Core Insights - Tapestry, Inc. (NYSE:TPR) is highlighted as a company undergoing a turnaround, particularly with its Kate Spade brand, focusing on simplifying its product lineup and appealing to younger consumers [2] - Jim Cramer emphasizes that Tapestry offers high-value products, which are characterized by quality at a reasonable price rather than low prices [2] - Cramer uses Tapestry as a model for other companies, suggesting that all firms need to undertake similar turnaround efforts [2] Company Overview - Tapestry, Inc. is a high-end American accessories, footwear, and jewelry company [2] - The company is known for its Coach brand, which has been discussed in the context of competitive strategies during challenging economic times [2] Market Commentary - Cramer expressed concerns regarding the impact of tariffs on Tapestry's stock performance, indicating that the company did not adequately signal the potential negative effects beforehand [3] - Despite acknowledging Tapestry's potential, there is a belief that certain AI stocks may offer greater returns with limited downside risk [3]

Company Overview - Tapestry, Inc., formerly known as Coach, Inc., is a designer and marketer of fine accessories and gifts for both women and men, operating in the United States and internationally [12] - The company offers a range of lifestyle products, including handbags, accessories, footwear, jewelry, seasonal apparel, sunwear, travel bags, fragrances, and watches [12] - Tapestry operates under three segments: Coach brand (79.9% of fiscal 2025 sales), Kate Spade & Company (17.1% of sales), and Stuart Weitzman (3.1% of sales) [12] Investment Analysis - Tapestry has a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating a moderate investment outlook [13] - The company has a Momentum Style Score of B, with shares increasing by 11.8% over the past four weeks [13] - Four analysts have revised their earnings estimates higher for fiscal 2026, with the Zacks Consensus Estimate increasing by $0.03 to $5.46 per share [13] - Tapestry has an average earnings surprise of +10.3%, suggesting positive performance relative to expectations [13] - With a solid Zacks Rank and strong Momentum and VGM Style Scores, Tapestry is recommended for investors' consideration [14]

Market Performance - The NASDAQ index gained 197 points or 0.90% to reach 22339, with a high of 22340.91 [1] - The S&P index increased by 31 points or 0.47% to 6614.69, with an earlier high of 6619.62, indicating potential for a new record close [1] - The Dow industrial average declined by 48 points or -0.11% to 45787.66, with companies like Amgen, McDonald's, Sherwin-Williams, and 3M contributing to the downturn [2] - The small-cap Russell 2000 rose by 7.69 points or 0.32% to 2404.73 [2] Notable Stock Movements - Tesla surged by 6.45% following reports of Elon Musk purchasing about $1 billion in Tesla stock, indicating strong bullish momentum [3] - Chewy increased by 5.42% due to optimism for continued demand growth in online pet supplies [3] - ASML ADR rose by 5.37% driven by strong semiconductor sector momentum and robust chip equipment demand [3] - Western Digital gained 5.24% as memory chip recovery prospects improved [3] - Roblox climbed by 4.55% on sustained growth expectations in gaming and metaverse engagement [3] - Tapestry increased by 4.34% supported by strong consumer discretionary flows and luxury retail optimism [3] - Intel advanced by 4.05% due to chip sector strength and AI-related tailwinds [3] - Alphabet A rose by 3.65% on steady ad revenue momentum and AI growth prospects [3] - Oracle increased by 3.28% following upbeat sentiment around its cloud and AI-driven enterprise services [3] - GameStop Corp climbed by 3.07% as retail interest in meme-related stocks remains elevated [3] - Snowflake edged higher by 2.76% with continued confidence in data and AI-related demand [3] - Snap increased by 2.66% on improving advertising sentiment [3] - Stellantis NV ticked up by 2.64% supported by global auto demand and EV outlook [3] - CrowdStrike Holdings advanced by 2.31% on strong cybersecurity sector momentum [3]

Industry Overview - The retail industry is experiencing a "barbell" effect, with significant growth at both the high-end and low-end, while the middle segment, exemplified by Target Corp., is being squeezed out [1] - Discount retailers like TJX Companies are reporting record revenues and stock gains, while luxury brands such as ULTA Beauty and Kate Spade are also seeing strong sales and maintaining healthy margins [1] Consumer Behavior - Consumers are increasingly seeking value, whether through discounted products or durable luxury items, leading to a K-shaped spending pattern that favors affluent households [2] Company Performance: Williams-Sonoma - Williams-Sonoma has shown resilience against tariff impacts, managing to maintain margins through inventory management and cost reductions [4][5] - The company reported earnings per share (EPS) and revenue that exceeded analyst expectations, with a 3.7% year-over-year growth in comparable sales and an increase in full-year revenue guidance to 2%-5% [7] - The stock has increased by over 30% in the last three months, indicating strong business performance [8] Company Performance: Ralph Lauren - Ralph Lauren has demonstrated resilience in the retail sector, with a 13.7% year-over-year revenue growth to $1.72 billion in fiscal Q1 2026, and an increase in full-year guidance despite inflation concerns [11] - The stock has risen more than 35% year-to-date, supported by strong earnings and a 160-basis-point gross margin increase [10] Company Performance: Tapestry Inc. - Tapestry, which includes brands like Kate Spade and Coach, reported a record revenue of $7 billion for FY 2025, driven by double-digit growth from the Coach brand [15] - The company achieved 8.3% year-over-year growth in revenue for fiscal Q4 2025, with EPS of $1.02, both surpassing analyst projections [17]

Group 1 - Barclays raised the target price for Tapestry from $111 to $127, maintaining an "Overweight" rating [1]

Core Viewpoint - Tapestry, the parent company of Coach, anticipates fully mitigating the impact of U.S. tariffs by fiscal year 2028, with a projected loss of approximately $160 million due to tariffs in fiscal year 2026 [1] Group 1: Financial Projections - Tapestry expects Coach's sales to reach around $10 billion in the long term [1] - Kate Spade is projected to return to profitable revenue growth by fiscal year 2027 [1] - The company forecasts mid-single-digit revenue growth for fiscal years 2027 and 2028, with adjusted earnings per share expected to grow at a low double-digit rate annually [1] Group 2: Share Buyback Plan - Tapestry announced a $3 billion share repurchase plan to be executed through fiscal year 2028 [1]

Core Insights - Tapestry is hosting its 2025 Investor Day to present forward-looking statements and financial measures [1] Company Overview - Joanne Crevoiserat, CEO of Tapestry, Inc., is leading the presentation [1]

Core Viewpoint - Tapestry, the owner of Coach and Kate Spade, has seen its shares rise nearly 60% this year, despite facing some pressure during its investor day where it announced a new growth strategy called "Amplify" [1][2]. Financial Performance - The company is targeting annual revenue growth in the mid-single digits through fiscal 2028, following a record revenue of $7 billion last year [2]. Growth Strategy - The "Amplify" agenda aims to build Coach to $10 billion over time, with a focus on long-term growth rather than short-term gains [3]. - Tapestry believes that Kate Spade has significant potential and aims to reignite growth through the "Amplify" brand strategy [4]. Consumer Engagement - Tapestry recognizes that while Kate Spade has high consumer awareness, it needs to improve relevance to drive purchases, bridging the gap between brand recognition and consumer buying behavior [5]. - The company is focusing on understanding consumer needs deeply, as demonstrated by the launch of the Duo bag, which was designed based on insights from Gen Z consumers seeking versatility [6][7]. Market Positioning - Tapestry positions itself as a more accessible luxury brand compared to competitors like LVMH and Gucci, emphasizing that consumers do not need to save extensively to purchase a Coach handbag [9]. - The company targets young consumers entering the market, particularly those turning 18, as a key demographic for future growth [11][12].

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].