Tapestry Inc. has announced a definitive agreement to sell its luxury footwear brand, Stuart Weitzman, to Caleres for $105 million in cash. This strategic decision comes as Tapestry seeks to streamline its operations and concentrate on its core brands, Coach and Kate Spade. The sale follows the company's recent challenges, including the failed merger with Capri Holdings, which was thwarted by legal obstacles.

The acquisition marks a significant decrease in valuation for Stuart Weitzman, which Tapestry initially acquired for $574 million in 2015 and generated only 3% of Tapestry's total sales. Stuart Weitzman's performance has struggled in comparison to the more robust Coach brand, which reported an 11% sales growth year-over-year. Despite this, Tapestry has demonstrated resilience, reporting $2.2 billion in revenue for fiscal Q2 2025—a 5.5% year-over-year increase, marking its strongest performance since 2021.

Caleres, eager to enhance its position in women's contemporary footwear, intends to leverage the Stuart Weitzman brand as a key component of its portfolio. The acquisition is anticipated to close in the summer of 2025, pending customary conditions. Tapestry’s CEO, Joanne Crevoiserat, emphasizes the focus on long-term growth and brand loyalty, suggesting that this divestment will enable the company to better allocate resources toward revitalizing Kate Spade and enhancing the already successful Coach brand.

Investors should note Tapestry's recent operational maneuvers, as the company appears poised for further growth amidst market challenges, with shares showing a strong performance, gaining 58.1% in the past three months.

Tapestry Sells Stuart Weitzman to Caleres for $105 Million to Focus on Core Brands Coach and Kate Spade

Tapestry, Inc. reported robust second-quarter fiscal 2025 results, achieving record net sales of $2.20 billion, a 5% year-over-year increase. The Coach brand led the charge with sales of $1.71 billion, showing an impressive 11% growth, while its subsidiaries Kate Spade and Stuart Weitzman experienced declines. Notably, sales in Europe surged by 45%, whereas North America displayed a more modest 4% rise. The company’s gross profit rose to $1.63 billion, with a gross margin of 74.4%, underpinning its operational effectiveness.

Tapestry's net income was $310 million, which translated to earnings per share of $1.38. In response to the strong demand for its products, Tapestry has raised its revenue outlook for the fiscal year to exceed $6.85 billion, with anticipated earnings per diluted share between $4.85 and $4.90. This reflects the company’s solid strategies aimed at growth and market positioning.

CEO Joanne Crevoiserat has emphasized a shift away from markdowns, focusing on full-price sales as luxury demand increases. Following Coach's success in managing inventory, Tapestry is streamlining Kate Spade's handbag offerings to better meet consumer preferences. 

The stock performance has been notable, with shares rising approximately 99.2% over the past year, significantly outperforming broader market indices. Tapestry also plans to invest $2 billion in stock buybacks and dividends, reinforcing its appeal as a solid dividend growth stock. With a Zacks Rank #2 and an estimated earnings growth rate of 14.4% for fiscal year 2025, Tapestry remains a well-positioned investment option for investors amid current market dynamics.

Tapestry Reports Strong Q2 Results with Record Sales and Positive Outlook Amid Shifts in Luxury Strategy

Tapestry, the parent company of Coach, Kate Spade, and Stuart Weitzman, has shown impressive performance in its second fiscal quarter of 2025, reporting net sales of $2.20 billion, a 5% increase year-over-year. Coach led this performance with sales of $1.71 billion, marking an 11% rise, while Kate Spade and Stuart Weitzman experienced declines. Notably, sales in Europe surged by 45%, while North American sales increased by 4%.

The company achieved a gross profit of $1.63 billion, translating to a robust gross margin of 74.4%. Tapestry's net income stood at $310 million, with earnings per share (EPS) reaching $1.38. Following these strong results, Tapestry has raised its revenue outlook for the full fiscal year to exceed $6.85 billion, anticipating EPS between $4.85 to $4.90, reflecting effective growth strategies and operational improvements.

Tapestry's stock has seen remarkable growth, more than doubling since January 2024 and significantly outperforming the S&P 500 and peer company Ralph Lauren. The growth has been fueled by a strong appeal among Gen Z and Millennial consumers, contributing to the acquisition of over 2.7 million new customers. The Coach brand, in particular, is anticipated to benefit from the recovery of the luxury market in China.

Despite facing challenges with its Kate Spade and Stuart Weitzman brands, Tapestry remains optimistic about future growth, emphasizing effective brand management, digital sales expansion, and an increased focus on full-price sales. This strategic positioning lays a solid foundation for Tapestry's continued success in the evolving luxury market landscape.

Tapestry Reports Strong Q2 Results with $2.20 Billion in Net Sales and Raises Fiscal 2025 Outlook Amid Robust Demand for Coach Products

Tapestry Inc. (TPR), the parent company of Coach and Kate Spade, is experiencing a significant upward trajectory following the announcement of robust second-quarter fiscal 2025 results. The company reported record net sales of $2.20 billion, marking a 5% year-over-year increase, with Coach leading the charge at $1.71 billion—an 11% boost in sales. Although both Kate Spade and Stuart Weitzman saw declines, Tapestry's overall performance remains strong, especially in the European market, which grew by 45%.

The stock has surged 12% following the quarterly earnings report, reflecting positive investor sentiment. Tapestry also raised its revenue outlook for the fiscal year, now expecting to exceed $6.85 billion, with projected earnings per share between $4.85 and $4.90. This upward revision underscores robust growth strategies and operational enhancements, especially as the company has added approximately 1.4 million new customers, with a significant focus on engaging younger demographics such as Gen Z and Millennials.

In a strategic shift, Tapestry is moving away from heavy discounts to foster brand integrity, as luxury demand picks up. CEO Joanne Crevoiserat highlighted plans to streamline the Kate Spade handbag line and enhance full-price sales, capitalizing on Coach's momentum in reducing markdowns.

Overall, Tapestry is positioned for further growth amid favorable market dynamics and a strong focus on innovation. Its stock has soared by 99.2% over the past year, significantly outperforming major indexes, and analysts rate TPR as a “Moderate Buy,” indicating continued potential for investors.

Tapestry Inc. Achieves 100% Rating from Validea Amid Strong Sales Growth and Strategic Shift to Full-Price Sales

Tapestry Inc. is a leading American luxury fashion holding company that encompasses a portfolio of renowned brands, including Coach, Kate Spade, and Stuart Weitzman. The company's mission is to empower the modern consumer through innovative and high-quality products that reflect their individuality and lifestyle. Tapestry Inc. employs a strategy focused on digital transformation, sustainability, and global expansion to enhance customer engagement and drive growth. Through its operations, Tapestry Inc. emphasizes craftsmanship, creativity, and inclusivity, aiming to create a lasting impact in the luxury market while fostering a strong connection with its diverse clientele.

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