Core Viewpoint - Ralph Lauren (RL) is positioned as a strong investment opportunity due to its improving earnings outlook and positive analyst sentiment, which is reflected in rising earnings estimates [1][2]. Earnings Estimate Revisions - The trend of increasing earnings estimates is driven by growing analyst optimism regarding Ralph Lauren's earnings prospects, which is expected to positively impact the stock price [2]. - For the current quarter, Ralph Lauren is projected to earn $3.28 per share, representing a 29.1% increase from the previous year, with a consensus estimate increase of 18.42% over the last 30 days [5]. - For the full year, the earnings estimate stands at $14.77 per share, indicating a 19.8% year-over-year change, with six estimates moving higher recently and an overall increase of 8.35% in the consensus estimate [6][7]. Zacks Rank and Performance - Ralph Lauren currently holds a Zacks Rank 1 (Strong Buy), reflecting strong agreement among analysts in raising earnings estimates, which historically correlates with stock performance [3][8]. - Stocks with a Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500, with Zacks 1 stocks averaging a 25% annual return since 2008 [3][8]. Market Reaction - The stock has gained 6.1% over the past four weeks, driven by solid estimate revisions, suggesting potential for further growth in earnings and stock price [9].

Core Viewpoint - Gildan Activewear Inc. is acquiring HanesBrands Inc. in a deal valued at approximately $2.2 billion in equity and $4.4 billion in enterprise value, aiming to create one of the largest players in basic apparel [1][8] Group 1: Transaction Details - The merger will provide HanesBrands shareholders with 0.102 Gildan shares and $0.80 in cash per share, valuing HanesBrands stock at $6.00, which is a 24% premium to its closing price on August 11 [1] - The transaction has been unanimously approved by both companies' boards and is expected to close in late 2025 or early 2026 [2] Group 2: Financial Projections - The combined company is projected to have pro forma annual revenues of $6,883 million and adjusted EBITDA of $1,553.8 million, including $200 million in anticipated annual cost synergies to be realized within three years [2][8] - Gildan expects immediate accretion to adjusted earnings per share (EPS), with more than 20% accretion once synergies are factored in [2] Group 3: Strategic Benefits - The merger will enhance scale and market positioning, improving go-to-market capabilities and product diversification [3] - Gildan's low-cost vertically integrated production model will be utilized to optimize HanesBrands' operations and expand brand presence in activewear [3] Group 4: Financing and Debt Management - Gildan has arranged $2.3 billion in committed funding for the acquisition, consisting of a $1.2 billion bridge facility and $1.1 billion in term loans [4] - Following the deal's completion, Gildan expects its net debt leverage to be around 2.6x adjusted EBITDA, with plans to reduce this ratio to 2.0x or less within 12-18 months post-closing [5] Group 5: Future Outlook - Gildan has reaffirmed its full-year 2025 revenue and EPS targets, expecting net sales growth at a CAGR of 3-5% and adjusted EPS growth in the low-20% range from 2026 to 2028 [6]

Core Viewpoint - Tapestry, the parent company of Coach and Kate Spade, is facing significant profit headwinds due to increased tariffs, which are expected to cost the company $160 million in the upcoming fiscal year, despite anticipated sales growth [1][2]. Financial Performance - Tapestry expects full-year fiscal 2026 earnings to be between $5.30 and $5.45 per share, which is below analysts' expectations of $5.49 per share [1][3]. - The company projects revenue of approximately $7.2 billion for the fiscal year, indicating low single-digit growth compared to the previous year [3]. Tariff Impact - The CFO highlighted that the company is experiencing greater profit challenges from tariffs than previously anticipated, particularly due to the suspension of the de minimis rule, which previously allowed duty-free entry for items valued at $800 or less [2]. - Tapestry is exploring various strategies to mitigate the impact of tariffs, including diversifying manufacturing locations and improving operational efficiency [5]. Industry Context - Other retailers are also adapting to higher tariff costs by moving manufacturing, raising prices, and focusing on popular items [4]. - Major U.S. retailers, including Walmart, Home Depot, and Target, are expected to report their quarterly earnings soon, which may provide further insights into industry trends [6].

Core Insights - Tapestry, Inc. (TPR) reported strong fourth-quarter fiscal 2025 results, surpassing Zacks Consensus Estimates for both revenues and earnings, with year-over-year increases in both metrics and an improvement in gross margin [1][3][12] Financial Performance - Adjusted earnings for the fiscal fourth quarter were $1.04 per share, exceeding the consensus estimate of $1.01 and reflecting a 13% increase from $0.92 in the prior year [3] - Net sales reached $1,723.2 million, beating the consensus estimate of $1,684 million, marking an 8.3% year-over-year increase and 8% growth on a constant-currency basis [4][11] - Consolidated gross profit was $1.32 billion, up 10.4% from the previous year, with a gross margin increase of 140 basis points to 76.3% [12] Brand Performance - Coach brand net sales were $1.43 billion, exceeding the consensus estimate of $1.39 billion, with a 14% year-over-year increase [7] - Kate Spade's sales were $252.6 million, falling short of the consensus estimate and reflecting a 13% decline [7] - Stuart Weitzman reported net sales of $45.5 million, surpassing estimates but showing a 10% year-over-year decrease [8] Customer Engagement - The company acquired 1.5 million new customers in North America, with Gen Z and Millennial consumers accounting for approximately 60% of new customers [5] - Direct-to-consumer revenues grew 6% on a constant-currency basis, driven by mid-teens growth in digital revenues [6] Regional Sales Insights - North American sales increased 8% year-over-year to $1.10 billion, while Greater China sales improved 18% to $273.9 million [9] - European markets showed a 13% revenue increase to $104.2 million, while Japan experienced a 7% decline [9] Future Guidance - For fiscal 2026, Tapestry projects revenues to be close to $7.2 billion, indicating low-single-digit growth from the prior year [23] - Earnings per share are forecasted to be between $5.30 and $5.45, reflecting a growth of 4-7% from the previous year [25]

Core Viewpoint - Tapestry's stock plummeted over 13%, marking its largest drop since March 2020, closing at $97.94 due to concerns over future earnings guidance and tariff impacts [1] Financial Performance - For the fourth quarter of fiscal year 2025, Tapestry reported adjusted earnings per share of $1.04, exceeding analyst expectations by $0.02 [1] - The company's quarterly sales reached $1.72 billion, surpassing analyst estimates of $1.68 billion [1] Future Outlook - Tapestry forecasts diluted earnings per share for fiscal year 2026 to be between $5.30 and $5.45, reflecting a growth of 4% to 7% year-over-year, but falling short of analyst expectations of $5.49 [1] - The company attributed the earnings guidance shortfall primarily to tariff impacts, which are expected to negatively affect earnings by $0.60 per share [1] Market Reaction - The market reaction to Tapestry's earnings report was negative, as investors appeared to have not fully accounted for the tariff costs, leading to a significant decline in stock price [1] - Prior to this drop, Tapestry's stock had seen a year-to-date increase of 74% [1]

Core Viewpoint - Tapestry's stock experienced a significant decline of over 13%, marking its largest drop since March 2020, despite reporting better-than-expected earnings and sales figures for Q4 of fiscal year 2025 [1] Financial Performance - For the fourth quarter of fiscal year 2025, Tapestry reported an adjusted earnings per share (EPS) of $1.04, exceeding analyst expectations by $0.02 [1] - The company's sales for the quarter reached $1.72 billion, surpassing the analyst forecast of $1.68 billion [1] Future Outlook - Tapestry projects a diluted EPS of $5.30 to $5.45 for fiscal year 2026, indicating a growth of 4% to 7% compared to the previous year, but falling short of analyst expectations of $5.49 [1] - The company attributed the discrepancy in EPS guidance primarily to tariff impacts, which are expected to result in a negative impact of $0.60 per share [1] Market Reaction - The market reaction to Tapestry's earnings report was negative, leading to a sharp decline in stock price, as investors appeared to have not fully accounted for the tariff-related costs [1] - Prior to this drop, Tapestry's stock had seen a year-to-date increase of 74% [1]

Core Insights - Proactive provides fast, accessible, and actionable business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, mining, oil and gas, and emerging technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Insights - Tapestry reported revenue of $1.72 billion for the quarter ended June 2025, reflecting an 8.3% increase year-over-year and a 2.3% surprise over the Zacks Consensus Estimate of $1.68 billion [1] - Earnings per share (EPS) for the quarter was $1.04, up from $0.92 in the same quarter last year, surpassing the consensus EPS estimate of $1.01 by 2.97% [1] Financial Performance - Tapestry's stock has returned +12.8% over the past month, outperforming the Zacks S&P 500 composite's +3.5% change [3] - The company holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3] Store Metrics - Total number of Coach stores: 931, exceeding the average estimate of 921 [4] - Total number of Stuart Weitzman stores: 80, below the average estimate of 86 [4] - Total number of Kate Spade stores: 360, slightly below the average estimate of 368 [4] - Total number of stores (EOP): 1,371, slightly below the average estimate of 1,375 [4] Geographic Sales Performance - Greater China net sales reached $273.9 million, surpassing the average estimate of $244.83 million, with a year-over-year increase of 17.9% [4] - North America net sales were $1.1 billion, slightly above the estimated $1.09 billion, representing an 8.1% year-over-year increase [4] Segment Sales Performance - Coach net sales amounted to $1.43 billion, exceeding the average estimate of $1.39 billion, with a year-over-year increase of 14% [4] - Stuart Weitzman net sales were $45.5 million, above the average estimate of $43.3 million, but reflecting a year-over-year decline of 10.1% [4] - Kate Spade net sales were $252.6 million, slightly below the average estimate of $254.71 million, with a year-over-year decline of 12.9% [4] Operating Income - Coach's operating income was $447.7 million, surpassing the average estimate of $431.52 million [4] - Stuart Weitzman reported an operating loss of $1.4 million, significantly better than the estimated loss of $9.9 million [4]

Economic Overview - U.S. stocks have experienced a rally due to impressive economic data, leading to optimism among investors regarding potential Federal Reserve interest rate cuts [1][8] - Expectations for a rate cut in September increased after inflation data showed a slower-than-expected rise [2][8] Inflation Data - The consumer price index (CPI) rose 0.2% month-over-month in July, lower than the consensus estimate of 0.3% [4] - Year-over-year, CPI increased by 2.7% in July, also below the expected 2.8% [5] - Core CPI, excluding food and energy, rose 0.3% in July, aligning with expectations, while year-over-year core CPI increased by 3.1%, slightly above the 3% forecast [5][6] Consumer Discretionary Stocks - Investing in consumer discretionary stocks is recommended due to the favorable economic outlook and anticipated rate cuts [2][11] - Notable consumer discretionary stocks include: - **The Walt Disney Company (DIS)**: Expected earnings growth rate of 17.7% for the current year, with revenues of $91.4 billion in fiscal 2024 [9][10] - **Carnival Corporation & plc (CCL)**: Expected earnings growth rate of 40.9% for the current year [12][13] - **Hasbro, Inc. (HAS)**: Expected earnings growth rate of 19.5% for the current year [14] - **Netflix, Inc. (NFLX)**: Expected earnings growth rate of 31.4% for the current year [15][16] - **Ralph Lauren Corporation (RL)**: Expected earnings growth rate of 19.8% for the current year [17]

Financial Data and Key Metrics Changes - Tapestry achieved $7 billion in revenue for fiscal year 2025, with an operating margin of 20% and adjusted EPS of $5.1, all showing significant growth compared to the previous year [6][27]. - The company reported a 5% revenue growth overall, with Coach specifically growing by 10% [27][28]. - Gross margins increased by 210 basis points, and earnings per share grew by 19% year-over-year [27][28]. Business Line Data and Key Metrics Changes - Coach experienced a 10% increase in revenue, with a 13% constant currency growth in the fourth quarter, driven by double-digit growth in North America (up 16%), China (up 22%), and Europe (up 12%) [12][28]. - Kate Spade's revenue decreased by 13% in the fourth quarter, reflecting ongoing brand reset efforts [20]. - The footwear segment, particularly sneakers, grew in the mid-single digits, indicating a focus on Gen Z consumers [16]. Market Data and Key Metrics Changes - North America sales increased by 8%, while Europe saw a 10% growth, and Greater China revenue grew by 18% [28][29]. - Japan experienced an 11% decline in sales, and other Asian markets saw a 1% decrease [29]. - The direct-to-consumer business grew by 6%, with digital revenue increasing in the mid-teens percentage [30]. Company Strategy and Development Direction - Tapestry aims to leverage its competitive advantages, global scale, and strong fundamentals to drive sustainable growth [11][26]. - The company is focused on building emotional connections with younger consumers, particularly Gen Z and millennials, to enhance customer acquisition and retention [9][12]. - Tapestry is investing in brand marketing and product innovation to strengthen its market position, particularly for Coach and Kate Spade [20][22]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a complex macroeconomic environment, highlighting the resilience and agility of the business [7][11]. - The company anticipates continued mid-single-digit revenue growth for fiscal year 2026, despite facing tariff-related headwinds [39]. - Management emphasized the importance of customer acquisition and retention, particularly among younger demographics, as a foundation for future growth [66][68]. Other Important Information - Tapestry returned $2.3 billion to shareholders in fiscal year 2025, including $300 million in dividends and $2 billion in share repurchases [32]. - The company recorded a non-cash impairment charge of over $850 million related to Kate Spade, reflecting current business trends and strategic investments [36]. - Tapestry's capital allocation priorities include investing in brand growth and returning capital to shareholders, with a commitment to maintaining a solid investment-grade rating [33][34]. Q&A Session Summary Question: Can you help us unpack your outlook for fiscal '26 and what you're seeing in the business right now? - Management highlighted strong top-line results and continued growth momentum at Coach, with expectations for mid-single-digit growth in fiscal '26 despite tariff pressures [50][52]. Question: Can you provide insights on new customer growth and how you plan to maintain margins amid tariff impacts? - Management emphasized the importance of acquiring new customers, particularly younger ones, and expressed confidence in maintaining margins through strategic actions [66][71]. Question: How do you see the interplay between AUR and units as contributors to revenue growth? - Management indicated that while AUR growth is a primary driver, unit growth is also expected to continue, supported by a focus on fewer, high-impact product offerings [78][80]. Question: Can you elaborate on the structural differences today compared to previous years that enable margin expansion? - Management noted that Tapestry is more direct-to-consumer and geographically diversified than in the past, which supports better margin management [94][96].