Core Insights - Tapestry, Inc. (TPR) shares reached a new 52-week high of $102.31, closing at $102.16, with a stock rise of 56.4% compared to a 12.3% decline in the Zacks Retail-Apparel and Shoes industry [1] - The company's diversified business model and strong omnichannel presence position it to outperform the broader Retail Wholesale sector and the S&P 500 index [1] Stock Performance - Tapestry is currently trading above its 50-day and 200-day simple moving averages of $84.69 and $69.85, indicating price stability and long-term bullish trends [2][4] - The technical strength reflects positive market sentiment and growing investor confidence in TPR's financial health and growth potential [2] Growth Drivers - Tapestry's leadership in the global affordable luxury market is driven by focused brand strategies, strong customer engagement, and operational excellence [5] - The Coach brand is a key growth driver, posting a 15% year-over-year revenue increase and achieving a record 79% gross margin [6][10] - Coach added 900,000 new North American customers, with nearly 70% from Gen Z and Millennials [8][9] International Performance - International markets contributed significantly, with Europe's revenues growing 35% at constant currency and Asia-Pacific rising 4%, including a 5% gain in Greater China [11] - The omnichannel model remains a competitive advantage, with direct-to-consumer sales up 9% [11] Financial Health - Tapestry returned over $2 billion to shareholders through dividends and share repurchases in fiscal 2025, supported by strong free cash flow [12] - The company maintains a gross leverage of 1.6 times adjusted EBITDA, well below the target of under 2.5 times, indicating financial flexibility [12] Future Outlook - For fiscal 2025, Tapestry raised its full-year guidance, expecting net sales of approximately $6.95 billion, representing about 4% year-over-year growth [13] - Earnings per share are projected at $5, indicating high-teens growth over the prior year [13] - Regional sales growth is expected to be 3-4% in North America, approximately 30% in Europe, and low-single-digit growth in Greater China [14] Profitability Expectations - The company anticipates operating margin expansion of about 100 basis points year-over-year, driven by gross margin improvements [15] - Free cash flow for fiscal 2025 is forecasted to be approximately $1.3 billion, supporting continued investments in store enhancements and digital infrastructure [15]

Core Insights - Tapestry, Inc.'s Coach brand reported strong performance in Q3 of fiscal 2025, with net sales reaching $1.29 billion, marking a 13% year-over-year increase on a reported basis and 15% growth on a constant-currency basis, reinforcing its leadership in the accessible luxury segment [1][9] Financial Performance - Coach achieved a record gross margin of 79% in Q3, driven by operational efficiency and premium pricing power, with Average Unit Retail (AUR) growing in the mid-teens and now approximately 70% higher than in 2019 [2][9] - The leather goods segment experienced strong double-digit growth, particularly from the Tabby and New York collections, with key products selling out quickly [3][9] Strategic Initiatives - The "One Coach" strategy, which aligns product and pricing across outlet and full-price channels, has enhanced consumer engagement and margin expansion [3] - Tapestry has upgraded its fiscal 2025 revenue guidance to $6.95 billion, indicating a 4% growth from the previous year, surpassing earlier expectations of 3% growth [4] Regional Performance - Sales growth expectations include 3-4% in North America, around 30% in Europe, low-single digits in Greater China, and high-single digits in other parts of Asia, with an anticipated operating margin expansion of 100 basis points year-over-year [5] Earnings Forecast - Earnings per share are projected to be $5.00, reflecting high-teens percentage growth from the previous year, exceeding earlier estimates of $4.85-$4.90 [5] - The Zacks Consensus Estimate for the current fiscal year's earnings has increased to $5.05 per share, indicating year-over-year growth of 17.7% [12] Stock Performance - Tapestry's shares have increased by 27.1% over the past six months, outperforming the broader Retail-Apparel and Shoes industry, which declined by 16.8% [6] - The stock is currently trading above its 50 and 200-day simple moving averages, indicating positive market sentiment and investor confidence [10]