Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Achieved three-year Investor Day commitments two years ahead of plan, driven by a deliberate shift toward a direct-to-consumer-led operating model.
Welcomed 11 million new customers across brands, primarily led by Gen Z consumers who are transacting at higher average unit retails (AUR) and showing stronger retention. Successfully executed the 'One Coach' strategy, which blurs traditional retail and outlet lines by bringing full-price collection products into outlet channels to align with modern shopping behaviors. Leveraged proprietary AI and data fabric technology to enhance decision intelligence, securing the company's first AI patent during the fiscal year.
Prioritized brand health over volume by intentionally reducing promotional days, resulting in mid-teens handbag AUR growth for the Coach brand. Expanded global reach with double-digit growth in Europe and Greater China, utilizing local consumer insights to gain significant market share in underpenetrated regions. Guidance assumes mid-single-digit annual revenue growth and low double-digit EPS growth, maintaining the long-term financial algorithm from a significantly higher base.
Expects a step-up in capital expenditures to approximately $300 million to support the 'expressive luxury' store concept, targeting 80% of global traffic by fiscal 2030. Anticipates a net neutral P&L impact from tariffs for the full year, though timing will create a modest benefit in the first half followed by a headwind in the second half. Forecasts Coach to reach high single-digit growth for the full year, while Kate Spade is expected to see a high single-digit decline as it continues its foundational stabilization phase.
Plans to return $1.7 billion to shareholders through a 16% dividend increase and $1.35 billion in projected share repurchases. The divestiture of Stuart Weitzman contributed a favorable 60 basis point impact to gross margins during the fourth quarter. Inventory levels ended the year 4% below the prior year due to a shift in receipt timing into the first quarter of fiscal 2027.
Management noted that quarterly profitability will be uneven due to macro uncertainty, evolving tariff dynamics, and shifts in the cadence of marketing investments. Kate Spade's top-line progress was acknowledged as more gradual than planned, leading to the appointment of a new Executive Creative Director to accelerate brand desire. Nvidia-level potential. 30M+ investors trust Moby to find it first.
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