Courtney Reagan joins us with a look at the choices retailers need to make and the prices that we all might pay for this holidays. Hopefully they're going to be lower. Court >> see kind of depends on what you get.I mean since April 2nd trade deals of course you know been negotiated with lower rates for some countries though India tariffs are higher than initially announced. China remains in flux and then other types of tariffs like on upholstered furniture for example those have also been levied. So, while ...

Core Viewpoint - The previous investment stance on Tapestry (NYSE: TPR) was a hold rating due to the belief that revenue growth acceleration would not occur in the near term [1] Group 1: Investment Strategy - The investment approach focuses on long-term investments while also incorporating short-term shorts to identify alpha opportunities [1] - The strategy is based on bottom-up analysis, examining the fundamental strengths and weaknesses of individual companies [1] - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Let's bring in the top ranked retail analyst on Wall Street, Matthew Boss of JP Morgan. He just raised his price target in fact on that name. It's good to see you. >> Good to see you, too.>> You were a believer before many, right. Cuz the last time you were here, you had just upgraded the stock to a buy. >> That's right.>> Maybe 10% lower than where the stock is now. What gave you the conviction to do it then. And do you feel like you're getting the payoff now.>> Yeah. So look the the conviction in the call ...

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]

Core Insights - Coach is expanding its brand presence through the introduction of coffee shops, aiming to attract more Gen Z customers and increase store visits [1][4][8] Group 1: Coffee Shop Strategy - Coach has opened its third U.S. coffee shop in The Mills at Jersey Gardens and plans to open a fourth location soon [3] - The company aims to establish 12 to 15 coffee shops annually worldwide, offering seasonal menu items and exclusive merchandise [4][15] - Coffee shops are designed to enhance customer experience and encourage additional purchases, with merchandise accounting for about 30% of overall revenue [18][21] Group 2: Targeting Gen Z - Coach has successfully attracted 4.6 million new customers in North America, with nearly 70% being Gen Z and millennials [8] - The coffee shop concept provides a more affordable entry point for younger consumers who may not currently afford luxury handbags [6][7] - The brand's marketing strategy has focused on creating a full experience for customers, particularly appealing to younger shoppers [5][12] Group 3: Financial Performance - Coach's parent company, Tapestry, has seen a 67% increase in shares this year, driven by strong sales growth and new customer acquisition [7][8] - The company is on track to become a $10 billion brand, with annual revenue of approximately $5.6 billion [12] - Coach has capitalized on the trend of rising prices in the ultra-luxury segment, allowing it to increase its own prices while maintaining perceived value [13] Group 4: Market Positioning - Coach has blurred the lines between retail channels by selling full-price items at outlet stores, responding to consumer behavior influenced by social media [9][10] - The coffee shops are strategically located in outlet malls, addressing a gap in food options and enhancing customer convenience [20] - The brand's exclusive merchandise, such as tote bags featuring a unique logo, adds to the appeal of the coffee shops [19]

Core Viewpoint - Tapestry (NYSE: TPR) is perceived to be pricing in overly optimistic growth expectations for both revenue and profitability, amidst ongoing macroeconomic uncertainties and internal challenges [1] Group 1: Market Dynamics - There is a fading momentum among Gen Z consumers in North America, attributed to market saturation [1] Group 2: Financial Outlook - The current pricing of Tapestry's shares suggests expectations that may not align with the prevailing economic conditions and company performance [1]

Core Insights - Pallay Punchu, known as Peru's new Rainbow Mountain, rises over 4,700 meters above sea level and features geometric lines and vibrant colors, resembling a woven landscape [1] - The mountain is a sacred site where nature and culture intersect, embodying the spiritual essence of the Andes through its colors and silence [3] - Since its emergence on social media in 2020, Pallay Punchu has captivated millions, symbolizing hope and renewal in challenging times [5] - Climbing Pallay Punchu offers a transformative experience, encouraging visitors to connect with the Andean worldview and the immensity of the landscape [6] - Nearby, the Langui Layo Lagoon complements Pallay Punchu, providing a serene environment at nearly 4,000 meters above sea level, showcasing the beauty of the Andes [7] - Peru's landscapes, including Pallay Punchu, are not only visually stunning but also spiritually significant, inviting a reconnection with nature [8]

Core Insights - Jim Cramer discussed Target Corporation (NYSE:TGT) in the context of turnarounds, emphasizing the challenges associated with executing such strategies [2] - Target is opening larger stores in multiple states, including Arizona, California, Nebraska, Virginia, Texas, Florida, and South Carolina [2] - The company recently ended its partnership with Ulta Beauty, which Cramer noted as a significant development given the previously strong relationship highlighted by Target's CEO, Brian Cornell [3] Company Strategy - Target Corporation is focusing on expanding its footprint by opening larger stores, which is part of its turnaround strategy [2] - The decision to end the partnership with Ulta Beauty indicates a shift in strategy, as it was previously touted as a strong relationship by the company's leadership [3] Market Context - Cramer has frequently compared Target to competitors like Walmart and Costco, noting that Target has had to lower prices to remain competitive [2] - The discussion around turnarounds reflects broader market trends and challenges faced by retail companies in adapting to changing consumer preferences and competitive pressures [2]

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]

Group 1: Industry Developments - The fashion industry is experiencing mixed sentiments, highlighted by the publication of Giorgio Armani's will, which indicates a shift from his long-standing independence to potential capital-driven changes [1][3] - Kering has postponed the full acquisition of Valentino due to debt pressures, indicating a cautious approach to expansion amidst financial challenges [1][8] - Anta Group aims to open 1,000 stores in Southeast Asia over the next three years, positioning the region as a strategic hub for its global expansion [1][4] Group 2: Company-Specific Updates - Dior is expanding its design team to support creative director Jonathan Anderson, emphasizing its commitment to maintaining leadership in luxury design [2][9] - The will of Giorgio Armani specifies that heirs must sell a portion of the Armani Group's shares within 18 months and consider listing the company if a sale does not occur [3][4] - Anta Group's Southeast Asia operations are expected to see nearly double revenue growth by mid-2025, with significant contributions from new markets [4][8] - Golden Goose reported a 13% increase in revenue to €342.1 million in the first half of 2025, driven by strong DTC sales and global expansion [12][13] - Jiangnan Buyi's revenue for the 2025 fiscal year reached ¥5.5484 billion, a 4.6% increase, with net profit rising 6% to ¥897.5 million [10][11] - Tapestry plans to increase Coach's revenue to $10 billion, focusing on young consumers and aiming for significant market share growth [11][12] - The late Francesco Trapani's legacy in reshaping the luxury jewelry market through his leadership at Bulgari is being recognized following his passing [5][6]