The reported revenue represents a surprise of +2.3% over the Zacks Consensus Estimate of $1.68 billion. With the consensus EPS estimate being $1.01, the EPS surprise was +2.97%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. For the quarter ended June 2025, Tapestry (TPR) repor ...

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]

Core Viewpoint - Investors are becoming pessimistic about Lululemon, which may present a buying opportunity as the stock has declined significantly despite the company's potential for growth in international markets [2][12]. Group 1: Current Stock Performance - Lululemon's stock is down approximately 60% from its highs at the beginning of 2024, while the overall market is benefiting from AI growth [2]. - The brand is facing challenges such as slowing growth in North America, increased competition, and macroeconomic headwinds [2][4]. Group 2: Company Growth and Strategy - Despite recent challenges, Lululemon's revenue grew over 7% year-over-year last quarter, with a notable 22% growth in China [5]. - The company is expanding its product offerings beyond athleisure, including running shoes and accessories, which could enhance its market position [6]. - Lululemon is investing in international expansion, including a new store in Milan, indicating a commitment to growth in Europe [7]. Group 3: Financial Metrics and Valuation - Lululemon maintains high profit margins of over 23% over the last 12 months [6]. - The stock is currently trading at a low P/E ratio of around 12, suggesting it is undervalued relative to its historical growth [12]. - The company is increasing its stock buyback program, having spent $430 million last quarter to reduce shares outstanding, which should positively impact earnings per share [9]. Group 4: Long-term Outlook - Lululemon is expected to grow its revenue at an annual rate of 5%-10% for the remainder of the decade, despite current market challenges [8]. - The combination of a cheap valuation and ongoing stock buybacks may instill confidence in long-term investors [12].

Group 1 - Tapestry, Inc. is set to release its fourth-quarter earnings results on August 14, with analysts expecting earnings of $1.02 per share, an increase from $0.92 per share in the same period last year [1] - The projected quarterly revenue for Tapestry is $1.68 billion, compared to $1.59 billion a year earlier [1] - Tapestry's shares rose by 2.4% to close at $113.53 following a renewed multi-year collaboration with Gen Phoenix, a leader in eco-friendly recycled leather fibers [2] Group 2 - Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating and raised the price target from $92 to $125 [8] - UBS analyst Jay Sole maintained a Neutral rating and increased the price target from $73 to $112 [8] - B of A Securities analyst Lorraine Hutchinson downgraded the stock from Buy to Hold while raising the price target from $95 to $115 [8] - JP Morgan analyst Matthew Boss maintained an Overweight rating and raised the price target from $104 to $145 [8] - Raymond James analyst Rick Patel reiterated an Outperform rating and boosted the price target from $85 to $115 [8]

Core Insights - Marimekko's net sales in the second quarter of 2025 increased by 2% to EUR 44.5 million, driven by growth in retail sales both domestically and internationally [7][11] - The company's operating profit improved to EUR 6.3 million, reflecting a positive trend despite higher fixed costs impacting profitability [7][12] - For the first half of 2025, net sales rose by 3% to EUR 84.1 million, with comparable operating profit at EUR 10.9 million, representing a decline from the previous year [13] Financial Performance - **Second Quarter Results**: - Net sales: EUR 44.5 million (up 2% from EUR 43.7 million) - Operating profit: EUR 6.3 million (up 4% from EUR 6.1 million) - Comparable operating profit margin: 14.6% [6][7][12] - **First Half Results**: - Net sales: EUR 84.1 million (up 3% from EUR 81.3 million) - Operating profit: EUR 10.6 million (down 5% from EUR 11.2 million) - Comparable operating profit margin: 13.0% [6][13] Market Outlook - The company anticipates growth in net sales for 2025, with expectations of a comparable operating profit margin of approximately 16-19% [4][18] - International sales are projected to grow, particularly in the Asia-Pacific region, which is a key focus for Marimekko's expansion strategy [21] - The company plans to open 10-15 new stores in 2025, primarily in Asia, to enhance its market presence [21] Strategic Initiatives - Marimekko's omnichannel retail sales increased by 6% in the second quarter, highlighting the effectiveness of its retail strategy [16] - The company is set to open its first flagship store in Paris in fall 2025, which is expected to enhance brand visibility and community engagement [17] - Collaborations with global brands and events have been instrumental in driving brand awareness and customer engagement [14][15]

Core Insights - Marimekko's net sales in the second quarter of 2025 increased by 2% to EUR 44.5 million, driven by growth in retail sales both domestically and internationally [7][11] - The company's operating profit improved to EUR 6.3 million, reflecting a positive trend despite higher fixed costs impacting profitability [7][12] - For the first half of 2025, net sales rose by 3% to EUR 84.1 million, with international sales growing by 7% [6][12] Financial Performance - Net sales for Q2 2025: EUR 44.5 million, up from EUR 43.7 million in Q2 2024, a 2% increase [6] - Operating profit for Q2 2025: EUR 6.3 million, compared to EUR 6.1 million in Q2 2024, a 4% increase [6] - Comparable operating profit margin for Q2 2025: 14.6%, unchanged from Q2 2024 [8] Sales Breakdown - Domestic sales in Finland grew by 3% in Q2 2025, while international sales increased by 1% [7][11] - Licensing income decreased significantly, impacting overall international sales growth [11][20] - In the first half of 2025, net sales in Finland remained stable, while international sales were boosted by wholesale and retail growth [7][12] Future Outlook - Marimekko expects net sales for 2025 to grow from EUR 182.6 million in 2024, with a comparable operating profit margin estimated at 16-19% [4][18] - The company plans to open 10-15 new stores in Asia in 2025, focusing on international growth [20] - The economic outlook remains uncertain due to geopolitical tensions and trade relations, which may affect consumer confidence and purchasing power [18][19] Strategic Initiatives - Marimekko is enhancing its omnichannel retail strategy, with a 6% increase in omnichannel sales in Q2 2025 [16] - The company is set to open its first flagship store in Paris in fall 2025, aiming to strengthen brand awareness in key markets [17] - Recent collaborations and events have contributed to brand visibility and customer engagement [14][15]