Tapestry (TPR)

Consumer Discretionary · $26.7B market cap · SEC CIK 0001116132

Next reports on Feb 3, 2027, with analysts expecting $3.08 in earnings per share.

52-week range $99.00 to $164.80. 18% below its 52-week high and 37% above its low.

The case for TPR

• Cheap for its growth: 16.5× earnings, where 13% a year of growth would justify about 28×.
• Generated $1.8B of free cash flow in FY2026, 23% of revenue.
• Earns 284% on shareholder equity, a figure flattered by a small equity base.
• Revenue growing 13.7% year over year.
• Earnings per share up 588.5%.
• Gross margin of 78% absorbs cost shocks.

The case against

• Heavily leveraged. Debt is 7.4× equity.
• Priced at 65× book value. Very little hard asset backing here.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Its dividend figures disagree with each other (a 4.6% yield against about 1.3% implied by its payout ratio and P/E), so the dividend is not counted.
• Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.

The financials

The financials, five years deep

Pulled from Tapestry's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Tapestry says it does

Tapestry, Inc. (the "Company") is a global house of iconic accessories and lifestyle brands uniting the magic of Coach and kate spade new york. Together, we stretch what’s possible – advancing brands further than they could go alone, expanding their reach to new geographies and generations. Inspired by our consumers, we create experiences and products that build lasting brand love and elevate everyday life. OUR BRANDS The Company has two reportable segments: • Coach - Coach is a global fashion house of accessories and lifestyle collections, founded in New York City in 1941. Inspired by the vision of Expressive Luxury and the inclusive and courageous spirit of its hometown, the brand makes beautiful things, crafted to last – for you to be yourself in. Coach has built a legacy of craftsmanship and a community that champions the courage to be real. Coach includes global sales of primarily Coach brand products to customers through our…

Risk factors TPR lists in its 10-K

• Economic conditions, such as an economic recession, downturn, periods of inflation or uncertainty, could materially adversely affect our financial condition, results of operations and consumer purchases of discretionary items
• We face risks associated with potential changes to international trade and policy agreements and the imposition of additional tariffs on importing our products
• We face risks associated with operating in international markets
• Our business is subject to the risks inherent in global sourcing activities
• A decline in the volume of traffic to our stores could have a negative impact on our net sales
• The success of our business depends on our ability to retain the value of our brands and respond to changing consumer preferences and fashion trends in a timely manner
• The growth of our business depends on the successful execution of our global omni-channel expansion efforts and our ability to execute our digital and e-commerce priorities and our multi-channel strategies
• The successful implementation of the Company’s 2028 growth strategy, Amplify, is key to the long-term success of our business
• Significant competition in our industry could adversely affect our business
• Our success depends, in part, on attracting, developing and retaining qualified employees, including key personnel
• Mergers, acquisitions and other strategic investments may not be successful in achieving intended benefits, cost savings and synergies and may disrupt current operations
• We may seek to sell one or more lines of our business in an effort to maximize shareholder value, which may adversely affect our business, our reputation, our results of operations and financial position or our stock price
• Our business may be materially impacted if our fulfillment centers face significant interruptions in operations
• Our business may be subject to increased costs due to excess inventories and a decline in profitability as a result of increasing pressure on margins if we misjudge the demand for our products
• As we outsource functions, we will become more dependent on the third parties performing these functions
• Our wholesale business could suffer as a result of consolidations, liquidations, restructurings and other ownership changes in the wholesale industry
• Our operating results are subject to seasonal and quarterly fluctuations, which could adversely affect the market price of the Company's common stock
• We rely on our licensing partners to preserve the value of our licenses and the failure to maintain such partners could harm our business
• A delay, disruption in, failure of, or inability to upgrade our information technology systems precisely and efficiently could materially adversely affect our business, financial condition or results of operations and cash flow
• The development, use, or misuse of AI technologies, and the failure to effectively adopt such technologies, may not be successful and could negatively impact our business
• We have incurred a substantial amount of indebtedness, which could restrict our ability to engage in additional transactions or incur additional indebtedness
• The risks associated with climate change and other environmental impacts and increased focus by stakeholders on climate change, could negatively affect our business and operations
• Fluctuations in our tax obligations and effective tax rate may result in volatility of our financial results and stock price
• Our business is exposed to foreign currency exchange rate fluctuations
• We may be unable to protect our intellectual property and curb the sale of counterfeit merchandise, which can cause harm to our reputation and business
• If we are unable to pay quarterly dividends or conduct stock repurchases at intended levels, our reputation and stock price may be negatively impacted
• Our stock price may periodically fluctuate based on the accuracy of our earnings guidance or other forward-looking statements regarding our financial performance, including our ability to return value to investors
• Certain provisions of the Company's charter, bylaws and Maryland law may delay or prevent an acquisition of the Company by a third party
• Our rights and the rights of our stockholders to recover claims against our directors and officers are limited, which could reduce your and our recovery against them if they cause us to incur losses

Filings

Other Consumer Discretionary companies