Description

Tapestry Inc.: How Badly Does It Rely On Coach’s Brand Strength and Pricing Power?

Tapestry reported strong results for its second quarter, surpassing expectations with record quarterly revenue and earnings per share. The company, known for its brands Coach, Kate Spade, and Stuart Weitzman, demonstrated its commitment to strategic brand building and disciplined financial management, resulting in a 5% revenue growth, driven primarily by Coach’s impressive 10% increase. Positive aspects of the earnings report include Tapestry’s successful expansion in international markets. Europe showed robust growth with a 42% revenue increase, and Greater China returned to growth, achieving a 2% rise in revenue. This performance highlights Tapestry’s effective global strategy and strong market positioning. Additionally, digital sales played a significant role, growing at high single digits and contributing approximately a third of total revenue with higher margins. The company also saw a notable influx of approximately 2.7 million new customers in North America, primarily from Gen Z and millennials, which supports a long-term growth trajectory by engaging younger demographics.

Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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