Tapestry (TPR) AI Stock Analysis

• Market Cap: $25.27B
• Dividend Yield: 1.22%
• Average Volume (3M): 3.44M
• Price to Earnings (P/E): 110.5
• Beta (1Y): 1.14
• Revenue Growth: 8.14%
• EPS Growth: -65.04%
• Country: US
• Employees: 12,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 1.38
• Shares Outstanding: 204,649,750
• 10 Day Avg. Volume: 2,843,989
• 30 Day Avg. Volume: 3,438,840
• PEG Ratio: -1.35
• Price to Book (P/B): 22.02
• Price to Sales (P/S): 2.69
• P/FCF Ratio: 17.26
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 3.74
• Enterprise Value/Gross Profit: 4.94
• Enterprise Value/Ebitda: 46.17
• 1Y Price Target: $129.36
• Price Target Upside: 4.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 5.6
• Revenue Forecast (FY): $7.34B

• Rating: 69 Neutral
• Price Target: $128.00 ▲(3.89% Upside)

Tapestry's overall stock score is driven by strong earnings performance and positive technical indicators, offset by high valuation concerns and financial risks due to leverage. The company's strategic initiatives and customer acquisition efforts are promising, but challenges with certain brands and external pressures need to be addressed.

Positive Factors

Revenue Growth

The strong revenue growth and margin expansion indicate robust demand and effective cost management, supporting long-term financial health.

Global Expansion

Significant growth in key international markets like China and Europe enhances Tapestry's global footprint and revenue diversification.

Customer Acquisition

Effective customer acquisition strategies, especially among Gen Z, ensure a growing customer base and future revenue streams.

Negative Factors

High Debt Levels

High leverage can limit financial flexibility and increase risk, potentially impacting long-term stability if not managed effectively.

Kate Spade Challenges

Ongoing challenges with the Kate Spade brand could hinder overall company performance and require strategic focus to achieve turnaround.

Tariff and Duty Headwinds

External pressures from tariffs and duties could impact profitability, necessitating strategic adjustments to mitigate financial impacts.

Tapestry Business Overview & Revenue Model

Company Description

Tapestry, Inc. is a leading American luxury fashion holding company that owns and operates a portfolio of prestigious brands, including Coach, Kate Spade, and Stuart Weitzman. Established in 2017, Tapestry focuses on providing high-quality, innovative products across various sectors in the fashion industry, including handbags, accessories, footwear, and apparel. The company emphasizes a commitment to craftsmanship, sustainability, and customer experience, targeting affluent consumers in both domestic and international markets.

How the Company Makes Money

Tapestry generates revenue primarily through the sale of its luxury handbags, accessories, and footwear across its brand portfolio. The company operates through a multi-channel approach, including direct-to-consumer sales through its retail stores and e-commerce platforms, as well as wholesale distribution to third-party retailers. Key revenue streams include full-price sales, promotional sales, and outlet sales. Tapestry also benefits from strategic partnerships and collaborations that enhance brand visibility and drive customer engagement. Additionally, the company focuses on expanding its global presence, particularly in emerging markets, which contributes to its earnings growth.

Tapestry Financial Statement Overview

Summary

Tapestry's financial performance is mixed. While revenue growth and gross profit margins are positive, declining net profit margins and high debt levels pose risks. Cash flow generation remains relatively stable, but negative free cash flow growth is a concern. The company needs to focus on improving operational efficiency and managing its debt levels to enhance financial stability.

Income Statement

Tapestry's income statement shows moderate revenue growth with a TTM growth rate of 2.81%. Gross profit margins are strong at 75.44%, indicating efficient cost management. However, net profit margins have declined to 2.61% in the TTM, reflecting increased expenses or cost pressures. EBIT and EBITDA margins have also decreased, suggesting challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 4.55, indicating significant leverage which could pose financial risks. Return on equity has decreased to 10.99% in the TTM, reflecting reduced profitability. The equity ratio stands at 6.28%, suggesting a low proportion of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with a negative growth rate of -1.25% in the TTM. The operating cash flow to net income ratio is healthy at 0.78, indicating good cash generation relative to net income. However, the free cash flow to net income ratio is slightly lower at 0.90, suggesting some pressure on free cash flow generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.21B	7.01B	6.67B	6.66B	6.68B	5.75B
Gross Profit	5.45B	5.29B	4.89B	4.71B	4.65B	4.08B
EBITDA	583.80M	526.40M	1.37B	1.39B	1.31B	1.19B
Net Income	271.40M	183.20M	816.00M	936.00M	856.30M	834.20M
Balance Sheet
Total Assets	6.36B	6.58B	13.40B	7.12B	7.27B	8.38B
Cash, Cash Equivalents and Short-Term Investments	743.20M	1.12B	7.20B	741.50M	953.20M	2.02B
Total Debt	4.20B	3.90B	8.76B	3.29B	3.26B	3.44B
Total Liabilities	5.96B	5.72B	10.50B	4.84B	4.98B	5.12B
Stockholders Equity	399.50M	857.80M	2.90B	2.28B	2.29B	3.26B
Cash Flow
Free Cash Flow	1.08B	1.09B	1.15B	791.00M	759.30M	1.21B
Operating Cash Flow	1.21B	1.22B	1.26B	975.20M	853.20M	1.32B
Investing Cash Flow	793.20M	914.00M	-1.04B	5.70M	-253.60M	-91.00M
Financing Cash Flow	-7.65B	-7.18B	5.21B	-1.04B	-1.78B	-666.00M

Tapestry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 123.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPR, the sentiment is Positive. The current price of 123.21 is above the 20-day moving average (MA) of 110.55, above the 50-day MA of 110.84, and above the 200-day MA of 93.46, indicating a bullish trend. The MACD of 3.64 indicates Negative momentum. The RSI at 70.40 is Negative, neither overbought nor oversold. The STOCH value of 92.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TPR.

Tapestry Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPR	69 Neutral	$25.27B	110.53	16.05%	1.22%	8.14%	-65.04%
LUXE	67 Neutral	$1.28B	2.06	56.42%	―	97.28%	―
SIG	64 Neutral	$3.57B	26.19	8.24%	1.43%	-0.40%	-68.99%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FOSL	56 Neutral	$213.10M	―	-48.62%	―	-12.89%	45.32%
CPRI	56 Neutral	$3.10B	―	-165.96%	―	-17.66%	-223.06%
REAL	54 Neutral	$1.67B	―	―	―	14.30%	23.73%

Tapestry Corporate Events

Tapestry Holds Annual Meeting with Key Votes

On November 13, 2025, Tapestry held its Annual Meeting where stockholders voted on three key proposals. The election of directors saw significant participation, with each candidate receiving a substantial number of votes, though there were also broker non-votes recorded. The ratification of Deloitte & Touche LLP as the independent accounting firm for the fiscal year ending June 27, 2026, was approved with a majority. Additionally, the company’s executive compensation was approved on a non-binding advisory basis, despite some opposition.

Tapestry Board Member JP Bilbrey to Step Down

John P. (JP) Bilbrey, a member of the Board of Directors of Tapestry, Inc., announced on September 16, 2025, that he will not seek re-election at the company’s annual meeting of stockholders on November 13, 2025. His decision is not due to any disagreement with the company, and he will continue to serve on the board until the meeting.

Tapestry Announces $3 Billion Share Repurchase Plan

On September 10, 2025, Tapestry, Inc. announced a new $3 billion share repurchase authorization, replacing the existing program from November 2021. The company also introduced its ‘Amplify’ growth strategy during its Investor Day, aiming for mid-single-digit revenue growth and significant shareholder returns through 2028. Tapestry plans to return $4 billion to shareholders via share repurchases and dividends, supported by robust free cash flow, and targets operational improvements, including expanding operating margins and achieving double-digit earnings growth by fiscal 2028.