Core Insights - Wolverine World Wide, Inc. (WWW) reported a strong second quarter in 2025, with revenues increasing by 11.5% year over year to $474.2 million, driven by brand momentum, particularly from Saucony and Merrell [1][10] Brand Performance - Saucony achieved record second-quarter revenues, rising 41.5% year over year, with a gross margin expansion of 560 basis points, supported by successful product launches and expanded lifestyle distribution [2][10] - Merrell experienced a revenue growth of 10.7% and nearly 600 basis points of margin expansion, bolstered by modernized trail offerings and increased lifestyle footwear appeal [3][10] - Sweaty Betty narrowed its revenue decline to 6.1% while improving margins by over 500 basis points, focusing on restoring its premium positioning through targeted campaigns [4] - The Wolverine brand also showed progress with new premium product introductions, contributing to overall growth alongside Saucony and Merrell [5] Competitive Landscape - Key competitors in the footwear industry include Deckers Outdoor Corporation, Tapestry, Inc., and Urban Outfitters Inc., with Deckers showing strong performance through its flagship brands HOKA and UGG [6][7][8][9] Financial Metrics - WWW's shares have gained 29.3% year to date, contrasting with a 1.5% decline in the industry [11] - The company trades at a forward price-to-earnings ratio of 19.78X, significantly below the industry average of 30.45X [12] - The Zacks Consensus Estimate for WWW's financial 2025 earnings indicates a year-over-year growth of 44%, with a 17.2% increase projected for 2026 [13]

Financial Performance - Tapestry shares slumped 15% [1] Market Outlook - Tapestry warned of a significant hit from new tariffs [1] - The company gave a weaker-than-expected outlook [1]

Core Viewpoint - Tapestry's stock plummeted over 13%, marking its largest drop since March 2020, closing at $97.94 due to concerns over future earnings guidance and tariff impacts [1] Financial Performance - For the fourth quarter of fiscal year 2025, Tapestry reported adjusted earnings per share of $1.04, exceeding analyst expectations by $0.02 [1] - The company's quarterly sales reached $1.72 billion, surpassing analyst estimates of $1.68 billion [1] Future Outlook - Tapestry forecasts diluted earnings per share for fiscal year 2026 to be between $5.30 and $5.45, reflecting a growth of 4% to 7% year-over-year, but falling short of analyst expectations of $5.49 [1] - The company attributed the earnings guidance shortfall primarily to tariff impacts, which are expected to negatively affect earnings by $0.60 per share [1] Market Reaction - The market reaction to Tapestry's earnings report was negative, as investors appeared to have not fully accounted for the tariff costs, leading to a significant decline in stock price [1] - Prior to this drop, Tapestry's stock had seen a year-to-date increase of 74% [1]

Acquisition & Strategy - Tapestry's attempted $85 billion acquisition of Capri Holdings was blocked by the FTC due to concerns about creating an excessively concentrated player in the accessible luxury handbags market [1][2] - Wall Street disliked the Capri deal, fearing Tapestry would overstretch its balance sheet to acquire a consistently worse operator [3] - Tapestry redeemed deal debt and announced a $28 billion buyback program, including a $2 billion accelerated share repurchase program, representing roughly 15% of shares outstanding [6][7] - Tapestry sold its Steuart Weitzman brand to focus on the core Coach brand and turning around Kate Spade [8][9] Financial Performance & Market Dynamics - Tapestry's stock has increased 148% since the merger was blocked and is up 69% for the year [2] - Coach's revenue growth accelerated from 2% to 15% on a constant currency basis [11][12] - Tapestry delivered substantial top and bottom-line beats, raising full-year earnings forecast by $025 [10] - Kate Spade's constant currency revenue growth has declined for eight straight quarters, down 12% [16] Future Outlook & Risks - Tapestry aims to turn around Kate Spade by emulating Coach's strategies, targeting younger consumers and developing new products [17] - The stock trades at just under 22 times this year's earnings estimate, with 18% earnings growth, but is considered inherently risky given its recent performance [19][20] - The report suggests a potential buying opportunity if Tapestry reports a good quarter that doesn't fully satisfy shareholders, leading to a sell-off [20]

Core Insights - Tapestry reported $1.58 billion in revenue for the quarter ended March 2025, marking a year-over-year increase of 6.9% and exceeding the Zacks Consensus Estimate by 3.66% [1] - The earnings per share (EPS) for the same period was $1.03, a significant increase from $0.81 a year ago, representing a surprise of 15.73% over the consensus estimate of $0.89 [1] Financial Performance - Tapestry's shares have returned +11.1% over the past month, slightly underperforming the Zacks S&P 500 composite's +11.3% change, with a current Zacks Rank of 3 (Hold) [3] - Geographic Net Sales in Greater China were reported at $278.90 million, slightly below the average estimate of $282.77 million, reflecting a year-over-year change of +3% [4] - North America net sales reached $951.70 million, surpassing the average estimate of $881.72 million, with a year-over-year increase of +8.9% [4] Segment Performance - Net Sales for Coach amounted to $1.29 billion, exceeding the estimated $1.22 billion, with a year-over-year change of +12.9% [4] - Stuart Weitzman reported net sales of $46.20 million, falling short of the average estimate of $51.92 million, representing a year-over-year decline of -17.7% [4] - Kate Spade's net sales were $244.90 million, below the average estimate of $252.63 million, indicating a year-over-year decrease of -12.8% [4] Operating Income - Operating income for Coach was reported at $420.10 million, exceeding the average estimate of $392.26 million [4] - Stuart Weitzman experienced an operating loss of -$5.60 million, slightly worse than the estimated loss of -$5.11 million [4]

Core Viewpoint - Tapestry (TPR) is expected to report quarterly earnings of $0.89 per share, a 9.9% increase year-over-year, with revenues projected at $1.53 billion, reflecting a 3.1% year-over-year increase [1] Earnings Estimates - The consensus EPS estimate has been revised 0.6% higher in the last 30 days, indicating analysts' collective reevaluation of their initial estimates [2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3] Key Metrics Projections - Analysts estimate 'Net Sales- Coach' at $1.22 billion, a 6.8% increase from the prior year [5] - 'Net Sales- Stuart Weitzman' is forecasted at $51.92 million, a decrease of 7.5% year-over-year [5] - 'Net Sales- Kate Spade' is projected at $252.63 million, indicating a 10% decline from the previous year [5] Geographic Sales Estimates - 'Geographic Net Sales- North America' is expected to reach $881.72 million, a 0.9% increase year-over-year [6] - 'Geographic Net Sales- Greater China' is projected at $282.77 million, reflecting a 4.4% year-over-year increase [6] - 'Geographic Net Sales- Greater China- Coach' is estimated at $258.09 million, a 6.1% increase from the prior year [6] Additional Geographic Sales Insights - 'Geographic Net Sales- Other Asia- Coach' is expected to be $207.67 million, a 3.3% increase year-over-year [7] - 'Geographic Net Sales- Other- Coach' is projected at $103.54 million, indicating a significant 27.8% increase from the prior year [7] - 'Geographic Net Sales- North America- Kate Spade' is estimated at $186.23 million, a 14.1% decrease year-over-year [8] Performance Overview - Tapestry shares have increased by 15.6% in the past month, outperforming the Zacks S&P 500 composite, which rose by 0.4% [9]

Economic Overview - Low to middle-income consumers are reducing spending to pay down credit card debt, while affluent consumers continue to spend selectively [1][2] - The economy is divided, with strong revenue and earnings growth reported by many companies despite market uncertainty [2] Company Analysis: Tapestry Inc. (TPR) - Tapestry is known for luxury accessories and lifestyle products, with a current stock price of $70.65 and a price target of $78.00, indicating a 12% upside potential [3][5] - The company reported record earnings per share of $2 in Q2 FY2025 and achieved a net paydown yield of 38% over the last 12 months [4][5] - Analysts have a Moderate Buy rating on TPR, with some price targets adjusted but remaining above the consensus price [5][6] Company Analysis: On Holding AG (ONON) - On Holding specializes in high-end footwear and apparel, with a current stock price of $48.11 and a price target of $58.77, suggesting a 23% increase potential [7][10] - The company uses over 30% recycled or renewable materials in its products, appealing to younger consumers [8] - Despite a recent double beat in earnings, ONON stock is down over 13% in 2025 due to concerns over exposure to China amid tariff issues [9][10] Company Analysis: Viking Holdings Ltd. (VIK) - Viking Holdings, a newcomer in the luxury cruise market, has a current stock price of $41.02 and a price target of $46.89, indicating potential growth [12] - The company is 88% booked for 2025 and does not anticipate cancellations due to market weakness, suggesting resilience in the cruise line industry [14] - Despite volatility typical of newly public companies, VIK stock has increased nearly 50% since its launch [14]

Core Insights - Tapestry, Inc. (TPR) is identified as a compelling value play in the Retail-Apparel and Shoes industry, trading at a forward price-to-earnings ratio of 12.08, which is lower than the industry average of 13.61 and the Retail-Wholesale sector average of 20.75, indicating potential for attractive investment opportunities [1][3] - The company has a Value Score of A, enhancing its appeal as an investment option [1] Financial Performance - Coach, a key brand under Tapestry, reported an 11% increase in revenues for Q2 of fiscal 2025, with a 270-basis-point improvement in gross margin [5] - Tapestry's stock has surged 47.6% over the past year, significantly outperforming the broader industry, which declined 14%, and the S&P 500, which fell 2.1% during the same period [9] - The company has upgraded its fiscal 2025 revenue forecast to exceed $6.85 billion, reflecting a 3% year-over-year increase, surpassing the previous estimate of $6.75 billion [13] - Projected earnings per share (EPS) have been raised to a range of $4.85 to $4.90, indicating a 13-14% increase over the prior year [14] International Growth - Tapestry's international markets are crucial for revenue growth, with Europe experiencing a 42% year-over-year revenue increase [8] - Greater China saw a 2% rise in sales, while the Asia-Pacific region (excluding China) reported an 11% revenue increase, driven by strong performances in South Korea, Malaysia, Australia, and New Zealand [10] Digital and DTC Strategy - The company is investing in digital and direct-to-consumer (DTC) platforms, with DTC sales up 4% and profit margins improving across all distribution channels [11] - Tapestry is leveraging AI-driven customer engagement tools to enhance pricing precision and reduce reliance on discounting, appealing to younger consumers [12] Analyst Sentiment - Analysts have positively revised Tapestry's earnings estimates, with the consensus estimate for the current fiscal year increased by 27 cents to $4.91 per share, indicating a year-over-year growth of 14.5% [15] - The Zacks Consensus Estimate for fiscal 2025 sales is pegged at $6.87 billion, implying a 3% year-over-year growth [16] Overall Outlook - Tapestry is positioned as a strong investment opportunity in the retail and fashion space, with brand strength, global reach, and operational momentum, all at a modest valuation compared to industry peers [20]

Core Insights - Tapestry, Inc. (TPR) has seen a significant stock price increase of 53.7% over the past six months, outperforming the Zacks Retail-Apparel and Shoes industry's decline of 14.6% [1] - The stock closed at $70.41, approaching its 52-week high of $90.85 reached on February 18, 2025 [2] - Tapestry's operational efficiency and growth initiatives have contributed to its strong performance compared to the broader Retail-Wholesale sector and the S&P 500 index [1] Performance Metrics - Tapestry's stock is trading above its 100-day and 200-day simple moving averages of $69.29 and $55.89, indicating a positive market sentiment [5] - Coach, a key brand for Tapestry, reported an 11% increase in revenues in Q2 of fiscal 2025, with a 270-basis-point improvement in gross margin [8] - Tapestry's international strategy has led to a 42% year-over-year revenue increase in Europe and a 2% growth in Greater China [11][12] Strategic Developments - Tapestry announced the sale of its Stuart Weitzman brand to Caleres for $105 million, focusing on its core brands, Coach and Kate Spade [9] - The company is enhancing its digital and direct-to-consumer strategies, with DTC sales rising 4% in Q2, driven by strong digital sales [13] - AI-powered customer engagement is improving pricing strategies and attracting younger consumers, solidifying Tapestry's market position [14] Financial Outlook - Tapestry has raised its full-year revenue forecast to exceed $6.85 billion, reflecting a 3% year-over-year increase [15] - The company expects a 100-basis-point improvement in operating margin and EPS forecasted between $4.85 and $4.90, indicating a 13-14% increase from the prior year [16] - Analysts have positively revised EPS estimates, with the current fiscal year consensus at $4.91 per share, reflecting a year-over-year growth of 14.5% [19] Valuation Insights - Tapestry's forward 12-month P/E ratio is 13.53, lower than the industry average of 15.40 and the sector's 22.38, indicating potential undervaluation [17] - The company's Value Score of A highlights its attractiveness as an investment option [17] - The Zacks Consensus Estimate for Tapestry's sales for the current and next fiscal years is projected at $6.87 billion and $7.11 billion, respectively, implying year-over-year growth of 3% and 3.4% [20]