Tapestry (TPR) AI Stock Analysis

• Market Cap: $22.87B
• Dividend Yield: 1.32%
• Average Volume (3M): 4.43M
• Price to Earnings (P/E): 133.0
• Beta (1Y): 1.08
• Revenue Growth: 5.09%
• EPS Growth: -80.06%
• Country: US
• Employees: 12,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 1.04
• Shares Outstanding: 208,123,630
• 10 Day Avg. Volume: 3,405,743
• 30 Day Avg. Volume: 4,430,716
• 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: 0.91
• Enterprise Value/Revenue: 2.98
• Enterprise Value/Gross Profit: 3.95
• Enterprise Value/Ebitda: 39.67
• 1Y Price Target: $119.50
• Price Target Upside: 8.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 60 Neutral
• Price Target: $104.00 ▼(-5.35% Downside)

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

Revenue Growth

Tapestry's strong revenue growth and operating margin indicate robust demand and effective cost management, supporting long-term business expansion.

Cash Generation

Strong cash generation enhances Tapestry's ability to invest in growth opportunities, reduce debt, and return capital to shareholders, supporting financial stability.

Customer Acquisition

Significant new customer acquisition, especially among younger demographics, indicates successful brand appeal and potential for sustained revenue growth.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting Tapestry's ability to invest in growth and increasing vulnerability to economic downturns.

Profitability Challenges

Declining profitability margins suggest operational inefficiencies and cost pressures, which could hinder long-term financial performance if not addressed.

Tariff Impact

Significant tariff-related costs could erode margins and profitability, impacting Tapestry's competitive position and financial health over time.

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 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 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	914.00M	914.00M	-1.04B	5.70M	-253.60M	-91.00M
Financing Cash Flow	-7.18B	-7.18B	5.21B	-1.04B	-1.78B	-666.00M

Tapestry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 109.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 109.88 is above the 20-day moving average (MA) of 103.64, above the 50-day MA of 104.40, and above the 200-day MA of 81.31, indicating a bullish trend. The MACD of 1.84 indicates Negative momentum. The RSI at 63.56 is Neutral, neither overbought nor oversold. The STOCH value of 83.42 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	3.87B	31.00	7.64%	1.29%	-1.63%	-72.22%
LUXE	63 Neutral	757.16M	-19.12	0.00%	―	7.08%	-42.22%
TPR	60 Neutral	$22.87B	132.99	9.76%	1.32%	5.09%	-80.06%
REAL	58 Neutral	1.20B	-9.86	10.45%	―	12.68%	62.96%
FOSL	56 Neutral	163.51M	-2.72	-14.73%	―	-15.35%	61.40%
CPRI	50 Neutral	2.60B	-2.32	6541.18%	―	-16.69%	-279.61%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.