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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on TPR

Tapestry, Inc.'s recent performance has been driven by strong Q1 2026 earnings, with a 16% pro forma revenue growth, led by 21% growth at Coach. The company's adjusted operating margin expanded by 200 basis points, and earnings per share increased. Additionally, Fisher Asset Management LLC raised its holdings in Tapestry by 5,027.6%, now owning 499,988 shares. The company is also positioned for growth, with a favorable outlook for FY26. Tapestry's capital return strategy is also noteworthy, with the company making buyback announcements, signaling market confidence.

1.c. Company Highlights

2. Tapestry's Q1 2026 Earnings: A Strong Start to the Year

Tapestry's Q1 2026 financial performance was impressive, with pro forma revenue growth of 16% year-over-year, driven by a strong showing from Coach, which grew revenues by 21%. The company's adjusted operating margin expanded by 200 basis points, and earnings per share (EPS) came in at $1.38, beating estimates of $1.25. Gross margin expansion of 120 basis points was a key driver of the profit growth, aided by operational improvements and the divestiture of Stuart Weitzman. As CEO Joanne Crevoiserat noted, "the beat and raise delivered in the first quarter reinforces that our advantages are structural and sustainable over the long term."

Publication Date: Nov -08

📋 Highlights
  • Q1 2026 Financial Outperformance: Pro forma revenue grew 16%, adjusted operating margin expanded 200 bps, and EPS surged 35% YoY.
  • Coach's Strong Performance: Revenue rose 21% with 300 bps margin expansion, acquiring 1.7M new global customers, led by Gen Z.
  • Operational and Cost Efficiency: Gross margin expanded 120 bps, SG&A expenses leveraged 80 bps, and $1.3B capital return to shareholders (FY26).
  • Kate Spade Turnaround Progress: Q1 revenue declined 9% but improved sequentially, with strong AUR growth and Gen Z acquisition.
  • Revised FY26 Guidance: Revenue raised to $7.3B (7-8% pro forma growth), operating margin expansion of ~50 bps despite tariff headwinds.

Segment Performance

The Coach brand was a standout in Q1, with revenue growth of 21% and adjusted operating margin expansion of 300 basis points. Kate Spade, on the other hand, is still in turnaround mode, but showed sequential improvement, with revenue down 9% in Q1, an improvement from previous quarters. The brand is making progress in streamlining its assortment and embedding deeper consumer insights, which should drive future growth.

Outlook and Guidance

Tapestry raised its fiscal 2026 outlook, driven by the strong Q1 performance. The company now expects revenue to be around $7.3 billion, representing 7% to 8% pro forma growth, and operating margin expansion of approximately 50 basis points. For the second quarter, the company anticipates pro forma total sales growth of around 7%, driven by low double-digit revenue growth at Coach.

Valuation and Growth Prospects

With a current P/E Ratio of 117.6 and P/S Ratio of 3.08, Tapestry's valuation appears to be pricing in significant growth expectations. Analysts estimate next year's revenue growth at 5.2%, which may not be enough to justify the current valuation multiples. However, the company's ROE of 10.99% and ROIC of 6.59% indicate a strong ability to generate returns on capital. The dividend yield of 1.4% and free cash flow yield of 5.07% provide some support to the stock.

Key Drivers of Future Growth

The company's focus on customer acquisition, youth, and value proposition is driving growth, particularly in Europe, where revenue grew 39% in Q1. The success of the One Coach collection and the Charms business are also key drivers of future growth. As the company continues to execute on its Amplify growth agenda, investors will be watching to see if the momentum can be sustained.

3. NewsRoom

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Tapestry, Inc. $TPR Stock Position Raised by Fisher Asset Management LLC

Dec -03

Source: defenseworld.net

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American Century Companies Inc. Trims Stock Holdings in Tapestry, Inc. $TPR

Dec -03

Source: defenseworld.net

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4 Stocks to Boost Your Portfolio as Retail Sales Grow Powered by AI

Dec -01

Source: zacks.com

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4 Retail Stocks to Grab on Robust Holiday Sales Growth Projection

Nov -26

Source: zacks.com

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These 3 Stocks Are Using Buybacks to Signal Market Confidence

Nov -18

Source: marketbeat.com

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Atria Investments Inc Has $218,000 Stock Holdings in Tapestry, Inc. $TPR

Nov -14

Source: defenseworld.net

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Is Tapestry (TPR) a Solid Growth Stock? 3 Reasons to Think "Yes"

Nov -13

Source: zacks.com

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Bloomberg Watch Shows 5 Ideal "Safer" November Dividend Dogs

Nov -12

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Coach

Expected Growth: 3.0%

Coach's 3.0% growth is driven by strategic pricing, increased online presence, and targeted marketing efforts. The brand's focus on digital transformation, including e-commerce and social media, has enhanced customer engagement. Additionally, Tapestry's efforts to revamp Coach's store fleet and improve operational efficiency have contributed to the growth.

Kate Spade

Expected Growth: 3.0%

Kate Spade's 3.0% growth is driven by strategic brand repositioning, increased e-commerce penetration, and expansion into new markets. The brand's focus on digital marketing, social media engagement, and loyalty programs has improved customer retention and acquisition. Additionally, Tapestry's efforts to optimize store fleet and improve supply chain efficiency have enhanced profitability.

Stuart Weitzman

Expected Growth: 3.0%

Stuart Weitzman's 3.0% growth is driven by strategic brand repositioning, expanded e-commerce capabilities, and increased marketing investments. Additionally, the brand's focus on comfort, quality, and style resonates with consumers, leading to higher sales. Furthermore, Tapestry, Inc.'s efforts to enhance the brand's omnichannel experience and improve operational efficiency also contribute to its growth.

7. Detailed Products

Coach Handbags

Luxury handbags and accessories for women, featuring high-quality materials and craftsmanship

Kate Spade New York Handbags

Colorful, playful, and functional handbags and accessories for women, with a focus on whimsy and personality

Stuart Weitzman Footwear

High-quality, comfortable, and stylish footwear for women, featuring innovative designs and materials

kate spade new york Home and Accessories

Whimsical and colorful home decor and accessories, featuring playful patterns and designs

8. Tapestry, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Tapestry, Inc. operates in the luxury goods industry, where substitutes are limited. However, there is a growing trend towards sustainable and affordable fashion, which could pose a threat to the company's high-end brands.

Bargaining Power Of Customers

Tapestry, Inc.'s customers are largely loyal to its luxury brands, and the company has a strong brand reputation. This reduces the bargaining power of customers.

Bargaining Power Of Suppliers

Tapestry, Inc. relies on a network of suppliers for its raw materials and manufacturing. While the company has some bargaining power, suppliers can still exert some pressure, particularly in times of high demand.

Threat Of New Entrants

The luxury goods industry has high barriers to entry, including significant capital requirements and the need for established brand recognition. This makes it difficult for new entrants to compete with Tapestry, Inc.

Intensity Of Rivalry

The luxury goods industry is highly competitive, with many established players competing for market share. Tapestry, Inc. faces intense rivalry from other luxury brands, which can lead to pricing pressure and advertising wars.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 59.10%
Debt Cost 3.95%
Equity Weight 40.90%
Equity Cost 12.03%
WACC 7.25%
Leverage 144.53%

11. Quality Control: Tapestry, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Dillard's

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Value: 5.1

Growth: 6.9

Quality: 7.1

Yield: 8.0

Momentum: 9.5

Volatility: 5.0

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Travel + Leisure

A-Score: 6.6/10

Value: 8.0

Growth: 4.7

Quality: 6.0

Yield: 7.0

Momentum: 8.0

Volatility: 5.7

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H&R Block

A-Score: 5.8/10

Value: 5.6

Growth: 6.1

Quality: 5.5

Yield: 7.0

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Volatility: 9.0

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Allison Transmission Holdings

A-Score: 5.6/10

Value: 5.8

Growth: 7.4

Quality: 7.5

Yield: 2.0

Momentum: 3.0

Volatility: 8.0

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Tapestry

A-Score: 5.0/10

Value: 1.2

Growth: 5.9

Quality: 4.6

Yield: 3.0

Momentum: 10.0

Volatility: 5.3

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KB Home

A-Score: 4.9/10

Value: 6.2

Growth: 7.1

Quality: 5.0

Yield: 3.0

Momentum: 2.5

Volatility: 5.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

115.43$

Current Price

115.44$

Potential

-0.00%

Expected Cash-Flows