Tapestry (TPR) AI Stock Analysis

• Market Cap: $31.38B
• Dividend Yield: 1.16%
• Average Volume (3M): 2.33M
• Price to Earnings (P/E): 64.2
• Beta (1Y): 1.15
• Revenue Growth: 8.14%
• EPS Growth: -65.04%
• Country: US
• Employees: 12,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 2.69
• Shares Outstanding: 202,464,220
• 10 Day Avg. Volume: 2,185,769
• 30 Day Avg. Volume: 2,328,756
• 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: 1.13
• Enterprise Value/Revenue: 4.71
• Enterprise Value/Gross Profit: 6.20
• Enterprise Value/Ebitda: 37.74
• 1Y Price Target: $165.29
• Price Target Upside: 5.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 6.41
• Revenue Forecast (FY): $7.78B

• Rating: 67 Neutral
• Price Target: $155.00 ▼(-1.33% Downside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven by strong cash-flow generation and an upbeat earnings call with raised guidance and shareholder returns, supported by clear upward price momentum. These positives are tempered by high balance-sheet leverage and a notably elevated valuation (high P/E), which increase downside risk if margin pressure, tariffs, or the Kate Spade turnaround worsen.

Positive Factors

Free cash flow generation

Consistently strong FCF and high cash conversion provide durable financing for growth, capex, and shareholder returns without relying on equity; this enables sustained buybacks/dividends, funds brand investment, and creates flexibility to weather cyclical retail volatility over the next several quarters.

Very strong gross margins

A ~76% gross margin signals durable pricing power and favorable product economics typical of luxury brands; this large gross-profit cushion supports investment in marketing and retail, helps absorb input or tariff shocks, and underpins sustainable operating margin expansion plans.

Brand strength & DTC momentum

Accelerating Coach growth and rising direct-to-consumer penetration, plus large Gen Z customer adds, strengthen repeat purchase potential and higher-margin sales mix. Durable channel and demographic gains should sustain revenue growth and customer lifetime value over the next 2–6 months and beyond.

Negative Factors

High financial leverage

The capital structure remains highly leveraged despite recent debt reduction, constraining financial flexibility. Elevated leverage increases sensitivity to margin volatility and interest-rate moves, limiting ability to pursue opportunistic investments or absorb prolonged sales softness without heavier debt servicing pressure.

Kate Spade weakness and reset

A multi-quarter decline and ongoing brand reset require inventory rationalization and marketing to restore full-price selling. This prolongs profit recovery, increases near-term SG&A and margin pressure, and creates execution risk that can dampen consolidated earnings durability until the turnaround takes hold.

Tariff and duty headwinds

Material tariff impacts are a structural cost headwind that reduce gross margins unevenly across brands. Mitigation via price, sourcing, or operations may take time and can erode demand or require higher marketing spend, creating sustained margin volatility and complicating multi-quarter planning.

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

Strong cash generation (TTM FCF $1.68B, +55.7% YoY) and very strong gross margin (~76%) are key positives, but profitability has stepped down materially (TTM net margin ~7% vs prior double-digits) and the balance sheet remains a major risk due to very high debt-to-equity (~7.15x) despite debt reduction versus 2024.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 4.3% to $7.51B and gross margin remained very strong (~76%), showing solid pricing power for a luxury brand. However, profitability is well below prior years: TTM net margin is ~7.0% versus double‑digit levels in 2021–2024, and operating profitability is also meaningfully lower than 2022–2024, suggesting higher costs and/or weaker mix. Overall: healthy top-line trend and strong gross profitability, but earnings quality and margin trajectory are a clear headwind.

Balance Sheet

Leverage is the key concern. TTM (Trailing-Twelve-Months) debt-to-equity is very high (~7.15x) driven by a much smaller equity base ($551M) versus debt (~$3.94B), which reduces financial flexibility. While debt is down sharply versus 2024 (when total debt was $8.76B), the capital structure still looks aggressive and increases sensitivity to business volatility and financing costs. Return on equity is high in TTM (~63%), but it is amplified by the thin equity base, making it less comforting from a risk perspective.

Cash Flow

Cash generation is a standout strength. TTM (Trailing-Twelve-Months) operating cash flow was $1.78B and free cash flow was $1.68B, with very strong free-cash-flow growth (+55.7%). Free cash flow also closely tracks reported earnings (free cash flow is ~94% of net income), indicating good cash conversion. The main watch item is that operating cash flow relative to net income is only slightly above 1x in TTM, so continued margin pressure could tighten coverage if it persists.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	7.51B	7.01B	6.67B	6.66B	6.68B	5.75B
Gross Profit	5.71B	5.29B	4.89B	4.71B	4.65B	4.08B
EBITDA	938.80M	526.40M	1.37B	1.39B	1.31B	1.19B
Net Income	522.30M	183.20M	816.00M	936.00M	856.30M	834.20M
Balance Sheet
Total Assets	6.53B	6.58B	13.40B	7.12B	7.27B	8.38B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.12B	7.20B	741.50M	953.20M	2.02B
Total Debt	5.18B	3.90B	8.76B	3.29B	3.26B	3.44B
Total Liabilities	5.98B	5.72B	10.50B	4.84B	4.98B	5.12B
Stockholders Equity	551.20M	857.80M	2.90B	2.28B	2.29B	3.26B
Cash Flow
Free Cash Flow	1.68B	1.09B	1.15B	791.00M	759.30M	1.21B
Operating Cash Flow	1.78B	1.22B	1.26B	975.20M	853.20M	1.32B
Investing Cash Flow	-39.50M	914.00M	-1.04B	5.70M	-253.60M	-91.00M
Financing Cash Flow	-1.66B	-7.18B	5.21B	-1.04B	-1.78B	-666.00M

Tapestry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 157.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 157.09 is above the 20-day moving average (MA) of 141.66, above the 50-day MA of 133.77, and above the 200-day MA of 108.46, indicating a bullish trend. The MACD of 7.29 indicates Negative momentum. The RSI at 72.23 is Negative, neither overbought nor oversold. The STOCH value of 76.65 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
TPR	67 Neutral	$31.38B	64.25	55.34%	1.16%	8.14%	-65.04%
LUXE	65 Neutral	$1.36B	2.18	56.42%	―	97.28%	―
SIG	64 Neutral	$3.88B	28.47	8.24%	1.46%	-0.40%	-68.99%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FOSL	54 Neutral	$219.66M	-3.38	-48.62%	―	-12.89%	45.32%
REAL	54 Neutral	$1.33B	-8.05	―	―	14.30%	23.73%
CPRI	47 Neutral	$2.51B	-4.60	-96.50%	―	-17.66%	-223.06%

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.

The most recent analyst rating on (TPR) stock is a Buy with a $127.00 price target. To see the full list of analyst forecasts on Tapestry stock, see the TPR Stock Forecast page.