Company Overview - Tapestry (NYSE: TPR) owns Coach, which contributes almost 80% of its sales, along with two secondary brands, Kate Spade and Stuart Weitzman [1] - The company has recently rebranded Coach to align with current fashion trends [1] Analyst Perspective - The analyst has no current stock, option, or derivative positions in Tapestry but may initiate a long position in the next 72 hours [2] - The analyst is not compensated by Tapestry and has no business relationship with the company [2] Investment Philosophy - The analyst focuses on quality companies at reasonable valuations, inspired by investors like Warren Buffett, Peter Lynch, and Terry Smith [3] - The analyst believes that long-term share price performance is driven by fundamentals, particularly earnings per share [3]

Zacks Rating Upgrade for Tapestry - Tapestry (TPR) has been upgraded to a Zacks Rank 1 (Strong Buy), reflecting a positive earnings outlook [1] - The upgrade is driven by an upward trend in earnings estimates, which is a powerful factor influencing stock prices [1][4] - The Zacks rating system relies on changes in a company's earnings picture, tracking EPS estimates through the Zacks Consensus Estimate [1] Earnings Estimate Revisions and Stock Price Impact - Changes in earnings estimates are strongly correlated with near-term stock price movements, as institutional investors use these estimates to calculate fair value [4] - Rising earnings estimates for Tapestry indicate an improvement in the company's underlying business, which could push the stock higher [5] - Empirical research shows a strong correlation between earnings estimate revisions and near-term stock movements, making tracking such revisions rewarding [6] Tapestry's Earnings Outlook - For the fiscal year ending June 2025, Tapestry is expected to earn $4.58 per share, a 6.8% increase from the previous year [8] - Over the past three months, the Zacks Consensus Estimate for Tapestry has increased by 2.4% [8] Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7] - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, and Tapestry's upgrade places it in this elite group [9][11] - The Zacks system maintains an equal proportion of 'buy' and 'sell' ratings, ensuring a balanced approach across its universe of over 4000 stocks [9]

Industry Overview - The Retail - Apparel and Shoes industry is facing challenges due to fluctuating consumer confidence and inflationary pressures, leading to weakened demand for apparel and footwear [2][8] - Retailers are dealing with rising operational costs, including increased wages and higher prices for goods and services, which complicates their ability to pass costs onto consumers [3] Industry Adaptation - Industry participants are adapting by focusing on robust product strategies, advancing omnichannel capabilities, and making prudent capital investments to meet evolving consumer demands [4][12] - Companies are enhancing consumer engagement through innovative products and personalized experiences, while also managing inventory and optimizing capital expenditures [11][12] Key Trends - Soft demand is expected to impact revenues, with a reported decline of 0.2% in sales at clothing and accessories stores in October [8] - Pressure on margins is anticipated to persist as companies invest heavily in digital infrastructure and marketing to remain competitive [9][10] Performance Metrics - The Zacks Retail - Apparel and Shoes industry has underperformed compared to the broader Zacks Retail-Wholesale sector and the S&P 500, with a growth of 16.3% over the past year compared to the S&P 500's 30% [19] - The industry is currently trading at a forward P/E of 15.92X, lower than the S&P 500's 22.28X and the sector's 23.94X [20] Company Highlights - **Deckers Outdoor Corp.**: The company is well-positioned for growth with a diverse brand portfolio and strong market trends, showing a sales growth estimate of 13.6% and an EPS growth of 12.6% [21][22] - **Tapestry, Inc.**: Focused on geographic expansion and digital innovation, Tapestry has a sales growth estimate of 1.4% and an EPS growth of 6.3% [23][25] - **Abercrombie & Fitch Co.**: The company integrates digital and physical retail experiences, with a sales growth estimate of 13.4% and an impressive EPS growth of 64.8% [26][28] - **Torrid Holdings Inc.**: Known for its leadership in the plus-size fashion market, Torrid has a significant EPS growth estimate of 81.8% [29][30]

NEW YORK, NEW YORK - SEPTEMBER 13: A Coach store is seen on September 13, 2024 in New York City. ... [+] Tapestry, the parent company of Coach and Michael Kors, faces an antitrust trial brought on after a Federal Trade Commission lawsuit that seeks to stop the merger of Tapestry and Capri. If the merger, which was announced over a year ago, is approved it would place six fashion brands under a single company. (Photo by Michael M. Santiago/Getty Images)Getty ImagesTapestry announced it is canceling the acqui ...

Tapestry Inc (NYSE:TPR) stock was last seen up 12.8%  to trade at $57.81, leading the S&P 500 Index (SPX) today. The retail stock, which is behind luxury brands Coach, Kate Spade, as well as Stuart Weitzman, is enjoying the Federal Trade Commission's (FTC) blockage of rival Capri Holding's (CPRI) $8.5 billion merger deal. TPR now boasts an 86.7% year-over-year lead, and is trading at its highest level since November 2013. Better yet, TPR's peak comes amid low implied volatility (IV) -- a combination that us ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics a ...

Did you analyze how Tapestry (TPR) fared in its international operations for the quarter ending September 2024? Given the widespread global presence of this maker of high-end shoes and handbags, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. ...

Tapestry, Inc. (TPR) reported first-quarter fiscal 2025 results, which exceeded the Zacks Consensus Estimate for revenues and earnings despite a challenging global economic and consumer environment. The top line declined while the bottom line increased year over year. Driven by the first quarter results, Tapestry raised its fiscal 2025 outlook.Tapestry's first-quarter results reflected the company's brand strength and operational excellence that support its strategic growth initiatives. This performance hig ...

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For the quarter ended September 2024, Tapestry (TPR) reported revenue of $1.51 billion, down 0.4% over the same period last year. EPS came in at $1.02, compared to $0.93 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.47 billion, representing a surprise of +2.31%. The company delivered an EPS surprise of +7.37%, with the consensus EPS estimate being $0.95.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...