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]

Financial Performance - Caleres' sales were $614 million, a decrease of 6.8% compared to Q1 2024[6,8] - Gross margin was 45.4%, down 150 bps versus Q1 2024[8] - Adjusted EPS was $0.22[6,8] - Inventory was up 8.1% compared to Q1 2024[8] - Total debt was $295 million[8] - Adjusted EBITDA for the trailing twelve months was $188 million, compared to $259 million in the prior year[8] Segment Performance - Famous Footwear sales were $328 million, down 6.3% year-over-year, with comparable sales down 4.6%[12] - Brand Portfolio sales were $295 million, down 6.9% versus Q1 2024[9] - Famous Footwear gross margin was 45.3%, down 80 bps year-over-year[13] - Brand Portfolio gross margin was 43.8%, down 280 bps versus Q1 2024[9] Additional Financial Data - Net earnings attributable to Caleres Inc was $6943 thousand[19] - Adjusted net earnings attributable to Caleres Inc was $7409 thousand[19]