Tapestry's 2025 Investor Day Summary Company Overview - **Company**: Tapestry Inc. - **Brands**: Coach and Kate Spade - **Revenue**: $7 billion across 60 countries with nearly 1,300 directly operated stores worldwide [4][10] Core Points and Arguments Business Momentum and Growth Strategy - **CEO's Statement**: Tapestry is positioned for sustained growth, focusing on amplifying its growth agenda [2][10] - **Consumer-Centric Approach**: The company has shifted to a consumer-obsessed model, emphasizing emotional connections and brand building [6][7] - **Financial Performance**: Over the last three years, Tapestry has recruited over 20 million new customers in North America, achieving a 10% top-line growth and nearly 50% growth in earnings per share [9][10] Brand Positioning - **Coach's Ambition**: Coach aims to reach $10 billion in annual revenue with world-class margins, focusing on emotional connections with consumers [48][49] - **Kate Spade's Growth**: Efforts are underway to reignite growth at Kate Spade, leveraging its iconic status [3][12] Market Opportunities - **Target Demographics**: Focus on the 18-27 age group as a key market entry point, with 25 million women entering this demographic annually [24][26] - **Market Penetration**: Tapestry currently holds a 7% share in a $100 billion market for handbags, small leather goods, and footwear, with significant growth potential [22][41] International Expansion - **Geographic Focus**: Growth strategies will prioritize North America, Greater China, and Europe, with plans for 125 new store openings globally [40][41] - **China's Potential**: The company sees substantial opportunities in China, particularly in cities with large university populations like Wuhan [50][40] Additional Important Insights Consumer Engagement - **Data-Driven Decisions**: Tapestry emphasizes the importance of data and consumer insights in shaping its marketing and product strategies [8][30] - **Emotional Storytelling**: The company aims to create compelling narratives around its products to foster brand loyalty [56][58] Marketing Investments - **Increased Marketing Spend**: Marketing investment has risen from 4% to 11% of revenue over the past few years, totaling $1.8 billion [35][36] - **Brand University**: Tapestry is establishing a brand university to ensure all employees understand brand growth capabilities [36][41] Future Outlook - **Financial Projections**: Tapestry expects mid-single-digit revenue growth, operating margin expansion to over 22%, and low double-digit growth in earnings per share annually for fiscal years 2026-2028 [18][19] - **Shareholder Returns**: Plans to return $4 billion to shareholders over the next three years, reflecting confidence in the company's intrinsic value [18][19] Conclusion - **Long-Term Vision**: Tapestry is committed to building a consumer-centric, emotionally connected brand portfolio that drives sustainable growth and shareholder value [19][41]

Core Viewpoint - Tapestry Inc. has outlined its long-term growth strategy, named Amplify, which aims to increase revenue, expand margins, and enhance shareholder returns through 2028 [1][2]. Revenue and Earnings Growth - The company anticipates mid-single-digit annual revenue growth and low double-digit earnings per share gains for fiscal years 2027 and 2028 [2]. - Tapestry plans to return $4 billion to shareholders over the next three years through dividends and share buybacks [2][4]. Margin Expansion - Operating margins are projected to exceed 22% by fiscal 2028, representing an increase of over 200 basis points from 2025 [3]. - Coach brand is expected to achieve steady mid-single-digit revenue growth and expand margins, with a long-term sales target of $10 billion [4]. Brand Strategy - The strategy is focused on attracting younger consumers, enhancing brand loyalty, and expanding internationally [2]. - Kate Spade is projected to return to profitable revenue growth in fiscal 2027 and accelerate further in 2028 [4]. Financial Outlook - Tapestry reaffirmed its fiscal 2026 outlook, assuming stable U.S. trade policies and consumer confidence without significant inflationary pressures [5]. - The company announced a new $3 billion share repurchase authorization and plans to maintain an annual dividend of $1.60 per share in fiscal 2026 [4]. Market Performance - TPR shares were trading higher by 0.49% to $105.70 in premarket trading [6].

Investor Day 2025 This presentation contains certain "forward-looking statements" based on management's current expectations. Forward-looking statements include, but are not limited to, the statements under "Financial Outlook," statements regarding long-term performance, statements regarding long-term brand growth ambitions beyond fiscal year 2028, statements regarding the Company's capital deployment plans, including anticipated annual dividend rates and share repurchase plans, and statements that can be i ...

Core Insights - Tapestry, Inc. is implementing a three-year "Amplify" strategy aimed at profitable growth and strong shareholder returns, focusing on emotional connections with consumers, fashion innovation, global experiences, and a consumer-focused culture [1][2] Company Strategy - The strategy is particularly focused on attracting Millennials and Gen Z, who are increasingly choosing Coach, with projections indicating that by 2030, these demographics will represent over 70% of the luxury market [2][3] - Tapestry aims to capture the initial luxury purchases of these younger consumers, emphasizing the long-term value of acquiring customers at this entry point [3] Financial Performance - In the quarter ending June 28, Tapestry reported a non-cash impairment charge of $855 million related to Kate Spade, alongside a 13% revenue decline for the brand [3] - Despite these challenges, Tapestry is confident in its strategy to drive future growth for both Coach and Kate Spade [3] Growth Projections - Tapestry projects mid-single-digit annual revenue growth (CAGR) for Coach and aims to expand its operating margin to the mid-30% range over the next three years, with a long-term goal of reaching $10 billion in annual revenue [4] - Kate Spade is expected to return to profitable top-line growth by Fiscal 2027, targeting mid-single-digit revenue growth and high single-digit operating margin by Fiscal 2028 [4] Marketing and Investment - Tapestry has significantly increased its marketing investment from 3.5% to over 11% of revenue over the past three years, with plans to further increase it by 200 basis points [5] - The company emphasizes the importance of scale and marketing investment in a competitive landscape with low barriers to entry but significant barriers to scale [5] Shareholder Returns - Tapestry plans to return $4 billion to shareholders by fiscal 2028, representing 100% of adjusted free cash flow from FY26 to FY28, even after capital expenditures [6] - The company is focused on a sustainable mid-single-digit growth rate, with capital allocation priorities including growing dividends and a recently authorized $3 billion share repurchase [7]

Tapestry (NYSE:TPR) unveiled its new Amplify growth strategy on Wednesday ahead of the global luxury lifestyle company's management presentations at its Investor Day event. The apparel giant said it plans to position itself for consistent, profitable growth over the next three ...

Core Insights - Tapestry Inc. is redefining its approach to the global handbag market after the failed acquisition of Capri Holdings, focusing on potential consumer reach rather than past sales figures [1] - The company identifies a target audience of 1.9 billion people, with current market share at only 0.6%, indicating significant growth potential [2] - Tapestry's new three-year strategic plan, named Amplify, aims to enhance brand reach and consumer engagement while driving sustainable growth and shareholder value [3][4] Strategic Goals - The Amplify plan includes pushing Coach revenues to $10 billion, up from $5.6 billion last year [5] - The plan aims to return Kate Spade to growth by fiscal 2027 [5] - Tapestry intends to expand operating margins by over 200 basis points to exceed 22% for fiscal 2027 and 2028 [5] - The company plans to return $4 billion to shareholders through share repurchases and dividends by fiscal 2028 [5]

Core Insights - Tapestry, Inc. is hosting its 2025 Investor Day in New York City to present its long-term growth strategy and financial targets [1] - The company emphasizes its consumer-obsessed and data-driven approach, aiming for meaningful durable growth [1] - Tapestry is introducing its Amplify plan as part of its growth strategy [1]

Key Takeaways Coach sales rose 13% in Q4, with double-digit gains across North America, China and Europe.Premium pricing and higher handbag units boosted profitability and expanded margins.Over 1M new North America customers joined, nearly 70% from Gen Z and millennials.Tapestry, Inc.’s (TPR) Coach brand delivered exceptional performance in the fourth quarter of fiscal 2025, achieving 13% year-over-year sales growth on a constant-currency basis. Growth was broad-based, with North America increasing 16%, Chi ...

Group 1 - The luxury goods consumption landscape is undergoing a "discount luxury revolution," where young consumers are increasingly purchasing high-end brands at significantly reduced prices, often one-third or less of the original retail price [3][8] - Offline luxury goods sales events have transformed into treasure hunts for young consumers, with brands like Hermes and Chanel frequently participating in exclusive sales that create a sense of urgency and scarcity among shoppers [3][6] - Online discount platforms, such as Vipshop, have become popular among young consumers, with significant price reductions on luxury items, exemplified by a COACH bag selling for over 3,000 yuan less than its retail price during a promotional event [6][8] Group 2 - Young consumers are maturing in their purchasing decisions, focusing on high cost-performance and value rather than blindly paying for brand premiums, indicating a shift in consumer behavior towards "treasure hunting" shopping experiences [8][9] - The sales of COACH products have seen a nearly 20% increase since July, driven by the appeal of high value and affordability, reflecting a broader trend in the luxury market [8] - The future of luxury consumption may evolve to prioritize "worth" over the traditional dichotomy of "full price" versus "discount," suggesting a more rational approach to luxury purchases [9]

Core Insights - Tapestry's international operations are crucial for understanding its financial strength and growth potential [1][2] - The company's total revenue for the quarter ending June 2025 was $1.72 billion, reflecting an 8.3% year-over-year increase [4] International Revenue Breakdown - Greater China contributed $273.9 million, accounting for 15.9% of total revenue, surpassing the consensus estimate by 11.87% [5] - Other International generated $141.4 million, constituting 8.2% of total revenue, falling short of projections by 5.86% [6] - Other Asia contributed $204.7 million, making up 11.9% of total revenue, also missing expectations by 2.35% [7] Revenue Projections - Analysts forecast Tapestry's total revenue for the current fiscal quarter to be $1.55 billion, a 3.1% increase from the prior year [8] - For the entire year, total revenue is projected at $7.2 billion, representing a 2.7% improvement from the previous year [9] Market Trends and Stock Performance - Tapestry's stock has declined by 2.6% over the past month, while the S&P 500 has increased by 3.5% [13] - In the last three months, Tapestry's stock price has risen by 31.1%, outperforming the S&P 500's 9.3% increase [13]