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Tapestry
(NYSE:TPR)
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Rating:67Neutral
Price Target:
$163.00
▲(14.31% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by improving fundamentals and strong cash flow alongside a very bullish, raised outlook from the latest earnings call. These positives are tempered by elevated balance-sheet leverage and weak near-term technical momentum, while valuation appears broadly reasonable based on the provided P/E and dividend yield.
Positive Factors
Strong free cash flow generation
Very high and consistent cash generation (FCF ~92% of net income; TTM FCF near $1.6B guided) provides durable financial flexibility. This supports debt service, capex, and aggressive capital returns without relying on short-term financing, strengthening resilience over coming quarters.
Negative Factors
Elevated leverage and shrinking equity base
Substantially higher leverage and a reduced equity cushion magnify financial risk and limit strategic flexibility. Even with strong cash flow, elevated debt raises refinancing and interest exposure and constrains the company's ability to invest or absorb shocks over a 2–6 month horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Very high and consistent cash generation (FCF ~92% of net income; TTM FCF near $1.6B guided) provides durable financial flexibility. This supports debt service, capex, and aggressive capital returns without relying on short-term financing, strengthening resilience over coming quarters.
Read all positive factors
Tapestry Key Performance Indicators (KPIs)
Any
Revenue by Brand
Breaks down sales figures for each brand, offering insight into brand performance, consumer preferences, and potential shifts in market demand.
Breaks down sales figures for each brand, offering insight into brand performance, consumer preferences, and potential shifts in market demand.
Data provided by:
The Fly
The FlyTapestry (TPR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.83B
Dividend Yield1.05%
Average Volume (3M)2.57M
Price to Earnings (P/E)46.5
Beta (1Y)1.11
Revenue Growth14.13%
EPS Growth-15.62%
CountryUS
Employees19,000
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)3.28
Shares Outstanding202,044,710
10 Day Avg. Volume2,335,795
30 Day Avg. Volume2,571,941
Financial Highlights & Ratios
PEG Ratio-1.35
Price to Book (P/B)22.02
Price to Sales (P/S)2.69
P/FCF Ratio17.26
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$171.87Price Target Upside20.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)7.86
Revenue Forecast (FY)$8.46B
Tapestry Business Overview & Revenue Model
Company Description
Tapestry, Inc. is a prominent global fashion house specializing in premium accessories and distinct lifestyle brands. It operates internationally, serving customers across the United States, Japan, Greater China, and other markets worldwide. The c...
How the Company Makes Money
Tapestry makes money primarily by selling branded consumer products—most notably handbags and other accessories—through multiple go-to-market channels. The company’s core revenue stream is net sales generated by (1) direct-to-consumer (DTC) channe...
Tapestry Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call communicated strong operational momentum and financial outperformance led by Coach and the DTC/digital model, with meaningful margin expansion, raised guidance, robust cash generation and aggressive shareholder returns. Key challenges center on kate spade's top-line decline, tariff headwinds, and elevated marketing/investment cadence which pressure near-term profitability for that brand. Overall, the positive drivers (revenue, margins, EPS, cash flow, customer acquisition and Coach strength) materially outweigh the issues highlighted.Positive Updates
Strong Pro Forma Revenue and Top-Line Growth
Pro forma revenue grew 23% year-over-year on a constant currency basis in Q3 and outperformed expectations; company raised full-year revenue guidance to approximately $7.95 billion, representing pro forma growth of ~16% CC for fiscal '26.
Negative Updates
kate spade Top-Line Weakness
kate spade revenue declined 11% in Q3 and full-year guidance incorporates a low double-digit decline for the brand; management acknowledged top-line trends fell slightly below expectations and that the turnaround will take time.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Pro Forma Revenue and Top-Line Growth
Pro forma revenue grew 23% year-over-year on a constant currency basis in Q3 and outperformed expectations; company raised full-year revenue guidance to approximately $7.95 billion, representing pro forma growth of ~16% CC for fiscal '26.
Read all positive updates
Company Guidance
Tapestry raised fiscal 2026 guidance to pro forma revenue of about $7.95 billion (pro forma CC growth ~16%, FX a ~80 bp tailwind) with regional targets of mid-teens North America, ~20% Europe, >30% Greater China, high-single-digit decline in Japan and low-double-digit Other Asia; by brand, Coach >20% growth and kate spade a low-double-digit decline. Management now expects operating margin of ~23% (up ~300 bps YoY, ~120 bps above prior outlook) and gross margin +~110 bps (operational expansion ~190 bps, ~60 bps structural benefit from Stuart Weitzman, offsetting ~120 bps tariff headwinds), SG&A leverage ~190 bps versus prior outlook and marketing to increase ~190 bps year-over-year (~13% of sales). FY EPS is guided to about $6.95 (>35% growth) with net interest ~$60M, a tax rate ~17.5%, ~210M diluted shares (reflecting ~$1.3B of buybacks), adjusted free cash flow approaching $1.6B and CapEx/cloud spend ~ $200M (≈60% store-related). Q4 guidance embeds low-double-digit pro forma revenue growth, Coach low-teens (≈+30% on a 2-year stack) and kate spade high-single-digit decline, Q4 gross margin +~130 bps, operating margin +~60 bps and EPS ≈ $1.20 (Q4 tax ~18%). Finally, capital return was reiterated at ~100% of expected adjusted FCF (~$1.6B) including an annual dividend run-rate of $1.60/sh and ~$1.3B in repurchases; balance sheet at quarter end showed ~$1.1B cash, $2.4B total borrowings (net debt ~$1.3B) and gross debt/EBITDA ~1.1x.Tapestry Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
46
Neutral
Cash Flow
82
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.85B | 7.01B | 6.67B | 6.66B | 6.68B | 5.75B |
| Gross Profit | 5.98B | 5.29B | 4.89B | 4.71B | 4.65B | 4.08B |
| EBITDA | 1.11B | 526.40M | 1.37B | 1.39B | 1.31B | 1.19B |
| Net Income | 662.80M | 183.20M | 816.00M | 936.00M | 856.30M | 834.20M |
Balance Sheet | ||||||
| Total Assets | 6.47B | 6.58B | 13.40B | 7.12B | 7.27B | 8.38B |
| Cash, Cash Equivalents and Short-Term Investments | 1.07B | 1.12B | 7.20B | 741.50M | 953.20M | 2.02B |
| Total Debt | 3.92B | 3.90B | 8.76B | 3.29B | 3.26B | 3.44B |
| Total Liabilities | 5.78B | 5.72B | 10.50B | 4.84B | 4.98B | 5.12B |
| Stockholders Equity | 682.40M | 857.80M | 2.90B | 2.28B | 2.29B | 3.26B |
Cash Flow | ||||||
| Free Cash Flow | 1.75B | 1.09B | 1.15B | 791.00M | 759.30M | 1.21B |
| Operating Cash Flow | 1.90B | 1.22B | 1.26B | 975.20M | 853.20M | 1.32B |
| Investing Cash Flow | -44.60M | 914.00M | -1.04B | 5.70M | -253.60M | -91.00M |
| Financing Cash Flow | -1.85B | -7.18B | 5.21B | -1.04B | -1.78B | -666.00M |
Tapestry Technical Analysis
Positive
142.60
Price Trends
143.63
Positive
143.00
Positive
134.35
Positive
Market Momentum
-0.58
Negative
50.48
Neutral
57.84
Neutral
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 142.6 is below the 20-day moving average (MA) of 143.61, below the 50-day MA of 143.63, and above the 200-day MA of 134.35, indicating a bullish trend. The MACD of -0.58 indicates Negative momentum. The RSI at 50.48 is Neutral, neither overbought nor oversold. The STOCH value of 57.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TPR.
Tapestry Risk Analysis
Tapestry disclosed 33 risk factors in its most recent earnings report. Tapestry reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tapestry Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $30.83B | 46.45 | 106.44% | 1.12% | 14.13% | -15.62% | |
67 Neutral | $3.77B | 12.87 | 16.01% | 1.47% | 1.35% | 661.25% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.10B | 1.85 | 34.62% | ― | 194.57% | ― | |
54 Neutral | $1.44B | -20.86 | 17.42% | ― | 17.16% | -48.49% | |
51 Neutral | $1.82B | 14.40 | 102.24% | ― | -21.79% | ― | |
45 Neutral | $287.82M | -4.32 | -52.99% | ― | -11.35% | 36.29% |
* Consumer Cyclical Sector Average
TPR
Tapestry
152.37
47.41
45.17%
FOSL
Fossil Group
4.95
3.36
211.32%
CPRI
Capri Holdings
15.93
-1.06
-6.24%
SIG
Signet Jewelers
92.90
18.67
25.16%
REAL
RealReal
12.09
6.85
130.73%
LUXE
LuxExperience
8.15
0.57
7.52%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.