Tapestry, Inc. (NYSE:TPR) Q2 2024 Earnings Call Transcript

Scott Roe: Yes, happy to. What a great story, right? Over 300 basis points in the quarter and about 170 of that was freight. And as you correctly said, we expect it to moderate but still be positive in the second half. And I think for the full year with a 200 basis point expansion in our outlook, there’s about 120 of freight benefit for the full year. So it’s still positive, but moderating somewhat in the second half. And again, I’ll reference an earlier comment. As you think forward, obviously, we’re not going to give any outlook for ’25. But I would just say that operationally, which is really what Todd was talking about in Coach. And by the way, we grew gross margin across all our brands. I don’t know if I said that earlier.

But really, it’s that pricing power, which is a combination of headline prices and discipline around discounts. We see that coming through underneath all the freight noise and mix and all that stuff quarter-by-quarter, and we would expect, based on our reinvestment in our brands, increased marketing and the insights and understanding we have of the consumer that we expect that to continue as we move forward.

Paul Lejuez: Thanks. Good luck.

Scott Roe: Thanks, Paul.

Operator: Thank you. That concludes our question-and-answer. I will now turn it over to Joanne for some concluding remarks.

Joanne Crevoiserat: Well, thank you for joining us and for your interest in our story, and thank you to our talented global team who continue to build our brands and our relationships with consumers. It’s clear that our strategies and consistent disciplined execution are delivering. We achieved record second quarter revenue and earnings per share and raised our earnings outlook for the full year while investing for the future. I’m confident in our significant runway ahead to drive sustainable growth and shareholder returns from this strong foundation. Thanks again and have a great day.

Operator: This concludes Tapestry’s earnings conference call. We thank you for your participation.