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]

Group 1 - Tapestry (NYSE: TPR) owns three fashion brands: Coach, Kate Spade New York, and Stuart Weitzman, primarily focusing on purses [1] - The brands under Tapestry have different product lines but share a common emphasis on handbags [1] Group 2 - The article does not provide specific financial data or performance metrics related to Tapestry or its brands [1]

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]

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]

Financial Data and Key Metrics Changes - Fourth quarter adjusted earnings per share were $0.33, and full year adjusted earnings per share were $3.3, at the high end of guidance [8][28] - Fourth quarter consolidated sales were $639.2 million, down 8.3% year-over-year, with a $30.3 million unfavorable impact from the fifty-third week [24][25] - Full year consolidated sales were $2.72 billion, down 3.4% compared to the previous year [25] - Fourth quarter consolidated gross margin was 43%, an 80 basis point decrease from last year [25] - Full year consolidated gross margin was 44.9%, up approximately 10 basis points from last year [25] Business Line Data and Key Metrics Changes - Brand portfolio sales declined 7.2% in the fourth quarter, with a 5% decline excluding the fifty-third week [8][25] - Famous Footwear sales were down 9.6% in total and down 2.9% on a comparable basis [25] - Lead brands, including Sam Edelman, Allen Edmonds, Naturalizer, and Vionic, outperformed the overall brand portfolio [6][9] - Allen Edmonds showed growth across all channels, with strong performance in sport and dress loafers [10][11] Market Data and Key Metrics Changes - Internationally, the company activated new premium wholesale partnerships in Europe and continued expansion in China and Southeast Asia [10] - Famous Footwear's comparable store sales were down 2.9%, with brick-and-mortar sales down 4.1% and comparable web sales up 3.1% [16] Company Strategy and Development Direction - The company is focused on long-term growth by investing in key areas while reducing expenses elsewhere [6] - The acquisition of Stuart Weitzman is expected to enhance exposure to the contemporary segment and premium price points [16] - The company plans to upgrade 25 more stores to the Flare format in 2025, which has shown strong performance [18][73] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, despite challenges from inflation and tariffs [20][21] - The company anticipates sequential improvement throughout the year, driven by new product introductions and improved leadership [36][38] - Management noted that the current macroeconomic environment presents headwinds for value-based consumers [20] Other Important Information - The company returned approximately $75 million to shareholders through buybacks and dividends [7] - Inventory at year-end was $565 million, up 4.5% year-over-year, with a focus on managing aged inventory [29] Q&A Session Summary Question: Can you elaborate on the EPS guidance assumptions for the year? - Management expects sequential quarterly improvement, with specific initiatives driving growth in both Famous and brand portfolio segments [36][38] Question: What trends are seen in the contemporary segment? - Management noted that contemporary brands are trending positively, with strong performance in fashion sneakers and seasonal items [40][41] Question: How will gross margins be affected by markdowns and tariffs? - Management anticipates some gross margin decline due to tariffs and markdowns, but expects improvements as inventory becomes more current [50][72] Question: What is the outlook for the first quarter's operating margin? - The first quarter's operating margin is expected to be the lowest of the year, with improvements anticipated as the year progresses [58] Question: How are order trends in wholesale accounts? - Management indicated that they are seeing positive trends in wholesale accounts, with plans for continued growth in remodeled stores [73]