Tapestry (TPR)
NYSE:TPR
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Tapestry
(NYSE:TPR)
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Rating:67Neutral
Price Target:
$145.00
▼(-6.96% Downside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by improving fundamentals and strong cash flow alongside a very bullish, raised outlook from the latest earnings call. These positives are tempered by elevated balance-sheet leverage and weak near-term technical momentum, while valuation appears broadly reasonable based on the provided P/E and dividend yield.
Positive Factors
Cash generation
Sustained high operating and free cash flow provides durable financial flexibility. Strong FCF funds debt service, supports the company’s plan to return ~100% of adjusted FCF to shareholders, and underpins reinvestment in marketing, stores and digital over the next several quarters.
Negative Factors
High leverage
Very elevated leverage materially increases financial risk and reduces strategic optionality. A weakened equity base amplifies downside volatility from sales or margin shocks and constrains capacity for opportunistic M&A or large discretionary investments over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained high operating and free cash flow provides durable financial flexibility. Strong FCF funds debt service, supports the company’s plan to return ~100% of adjusted FCF to shareholders, and underpins reinvestment in marketing, stores and digital over the next several quarters.
Read all positive factors
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 (TPR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.50B
Dividend Yield1.16%
Average Volume (3M)2.19M
Price to Earnings (P/E)20.4
Beta (1Y)1.11
Revenue Growth14.13%
EPS Growth-15.62%
CountryUS
Employees19,000
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)3.28
Shares Outstanding202,044,710
10 Day Avg. Volume3,319,433
30 Day Avg. Volume2,193,988
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 Cap1.11
Enterprise Value/Revenue3.75
Enterprise Value/Gross Profit4.93
Enterprise Value/Ebitda27.84
Forecast
1Y Price Target
$175.08Price Target Upside12.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)6.9
Revenue Forecast (FY)$7.96B
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 mainly by selling branded luxury and premium accessories through two primary routes: (1) direct-to-consumer (DTC) sales and (2) wholesale/partner sales.
1) Direct-to-consumer (DTC) revenue: This is generated when Tapestry sel...
Tapestry Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call communicated strong operational momentum and financial outperformance led by Coach and the DTC/digital model, with meaningful margin expansion, raised guidance, robust cash generation and aggressive shareholder returns. Key challenges center on kate spade's top-line decline, tariff headwinds, and elevated marketing/investment cadence which pressure near-term profitability for that brand. Overall, the positive drivers (revenue, margins, EPS, cash flow, customer acquisition and Coach strength) materially outweigh the issues highlighted.Positive Updates
Strong Pro Forma Revenue and Top-Line Growth
Pro forma revenue grew 23% year-over-year on a constant currency basis in Q3 and outperformed expectations; company raised full-year revenue guidance to approximately $7.95 billion, representing pro forma growth of ~16% CC for fiscal '26.
Negative Updates
kate spade Top-Line Weakness
kate spade revenue declined 11% in Q3 and full-year guidance incorporates a low double-digit decline for the brand; management acknowledged top-line trends fell slightly below expectations and that the turnaround will take time.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Pro Forma Revenue and Top-Line Growth
Pro forma revenue grew 23% year-over-year on a constant currency basis in Q3 and outperformed expectations; company raised full-year revenue guidance to approximately $7.95 billion, representing pro forma growth of ~16% CC for fiscal '26.
Read all positive updates
Company Guidance
Tapestry raised fiscal 2026 guidance to pro forma revenue of about $7.95 billion (pro forma CC growth ~16%, FX a ~80 bp tailwind) with regional targets of mid-teens North America, ~20% Europe, >30% Greater China, high-single-digit decline in Japan and low-double-digit Other Asia; by brand, Coach >20% growth and kate spade a low-double-digit decline. Management now expects operating margin of ~23% (up ~300 bps YoY, ~120 bps above prior outlook) and gross margin +~110 bps (operational expansion ~190 bps, ~60 bps structural benefit from Stuart Weitzman, offsetting ~120 bps tariff headwinds), SG&A leverage ~190 bps versus prior outlook and marketing to increase ~190 bps year-over-year (~13% of sales). FY EPS is guided to about $6.95 (>35% growth) with net interest ~$60M, a tax rate ~17.5%, ~210M diluted shares (reflecting ~$1.3B of buybacks), adjusted free cash flow approaching $1.6B and CapEx/cloud spend ~ $200M (≈60% store-related). Q4 guidance embeds low-double-digit pro forma revenue growth, Coach low-teens (≈+30% on a 2-year stack) and kate spade high-single-digit decline, Q4 gross margin +~130 bps, operating margin +~60 bps and EPS ≈ $1.20 (Q4 tax ~18%). Finally, capital return was reiterated at ~100% of expected adjusted FCF (~$1.6B) including an annual dividend run-rate of $1.60/sh and ~$1.3B in repurchases; balance sheet at quarter end showed ~$1.1B cash, $2.4B total borrowings (net debt ~$1.3B) and gross debt/EBITDA ~1.1x.Tapestry Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
46
Neutral
Cash Flow
82
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.85B | 7.01B | 6.67B | 6.66B | 6.68B | 5.75B |
| Gross Profit | 5.98B | 5.29B | 4.89B | 4.71B | 4.65B | 4.08B |
| EBITDA | 1.06B | 526.40M | 1.37B | 1.39B | 1.31B | 1.19B |
| Net Income | 662.80M | 183.20M | 816.00M | 936.00M | 856.30M | 834.20M |
Balance Sheet | ||||||
| Total Assets | 6.47B | 6.58B | 13.40B | 7.12B | 7.27B | 8.38B |
| Cash, Cash Equivalents and Short-Term Investments | 1.07B | 1.12B | 7.20B | 741.50M | 953.20M | 2.02B |
| Total Debt | 3.92B | 3.90B | 8.76B | 3.29B | 3.26B | 3.44B |
| Total Liabilities | 5.78B | 5.72B | 10.50B | 4.84B | 4.98B | 5.12B |
| Stockholders Equity | 682.40M | 857.80M | 2.90B | 2.28B | 2.29B | 3.26B |
Cash Flow | ||||||
| Free Cash Flow | 1.75B | 1.09B | 1.15B | 791.00M | 759.30M | 1.21B |
| Operating Cash Flow | 1.90B | 1.22B | 1.26B | 975.20M | 853.20M | 1.32B |
| Investing Cash Flow | -44.60M | 914.00M | -1.04B | 5.70M | -253.60M | -91.00M |
| Financing Cash Flow | -1.85B | -7.18B | 5.21B | -1.04B | -1.78B | -666.00M |
Tapestry Technical Analysis
Negative
155.85
Price Trends
143.04
Negative
141.33
Negative
125.37
Positive
Market Momentum
-4.28
Positive
39.26
Neutral
9.08
Positive
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 155.85 is above the 20-day moving average (MA) of 139.56, above the 50-day MA of 143.04, and above the 200-day MA of 125.37, indicating a neutral trend. The MACD of -4.28 indicates Positive momentum. The RSI at 39.26 is Neutral, neither overbought nor oversold. The STOCH value of 9.08 is Positive, 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $26.50B | 20.44 | 106.44% | 1.16% | 14.13% | -15.62% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $1.07B | -21.03 | 44.06% | ― | 145.88% | ― | |
56 Neutral | $2.96B | 3.75 | 16.38% | 1.46% | 1.64% | ― | |
54 Neutral | $1.14B | 17.42 | 17.42% | ― | 17.16% | -48.49% | |
51 Neutral | $2.09B | 6.45 | -244.66% | ― | -19.81% | 45.85% | |
45 Neutral | $239.95M | -83.81 | -52.95% | ― | -11.35% | 36.29% |
* Consumer Cyclical Sector Average
TPR
Tapestry
131.63
50.29
61.82%
FOSL
Fossil Group
3.88
2.19
129.59%
CPRI
Capri Holdings
17.10
-1.12
-6.15%
SIG
Signet Jewelers
74.13
10.57
16.64%
REAL
RealReal
8.97
3.66
68.93%
LUXE
LuxExperience
6.87
-2.68
-28.06%
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.