Tapestry’s first quarter results were characterized by robust growth at its flagship Coach brand and solid international momentum, leading the company to outperform Wall Street’s revenue and profit expectations. Management attributed much of the quarter’s strength to strong Gen Z and Millennial customer acquisition, double-digit growth in leather goods, and the continued success of omnichannel investments. CEO Joanne Crevoiserat emphasized that Coach’s “expressive luxury position continues to resonate with consumers” and highlighted the importance of new product launches and digital engagement in driving top- and bottom-line gains.

Is now the time to buy TPR? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Tapestry’s Q1 Earnings Call

• Ike Boruchow (Wells Fargo) asked what is driving Coach’s exceptional growth and whether the brand can sustain its momentum in a dynamic market. CEO Joanne Crevoiserat pointed to emotional brand connections, supply chain agility, and compelling value as foundational strengths.
• Lorraine Hutchinson (Bank of America) sought guidance on how tariffs might affect results beyond this year. CFO Scott Roe explained that mitigation efforts, such as inventory pulls and supply chain adjustments, are in place, but future impacts will depend on evolving trade conditions.
• Matthew Boss (JPMorgan) inquired about the effectiveness of new customer acquisition and Gen Z retention. Crevoiserat and Coach CEO Todd Kahn emphasized intentional efforts to attract younger demographics and highlighted rising repeat purchase rates among Gen Z customers.
• Michael Binetti (Evercore ISI) questioned the drivers of gross margin expansion, specifically at Coach. Roe credited operational execution and higher AUR, while Kahn confirmed Coach posted its highest-ever third-quarter gross margin.
• Brooke Roach (Goldman Sachs) asked about the balance between unit volume and AUR growth at Coach. Kahn responded that while AUR has risen significantly since 2019, growth in new customers will drive future unit gains without sacrificing brand health.

Catalysts in Upcoming Quarters

In the coming quarters, our team will monitor (1) sustained customer acquisition and retention trends at Coach, especially among Gen Z and Millennial shoppers, (2) the progress of Kate Spade’s brand reset and its impact on traffic and product relevance, and (3) the successful execution of international expansion—particularly in Europe and China. The pending sale of Stuart Weitzman and evolving tariff developments will also be important signposts for Tapestry’s strategic execution.

Tapestry currently trades at $86.48, up from $74.75 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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