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Tapestry
(NYSE:TPR)
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Rating:67Neutral
Price Target:
$165.00
▲(15.71% Upside)
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
Free cash flow generation
TTM operating cash flow and near-$1.8B free cash flow provide durable financial flexibility: they support debt service, large repurchases and a growing dividend, and fund investment in stores and digital. Strong recurring FCF also cushions cyclical retail volatility and underpins capital returns policy.
Negative Factors
Elevated leverage
Very high debt-to-equity materially increases financial risk and reduces balance sheet flexibility. Even with strong FCF, the sharp decline in equity amplifies leverage metrics, raising refinancing and covenant sensitivity and constraining optionality for M&A or cushioning against an earnings setback.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
TTM operating cash flow and near-$1.8B free cash flow provide durable financial flexibility: they support debt service, large repurchases and a growing dividend, and fund investment in stores and digital. Strong recurring FCF also cushions cyclical retail volatility and underpins capital returns policy.
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
$25.94B
Dividend Yield1.24%
Average Volume (3M)2.57M
Price to Earnings (P/E)17.2
Beta (1Y)1.10
Revenue Growth14.17%
EPS Growth956.15%
CountryUS
Employees19,000
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)7.49
Shares Outstanding202,044,710
10 Day Avg. Volume2,335,795
30 Day Avg. Volume2,571,941
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)43.03
Price to Sales (P/S)3.72
P/FCF Ratio16.43
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$170.80Price Target Upside19.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)7.93
Revenue Forecast (FY)$8.52B
Tapestry Business Overview & Revenue Model
Company Description
Tapestry, Inc. is a prominent global fashion house specializing in premium accessories and distinct lifestyle brands. It operates internationally, serving customers across the United States, Japan, Greater China, and other markets worldwide. The c...
How the Company Makes Money
Tapestry makes money primarily by selling branded consumer products—most notably handbags and other accessories—through multiple go-to-market channels. The company’s core revenue stream is net sales generated by (1) direct-to-consumer (DTC) channe...
Tapestry Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call highlighted materially strong financial and operational performance—record revenue, margin expansion, robust free cash flow, large-scale new customer acquisition led by Gen Z, and clear momentum at Coach and in international markets—while acknowledging discrete near-term headwinds: Kate Spade's slower top-line recovery and operating loss, tariff/duty impacts (especially at Kate Spade), some regional softness in Japan, inventory timing shifts, and lumpy quarterly profitability driven by tariff timing and marketing cadence. Management provided constructive FY27 guidance that maintains margin expansion and low double-digit EPS growth while investing in brand building, stores and technology. On balance, the positives (scaleable growth, margin expansion, strong cash generation, and confident capital returns) materially outweigh the lowlights.Positive Updates
Record Fiscal 2026 Financial Performance
Revenue of $8.0 billion, up 17% on a pro forma constant currency basis; operating margin expanded 340 basis points to over 23%; diluted EPS increased 38% to $7.05; adjusted free cash flow $1.86 billion; gross debt to adjusted EBITDA 1.1x.
Negative Updates
Kate Spade Underperformance and Near-Term Weakness
Top-line progress at Kate Spade was more gradual than planned; welcomed ~450,000 new customers in Q4 (~2 million for the year) but management expects a high single-digit revenue decline for Kate Spade in fiscal 2027 and a modest operating loss as the brand continues to be invested behind to return to sustainable top-line growth.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Fiscal 2026 Financial Performance
Revenue of $8.0 billion, up 17% on a pro forma constant currency basis; operating margin expanded 340 basis points to over 23%; diluted EPS increased 38% to $7.05; adjusted free cash flow $1.86 billion; gross debt to adjusted EBITDA 1.1x.
Read all positive updates
Company Guidance
Management guided fiscal 2027 revenue of $8.4–$8.5 billion (mid‑single‑digit growth; FY includes a 53rd week adding ~1 point) with FX a ~40 bp tailwind; by brand they expect Coach to grow high‑single‑digits (Coach operating margin ~36%) and Kate Spade to decline high‑single‑digits (modest operating loss). Regionally the plan assumes North America low‑single‑digit growth, Europe and Greater China mid‑teens, Other Asia high‑single‑digits and Japan returning to growth. Company‑level operating margin is expected to expand ~50 bps to nearly 24% (gross margin +~30 bps; SG&A leverage ~20 bps), EPS $7.80–$7.90 (low‑double‑digit growth), adjusted free cash flow of ~ $1.7 billion, CapEx & cloud spend ~ $300 million (3–4% of revenue), net interest ~ $55 million, tax rate ~ 18.5% and ~203 million diluted shares. The outlook embeds a mid‑20s% tariff rate on U.S. imports with roughly net‑neutral P&L impact, expects inventory to increase year‑over‑year, and for Q1 calls for high‑single‑digit revenue growth (Coach low‑teens; Coach Q1 two‑year stack mid‑30s), Q1 gross margin +120 bps, operating margin roughly flat and Q1 EPS ~ $1.55 (low‑teens increase). Capital returns target ~$1.7 billion (dividend raised 16% to $1.85 annual; ~$1.35 billion repurchases).Tapestry Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
46
Neutral
Cash Flow
82
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.00B | 7.01B | 6.67B | 6.66B | 6.68B |
| Gross Profit | 6.23B | 5.29B | 4.89B | 4.71B | 4.65B |
| EBITDA | 2.13B | 526.40M | 1.37B | 1.39B | 1.31B |
| Net Income | 1.53B | 183.20M | 816.00M | 936.00M | 856.30M |
Balance Sheet | |||||
| Total Assets | 6.69B | 6.58B | 13.40B | 7.12B | 7.27B |
| Cash, Cash Equivalents and Short-Term Investments | 1.15B | 1.12B | 7.20B | 741.50M | 953.20M |
| Total Debt | 3.95B | 3.90B | 8.76B | 3.29B | 3.26B |
| Total Liabilities | 6.00B | 5.72B | 10.50B | 4.84B | 4.98B |
| Stockholders Equity | 692.10M | 857.80M | 2.90B | 2.28B | 2.29B |
Cash Flow | |||||
| Free Cash Flow | 1.81B | 1.09B | 1.15B | 791.00M | 759.30M |
| Operating Cash Flow | 1.98B | 1.22B | 1.26B | 975.20M | 853.20M |
| Investing Cash Flow | -218.30M | 914.00M | -1.04B | 5.70M | -253.60M |
| Financing Cash Flow | -1.86B | -7.18B | 5.21B | -1.04B | -1.78B |
Tapestry Technical Analysis
Negative
142.60
Price Trends
146.33
Negative
144.04
Negative
136.26
Negative
Market Momentum
-0.02
Positive
31.67
Neutral
8.63
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 142.6 is below the 20-day moving average (MA) of 149.68, below the 50-day MA of 146.33, and above the 200-day MA of 136.26, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 31.67 is Neutral, neither overbought nor oversold. The STOCH value of 8.63 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 | $25.94B | 17.22 | 262.81% | 1.12% | 14.17% | 956.15% | |
67 Neutral | $3.64B | 12.54 | 16.01% | 1.47% | 1.35% | 661.25% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.04B | 1.73 | 34.62% | ― | 194.57% | ― | |
57 Neutral | $1.33B | -16.29 | 21.10% | ― | 17.73% | -112.49% | |
49 Neutral | $1.77B | 12.21 | 88.57% | ― | -17.40% | ― | |
48 Neutral | $316.04M | -4.34 | -69.12% | ― | -9.10% | -15.30% |
* Consumer Cyclical Sector Average
TPR
Tapestry
128.98
29.52
29.68%
FOSL
Fossil Group
5.57
2.47
79.68%
CPRI
Capri Holdings
15.34
-5.60
-26.74%
SIG
Signet Jewelers
90.57
9.76
12.07%
REAL
RealReal
11.40
3.67
47.48%
LUXE
LuxExperience
7.64
-0.89
-10.43%
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.