Tapestry (TPR) AI Stock Analysis

• Market Cap: $20.96B
• Dividend Yield: 1.39%
• Average Volume (3M): 4.40M
• Price to Earnings (P/E): 119.6
• Beta (1Y): 1.09
• Revenue Growth: 5.09%
• EPS Growth: -80.06%
• Country: US
• Employees: 12,500
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Luxury Goods
• EPS (TTM): 1.04
• Shares Outstanding: 208,123,630
• 10 Day Avg. Volume: 5,202,482
• 30 Day Avg. Volume: 4,397,991
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.98
• Enterprise Value/Gross Profit: 3.95
• Enterprise Value/Ebitda: 39.67
• 1Y Price Target: $115.63
• Price Target Upside: 14.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 60 Neutral
• Price Target: $104.00 ▲(2.99% Upside)

Tapestry's overall stock score is driven by stable financial performance and strong earnings call highlights, particularly from the Coach brand. However, high leverage, potential overvaluation, and technical weakness weigh down the score. Addressing profitability and leverage issues could enhance the stock's attractiveness.

Positive Factors

Brand Performance

Coach delivered strong growth, with +16% in North America and 14% globally, supported by margin delivery and unit growth.

Financial Guidance

Initial full-year EPS guidance is likely to be set slightly above the Street, positioning Tapestry for ongoing beats and raises.

Market Position

Coach's sales have accelerated since 1Q25, highlighting a shift in consumer spending into more affordable price points in handbags.

Negative Factors

Brand Challenges

Kate Spade trends remain soft, the brand is a smaller contributor to profitability, and management has already reset expectations as they work through the turnaround.

Profitability Concerns

Weaker-than-expected FY26 profitability outlook was influenced by tariffs, weaker SG&A flow-through, and choppy trends at Kate Spade.

Valuation

The 66% YTD surge in the stock price leaves the shares close to fair value, leading to a downgrade to Neutral.

Tapestry Business Overview & Revenue Model

Company Description

Tapestry, Inc. (TPR) is a leading New York-based house of modern luxury accessories and lifestyle brands. The company operates in the global fashion and retail sectors and is best known for its portfolio of renowned brands, including Coach, Kate Spade New York, and Stuart Weitzman. These brands offer a diverse range of products, such as handbags, footwear, apparel, and various accessories, catering to a wide demographic of discerning consumers.

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 shows stable revenue growth and strong gross profit margins, but faces challenges in profitability and leverage. High debt levels pose a risk, although cash flow generation remains robust. Improvement in operational efficiency and leverage reduction are needed.

Income Statement

Tapestry's income statement shows a stable revenue growth rate of 1.92% in the latest year, with a strong gross profit margin of 75.44%. However, the net profit margin has significantly decreased to 2.61% from 12.23% the previous year, indicating a decline in profitability. The EBIT and EBITDA margins have also decreased, reflecting challenges in operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 4.55, indicating significant leverage and potential financial risk. Return on equity has decreased to 21.36%, showing reduced profitability for shareholders. The equity ratio is not explicitly calculated, but the high leverage suggests a lower proportion of equity in the asset base.

Cash Flow

Cash flow analysis shows a healthy free cash flow growth rate of 22.61%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.78, suggesting good cash conversion. However, the free cash flow to net income ratio has slightly decreased, reflecting potential challenges in maintaining cash flow relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.01B	7.01B	6.67B	6.66B	6.68B	5.75B
Gross Profit	5.29B	5.29B	4.89B	4.71B	4.65B	4.08B
EBITDA	526.40M	526.40M	1.37B	1.39B	1.30B	1.19B
Net Income	183.20M	183.20M	816.00M	936.00M	856.30M	834.20M
Balance Sheet
Total Assets	6.58B	6.58B	13.40B	7.12B	7.27B	8.38B
Cash, Cash Equivalents and Short-Term Investments	1.12B	1.12B	7.20B	741.50M	953.20M	2.02B
Total Debt	3.58B	3.90B	8.77B	3.29B	3.26B	3.44B
Total Liabilities	5.14B	5.72B	10.50B	4.84B	4.98B	5.12B
Stockholders Equity	1.44B	857.80M	2.90B	2.28B	2.29B	3.26B
Cash Flow
Free Cash Flow	1.09B	1.09B	1.15B	791.00M	759.30M	1.21B
Operating Cash Flow	1.22B	1.22B	1.26B	975.20M	853.20M	1.32B
Investing Cash Flow	912.90M	914.00M	-1.04B	5.70M	-253.60M	-91.00M
Financing Cash Flow	-6.81B	-7.18B	5.21B	-1.04B	-1.78B	-666.00M

Tapestry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 100.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 100.98 is below the 20-day moving average (MA) of 104.56, above the 50-day MA of 99.51, and above the 200-day MA of 78.03, indicating a neutral trend. The MACD of -0.66 indicates Positive momentum. The RSI at 48.29 is Neutral, neither overbought nor oversold. The STOCH value of 68.42 is Neutral, 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	71 Outperform	$3.61B	92.45	2.04%	1.39%	-3.98%	-93.50%
LUXE	63 Neutral	$706.00M	―	-8.75%	―	7.08%	-42.22%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
TPR	60 Neutral	$20.96B	119.59	9.76%	1.39%	5.09%	-80.06%
REAL	58 Neutral	$871.19M	―	32.94%	―	12.68%	62.96%
CPRI	49 Neutral	$2.55B	―	-142.38%	―	-16.69%	-279.61%
LANV	41 Neutral	$267.06M	―	-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.