Core Insights - Tapestry, Inc. (TPR) has seen a significant share price increase of 56.2% over the past year, outperforming the Zacks Retail-Apparel and Shoes industry's decline of 6.8% and the broader Retail-Wholesale sector's growth of 11.3% [1][2]. Performance Overview - TPR stock closed at $63.78, which is 29.8% below its 52-week high of $90.85 reached on February 18, 2025 [2]. - The company is currently trading at a low forward 12-month P/E ratio of 12.16, compared to the industry average of 13.98 and the sector's 21.99, indicating potential for attractive entry points for investors [5]. Growth Drivers - Tapestry's digital and direct-to-consumer (DTC) channels have shown robust performance, with DTC sales increasing by 4%, driven by digital revenue growth and steady physical retail performance [8]. - Coach, a key brand for Tapestry, reported an 11% increase in revenues and a 270-basis-point improvement in gross margin in the fiscal second quarter [10]. - Tapestry's international growth strategy is yielding results, with Europe experiencing a 42% year-over-year revenue increase, and Greater China returning to growth with a 2% sales increase [12][13]. Financial Outlook - Tapestry has raised its fiscal 2025 revenue guidance to exceed $6.85 billion, reflecting a 3% year-over-year increase, and has adjusted its EPS estimate to a range of $4.85 to $4.90, indicating a 13-14% year-over-year improvement [14][15]. - The Zacks Consensus Estimate for Tapestry's current fiscal year earnings has increased to $4.92 per share, with projected sales of $6.88 billion, implying year-over-year growth of 3.1% [16].

Company Overview - Tapestry (TPR) shares increased by 11% to close at $67.28, following a notable trading volume, despite a 15.8% loss over the past four weeks [1] - The company is expected to report quarterly earnings of $0.88 per share, reflecting an 8.6% year-over-year increase, with revenues projected at $1.53 billion, up 2.9% from the previous year [3] Market Context - U.S. stocks experienced a significant rally after President Trump announced a 90-day pause on reciprocal tariffs for all nations except China, which may have positively influenced Tapestry's stock performance [2] - Tapestry's growth is attributed to Coach's strong performance, successful international expansion, and effective direct-to-consumer and digital strategies [2] Earnings Estimates and Trends - The consensus EPS estimate for Tapestry has remained unchanged over the last 30 days, indicating stability in earnings expectations [4] - Trends in earnings estimate revisions are closely correlated with near-term stock price movements, suggesting that monitoring Tapestry's earnings revisions is crucial for assessing future stock performance [3][4] Industry Comparison - Tapestry belongs to the Zacks Retail - Apparel and Shoes industry, where another company, Designer Brands (DBI), saw a 16.2% increase in its stock price, closing at $3.08, despite a -24.7% return over the past month [4] - Designer Brands' consensus EPS estimate has drastically changed by -97.2% over the past month, indicating potential challenges within the industry [5]

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 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]

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].