Tapestry (NYSE:TPR) 2025 Investor Day Transcript

Tapestry's 2025 Investor Day Summary Company Overview - Company: Tapestry Inc. - Brands: Coach and Kate Spade - Revenue: $7 billion across 60 countries with nearly 1,300 directly operated stores worldwide [4][10] Core Points and Arguments Business Momentum and Growth Strategy - CEO's Statement: Tapestry is positioned for sustained growth, focusing on amplifying its growth agenda [2][10] - Consumer-Centric Approach: The company has shifted to a consumer-obsessed model, emphasizing emotional connections and brand building [6][7] - Financial Performance: Over the last three years, Tapestry has recruited over 20 million new customers in North America, achieving a 10% top-line growth and nearly 50% growth in earnings per share [9][10] Brand Positioning - Coach's Ambition: Coach aims to reach $10 billion in annual revenue with world-class margins, focusing on emotional connections with consumers [48][49] - Kate Spade's Growth: Efforts are underway to reignite growth at Kate Spade, leveraging its iconic status [3][12] Market Opportunities - Target Demographics: Focus on the 18-27 age group as a key market entry point, with 25 million women entering this demographic annually [24][26] - Market Penetration: Tapestry currently holds a 7% share in a $100 billion market for handbags, small leather goods, and footwear, with significant growth potential [22][41] International Expansion - Geographic Focus: Growth strategies will prioritize North America, Greater China, and Europe, with plans for 125 new store openings globally [40][41] - China's Potential: The company sees substantial opportunities in China, particularly in cities with large university populations like Wuhan [50][40] Additional Important Insights Consumer Engagement - Data-Driven Decisions: Tapestry emphasizes the importance of data and consumer insights in shaping its marketing and product strategies [8][30] - Emotional Storytelling: The company aims to create compelling narratives around its products to foster brand loyalty [56][58] Marketing Investments - Increased Marketing Spend: Marketing investment has risen from 4% to 11% of revenue over the past few years, totaling $1.8 billion [35][36] - Brand University: Tapestry is establishing a brand university to ensure all employees understand brand growth capabilities [36][41] Future Outlook - Financial Projections: Tapestry expects mid-single-digit revenue growth, operating margin expansion to over 22%, and low double-digit growth in earnings per share annually for fiscal years 2026-2028 [18][19] - Shareholder Returns: Plans to return $4 billion to shareholders over the next three years, reflecting confidence in the company's intrinsic value [18][19] Conclusion - Long-Term Vision: Tapestry is committed to building a consumer-centric, emotionally connected brand portfolio that drives sustainable growth and shareholder value [19][41]