, reporting revenues of $7 billion, up 5% from the prior year, and adjusted earnings per share (EPS) of $5.10, an increase from $4.29 year over year [1][10] - The company expects fiscal 2026 revenues of $7.2 billion, indicating mid-single-digit growth, with adjusted EPS projected at $5.30-$5.45, reflecting a 4-7% growth from last year [3][10] Brand Performance - Coach was the key driver of growth, posting 10% annual growth and a 13% gain in the fiscal fourth quarter, supported by strong momentum in North America, China, and Europe [2][10] - Kate Spade is expected to decline in the near term before improving later in the year [4][10] Profitability and Costs - Profitability is expected to remain healthy despite tariff pressures, with operating margin projected to expand due to operational gross margin improvement and operational SG&A leverage [4] - The company anticipates $160 million in incremental tariffs, but expects to offset this with operational improvements [4][6] Future Outlook - Fiscal first-quarter sales are projected to rise at a low double-digit rate, with EPS of $1.25, suggesting more than 20% year-over-year growth [5] - Tapestry is enhancing shareholder returns with an $800 million share repurchase program and a 14% dividend increase to $1.60 per share [6] Regional Performance - Sales are forecasted to rise in the mid-single digits in North America, nearly 20% in Europe, and in the high-single digits in China [3]

Core Insights - Tapestry Inc. faced challenges in the past year, including the abandonment of an $8.5 billion acquisition of Capri Holdings and the sale of Stuart Weitzman, while focusing on the turnaround of Kate Spade [1] - CEO Joanne Crevoiserat successfully exceeded her financial targets, with the Coach brand showing significant growth [1] Compensation and Performance - Crevoiserat's total compensation increased by 12.4% to $17.3 million in fiscal 2025, primarily driven by stock and option awards valued at $10.6 million [2][3] - Her salary was $1.4 million, with an additional incentive pay of $5.3 million, linking her earnings to the company's financial performance [3] Incentive Plan - Tapestry's incentive plan is based on adjusted net sales, gross margins, and operating income, aiming to align with long-term profitability and brand health [4] - Crevoiserat received 95% of her total possible incentive pay of $5.6 million, reflecting the company's strong performance [4] Strategic Outlook - Tapestry's leadership described fiscal 2025 as a "breakout year," emphasizing the importance of emotional connections with consumers and adaptability in a changing retail landscape [5] - The company outlined a three-year strategic plan to drive Coach towards $10 billion in sales, targeting a broader customer base [5]

Core Insights - Coach is expanding its brand presence through the introduction of coffee shops, aiming to attract more Gen Z customers and increase store visits [1][4][8] Group 1: Coffee Shop Strategy - Coach has opened its third U.S. coffee shop in The Mills at Jersey Gardens and plans to open a fourth location soon [3] - The company aims to establish 12 to 15 coffee shops annually worldwide, offering seasonal menu items and exclusive merchandise [4][15] - Coffee shops are designed to enhance customer experience and encourage additional purchases, with merchandise accounting for about 30% of overall revenue [18][21] Group 2: Targeting Gen Z - Coach has successfully attracted 4.6 million new customers in North America, with nearly 70% being Gen Z and millennials [8] - The coffee shop concept provides a more affordable entry point for younger consumers who may not currently afford luxury handbags [6][7] - The brand's marketing strategy has focused on creating a full experience for customers, particularly appealing to younger shoppers [5][12] Group 3: Financial Performance - Coach's parent company, Tapestry, has seen a 67% increase in shares this year, driven by strong sales growth and new customer acquisition [7][8] - The company is on track to become a $10 billion brand, with annual revenue of approximately $5.6 billion [12] - Coach has capitalized on the trend of rising prices in the ultra-luxury segment, allowing it to increase its own prices while maintaining perceived value [13] Group 4: Market Positioning - Coach has blurred the lines between retail channels by selling full-price items at outlet stores, responding to consumer behavior influenced by social media [9][10] - The coffee shops are strategically located in outlet malls, addressing a gap in food options and enhancing customer convenience [20] - The brand's exclusive merchandise, such as tote bags featuring a unique logo, adds to the appeal of the coffee shops [19]

Core Points - The abrupt end of the "de minimis" exemption has caused panic in the retail sector, allowing goods under $800 to enter the U.S. with minimal oversight [1][2] - Retailers are scrambling to adjust their earnings projections due to the sudden change in trade law [3] Impact on Retailers - Retail giant Tapestry, which owns brands like Kate Spade and Coach, anticipates a $160 million hit to profits as nearly 15% of its sales were previously covered under the de minimis exemption, now subject to a 30% tariff [4] - Shares of Tapestry fell nearly 16% following the announcement of the profit impact [4] Broader Implications - The White House argues that the end of the exemption will address issues related to cheap and potentially unsafe goods entering the U.S. tariff-free, and claims it has been exploited by drug smugglers [5] - The executive order may disrupt supply chains across various industries that depend on importing inexpensive goods from overseas [6]

Core Viewpoint - Tapestry (NYSE: TPR) is perceived to be pricing in overly optimistic growth expectations for both revenue and profitability, amidst ongoing macroeconomic uncertainties and internal challenges [1] Group 1: Market Dynamics - There is a fading momentum among Gen Z consumers in North America, attributed to market saturation [1] Group 2: Financial Outlook - The current pricing of Tapestry's shares suggests expectations that may not align with the prevailing economic conditions and company performance [1]