Core Viewpoint - Hermes International SCA is a leading luxury brand known for its high-end products and strong market position, despite a slight earnings miss in its latest report [1][2]. Financial Performance - On February 12, 2026, Hermes reported earnings per share (EPS) of $2.57, slightly below the estimated $2.59, while achieving a revenue of approximately $9.22 billion, reflecting a 9.8% increase for the fourth quarter [2]. - Strong sales in the United States and Japan contributed to the revenue growth, aligning with market expectations [2]. Market Valuation - Hermes has a price-to-earnings (P/E) ratio of approximately 51.18, indicating strong investor confidence in the company's future growth prospects despite the slight EPS miss [3]. - The price-to-sales ratio is about 14.58, and the enterprise value to sales ratio is around 14.06, illustrating the premium investors place on Hermes' sales [4]. Financial Stability - The company maintains a conservative capital structure with a low debt-to-equity ratio of 0.12, suggesting limited reliance on debt [5]. - Hermes has a strong current ratio of 4.50, indicating robust short-term financial health and the ability to cover current liabilities with current assets [5].

“When you look at the rich consumers, the amount of income they make is small relative to the amount of wealth that they have, and so if they feel good, it’s primarily driven by asset prices,” he said, noting that middle-class buyers remain far more salary-dependent.Solca said that while the U.S. and Japanese markets have seen luxury buoyed by soaring asset prices spread more broadly across the middle class, China’s recovery leans heavily on wealthier consumers invested in the stock market and real estate.“ ...

Core Viewpoint - Hermes reported steady revenue growth, driven by strong sales in the United States and Japan, despite a slight reduction in overall sales growth expectations [1] Group 1: Revenue Growth - The company continues to experience robust revenue growth, particularly in key markets such as the United States and Japan [1] - Sales of high-end handbags, priced at $10,000 and above, remain a significant contributor to the company's financial performance [1] Group 2: Market Performance - The strong performance in the U.S. and Japan indicates a resilient demand for luxury goods in these regions [1] - The company is adjusting its sales growth expectations slightly, reflecting a cautious outlook while maintaining overall positive growth [1]

Financial Data and Key Metrics Changes - The company reported a total revenue growth of 10% in Q3, exceeding the mid-single-digit outlook, with Asia leading at 22% growth, followed by North America at 8% and Europe at 4% [23][31] - Adjusted gross margin expanded by 140 basis points to 69.8%, driven by AUR growth and a favorable mix shift towards full-price businesses [24][33] - Adjusted operating margin increased by 200 basis points to 20.7%, with operating profit rising by 21% [25] Business Line Data and Key Metrics Changes - Core product sales grew in low double digits, driven by strong demand in categories like cotton cable knits and children's programs [13][24] - High-potential categories, including women's apparel and handbags, increased in high teens, outpacing total company growth [14][15] - Direct-to-consumer (DTC) business in North America increased by 7%, with retail comps up 7% and digital comps also growing by 7% [26] Market Data and Key Metrics Changes - Asia's revenue increased by 22%, with retail comp growth of 20%, driven by strong performance in China, which grew over 30% [29][31] - North America revenue grew by 8%, with strong performance across both DTC and wholesale businesses [26][27] - Europe saw a revenue increase of 4%, with healthy comps in full-price stores offset by softer outlet trends [28][32] Company Strategy and Development Direction - The company is focused on its "Next Great Chapter: Drive" strategic plan, which aims to elevate the brand, drive core products, and expand in key cities [8][20] - The strategy emphasizes a cinematic storytelling approach to marketing, aiming to connect deeply with consumers and enhance brand desirability [5][44] - The company plans to continue leveraging advanced technology, AI, and analytics to improve consumer engagement and operational efficiency [7][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's resilience and ability to navigate an uncertain global environment, focusing on long-term growth and value creation [20][30] - The outlook for fiscal 2026 has been raised, expecting constant currency revenues to increase in the high single to low double digits [31][33] - Management remains cautious about the North American operating environment due to ongoing consolidation in the wholesale channel [32] Other Important Information - The company added 2.1 million new consumers to its DTC businesses in Q3, reflecting strong momentum among younger consumers [11][12] - The launch of "Ask Ralph," an AI-powered digital shopping assistant, is expected to enhance customer engagement and provide valuable first-party data [78] - The company opened 32 new stores globally, expanding its presence in key markets [18] Q&A Session Summary Question: How is the company thinking about sustaining longer-term brand momentum with increased marketing? - Management emphasized the importance of cultural moments and experiences in attracting and retaining consumers, alongside consistent execution across all business aspects [42][44] Question: What are the drivers of the raised outlook for Q4? - Management noted continued global momentum across regions and channels, particularly in North America and Asia, despite expected moderation in growth due to timing of wholesale receipts [46][47] Question: Can you elaborate on the drivers of AUR increase and any price resistance from consumers? - Management highlighted that AUR growth was driven by reduced promotional activity and strong full-price demand, with no observed price resistance from core customers [50][54] Question: What is the outlook for Europe and the impact of outlet performance? - Management confirmed that Europe is expected to grow at the high end of mid-single digits, with a focus on enhancing quality of sales and reducing promotional activity in outlets [59][64] Question: What are the early learnings from the implementation of Ask Ralph? - Management reported encouraging early reviews and insights from consumer interactions, with plans to expand features and integrate further into the digital ecosystem [77][78]

This presentation contains certain "forward-looking statements" based on management's current expectations. Forward-looking statements include, but are not limited to, the statements under "Financial Outlook," statements regarding long-term performance, statements regarding the Company's capital deployment plans, including anticipated annual dividend rates and share repurchase plans, and statements that can be identified by the use of forward-looking terminology such as "may," "can," "if," "continue," "proj ...

Core Insights - Saks Global has filed for bankruptcy protection, impacting suppliers and causing tensions with Amazon, a minority investor [1] - The company has secured approximately $1.75 billion to finance its operations while aiming for profitability and plans to honor customer loyalty programs and compensate vendors [2] - The bankruptcy may affect the availability of designer brands in stores and online, as many suppliers have ceased shipments due to financial distress [3][4] Financial Impact - Outstanding liabilities for Saks Global are estimated to range between $1 billion and $10 billion [2] - Major creditors include luxury brands like Chanel and Kering, but larger luxury conglomerates are expected to withstand the financial strain [6] - Smaller and medium-sized brands are at risk, with some potentially facing closure due to unpaid bills, with amounts owed ranging from $600,000 to $10 million [7] Market Dynamics - The bankruptcy follows a previous acquisition of Neiman Marcus Group for $2.65 billion, which has added significant debt amid rising competition and a slowdown in luxury spending [5] - The assortment of trendy items from niche brands is critical for Saks to retain customers, as shoppers may turn to other retailers if their needs are not met [4][5]

Core Insights - Burberry reported a sequential improvement in third-quarter trading, with a 3% increase in comparable retail sales and retail revenue of £665 million, driven by stronger full-price sales and a shorter markdown period [5][7][3] Regional Performance - Americas saw a 2% increase in sales, supported by local spending during the festive period and new customer growth, although growth was slightly below Q2 due to higher markdown penetration in the previous year [1] - Greater China experienced a 6% increase in sales, up from 3% in Q2, fueled by local spending, while demand from Chinese customers outside the region slowed [1][7] - All four geographic areas delivered flat or positive comparable sales for the second consecutive quarter, with South Korea leading at 13% growth [2][7] Sales and Margin Dynamics - Comparable store sales increased by 3% in the quarter, with retail sales growth at constant exchange rates also at 3%, despite a 2% headwind from currency fluctuations [3][4] - Full-price sales accelerated, offsetting reduced markdown activity, which supported overall margin improvement as anticipated [3][4][18] Product Performance - Burberry's "hero categories," including scarves and outerwear, continued to outperform, with double-digit growth, and momentum extended into handbags and ready-to-wear [11][12] - The Spring 2026 collection saw significant improvement in sell-through, driven by customer response [11] Marketing and Brand Engagement - Continued brand momentum was noted, driven by outerwear and festive campaigns, with strong performance across digital and social platforms, particularly in China [8] - The company is rolling out a series of campaigns and activations as it approaches its 170th anniversary, including the launch of a Gabardine Capsule [8] Store Initiatives - Burberry has reached 190 scarf bars and is on track to expand to 200 by year-end, with these bars contributing to improved store productivity [9] - The company plans to introduce more category "destinations" in the coming year, including trench coats and polo shirts [9] Future Outlook - Management expects adjusted operating profit to align with consensus for FY2026, with a significant year-on-year margin improvement anticipated despite H2 gross margin phasing [6][17][18] - The company is continuing to invest in marketing and store initiatives, indicating increased confidence in business direction [6][17]

Core Viewpoint - Tapestry, Inc. is poised to report strong fiscal second-quarter earnings, with expectations of continued growth in earnings per share (EPS) driven by a growing customer base and robust performance in the luxury accessories market [1][2][5]. Financial Performance - Analysts anticipate Tapestry will report a profit of $2.16 per share on a diluted basis, reflecting an 8% increase from $2 per share in the same quarter last year [2]. - For the full fiscal year, EPS is expected to reach $5.59, marking a 9.6% increase from $5.10 in fiscal 2025, with further growth projected to $6.18 in fiscal 2027, a year-over-year rise of 10.6% [3]. Stock Performance - Tapestry's stock has significantly outperformed the S&P 500 Index, with a 99.1% increase over the past 52 weeks compared to the S&P 500's 19.7% gains [4]. - The stock also outperformed the Consumer Discretionary Select Sector SPDR Fund, which saw a 12.8% increase during the same period [4]. Customer Acquisition - The company's strong performance is attributed to the acquisition of 2.2 million new global customers, particularly among Gen Z consumers [5]. Analyst Ratings - The consensus opinion on Tapestry stock is moderately bullish, with a "Moderate Buy" rating. Out of 20 analysts, 13 recommend a "Strong Buy," one a "Moderate Buy," and six a "Hold" [6]. - Tapestry currently trades above its mean price target of $132.44, with a Street-high price target of $154 indicating a potential upside of 15.2% [6].

Financial Data and Key Metrics Changes - Company reported a revenue of approximately $300 million and an Adjusted EBITDA of about $15 million, with a significant increase in gross profit from 38% in 2022 to 50% in 2024 [24][25] - Direct-to-consumer business saw a growth of nearly 10%, with e-commerce specifically up over 20% [1][10] - Holiday sales performance indicated a net sales increase of 5.3% year-over-year, with direct-to-consumer net sales growth at 9.7% [26][27] Business Line Data and Key Metrics Changes - The company has made a concerted effort to reduce promotions and discounting, leading to improved profitability and a significant increase in Adjusted EBITDA by approximately $31 million from 2022 to the last twelve months ending Q3 2025 [25][28] - Wholesale business has shown growth, particularly with key partners like Bloomingdale's and Nordstrom's, while monitoring the situation with Saks Global, which represents about 7% of overall sales [11][28] Market Data and Key Metrics Changes - The company operates over 800 points of distribution globally, with a focus on diversifying its market presence to avoid over-reliance on any single account [2][12] - International growth is a priority, with plans to expand into flagship cities in Europe, indicating a strategy to enhance global brand presence [22][16] Company Strategy and Development Direction - Strategic priorities include growing e-commerce, expanding the men's business, and maximizing the Vince Holding platform for potential new revenue streams [17][22] - The company is leveraging its partnership with Authentic Brands Group to enhance brand visibility and explore new product categories beyond apparel [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate tariff headwinds and improve profitability through strategic pricing adjustments and operational efficiencies [8][10] - The outlook for 2026 appears positive, with expectations of sustained growth in e-commerce and direct-to-consumer channels [20][28] Other Important Information - The company has a stable management team that has remained intact, which is seen as a significant advantage for continuity and product evolution [3][4] - The introduction of dropship capabilities has significantly boosted the shoe business, with demand during Black Friday week increasing from $50,000 to over $400,000 [19] Q&A Session Summary Question: How is the company addressing the challenges posed by tariffs? - The company has strategically adjusted prices and diversified sourcing to mitigate tariff impacts, resulting in maintained unit sales and positive revenue growth [9][10] Question: What are the expectations for the men's business growth? - The goal is to increase the men's business to 30% of total sales, leveraging improved partnerships with wholesale accounts and enhancing in-store presence [21][22] Question: What are the plans for international expansion? - The company is considering investments in flagship cities in Europe to enhance brand exposure and capitalize on underpenetrated markets [22][16]

Financial Data and Key Metrics Changes - Company reported a revenue of approximately $300 million and an Adjusted EBITDA of about $15 million, with a significant increase in gross profit from 38% in 2022 to 50% in 2024 [24][25] - Direct-to-consumer business grew nearly 10%, with e-commerce specifically seeing gains of over 20% [1][10] - Holiday sales performance showed a net sales increase of 5.3% year-over-year, with direct-to-consumer net sales growth at 9.7% [26][27] Business Line Data and Key Metrics Changes - The company has made a concerted effort to reduce promotions and discounting, leading to improved profitability and a focus on regular price selling [11][12] - Wholesale business has seen growth, particularly with key partners like Bloomingdale's and Nordstrom's, while monitoring the situation with Saks Global, which represents about 7% of sales [11][28] Market Data and Key Metrics Changes - The company operates over 800 points of distribution globally, with a focus on international growth as a strategic priority [2][12] - The company has opened new stores in smaller markets and plans to rationalize its store base based on profitability [14][15] Company Strategy and Development Direction - Strategic priorities include growing e-commerce, expanding the men's business, and maximizing the Vince Holding platform [17][22] - The partnership with Authentic Brands Group (ABG) is aimed at enhancing brand growth and diversifying product offerings beyond apparel [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's momentum and the effectiveness of price adjustments in mitigating tariff impacts [10][11] - The company is optimistic about its growth trajectory into 2026, driven by improvements in e-commerce and direct-to-consumer channels [20][28] Other Important Information - The company has implemented a dropship capability, significantly increasing demand for its shoe business during the holiday season [19] - Management highlighted the importance of maintaining a stable and experienced team to drive product evolution and brand strength [3][4] Q&A Session Summary Question: How is the company addressing tariff impacts? - Management discussed strategic price adjustments and sourcing diversification to mitigate tariff exposure [9][10] Question: What are the growth expectations for the men's business? - The goal is to increase the men's business to 30% of total sales, leveraging partnerships with key retailers [21][22] Question: What are the plans for international expansion? - The company is considering investments in flagship cities in Europe to enhance brand exposure and growth [22][16]