Tapestry (TPR) AI Stock Analysis

• Market Cap: $21.10B
• Dividend Yield: 1.39%
• Average Volume (3M): 3.53M
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.12
• Revenue Growth: 2.67%
• EPS Growth: 1.31%
• Country: US
• Employees: 12,500
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Luxury Goods
• EPS (TTM): 1.03
• Shares Outstanding: 207,690,140
• 10 Day Avg. Volume: 3,847,316
• 30 Day Avg. Volume: 3,525,803
• PEG Ratio: 2.32
• Price to Book (P/B): 14.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.58
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 4.79
• Enterprise Value/Ebitda: 4.38
• 1Y Price Target: $92.50
• Price Target Upside: -9.46% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 74 Outperform
• Price Target: $114.00 ▲(11.59%Upside)

Tapestry's stock score is driven by strong financial performance and a highly positive recent earnings call, highlighting record-breaking results and strategic growth initiatives. However, high leverage and overbought technical signals slightly dampen the outlook. The valuation suggests limited upside, balancing the overall score.

Positive Factors

Analyst Recommendation

Analyst's recommendation has changed from hold to buy.

Financial Performance

TPR delivered a strong 3Q beat and raised its FY outlook.

Negative Factors

Cost Structure

At least a $90 million tariff impact is expected if unmitigated, affecting cost structure.

Tapestry Business Overview & Revenue Model

Company Description

Tapestry, Inc. provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women's accessories, including handbags, such as wallets, money pieces, wristlets, and cosmetic cases; novelty accessories comprising address books, time management and travel accessories, sketchbooks, and portfolios; and key rings and charms. The company also provides bag collections, including business cases, computer bags, messenger-style bags, backpacks, and totes; small leather goods, such as wallets, card cases, travel organizers, and belts; and footwear, watches, fragrances, sunglasses, novelty accessories, and ready-to-wear for men. In addition, it offers women's footwear; sunglasses; bracelets, necklaces, rings, and earrings; fragrances and watches; women's seasonal lifestyle apparel collections, including outerwear and ready-to-wear, and cold weather accessories, which comprise gloves, scarves, and hats. Further, the company provides footwear items; and housewares and home accessories for kids, such as fashion bedding and tableware; and stationery and gifts. Additionally, it licenses rights to market and distribute its tech and soft accessories, jewelry, watches, eyewear, and fragrances under the Coach brand; and tableware and housewares, fashion beddings, tech accessories, watches, sleepwear, eyewear, stationery and gifts, and fragrances under the Kate Spade brand. As of July 2, 2022, the company operated through a network of 945 Coach stores, 398 Kate Spade stores, and 100 Stuart Weitzman stores. It sells its products through e-commerce sites and concession shop-in-shops, and wholesale customers, as well as through independent third-party distributors. The company was formerly known as Coach, Inc. and changed its name to Tapestry, Inc. in October 2017. Tapestry, Inc. was founded in 1941 and is headquartered in New York, New York.

How the Company Makes Money

Tapestry, Inc. generates revenue primarily through the sale of its luxury fashion products under its flagship brands: Coach, Kate Spade, and Stuart Weitzman. The company operates a multi-channel distribution model that includes retail stores, e-commerce platforms, and wholesale partnerships. Retail sales are driven through Tapestry's network of directly operated stores and e-commerce websites, providing a high-margin revenue stream. Wholesale distribution through department stores, specialty retailers, and international distributors also contributes significantly to revenue. Additionally, Tapestry benefits from licensing agreements, which allow third parties to produce and sell products under its brand names, providing a steady stream of royalty income. Strategic partnerships and collaborations further enhance brand visibility and market reach, supporting sales growth and brand equity.

Tapestry Financial Statement Overview

Summary

Tapestry demonstrates strong profitability with consistent revenue growth and high margins. However, the significant leverage position poses a risk, and the decline in free cash flow growth needs attention.

Income Statement

Tapestry's income statement shows strong profitability with a consistent gross profit margin of around 73%, and an impressive net profit margin of 12.5% TTM (Trailing-Twelve-Months). The revenue growth rate of 3.1% from 2024 to TTM indicates moderate growth. EBIT and EBITDA margins remain robust at 17.8% and 19.9% respectively, showcasing efficient cost management and operational strength.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 2.75 TTM, suggesting a high leverage position which could pose risks in volatile markets. However, the company maintains a strong equity ratio of 20.4%, indicating a solid asset base. The return on equity stands at a healthy 57.6% TTM, demonstrating strong profitability relative to shareholder investment.

Cash Flow

Tapestry's cash flow statement reveals a stable cash flow generation with an operating cash flow to net income ratio of 1.19 TTM, indicating efficient cash conversion. The free cash flow to net income ratio is similarly strong at 1.04 TTM. The free cash flow growth rate of -22.2% from 2024 to TTM shows some decline, possibly due to increased capital expenditures or other investments.

Breakdown	Jun 2024	Sep 2023	Sep 2022	Sep 2021	Jun 2020
Income Statement
Total Revenue	6.67B	6.66B	6.68B	5.75B	4.96B
Gross Profit	4.89B	4.71B	4.65B	4.08B	3.24B
EBITDA	1.37B	1.36B	1.37B	1.19B	-315.80M
Net Income	816.00M	936.00M	856.30M	834.20M	-652.10M
Balance Sheet
Total Assets	13.40B	7.12B	7.27B	8.38B	7.92B
Cash, Cash Equivalents and Short-Term Investments	7.20B	741.50M	953.20M	2.02B	1.43B
Total Debt	8.77B	3.29B	3.26B	3.44B	4.49B
Total Liabilities	10.50B	4.84B	4.98B	5.12B	5.65B
Stockholders Equity	2.90B	2.28B	2.29B	3.26B	2.28B
Cash Flow
Free Cash Flow	1.15B	791.00M	759.30M	1.21B	201.60M
Operating Cash Flow	1.26B	975.20M	853.20M	1.32B	407.00M
Investing Cash Flow	-1.04B	5.70M	-253.60M	-91.00M	44.30M
Financing Cash Flow	5.21B	-1.04B	-1.78B	-666.00M	5.90M

Tapestry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 102.16
• 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 102.16 is above the 20-day moving average (MA) of 91.69, above the 50-day MA of 84.54, and above the 200-day MA of 69.38, indicating a bullish trend. The MACD of 5.35 indicates Negative momentum. The RSI at 80.05 is Negative, neither overbought nor oversold. The STOCH value of 95.76 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
SIG	75 Outperform	$3.23B	87.83	2.04%	1.63%	-3.98%	-93.50%
TPR	74 Outperform	$21.10B	26.73	40.27%	1.39%	2.67%	1.31%
Sector *	65 Neutral	€20.42B	8.71	7.83%	3.56%	0.45%	-40.36%
LUXE	63 Neutral	$634.38M	―	-8.75%	―	7.08%	-42.22%
CPRI	53 Neutral	$2.20B	―	-120.18%	―	-14.08%	-411.39%
REAL	53 Neutral	$576.79M	―	32.94%	―	11.89%	66.22%
LANV	45 Neutral	$312.41M	―	-195.94%	―	-22.86%	-38.76%

Tapestry Corporate Events

Tapestry Secures New $2 Billion Credit Facility

On May 22, 2025, Tapestry, Inc. announced a new $2 billion unsecured revolving credit facility to replace its existing credit facility from 2022. This new facility, maturing in 2030, is designed to support the company’s working capital needs, capital expenditures, and other corporate purposes. It offers flexibility with borrowing options in multiple currencies and includes provisions for letters of credit and swing line loans. The agreement also outlines various covenants and conditions, including a leverage ratio requirement and events of default, which could impact the company’s financial operations and stakeholder interests.

The most recent analyst rating on (TPR) stock is a Hold with a $52.00 price target. To see the full list of analyst forecasts on Tapestry stock, see the TPR Stock Forecast page.