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].

Financial Data and Key Metrics Changes - Tapestry reported a record revenue of $7 billion 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 [5][27]. - The company achieved a 5% revenue growth overall, with Coach leading at 10% growth [27][28]. - Gross margins increased by 210 basis points, and EPS grew by 19% year-over-year [27][31]. Business Line Data and Key Metrics Changes - Coach experienced a 10% revenue increase for the year, with a 13% constant currency growth in Q4, driven by strong performance in North America (up 16%), China (up 22%), and Europe (up 12%) [11][28]. - Kate Spade's revenue decreased by 13% in Q4, reflecting ongoing brand reset efforts, while the company is focused on increasing brand awareness and customer acquisition [19][21]. - Stuart Weitzman was sold to Caleres, aligning with Tapestry's strategy for disciplined capital allocation [24]. Market Data and Key Metrics Changes - North America sales increased by 8%, with significant contributions from Coach [28]. - In Europe, revenue grew by 10%, driven by local consumer spending and new customer acquisition, particularly among Gen Z [29]. - Greater China saw an 18% revenue growth, indicating strong performance across all channels, especially digital [29]. Company Strategy and Development Direction - Tapestry aims to leverage its competitive advantages, global scale, and strong fundamentals to drive sustainable growth [10][25]. - The company is focused on building emotional connections with younger consumers, particularly Gen Z and millennials, to enhance customer lifetime value [7][12]. - Tapestry is investing in brand marketing and product innovation to strengthen its market position and drive future growth [21][23]. 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 [6][10]. - The company anticipates continued mid-single-digit revenue growth for fiscal year 2026, despite facing tariff-related challenges [39][40]. - Management emphasized the importance of customer acquisition and retention, particularly among younger demographics, as a foundation for future growth [66][67]. 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][33]. - The company recorded a non-cash impairment charge of over $850 million related to Kate Spade, reflecting current business trends and strategic investments [36]. 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, particularly at Coach, while acknowledging tariff impacts [50][52]. Question: Can you help us with the data or the new customer growth? - Management noted significant new customer acquisition, particularly among Gen Z and millennials, which is expected to drive future growth [66][67]. Question: Can you talk about structurally what is different today for Coach? - Management emphasized the brand's direct-to-consumer focus, geographic diversification, and data-driven decision-making as key structural advantages [94][96]. Question: Can you elaborate on the phasing of gross margin for fiscal '26? - Management indicated that gross margins would be stronger in the first half of the year, with tariff impacts expected to affect the second half [86][87].

Core Viewpoint - Xcel Brands, Inc. reported a significant decline in revenue for the second quarter of 2025, primarily due to the divestiture of the Lori Goldstein brand, while the company is focusing on strengthening its balance sheet and launching new creator/influencer brands in the near future [2][3][5]. Financial Results - Total revenue for Q2 2025 was $1.3 million, a decrease of approximately $1.6 million (-55%) from Q2 2024, attributed to the decline in net licensing revenue following the divestiture of the Lori Goldstein brand [3][7]. - Direct operating costs and expenses decreased by approximately $1.2 million (-39%) year-over-year to $1.9 million, reflecting cost reductions and the impact of the employee retention tax credit [4][8]. - The net loss attributable to Xcel Brands stockholders for Q2 2025 was approximately $4.0 million, or $(1.66) per share, compared to a net income of $0.2 million, or $0.08 per share, in the prior year [5][11]. - Adjusted EBITDA for Q2 2025 was negative $0.3 million, compared to negative $0.04 million in the prior year, indicating a 45% year-over-year improvement when adjusting for the prior year’s contribution from the Lori Goldstein brand [6][12]. Year-to-Date Performance - For the six-month period ended June 30, 2025, total revenue was $2.7 million, a decrease of approximately $2.5 million (-48%) from the same period in 2024, again driven by the decline in net licensing revenue [7][11]. - The net loss attributable to Xcel Brands stockholders for the six months was approximately $6.8 million, or $(2.84) per share, compared to a net loss of $6.1 million, or $(2.78) per share, for the same period in 2024 [11][12]. - Year-to-date Adjusted EBITDA for 2025 was negative $1.0 million, an improvement from negative $1.6 million for the first six months of 2024, representing a 38% improvement [9][12]. Balance Sheet and Financing - As of June 30, 2025, the company had stockholders' equity of approximately $22.5 million, unrestricted cash and cash equivalents of approximately $1.0 million, and long-term debt of $11.8 million [13][29]. - In August 2025, Xcel closed a public equity offering and a concurrent private placement for combined gross proceeds of approximately $2.6 million, enhancing the company's liquidity [14]. Social Media and Brand Development - The company's social media following increased from 5 million to 43 million in Q2 2025, reflecting the impact of new influencer brand announcements [9]. - Xcel Brands is focused on developing new creator/influencer brands, with planned launches starting later this year and into 2026 [2].

Financial Performance Highlights - Tapestry delivered record revenue of over $7.01 billion, a 5% increase compared to the prior year[46,54] - The company achieved record EPS of $5.10, representing a 19% growth[46,54] - Adjusted free cash flow exceeded expectations, generating over $1.3 billion in the year[46] - Operating margin increased to 20.0%, driven by 210 basis points of gross margin expansion[46,54] Brand Performance - Coach's net sales reached $5.60 billion, with a 10% increase year-over-year[54] - Kate Spade's net sales were $1.20 billion, a 10% decrease year-over-year[54] - Stuart Weitzman's net sales were $215 million, an 11% decrease year-over-year[54] Geographical Trends - North America saw a 5% revenue increase, led by double-digit growth at Coach[50] - Europe experienced a 28% revenue increase, driven by DTC strength and new customer acquisition[50] - Greater China's revenue increased by 5%, with strength in Digital[50] Fiscal Year 2026 Outlook - The company expects revenue to approach $7.2 billion, with mid-single-digit growth[62] - Diluted adjusted EPS is projected to be $5.30 to $5.45, up 4% to 7%[62] - Free cash flow is expected to approach $1.3 billion[62] Shareholder Value - Tapestry returned $2.3 billion to shareholders in FY25 alone[68] - The company executed a $2 billion Accelerated Share Repurchase program[70] - The annual dividend rate increased by 14% to $1.60 per share in Fiscal 2026[70]