TPR

Impact of Tariffs on Apparel Brands: President Trump's tariffs on Chinese imports led apparel brands to relocate production to other Asian countries like Vietnam, Cambodia, and Bangladesh.

Need for New Strategies: As the situation evolves, these brands are now seeking a new strategy, referred to as Plan C, to adapt to ongoing challenges.

Tariff Announcement: President Trump announced new tariffs on imports from various countries after the market closed, raising concerns among investors about potential economic impacts.

Investor Reaction: Following the announcement, there was noticeable uncertainty in the market regarding how these trade conflicts might affect the economy, prompting analysis of the administration's tariff policies.

Market Overview: The S&P 500 closed higher amid volatile trading, with notable movements in commodities like gold and copper, both of which have seen significant year-to-date increases. Key stocks such as Tesla, Rivian, and Boeing are also highlighted, showing mixed performance.

Sector Performance: The software sector faced declines, particularly for companies like Adobe and Oracle, attributed to slowing tech spending. Meanwhile, the healthcare sector underperformed due to layoffs at the Department of Health and Human Services, impacting pharmaceuticals and biotech industries.

Consumer Products Sector Performance: As of midday Tuesday, the Consumer Products sector is leading with a 0.2% increase, highlighted by Tesla Inc's gain of 5.8% and Tapestry Inc's rise of 3.3%, despite Tesla being down 32.09% year-to-date.

Energy Sector Update: The Energy sector follows closely with a 0.1% increase, featuring Baker Hughes Company and Schlumberger Ltd with gains of 1.0% and 0.9%, respectively, both showing positive year-to-date performance.

Company Overview: Tapestry, Inc. (TPR), with a market cap of $14.6 billion, operates luxury brands like Coach, Kate Spade, and Stuart Weitzman, showing strong performance with a 51.5% increase in stock over the past year and positive earnings growth.

Market Performance: Despite trading below its 52-week high, TPR shares have surged significantly, outperforming the S&P 500 Index, and analysts maintain a "Moderate Buy" rating with a price target suggesting further upside potential.

Market Performance: The S&P 500 Index rose by 0.38% while the Dow Jones fell slightly by 0.03%, and the Nasdaq increased by 0.82%. This market movement was influenced by the strength of major tech stocks despite concerns over new US tariffs and economic indicators suggesting stagflation.

Economic Indicators and Tariff Concerns: Reports indicated a significant drop in job openings and a decline in manufacturing activity, raising fears about economic growth. President Trump is set to announce new tariffs that could reach around 20% on most imports, which has led to increased safe-haven buying in government debt and gold.

Market Performance Overview: The S&P 500 index fell 4% in the first quarter of 2025, marking its worst quarterly performance since the 2022 bear market, with March alone seeing a 6% decline and 69% of stocks down for the month due to tariff concerns and signs of a slowing economy.

Sector-Specific Declines: Key sectors such as airlines, clothing retailers, and AI-related stocks experienced significant losses, with Deckers Outdoor being the worst performer, dropping 44% year-to-date, despite having a consensus Moderate Buy rating among analysts.

Market Performance Overview: The S&P 500 index experienced a decline of 4% in the first quarter of 2025, marking its worst quarterly performance since the 2022 bear market, with March alone seeing a 6% drop and 69% of stocks in the index declining.

Sector-Specific Declines: The travel, clothing, and AI infrastructure sectors faced significant losses, with notable declines from companies like United Airlines, Nike, and Deckers Outdoor, which has been identified as the worst performer year-to-date with a 44% drop.

TAPESTRY INC Analysis: TAPESTRY INC (TPR) has received a 100% rating from Validea's Multi-Factor Investor model, indicating strong interest based on its fundamentals and valuation in the Apparel/Accessories industry.

Pim van Vliet's Strategy: The investment strategy developed by Pim van Vliet focuses on low volatility stocks that yield high returns with less risk, highlighting the paradox of achieving high returns from low-risk investments.

Market Overview: The stock market has been volatile due to trade disputes, economic slowdown concerns, and geopolitical tensions, making dividend investing a strategic choice for consistent income amidst uncertainty.

Highlighted Stocks: Three recommended dividend growth stocks are CSG Systems International Inc., Gildan Activewear Inc., and Tapestry, Inc., which have strong fundamentals and histories of dividend growth, providing potential for capital appreciation and downside protection.

TAPESTRY INC Analysis: TAPESTRY INC (TPR) has received a 100% rating from Validea's Multi-Factor Investor model, indicating strong interest based on its fundamentals and valuation in the Apparel/Accessories industry.

Pim van Vliet's Strategy: The investment strategy developed by Pim van Vliet focuses on low volatility stocks that yield high returns with less risk, highlighting the paradox of achieving high returns from low-risk investments.

Fourth Quarter Results: Caleres, Inc. reported a 8.3% decline in revenues to $639.2 million, missing analyst expectations, with notable drops in Famous Footwear sales and gross margin rate. However, adjusted EPS of 33 cents exceeded the consensus of 24 cents.

Future Outlook: The company anticipates a conservative approach for FY25, projecting net sales to either decline or increase slightly, and expects a significant portion of its sourcing to be outside China by mid-2025, alongside an acquisition deal for Stuart Weitzman expected to close in summer 2025.

TAPESTRY INC Analysis: TAPESTRY INC (TPR) has received a 100% rating from Validea's Multi-Factor Investor model, indicating strong interest based on its fundamentals and valuation in the Apparel/Accessories industry.

Pim van Vliet's Strategy: The investment strategy developed by Pim van Vliet focuses on low volatility stocks that yield high returns with less risk, highlighting the paradox of achieving high returns from low-risk investments.

Dividend Predictability: Dividend amounts are often unpredictable and fluctuate based on a company's profitability, with Tapestry Inc's recent dividend being analyzed for its sustainability and potential annual yield of 2%.

Author's Perspective: The opinions expressed in the article reflect the author's views and may not align with those of Nasdaq, Inc.

Tapestry Inc Options Trading: Tapestry Inc (TPR) experienced significant options trading with 38,622 contracts, particularly for the $57.50 strike put option expiring April 17, 2025, which saw 10,750 contracts traded.

Uber Technologies Inc Options Trading: Uber Technologies Inc (UBER) also had high options trading activity with 126,092 contracts, notably for the $77.50 strike put option expiring March 21, 2025, where 16,287 contracts were traded.

Best Performers: Since President Trump's election on November 5, 2024, companies like Palantir Technologies and Tapestry have seen significant stock increases, with Palantir leading at a 59.91% rise, benefiting from AI trends and government efficiency support.

Worst Performers: Conversely, companies such as First Solar and Iron Mountain have experienced substantial declines in stock value, attributed to concerns over Trump's fossil fuel policies, with First Solar's shares dropping by 36.41%.

Barclays Identifies Resilient Stocks: Amid President Trump's trade war and rising tariffs, Barclays has identified companies like Tapestry, Deere, and Coca-Cola as more insulated from tariff impacts, all rated overweight by the bank.

Stock Performance Amid Tariff Concerns: Despite a general decline in stock markets due to tariff fears, Tapestry's shares have surged over 20% this year, while Deere and Coca-Cola are also managing to perform relatively well despite recent fluctuations.

Analyst Ratings: Adrienne Yih from Barclays maintains a Buy rating on Tapestry with a price target of $100, while the analyst consensus is a Strong Buy with an average target of $91.28, indicating potential upside from current levels.

Insider Activity: Recent insider sentiment is negative, with an increase in share sales by insiders, including CEO Todd Kahn selling nearly 7,800 shares, raising concerns about the company's stock performance.

Market Overview: U.S. stocks have declined significantly due to tariff escalations and economic slowdown, erasing post-election gains, with a focus on dividend growth stocks as a safer investment strategy during market volatility.

Selected Stocks: Five recommended dividend growth stocks include Taiwan Semiconductor Manufacturing Company, Tapestry, ABM Industries, Vertiv Holdings, and ResMed, all showing strong fundamentals and potential for long-term capital appreciation.

TAPESTRY INC Analysis: TAPESTRY INC (TPR) has received an 88% rating using the Twin Momentum Investor model, indicating strong interest based on its fundamentals and valuation in the Apparel/Accessories industry.

Dashan Huang's Contribution: Dashan Huang, an Assistant Professor of Finance, developed the Twin Momentum strategy that combines price momentum with improving fundamentals, demonstrating that stocks with high fundamental momentum can significantly outperform the market.