Tapestry, Inc.

Valuation Analysis

About the Company

Tapestry, Inc. provides accessories and lifestyle brand products in North America, Greater China, rest of Asia, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women's handbags, fashion designs, business cases, computer bags, messenger style bags, backpacks, travel bags, and totes; and accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories, including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, technology accessories, gifting, straps, and charms. The company also provides women's and men's footwear, which casual and dress shoes, boots, sneakers, and sandals;

Tapestry, Inc. Stock at a Glance

Tapestry, Inc. (TPR) is currently trading at $147.42 with a market capitalization of $29.8B. The trailing P/E ratio stands at 45.08x, with a forward P/E of 19.04x. The 52-week range spans from $80.35 to $161.97; the current price is 9% below the yearly high. Year-over-year revenue growth stands at +21.2%. The net profit margin stands at 8.44%.

💰 Dividend

Tapestry, Inc. pays an annual dividend of $1.60 per share, representing a yield of 1.09%. The payout ratio stands at 47.26%.

📊 Analyst Rating

19 analysts rate Tapestry, Inc. (TPR) on consensus: Buy. The average price target is $164.47, implying +11.57% from the current price. Analyst price targets range from $88.00 to $205.00.

Tapestry, Inc.: The Investment Case in Detail

Tapestry, Inc. (TPR) operates in the Consumer Cyclical — specifically Luxury Goods — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 21.2% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 73.7% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. With a gross margin near 76.18%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns.

The Bear Case

The debt-to-equity ratio of 574.91% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

With a PEG ratio of 0.3, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

What to Watch Next

• The forward P/E of 19.04x is meaningfully below the trailing 45.08x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility, elevated short interest (9%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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