Tapestry (TPR)
NYSE:TPR
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Tapestry
(NYSE:TPR)
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Rating:68Neutral
Price Target:
$154.00
▲(9.84% Upside)
Action:ReiteratedDate:04/07/26
TPR scores positively on raised guidance and shareholder-return plans from the latest earnings call, supported by strong free-cash-flow generation and a reasonable P/E. The score is held back by elevated leverage (very high debt-to-equity), a notable decline in net margins versus prior years, and only neutral-to-weak near-term technical momentum.
Positive Factors
Free Cash Flow Generation
Consistently strong free cash flow and high cash conversion (FCF ~94% of net income) provide durable funding for capex, store investments, marketing and sizable buybacks. This cushions the business against margin volatility and supports shareholder returns without impairing operations.
Negative Factors
High Financial Leverage
Very elevated leverage materially reduces financial flexibility and raises refinancing and interest-rate risk. Even after debt declines versus 2024, the thin equity base amplifies volatility and constrains the company's ability to absorb shocks or pursue opportunistic investments without increasing leverage further.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Consistently strong free cash flow and high cash conversion (FCF ~94% of net income) provide durable funding for capex, store investments, marketing and sizable buybacks. This cushions the business against margin volatility and supports shareholder returns without impairing operations.
Read all positive factors
Tapestry (TPR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.39B
Dividend Yield1.16%
Average Volume (3M)1.95M
Price to Earnings (P/E)11.9
Beta (1Y)1.17
Revenue Growth8.14%
EPS Growth-65.04%
CountryUS
Employees19,000
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)2.69
Shares Outstanding202,464,220
10 Day Avg. Volume1,441,153
30 Day Avg. Volume1,952,945
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 Cap1.23
Enterprise Value/Revenue4.65
Enterprise Value/Gross Profit6.12
Enterprise Value/Ebitda37.22
Forecast
1Y Price Target
$166.00Price Target Upside18.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)6.5
Revenue Forecast (FY)$7.81B
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 accessorie...
How the Company Makes Money
Tapestry makes money primarily by selling branded consumer products across multiple channels and geographies. Its largest revenue stream is direct-to-consumer (DTC) sales, which include purchases made in Tapestry-operated retail stores (full-price...
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 Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call was strongly positive: management reported a record quarter with robust top- and bottom-line growth, material margin expansion, aggressive customer acquisition (notably Gen Z), raised full-year guidance, and increased shareholder returns. Key risks include a still-challenged Kate Spade (near-term revenue declines and margin pressure from tariffs), tariff-related gross margin headwinds and regional softness in Japan. On balance, the highlights (record growth, margin expansion, raised guidance, strong cash generation and buyback program) materially outweigh the lowlights.Positive Updates
Record Quarterly Financial Performance
Q2 pro forma revenue grew 18% year-over-year; adjusted EPS was $2.69, up 34% versus prior year; adjusted operating margin expanded by 390 basis points. Management called this a record quarter and raised full-year guidance.
Negative Updates
Kate Spade Revenue Decline
Kate Spade revenue declined 14% in the quarter; full-year guidance embeds a high single-digit decline with sequential improvement expected in H2 as the brand is being reset and promotional activity pulled back.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Financial Performance
Q2 pro forma revenue grew 18% year-over-year; adjusted EPS was $2.69, up 34% versus prior year; adjusted operating margin expanded by 390 basis points. Management called this a record quarter and raised full-year guidance.
Read all positive updates
Company Guidance
Tapestry raised its fiscal 2026 outlook to revenue of over $7.75 billion (≈15% pro forma nominal growth, ~14% constant currency with a ~70 bps FX tailwind), with brand/region assumptions of high‑teens growth at Coach, a high single‑digit decline at Kate Spade, North America up low double‑digits, Europe ≈20%, Greater China >25%, Japan down high single digits and other Asia up low double digits; the company now expects operating margin expansion of ~180 bps (gross margin +~20 bps driven by ~180 bps operational improvement and a ~60 bps benefit from the Stuart Weitzman disposition, offsetting nearly 200 bps of tariff headwinds and ~20 bps FX headwind), ~160 bps of SG&A leverage, marketing to rise ~130 bps to near 12% of sales, EPS of $6.40–$6.45 (>25% YoY growth), adjusted free cash flow ~ $1.5 billion (100% to be returned to shareholders via >$300M dividends at a $1.60 annual run‑rate and $1.2B of buybacks), CapEx and cloud spend ~ $200M (≈60% for stores), net interest ~$65M, a ~17% tax rate, and a weighted average diluted share count of ~211M; management also guided to a stronger back half (low double‑digit revenue growth, Coach mid‑teens in H2, Kate Spade improving vs H1) and Q3 EPS of ≈$1.25.Tapestry Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
34
Negative
Cash Flow
82
Very Positive
| 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
Negative
140.20
Price Trends
144.58
Negative
132.32
Positive
118.57
Positive
Market Momentum
-1.21
Positive
45.59
Neutral
40.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPR, the sentiment is Negative. The current price of 140.2 is below the 20-day moving average (MA) of 142.49, below the 50-day MA of 144.58, and above the 200-day MA of 118.57, indicating a neutral trend. The MACD of -1.21 indicates Positive momentum. The RSI at 45.59 is Neutral, neither overbought nor oversold. The STOCH value of 40.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $28.39B | 11.94 | 63.26% | 1.16% | 8.14% | -65.04% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $1.07B | -21.03 | 56.42% | ― | 97.28% | ― | |
54 Neutral | $280.11M | -2.64 | -61.86% | ― | -12.89% | 45.32% | |
51 Neutral | $2.19B | 6.45 | -244.66% | ― | -17.66% | -223.06% | |
51 Neutral | $3.51B | 12.94 | 16.38% | 1.46% | -0.40% | -68.99% | |
46 Neutral | $1.10B | -108.42 | 11.34% | ― | 14.30% | 23.73% |
* Consumer Cyclical Sector Average
TPR
Tapestry
140.20
73.88
111.40%
FOSL
Fossil Group
4.80
3.74
352.83%
CPRI
Capri Holdings
18.42
2.06
12.59%
SIG
Signet Jewelers
87.72
29.59
50.89%
REAL
RealReal
9.22
3.78
69.49%
LUXE
LuxExperience
7.82
-0.17
-2.13%
Tapestry Corporate Events
Business Operations and StrategyExecutive/Board Changes
Tapestry Adds Pinterest CTO Matt Madrigal to Board
Positive
Apr 6, 2026
On April 6, 2026, Tapestry, Inc. expanded its Board of Directors from ten to eleven members and appointed Matt Madrigal, Chief Technology Officer of Pinterest, as a director, effective the same day. With his addition, the Board now comprises eleve...
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.