Tapestry(US:TPR) ZACKSยท2025-06-25 16:51Core Insights - Tapestry, Inc. (TPR) is focusing on international expansion as a key growth strategy, reporting an 8% increase in international revenues at constant currency for Q3 fiscal 2025 [1][9] - Europe has shown exceptional performance with a 35% revenue growth rate, driven by strong local consumer demand and significant customer acquisition, particularly among Gen Z [2][9] - The Asia-Pacific region saw a 4% revenue increase, with Greater China achieving 5% growth, attributed to targeted marketing towards younger consumers and strong brand positioning [3][9] International Growth - Tapestry's supply chain is diversified, with approximately 70% of manufacturing outside China, primarily in Vietnam, Cambodia, and the Philippines, which helps mitigate geopolitical risks [4] - Digital sales have grown at a mid-teens rate, now accounting for about 30% of total revenues, complementing the mid-single-digit growth in brick-and-mortar retail [5] - The Coach brand is a significant driver of international momentum, with successful collections resonating with global consumers, especially Gen Z [6] Financial Outlook - The company raised its fiscal 2025 revenue outlook to $6.95 billion, indicating a 4% growth from the previous year, with expectations of 30% growth in Europe and low-single-digit growth in Greater China [7][9] - TPR is currently trading at a forward P/E multiple of 16.08X, which is below the industry average of 17.41X and the Retail-Wholesale sector's average of 24.33X [8] Stock Performance - TPR shares have increased by 18.4% over the past three months, outperforming the Zacks industry growth of 7.3% and the S&P 500 index's growth of 5.2% [11] - As of the latest close, TPR stock is trading at $87.26, which is 4% below its 52-week high of $90.85 [12] Earnings Estimates - The Zacks Consensus Estimate for TPR's earnings has been revised upward, with current fiscal year estimates at $5.05 per share, reflecting a year-over-year growth of 17.7% [15]