Tapestry, Inc. ( TPR ) is the parent company of Coach, Kate Spade, and Stuart Weitzman. Each year, Coach represents a higher percentage of Tapestry, Inc.'s sales, reaching ~80% in FY25. It has also performed incredibly well over the past few years, having returned ~250% overI am a full-time equity analyst and the co-founder of Mina Vista Capital Management, a hedge fund that my business partner, William Hazen, and I started. I look for long-term investment opportunities with a focus on fundamentals. I’ve do ...

Core Insights - Tapestry Inc. has shown exceptional performance in FQ2 2026, with total revenue increasing by 14% to $2.5 billion, and a pro forma revenue growth of 18%, primarily driven by a 25% increase in the Coach brand [1][7] - The company has generated strong cash flow, achieving $1.04 billion in adjusted free cash flow for the quarter, which has enabled an increase in the planned return to shareholders to $1.5 billion for FY2026, up from $1.3 billion [2] - Tapestry has raised its full-year FY2026 outlook, expecting annual revenue to exceed $7.75 billion and diluted EPS to reach between $6.40 and $6.45, indicating over 25% growth compared to the previous year [3] Financial Performance - Total revenue for FQ2 2026 reached $2.5 billion, marking a 14% increase year-over-year [1] - Adjusted free cash flow for the quarter was $1.04 billion, supporting increased shareholder returns [2] - The company plans to return $1.5 billion to shareholders in FY2026, which includes a $1.2 billion share buyback program, an increase of $200 million from prior guidance [2] Strategic Initiatives - The growth in revenue was significantly supported by the holiday demand and the company's Amplify strategy, which attracted over 3.7 million new customers globally, with one-third being Gen Z [1] - Tapestry's management has expressed confidence in the Coach brand's momentum and the company's ability to sustain high margins despite external pressures [3] Company Overview - Tapestry Inc. operates in the accessories and lifestyle brand sector, with a presence in North America, Greater China, and other international markets [4] - The company has three main segments: Coach, Kate Spade, and Stuart Weitzman [4]

Group 1: Company Performance - Wolverine World Wide, Inc. (WWW) showed strong brand momentum in Q4 2025, driven by the Active portfolio and a positive outlook for 2026 [1] - Saucony was a key growth driver with a 24.2% year-over-year revenue increase at constant currency in Q4 and 30.1% growth for 2025, supported by broad-based gains across categories and regions [2] - Merrell reported 4.6% revenue growth in the quarter, with strong performance from trail-running innovations and a return to growth in direct-to-consumer sales [3] - Sweaty Betty also recorded 4.6% year-over-year revenue growth, benefiting from a strategic reset and improved performance in the U.K. [4] Group 2: Financial Guidance - Wolverine expects fiscal 2026 revenues between $1.96 billion and $1.985 billion, indicating a 5.2% growth at the midpoint, with adjusted earnings per share projected at $1.35-$1.50 [5] - Active Group revenues are anticipated to rise in the mid-single digits, supported by pricing actions and cost efficiencies despite tariff pressures [5] Group 3: Competitive Landscape - Deckers Outdoor Corporation (DECK) reported strong results with HOKA achieving an 18.5% year-over-year sales increase, while UGG saw a 4.9% increase, contributing to record net sales of $1.96 billion [7] - Tapestry, Inc. (TPR) experienced a 14% year-over-year increase in net sales, driven by Coach's 25% growth, although Kate Spade saw a decline [8] - Urban Outfitters Inc. (URBN) had a strong performance with all retail brands posting positive comps, particularly FP Movement with 29% total revenue growth [9][10]

Core Viewpoint - Tapestry, Inc. has received a "Buy" rating from BTIG with a new price target of $175, indicating positive investor sentiment despite mixed actions from other investors [1][6]. Investment Actions - Thrivent Financial for Lutherans has reduced its investment in Tapestry by selling 31,329 shares, representing a 43.3% decrease in their holdings, leaving them with 40,966 shares valued at approximately $4.6 million [2]. - Keybank National Association OH has increased its stake in Tapestry by 14.8%, acquiring an additional 5,952 shares, bringing their total holdings to 46,066 shares valued at around $5.2 million [3]. - The National Pension Service has purchased a new stake in Tapestry valued at approximately $608,000 during the third quarter, indicating growing interest from institutional investors [4]. Stock Performance - Tapestry's stock price is currently $152.10, reflecting a 6.22% increase, with fluctuations between $144.38 and $153.10 today, and a 52-week high of $153.13 and a low of $58.39 [5]. - The market capitalization of Tapestry stands at approximately $31.13 billion, with a trading volume of 3,250,077 shares today [5].

Core Insights - Tapestry, Inc. (TPR) reported strong second-quarter fiscal 2026 results, surpassing revenue and earnings estimates, and raised its fiscal 2026 guidance [1][9] Financial Performance - Adjusted earnings were $2.69 per share, exceeding the Zacks Consensus Estimate of $2.20, and reflecting a 34% year-over-year increase [4] - Net sales reached $2,502.4 million, beating the consensus estimate of $2,310 million, with a 14% year-over-year increase [4] - Excluding the impact of Stuart Weitzman, pro forma net sales increased by 18% on both nominal and constant-currency bases [5] Brand Performance - Coach brand net sales were $2.14 billion, exceeding the Zacks Consensus Estimate of $1.95 billion, marking a 25% year-over-year increase [7] - Kate Spade's sales were $360 million, below the consensus estimate of $368 million, representing a 14% decline year-over-year [7] Regional Sales Insights - North America sales increased 17% year-over-year to $1.72 billion, while Greater China improved 35% to $343.1 million [8] - European revenues rose 27% to $159.1 million, while Japan saw a 9% decline to $128.3 million [8] Margin and Cost Analysis - Adjusted gross profit was $1.89 billion, up 16% from the previous year, with an adjusted gross margin of 75.5%, an increase of 110 basis points [10] - Adjusted operating income rose 31% to $719.8 million, with an adjusted operating margin of 28.8%, up 390 basis points [11] Shareholder Returns - Tapestry returned approximately $400 million to shareholders through share repurchases and declared a quarterly cash dividend of 40 cents per share [15] - For fiscal 2026, the company expects to return $1.5 billion to shareholders, an increase from the previous estimate of $1.3 billion [16] Future Outlook - Management raised the fiscal 2026 revenue outlook to over $7.75 billion, reflecting about 11% growth year-over-year [20] - The company anticipates operating margin expansion of roughly 180 basis points and earnings per share of $6.40-$6.45, representing growth of over 25% year-over-year [22]

Core Viewpoint - Tapestry Inc. (NYSE:TPR) has demonstrated strong earnings performance in Q2 FY2026, leading to a significant increase in stock price and a positive growth outlook for the full year [1][3]. Financial Performance - In Q2 FY2026, Tapestry's net income surged by 81% to $561.3 million, up from $310.4 million year-on-year [2]. - Net sales for the same quarter increased by 14% to $2.5 billion, compared to $2.19 billion in the previous year [2]. - For the six-month period, net income rose by 68% to $836.1 million from $497 million, while net sales increased by 13.5% to $4.2 billion from $3.7 billion [3]. Future Outlook - Tapestry is targeting revenues exceeding $7.75 billion, which represents an 11% growth from the previous year [3]. - Diluted earnings per share are projected to be between $6.40 and $6.45, indicating over 25% growth compared to the prior year and surpassing previous guidance of $5.45 to $5.60 [4]. Stock Performance - Tapestry's stock reached an all-time high of $145.42 during intra-day trading, closing up by 10.21% at $143.19 [1].

Tapestry reported higher second-quarter revenue and raised its fiscal-year outlook as growth from its Coach brand offset declines in Kate Spade sales https://t.co/TpuVRW4A4B ...

Core Insights - Tapestry reported higher second-quarter revenue, indicating strong performance driven by its Coach brand, which helped offset declines in Kate Spade sales [1] Financial Performance - The company raised its fiscal-year outlook, reflecting confidence in continued growth despite challenges faced by the Kate Spade brand [1]

Core Viewpoint - Tapestry, Inc. is a prominent player in the retail apparel and shoes industry, recognized for its luxury brands and strategic growth initiatives [1] Earnings Expectations - Tapestry is scheduled to release its quarterly earnings report on February 5, 2026, with analysts forecasting an earnings per share (EPS) of $2.20 and revenue of approximately $2.32 billion [2][6] Historical Performance - The company has a track record of exceeding earnings estimates, with a recent average surprise of 6.69% and a notable earnings report last quarter where it achieved $1.38 per share against a consensus estimate of $1.25, resulting in a 10.40% surprise [3][4][6] Financial Health - Tapestry's financial metrics include a high P/E ratio of 101.50, a price-to-sales ratio of 3.69, and an enterprise value to sales ratio of 4.17, indicating strong market valuation. The debt-to-equity ratio stands at 10.51, reflecting significant reliance on debt, while the current ratio of 1.52 suggests sufficient liquidity to meet short-term obligations [5][6]

Core Viewpoint - Analysts expect Tapestry (TPR) to report quarterly earnings of $2.20 per share, reflecting a 10% year-over-year increase, with revenues projected at $2.31 billion, up 5.2% from the previous year [1] Earnings Estimates - Revisions to earnings estimates are crucial indicators for predicting investor actions, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [2] Key Metrics Projections - Analysts project 'Net Sales- Kate Spade' at $368.48 million, indicating a decline of 11.5% year-over-year [4] - 'Net Sales- Coach' is expected to reach $1.95 billion, reflecting a year-over-year increase of 14.1% [4] - 'Geographic Net Sales- Other International' is estimated at $182.80 million, showing an increase of 18.1% from the prior year [4] Geographic Sales Estimates - 'Geographic Net Sales- Other Asia' is forecasted at $241.51 million, down 5.1% from the previous year [5] - 'Geographic Net Sales- North America' is projected to be $1.60 billion, up 5.7% year-over-year [5] - 'Geographic Net Sales- Greater China' is estimated at $278.37 million, reflecting a 2% increase from the prior year [5] Kate Spade Specific Projections - 'Geographic Net Sales- Greater China- Kate Spade' is expected to be $9.69 million, indicating a decline of 19.3% year-over-year [6] - 'Geographic Net Sales- Other Asia- Kate Spade' is projected at $30.78 million, down 14% from the previous year [6] - 'Geographic Net Sales- Other- Kate Spade' is estimated at $26.19 million, reflecting a decrease of 4.8% year-over-year [7] Store Count Estimates - The total number of stores for Coach (North America + International) is expected to reach 945, up from 922 in the same quarter last year [7] - The total number of stores (EOP) is projected at 1,342, down from 1,393 year-over-year [8] - The total number of stores for Kate Spade (North America + International) is expected to be 357, compared to 379 in the same quarter last year [8] Stock Performance - Tapestry shares have shown a return of -4.6% over the past month, while the Zacks S&P 500 composite has increased by 0.9% [8] - TPR holds a Zacks Rank 2 (Buy), indicating expectations to outperform the overall market in the near future [9]