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]

Core Insights - Tapestry, Inc. reported fourth-quarter adjusted earnings of $1.04 per share, exceeding the consensus estimate of $1.02, with revenue of $1.72 billion, reflecting an 8% year-over-year increase and surpassing expectations [1] - The company anticipates fiscal 2026 revenue to approach $7.2 billion, slightly above the previous estimate of $6.96 billion, indicating low-single-digit growth from the prior year [2] Financial Performance - Coach experienced strong handbag revenue growth, attributed to a mid-teens average unit retail (AUR) gain for the quarter and a low-double-digit gain for the year [1] - Telsey Advisory Group analyst Dana Telsey maintains an Outperform rating on Tapestry's stock, with a price target of $125 [2] Earnings Outlook - The earnings outlook considers current mitigation efforts, with Telsey suggesting that the guidance appears conservatively prudent, indicating potential for upside [3] - The company is optimistic about a strong start to fiscal year 2026, with a higher dividend enhancing confidence ahead of the upcoming Investor Day [3] Tariff Impact - Tapestry faces greater tariff pressure than expected, with the early end of the de minimis exemption leading to a combined $160 million profit impact, equating to a 230 basis points hit on margins [4] - This situation results in a 60-cent EPS drag, most of which was not present in the previous quarter, due to the exemption's unexpected early termination [4] Revenue Projections - For fiscal year 2026, the analyst projects revenue of $7.24 billion, a 3.2% increase from the prior estimate of $6.99 billion, aligning with the guidance of "approaching $7.2 billion" [5] - The expectation is that Coach will outperform while Kate Spade may underperform earlier forecasts [5] Stock Performance - Tapestry shares are trading higher by 2.90%, reaching $98.50 [5]

Group 1 - The company aims to invest in firms with ideal qualitative attributes, purchasing them at attractive prices based on fundamentals, and holding them indefinitely [1] - The investment strategy involves managing a concentrated portfolio to avoid underperformers while maximizing exposure to high-potential winners [1] - The company plans to publish articles on selected companies approximately three times a week, including extensive quarterly follow-ups and constant updates [1] Group 2 - The company may rate high-quality firms as 'Hold' if their growth opportunities do not meet the required threshold or if the downside risk is deemed too high [1]