Todd Kahn

Coach is seeing 20%+ growth, with 70% of future growth expected from international markets. The CEO explicitly states, "When I'm selling internationally, tariffs are no longer in play." The market fears regarding tariffs impacting US fashion retailers are overstated for Tapestry (Coach's parent) because their growth engine is non-domestic. Furthermore, their shift to "expressive luxury" allows them to maintain pricing power (increasing Average Unit Retail) rather than discounting, protecting margins despite rising leather costs. LONG. Tapestry is successfully navigating the macro headwinds (tariffs/inflation) that are crushing its peers. A slowdown in the Chinese consumer economy (a key part of the international growth mix).

"Malls are alive and thriving." The speaker notes that despite being digital natives, Gen Z wants to physically go into stores to touch products. Shopping center owners are seeing packed stores. If Gen Z is returning to physical retail for "experiences" and product verification, the "Retail Apocalypse" thesis is overstated for Class A malls. High-traffic tenants like Coach act as anchors, stabilizing occupancy and driving sales-per-square-foot for landlords. LONG Class A Mall REITs (Simon Property Group, Macerich) as a second-order play on the return of the young consumer to physical shopping centers. A broader economic recession would curb discretionary spending and foot traffic regardless of brand popularity.

"Malls are alive and thriving." The speaker notes that despite being digital natives, Gen Z wants to physically go into stores to touch products. Shopping center owners are seeing packed stores. If Gen Z is returning to physical retail for "experiences" and product verification, the "Retail Apocalypse" thesis is overstated for Class A malls. High-traffic tenants like Coach act as anchors, stabilizing occupancy and driving sales-per-square-foot for landlords. LONG Class A Mall REITs (Simon Property Group, Macerich) as a second-order play on the return of the young consumer to physical shopping centers. A broader economic recession would curb discretionary spending and foot traffic regardless of brand popularity.