For Immediate ReleasesChicago, IL – December 18, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog includeTapestry, Inc. (TPR) , Signet Jewelers Ltd. (SIG) and  Host Hotels & Resorts, Inc. (HST) ,Here are highlights from Thursday’s Analyst Blog:Luxury Market Boom: 3 High-End Retail Stocks to Buy for 2026The global luxury ma ...

Core Insights - Tapestry, Inc.'s Coach brand has shown strong momentum entering fiscal 2026, with a 21% year-over-year revenue increase in the first quarter, driven by double-digit growth across all key regions [1][9] Revenue Growth - North America revenue increased by 26%, China by 21%, and Europe by 39% year-over-year, indicating Coach's broad appeal and expanding international presence [2][9] - The addition of 1.7 million customers globally highlights Coach's success in attracting younger shoppers and building long-term brand equity [2] Product Performance - Handbag average unit retail rose in the mid-teens, with total handbag units sold increasing despite reduced promotional activity [3] - Accessories, including charms and straps, contributed to Coach's ability to personalize offerings, while footwear saw double-digit gains, particularly from the High Line and Soho families [3] Marketing and Brand Strategy - Coach's Spring 2026 runway presentation received positive responses, and marketing investment increased by 43% year-over-year, representing about 11% of sales [4] - The launch of Coach Coffee Shops aimed at younger audiences and the "One Coach" strategy enhanced accessibility and price realization [5] Future Projections - For the second quarter of fiscal 2026, Coach is projected to achieve low-double-digit revenue growth, maintaining momentum from the first quarter [6] - Overall, Coach is expected to sustain low-double-digit revenue growth for fiscal 2026 while maintaining its operating margin despite challenges [6] Long-term Ambitions - Coach is central to Tapestry's growth strategy, aiming to become a $10 billion global brand through disciplined execution and emotional connections with consumers [7] Stock Performance - Tapestry's shares have surged 62.4% year-to-date, contrasting with an 18.3% decline in the industry [8] Valuation Metrics - Tapestry trades at a forward price-to-earnings ratio of 18.35X, slightly above the industry average of 16.31X, with a Value Score of B [10] Earnings Estimates - The Zacks Consensus Estimate for Tapestry's fiscal 2026 earnings implies a year-over-year growth of 9.2%, with upward revisions in earnings estimates for fiscal 2026 and 2027 [11][12]

Core Insights - Tapestry, the owner of Coach and Kate Spade, reported record revenue and a 16% sales growth for its fiscal Q1, yet shares fell by double digits despite these strong results [1][3][4] Financial Performance - The company achieved broad-based growth with double-digit increases, including high teens growth in North America and China, and over 30% growth in Europe [3] - Tapestry raised its outlook for the year, indicating confidence in both topline and earnings growth [4] Brand Performance - Coach was the primary driver of revenue, showing a standout performance with 21% growth, while Kate Spade experienced a 9% decline in sales [4][6] - Kate Spade's performance was slightly ahead of expectations, with ongoing efforts to reset the brand and a new marketing campaign launched [5][6] Consumer Trends - The consumer landscape shows resilience, with consumers being active and responsive to innovation and emotional connections with brands [7] - Tapestry is successfully acquiring younger consumers, leading to higher retention rates and increased frequency of purchases [8] Market Positioning - The company is expanding its market share by targeting young consumers, which is seen as a strategic move to grow the overall market [14] - Tapestry's handbags are positioned at a competitive price point, attracting consumers from higher-priced luxury brands [13][16] Holiday Outlook - The company remains optimistic about the holiday season, with strong performance continuing into Q2 and a focus on delivering value to consumers [10][11][12]

Core Insights - Tapestry, Inc. reported fourth-quarter adjusted earnings of $1.04 per share, exceeding the consensus estimate of $1.02, with revenue of $1.72 billion, reflecting an 8% year-over-year increase and surpassing expectations [1] - The company anticipates fiscal 2026 revenue to approach $7.2 billion, slightly above the previous estimate of $6.96 billion, indicating low-single-digit growth from the prior year [2] Financial Performance - Coach experienced strong handbag revenue growth, attributed to a mid-teens average unit retail (AUR) gain for the quarter and a low-double-digit gain for the year [1] - Telsey Advisory Group analyst Dana Telsey maintains an Outperform rating on Tapestry's stock, with a price target of $125 [2] Earnings Outlook - The earnings outlook considers current mitigation efforts, with Telsey suggesting that the guidance appears conservatively prudent, indicating potential for upside [3] - The company is optimistic about a strong start to fiscal year 2026, with a higher dividend enhancing confidence ahead of the upcoming Investor Day [3] Tariff Impact - Tapestry faces greater tariff pressure than expected, with the early end of the de minimis exemption leading to a combined $160 million profit impact, equating to a 230 basis points hit on margins [4] - This situation results in a 60-cent EPS drag, most of which was not present in the previous quarter, due to the exemption's unexpected early termination [4] Revenue Projections - For fiscal year 2026, the analyst projects revenue of $7.24 billion, a 3.2% increase from the prior estimate of $6.99 billion, aligning with the guidance of "approaching $7.2 billion" [5] - The expectation is that Coach will outperform while Kate Spade may underperform earlier forecasts [5] Stock Performance - Tapestry shares are trading higher by 2.90%, reaching $98.50 [5]

Core Insights - Karthik Sarma, a prominent investor and former Tiger Cub, has shifted his investment focus from Nvidia to Tapestry, a luxury handbag company, indicating a strategic pivot away from AI-related stocks [2][10]. Investment Strategy - Sarma typically holds positions for the long term but recently sold his Nvidia shares after holding them for less than two years, capitalizing on significant price appreciation [3][5]. - The decision to sell Nvidia was influenced by its rising valuation, with the forward P/E ratio exceeding 40, prompting Sarma to take profits [6][8]. Company Performance - Nvidia remains a leading player in the GPU market, but competition may impact its market share in the coming years [7]. - Tapestry, which owns brands like Coach and Kate Spade, has seen Coach account for nearly 80% of its sales, with expectations for improved profitability through strategic management of its brands [11][12]. Financial Metrics - Tapestry's management anticipates free cash flow of $1.3 billion for the current year, an increase from $1.1 billion the previous year, supporting share repurchase initiatives [13]. - Tapestry's stock trades at a forward P/E of 18, significantly lower than Nvidia's 38, although it represents the highest valuation for Tapestry in years [14].

Core Insights - Tapestry Inc is experiencing a growth split between its key brands, with Coach showing significant recovery and projected 32% upside for the overall company stock by year-end, while Kate Spade is underperforming [1][6] Group 1: Coach's Performance - Coach is the primary driver of Tapestry's growth, benefiting from a balanced multi-year revenue increase due to average unit retail price hikes and sustainable unit sales growth [2] - Handbag prices for Coach are increasing, supported by improved full-price selling and innovative product lines, reversing previous declines in unit sales [3] - The brand is attracting younger customers, particularly Gen-Z and Millennials, who are spending more and frequently returning, which also encourages older customers to re-engage [4] Group 2: Kate Spade's Challenges - Kate Spade has faced revenue declines this year, with management adopting a cautious approach due to uncertain macroeconomic conditions, and its fourth quarter guidance indicates a sales drop [5] - The brand is currently in a supporting role within Tapestry's portfolio, contrasting with Coach's expected low-double-digit growth [5] Group 3: Overall Outlook for Tapestry - Tapestry's potential upside is largely contingent on Coach's revival, driven by pricing power, customer rejuvenation, and category expansion, with a price target of $104 for investors to monitor [6]

Financial Performance & Outlook - Tapestry's Q3 revenue reached $1.58 billion, with an 8% increase compared to the previous year on a constant currency basis[58] - Coach brand experienced a 15% revenue growth on a constant currency basis[50, 58] - The company raised its FY25 revenue outlook to approximately $6.95 billion, a 4% increase versus the prior year on a reported basis[69] - Diluted adjusted EPS is projected to be around $5.00, representing a high-teens percentage growth compared to last year[69] - Adjusted free cash flow is expected to be approximately $1.3 billion[69] Brand Performance - Coach's operating income margin was 32.4% [58] - Kate Spade's revenue declined by 12%[58, 62] - Stuart Weitzman's net sales were $46 million, a decrease of 17%[58] - Tapestry has entered into an agreement to sell Stuart Weitzman to Caleres[66] Strategic Initiatives & Global Presence - North America accounted for 65% of revenue, while International accounted for 35%[71] - The company acquired over 12 million new customers in North America[50] - Digital channels accounted for 29% of sales[33] - The company expects to return over $2 billion to shareholders in FY25[78]