Financial Performance - Tapestry reported record revenue and 16% sales growth for its fiscal Q1 [1] - Coach brand experienced a standout performance with 21% growth [6] - Kate Spade's sales are still declining by 9%, but slightly ahead of expectations [4][5] - The company raised its outlook for the year across topline and earnings [4] Brand Strategy & Consumer Behavior - Coach is driving the overall growth [4] - Kate Spade is undergoing a brand reset, with progress in Gen Z acquisition trends driven by handbags and higher Average Unit Retail (AUR) with handbag blockbusters [5][6] - Consumers are resilient and active, responding positively to innovation and emotion from brands [7] - Tapestry is seeing traction in acquiring young consumers, leading to growth and higher retention across the portfolio [8] - Tapestry's strategy focuses on expanding the market by capturing young consumers at the point of market entry [14] - The company emphasizes innovation, compelling value, and brand storytelling to resonate with young consumers [16] Holiday Season Outlook - Tapestry is optimistic about the holiday season, with strength continuing into Q2 [10][11] - The company is staying close to consumers to deliver a value proposition that resonates during the quarter [11]

Core Insights - Tapestry Inc. is redefining its approach to the global handbag market after the failed acquisition of Capri Holdings, focusing on potential consumer reach rather than past sales figures [1] - The company identifies a target audience of 1.9 billion people, with current market share at only 0.6%, indicating significant growth potential [2] - Tapestry's new three-year strategic plan, named Amplify, aims to enhance brand reach and consumer engagement while driving sustainable growth and shareholder value [3][4] Strategic Goals - The Amplify plan includes pushing Coach revenues to $10 billion, up from $5.6 billion last year [5] - The plan aims to return Kate Spade to growth by fiscal 2027 [5] - Tapestry intends to expand operating margins by over 200 basis points to exceed 22% for fiscal 2027 and 2028 [5] - The company plans to return $4 billion to shareholders through share repurchases and dividends by fiscal 2028 [5]