Financial Data and Key Metrics Changes - The company achieved pro forma revenue growth of 18% in the second quarter, with earnings per share (EPS) increasing by 34% to $2.69 compared to the prior year [5][21] - Operating margin expanded by 390 basis points, reflecting strong operational performance [21][24] - Gross margin for the quarter was reported at 75.5%, an increase of 110 basis points year-over-year [24] Business Line Data and Key Metrics Changes - Coach brand revenue increased by 25%, with customer acquisition driving top-line gains, welcoming 2.9 million new customers [8][21] - Kate Spade experienced a revenue decline of 14%, attributed to a strategic pullback in promotional activity [16][21] Market Data and Key Metrics Changes - North America sales increased by 17%, with Coach leading at 27% growth [21][22] - Greater China revenue grew by 34%, significantly outperforming expectations [22][23] - Europe saw a revenue increase of 22%, driven by direct business strength and market share gains [22] Company Strategy and Development Direction - The company is focused on building emotional connections with consumers, particularly targeting Gen Z, which is central to their growth strategy [6][14] - There is a strong emphasis on fashion innovation and product excellence, particularly in leather goods, which are driving growth [7][10] - The company aims to strengthen brand desirability through immersive retail experiences and targeted marketing campaigns [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain growth, citing a strong product pipeline and effective strategies [20][42] - The outlook for fiscal 2026 has been raised, with expected revenue over $7.75 billion and continued growth in key markets [30][31] - Management highlighted the importance of operational discipline and strategic investments in marketing to drive future growth [45][46] Other Important Information - The company plans to return $1.5 billion to shareholders through dividends and share repurchases in fiscal 2026 [26][28] - Inventory levels are expected to be down modestly year-over-year, indicating effective inventory management [29] Q&A Session Summary Question: What gives you confidence in the earnings guidance? - Management highlighted the systematic approach to brand building and strong customer acquisition as key drivers of confidence in future performance [41][42] Question: How can Coach sustain growth momentum in North America? - Management emphasized the importance of lower promotions and exceptional margins, along with a focus on acquiring new customers, particularly Gen Z [53][55] Question: Can you elaborate on the strength in China? - Management noted significant share gains driven by new customer acquisition and effective regional execution, with digital channels leading growth [62][63] Question: What are the opportunities for AUR growth? - Management discussed the importance of maintaining value while driving AUR growth through product innovation and customer experience [70][72]