Is TPR Positioned to Deliver Strong Growth Despite Tariff Headwinds?

Company Performance - Tapestry, Inc. concluded fiscal 2025 with record results, reporting revenues of $7 billion, up 5% from the prior year, and adjusted earnings per share (EPS) of $5.10, an increase from $4.29 year over year [1][10] - The company expects fiscal 2026 revenues of $7.2 billion, indicating mid-single-digit growth, with adjusted EPS projected at $5.30-$5.45, reflecting a 4-7% growth from last year [3][10] Brand Performance - Coach was the key driver of growth, posting 10% annual growth and a 13% gain in the fiscal fourth quarter, supported by strong momentum in North America, China, and Europe [2][10] - Kate Spade is expected to decline in the near term before improving later in the year [4][10] Profitability and Costs - Profitability is expected to remain healthy despite tariff pressures, with operating margin projected to expand due to operational gross margin improvement and operational SG&A leverage [4] - The company anticipates $160 million in incremental tariffs, but expects to offset this with operational improvements [4][6] Future Outlook - Fiscal first-quarter sales are projected to rise at a low double-digit rate, with EPS of $1.25, suggesting more than 20% year-over-year growth [5] - Tapestry is enhancing shareholder returns with an $800 million share repurchase program and a 14% dividend increase to $1.60 per share [6] Regional Performance - Sales are forecasted to rise in the mid-single digits in North America, nearly 20% in Europe, and in the high-single digits in China [3]