Financial Data and Key Metrics Changes - Revenue declined 5% to $1.3 billion, slightly better than the outlook shared in August [30] - Gross margin declined 250 basis points year-over-year to 47.3%, primarily due to supply chain headwinds and unfavorable channel mix [33] - Adjusted operating income was $53 million, outperforming expectations [36] - Reported diluted loss per share was $0.04, with adjusted diluted earnings per share also at $0.04 [36] Business Line Data and Key Metrics Changes - North America revenue decreased 8%, primarily due to a decline in full-price wholesale and lower e-commerce sales [31] - EMEA revenue increased 12%, driven by full-price wholesale and strong growth in the DTC channel [31] - APAC revenue declined 14%, mainly driven by the wholesale business [31] - Apparel revenue declined 1%, while footwear revenue declined 16% due to challenging consumer demand [32] Market Data and Key Metrics Changes - Latin America revenue increased 15%, with strong growth across wholesale and DTC [31] - Direct-to-consumer revenue declined 2%, primarily due to an 8% decrease in e-commerce sales [32] - Licensing revenues increased 17%, driven by strength in the international business [32] Company Strategy and Development Direction - The company is focused on a turnaround strategy that emphasizes product innovation, storytelling, and brand positioning [7][28] - A streamlined assortment strategy has been implemented, cutting 25% of SKUs to enhance focus on key products [9] - The company aims to build on successful franchises and return to growth in upcoming seasons [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's potential and the importance of storytelling to connect with consumers [26][49] - The company anticipates a decline in full-year revenue of 4-5% for fiscal 2026, with expectations for stabilization in North America by fiscal 2027 [37][39] - Management highlighted the importance of maintaining high standards and building trust through performance [7] Other Important Information - A leadership transition is underway, with Reza Taghavi set to join as CFO in February 2026 [5] - The company is addressing structural challenges in APAC and aims to stabilize the business for growth in fiscal 2027 [24][25] Q&A Session Summary Question: What makes you confident that North America will see stabilization before the end of fiscal 2027? - Stabilization means getting the business to a healthy version, with a focus on structural elements, product elevation, and storytelling opportunities [44][45] Question: Can you elaborate on NeoLast and its significance? - NeoLast is a sustainable fiber that replaces Lycra, showcasing innovation in upcoming products [51][52] Question: What is being done to enhance the marketing voice for track and field? - The company is leveraging partnerships and focusing on authentic storytelling to enhance its presence in the running category [54][58] Question: Can you discuss the footwear business challenges? - The company is committed to footwear and is transitioning to a strategy that emphasizes aspiration and innovation rather than relying solely on brand heat [63]

Core Insights - Ralph Lauren Corp. has experienced significant growth, with revenues increasing by 17 percent to $2 billion in the fiscal second quarter, and a 14 percent rise in constant currencies [1] - The company reported a nearly 40 percent increase in net profits, reaching $207.5 million, and adjusted earnings per share of $3.79, surpassing analyst expectations [3] Revenue Performance - North American net revenues rose by 13 percent, Europe saw a 22 percent increase, and Asia grew by 17 percent [1] - A 12 percent increase in average unit retail prices in the direct-to-consumer network contributed to revenue growth [2] Profitability Metrics - Adjusted operating income reached $283 million, with a margin of 14.1 percent, an improvement of 270 basis points year-over-year [3] Future Outlook - The company has raised its fiscal 2026 sales growth forecast to 5 to 7 percent in constant currencies, up from previous low to mid-digit expectations [5] - Operating margins are expected to expand by 60 to 80 basis points, an increase from the earlier forecast of 40 to 60 basis points [5] Management Commentary - The CEO expressed confidence in the company's broad-based momentum and its ability to raise guidance for both revenue and margins [4] - Despite the positive outlook, there is a note of caution regarding potential macroeconomic impacts, particularly from tariffs affecting consumer behavior in the U.S. [7]

Core Insights - Tapestry's sales growth in the first quarter of fiscal 2026 was significantly driven by new customer acquisition, particularly among Gen Z consumers, who represented approximately 35% of new customers [1][2][5] - The company raised its full-year revenue outlook to around $7.3 billion, reflecting a growth of 4% to 5% from the previous year, and adjusted its earnings per diluted share forecast to a range of $5.45 to $5.60 [4] Financial Performance - Tapestry reported a net income of $274.8 million, or $1.28 per share, for the three-month period ending September 27, compared to $186.6 million, or 79 cents per share, in the same period last year [3] - The company's earnings per share exceeded expectations at $1.38, compared to the anticipated $1.26, and revenue also surpassed forecasts at $1.70 billion against an expected $1.64 billion [8] Market Trends - Despite Tapestry's positive performance, shares fell approximately 9% in premarket trading following the earnings report [4] - Other companies, such as Chipotle and Cava, reported weaker sales attributed to younger consumers reducing their spending, contrasting with Tapestry's success in attracting Gen Z [5][6]

Financial Data and Key Metrics Changes - The company reported a pro forma revenue increase of 16%, adjusted operating margin expansion of 200 basis points, and earnings per share growth of 35% compared to the previous year, all exceeding expectations [5][21]. - The first-quarter gross margin was 76.5%, reflecting a 120 basis points increase year-over-year, driven by operational improvements and the divestiture of Stuart Weitzman [23][24]. Business Line Data and Key Metrics Changes - Coach brand revenue increased by 21%, with North America growing by 26%, China by 21%, and Europe by 39%, indicating strong performance across key markets [8][21]. - Kate Spade's revenue trends improved sequentially, with a decline of 9% in the first quarter, showing signs of recovery in customer acquisition and brand consideration [15][19]. Market Data and Key Metrics Changes - North America sales accelerated by 18%, Europe saw a 32% revenue growth, and Greater China revenue increased by 19%, showcasing strong global momentum [21][22]. - In Japan, sales declined by 10%, reflecting a challenging consumer environment [22]. Company Strategy and Development Direction - The company is focused on its Amplify Growth agenda, emphasizing emotional connections with consumers and targeting Gen Z for customer acquisition [6][19]. - The strategy includes enhancing product innovation, expanding direct-to-consumer channels, and creating immersive retail experiences [12][14]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth, citing structural advantages and a focus on long-term customer engagement [39][40]. - The company raised its fiscal 2026 outlook, expecting revenue of approximately $7.3 billion, representing pro forma growth of 7%-8% [29][30]. Other Important Information - The company declared a quarterly cash dividend of $0.40 per share and plans to return $1.3 billion to shareholders through dividends and share repurchases [25][26]. - Inventory levels were reported to be 1% below the prior year, indicating effective inventory management as the holiday season approaches [28]. Q&A Session Summary Question: Drivers of accelerated growth and sustainability - Management highlighted structural advantages and a focus on acquiring new customers, particularly Gen Z, as key drivers of growth sustainability [39][40]. Question: Breakdown of Coach's revenue growth - The significant growth in Coach was attributed to new customer acquisition, increased average unit retail (AUR), and geographic expansion [48][49]. Question: Gross margin expectations - Management confirmed that gross margin guidance remains unchanged, with confidence in managing tariff impacts and maintaining profitability [58][59]. Question: European market penetration - The company noted a positive inflection in Europe, driven by effective marketing and customer acquisition strategies [69][70]. Question: Kate Spade's merchandise margin progress - Management acknowledged ongoing efforts to reduce discounting at Kate Spade, which is expected to support long-term growth despite current margin pressures [71][72].

Financial Data and Key Metrics Changes - The company reported a pro forma revenue increase of 16%, adjusted operating margin expansion of 200 basis points, and earnings per share growth of 35% compared to the previous year, all exceeding expectations [5][21][19] - Adjusted earnings per share reached $1.38, reflecting a 35% increase year-over-year [21][24] Business Line Data and Key Metrics Changes - Coach brand revenue increased by 21%, with North America growing by 26%, China by 21%, and Europe by 39% [8][21] - Kate Spade's revenue trends improved sequentially, showing a decline of 9% in the first quarter, but with signs of progress in key performance indicators [15][19] Market Data and Key Metrics Changes - North America sales accelerated by 18%, Europe saw a 32% revenue growth, and Greater China revenue increased by 19% [22][21] - In Japan, sales declined by 10%, as anticipated, amid a challenging consumer environment [22] Company Strategy and Development Direction - The company is focused on its Amplify Growth agenda, emphasizing emotional connections with consumers and targeting Gen Z for customer acquisition [6][5] - The strategy includes product innovation, enhancing direct-to-consumer channels, and creating immersive retail experiences [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth, citing structural advantages and a strong pipeline of innovation [39][5] - The company raised its fiscal 2026 outlook, expecting revenue of approximately $7.3 billion, representing pro forma growth of 7%-8% [29][30] Other Important Information - The company declared a quarterly cash dividend of $0.40 per common share and plans to return $1.3 billion to shareholders through dividends and share repurchases [25][24] - Inventory levels were reported to be 1% below the prior year, indicating a well-positioned inventory strategy [28] Q&A Session Summary Question: Drivers of accelerated growth and sustainability - Management highlighted structural advantages and a focus on new customer acquisition, particularly among Gen Z, as key drivers of growth sustainability [39][40] Question: Breakdown of Coach's revenue growth - The significant growth was attributed to new customer acquisition, increased average unit retail (AUR), and geographic expansion [48][47] Question: Gross margin expectations - Management confirmed that gross margin guidance remains stable despite tariff pressures, with expectations for continued improvement [58][59] Question: European market penetration - The company noted a significant growth of 39% in Europe, driven by effective marketing and customer acquisition strategies [69][70] Question: Kate Spade's merchandise margin progress - Management acknowledged the impact of tariffs and ongoing investments in customer engagement, indicating a focus on long-term growth despite current challenges [71][72]

Financial Data and Key Metrics Changes - The company reported a pro forma revenue increase of 16%, adjusted operating margin expansion of 200 basis points, and earnings per share growth of 35% compared to the previous year, all exceeding expectations [4][19][24] - The first-quarter gross margin was 76.5%, reflecting a 120 basis point increase year-over-year, driven by operational improvements and the divestiture of Stuart Weitzman [22][23] Business Line Data and Key Metrics Changes - Coach brand revenue increased by 21%, with North America growing by 26%, China by 21%, and Europe by 39%, indicating strong performance across key markets [6][7][19] - Kate Spade's revenue trends improved sequentially, with a decline of 9% in the first quarter, showing signs of progress in the turnaround efforts [12][13] Market Data and Key Metrics Changes - North America sales accelerated by 18%, Europe revenue grew by 32%, and Greater China revenue increased by 19%, showcasing strong global momentum [19][20] - In Japan, sales declined by 10%, reflecting a challenging consumer environment [21] Company Strategy and Development Direction - The company is focused on its Amplify Growth agenda, emphasizing emotional connections with consumers and targeting Gen Z for customer acquisition [4][5] - The strategy includes product innovation, enhancing direct-to-consumer channels, and creating immersive retail experiences [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth, citing structural advantages and a strong pipeline of innovation [36][39] - The company raised its fiscal 2026 outlook, expecting revenue of approximately $7.3 billion, representing pro forma growth of 7%-8% [27][28] Other Important Information - The company declared a quarterly cash dividend of $0.40 per share and plans to return $1.3 billion to shareholders through dividends and share repurchases [24][25] - Inventory levels were reported to be 1% below the prior year, indicating effective inventory management [26] Q&A Session Summary Question: Drivers of accelerated growth and sustainability - Management highlighted structural advantages and a focus on new customer acquisition, particularly among Gen Z, as key drivers of growth [35][36] Question: Breakdown of Coach's revenue growth - The growth was attributed to significant customer acquisition, increased average unit retail (AUR), and geographic expansion [40][41] Question: Gross margin expectations - Management confirmed that gross margin guidance remains unchanged, with ongoing progress against tariff impacts [44][46] Question: European market dynamics - The company noted a positive inflection in Europe, driven by effective marketing and customer acquisition strategies [49][50] Question: Kate Spade's merchandise margin progress - Management acknowledged the impact of tariffs and ongoing investments in customer engagement as factors affecting margins [51][52]

Core Insights - Ralph Lauren raised its full-year outlook due to strong performance, recording double-digit revenue growth across all geographic segments [1] Company Performance - The company experienced double-digit revenue growth in all geographic segments, indicating robust demand and effective market strategies [1]

Core Viewpoint - Under Armour reported a fiscal second-quarter loss due to declining sales in sportswear, indicating that this trend is expected to persist throughout the remainder of the fiscal year [1] Company Summary - Under Armour experienced a loss in the fiscal second quarter, attributed to a decrease in sportswear sales [1] - The company has issued a warning that the decline in sales is likely to continue for the rest of the fiscal year [1]

Financial Performance - Revenue increased by 2% year-over-year to $272.6 million, but decreased by 1% on a constant currency basis[31] - Gross profit increased to $170.1 million, with a gross margin of 62.4%, up 110 basis points year-over-year[47, 48] - The company reported a net loss attributable to shareholders of $15.2 million, compared to a net income of $5.4 million in the same quarter last year[47] - Adjusted EBIT was a loss of $14.2 million, compared to a profit of $2.5 million in the prior year[47] Channel Performance - DTC revenue increased by 22% year-over-year (21% in constant currency) to $126.6 million[32, 39] - DTC comparable sales growth was 10% year-over-year, marking ten consecutive months of positive comps[27, 32, 39] - Wholesale revenue decreased by 1% year-over-year (5% in constant currency) to $135.9 million[34, 39] - Other revenue decreased significantly by 62% year-over-year (63% in constant currency) to $10.1 million, due to fewer events and employee sales[32, 34, 37] Geographic Performance - Asia Pacific revenue increased by 20% year-over-year (20% in constant currency) to $79.3 million[41, 46] - North America revenue decreased by 7% year-over-year (8% in constant currency) to $112.1 million[41, 46] - EMEA revenue increased by 1% year-over-year (-7% in constant currency) to $81.2 million[41, 43] Balance Sheet - Inventory levels decreased by 3% year-over-year[50, 51] - Net debt decreased year-over-year to $707.1 million[50, 51]

Core Viewpoint - Ralph Lauren has raised its annual revenue forecast, indicating confidence in the demand for its premium products despite economic uncertainties [1] Company Summary - The company is betting on strong demand for its high-priced Polo shirts and cotton cable knit sweaters [1]