Tapestry (TPR) AI Stock Analysis

• Market Cap: $23.78B
• Dividend Yield: 1.26%
• Average Volume (3M): 2.79M
• Price to Earnings (P/E): 139.5
• Beta (1Y): 1.11
• 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: 207,005,510
• 10 Day Avg. Volume: 1,970,066
• 30 Day Avg. Volume: 2,792,853
• 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: 0.88
• Enterprise Value/Revenue: 2.98
• Enterprise Value/Gross Profit: 3.95
• Enterprise Value/Ebitda: 39.67
• 1Y Price Target: $121.81
• Price Target Upside: 6.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 64 Neutral
• Price Target: $125.00 ▲(8.79% Upside)

Tapestry's overall stock score is driven by strong technical indicators and positive earnings call sentiment, highlighting robust performance and growth prospects, particularly for the Coach brand. However, high leverage and a very high P/E ratio suggest financial risks and potential overvaluation. The company's strategic focus on marketing and brand building is promising, but challenges with Kate Spade and tariff pressures remain significant concerns.

Positive Factors

Revenue Growth

Tapestry's consistent revenue growth indicates strong market demand and effective brand strategies, supporting long-term financial stability.

Cash Flow Generation

Strong cash flow generation enhances Tapestry's ability to invest in growth opportunities and return capital to shareholders, bolstering financial health.

Operating Margin Expansion

Projected operating margin expansion reflects improved operational efficiency and cost management, strengthening Tapestry's profitability.

Negative Factors

High Leverage

High leverage could constrain Tapestry's financial flexibility, increasing risk in economic downturns and limiting investment capacity.

Kate Spade Underperformance

Underperformance of Kate Spade indicates brand-specific challenges, potentially impacting overall company growth and profitability.

Tariff Impact

Tariff-related cost pressures could erode margins and profitability, posing a long-term challenge to Tapestry's cost structure.

Tapestry Business Overview & Revenue Model

Company Description

Tapestry, Inc. is a leading American luxury fashion holding company that owns and operates a portfolio of prestigious brands, including Coach, Kate Spade, and Stuart Weitzman. Established in 2017, Tapestry focuses on providing high-quality, innovative products across various sectors in the fashion industry, including handbags, accessories, footwear, and apparel. The company emphasizes a commitment to craftsmanship, sustainability, and customer experience, targeting affluent consumers in both domestic and international markets.

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 2025	Dec 2024	Dec 2024	Dec 2023
Income Statement
Total Revenue	7.01B	7.01B	7.01B	6.67B	6.67B	6.66B
Gross Profit	5.29B	5.29B	5.29B	4.89B	4.89B	4.71B
EBITDA	526.40M	526.40M	526.40M	1.37B	1.37B	1.39B
Net Income	183.20M	183.20M	183.20M	816.00M	816.00M	936.00M
Balance Sheet
Total Assets	6.58B	6.58B	6.58B	13.40B	13.40B	7.12B
Cash, Cash Equivalents and Short-Term Investments	1.12B	1.12B	1.12B	7.20B	7.20B	741.50M
Total Debt	3.90B	3.90B	3.90B	8.76B	8.76B	3.29B
Total Liabilities	5.72B	5.72B	5.72B	10.50B	10.50B	4.84B
Stockholders Equity	857.80M	857.80M	857.80M	2.90B	2.90B	2.28B
Cash Flow
Free Cash Flow	1.09B	1.09B	1.09B	1.15B	1.15B	791.00M
Operating Cash Flow	1.22B	1.22B	1.22B	1.26B	1.26B	975.20M
Investing Cash Flow	914.00M	914.00M	914.00M	-1.04B	-1.04B	5.70M
Financing Cash Flow	-7.18B	-7.18B	-7.18B	5.21B	5.21B	-1.04B

Tapestry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 114.90
• 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 114.9 is above the 20-day moving average (MA) of 114.85, above the 50-day MA of 109.10, and above the 200-day MA of 88.20, indicating a neutral trend. The MACD of 1.60 indicates Positive momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 54.95 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	73 Outperform	$4.28B	35.07	6.82%	1.20%	-1.63%	-72.22%
TPR	64 Neutral	$23.78B	139.54	9.76%	1.26%	5.09%	-80.06%
LUXE	63 Neutral	$741.81M	1.82	61.33%	―	51.76%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
REAL	54 Neutral	$1.36B	―	―	―	12.68%	62.96%
FOSL	51 Neutral	$125.32M	―	-35.01%	―	-15.35%	61.40%
CPRI	46 Neutral	$2.67B	―	-142.38%	―	-16.69%	-279.61%

Tapestry Corporate Events

Tapestry Board Member JP Bilbrey to Step Down

John P. (JP) Bilbrey, a member of the Board of Directors of Tapestry, Inc., announced on September 16, 2025, that he will not seek re-election at the company’s annual meeting of stockholders on November 13, 2025. His decision is not due to any disagreement with the company, and he will continue to serve on the board until the meeting.

The most recent analyst rating on (TPR) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Tapestry stock, see the TPR Stock Forecast page.

Tapestry Announces $3 Billion Share Repurchase Plan

On September 10, 2025, Tapestry, Inc. announced a new $3 billion share repurchase authorization, replacing the existing program from November 2021. The company also introduced its ‘Amplify’ growth strategy during its Investor Day, aiming for mid-single-digit revenue growth and significant shareholder returns through 2028. Tapestry plans to return $4 billion to shareholders via share repurchases and dividends, supported by robust free cash flow, and targets operational improvements, including expanding operating margins and achieving double-digit earnings growth by fiscal 2028.

The most recent analyst rating on (TPR) stock is a Hold with a $104.00 price target. To see the full list of analyst forecasts on Tapestry stock, see the TPR Stock Forecast page.

Tapestry’s Earnings Call: Record Revenue Amid Challenges

Tapestry’s latest earnings call revealed a strong financial performance, marked by record revenue and earnings, largely driven by the success of the Coach brand. However, the company faces challenges, including the underperformance of Kate Spade and significant cost pressures from tariffs.

Tapestry Reports Record Revenue and Growth in Fiscal 2025

Tapestry, Inc. is a global house of iconic accessories and lifestyle brands, including Coach and Kate Spade, known for their commitment to innovation and authenticity in the fashion industry. The company recently reported its fiscal 2025 fourth quarter and full year results, highlighting record revenues and significant growth in its Coach brand. Tapestry achieved a record fourth quarter revenue of $1.7 billion, an 8% increase from the previous year, and a record annual revenue of $7.0 billion, driven by a 10% growth in the Coach brand. The company also expanded its gross margin by 210 basis points and returned $2.3 billion to shareholders through dividends and share repurchases. Looking forward, Tapestry anticipates continued revenue and earnings growth in fiscal 2026, despite potential impacts from tariff and trade policies, positioning itself for long-term growth and increased shareholder value.