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Tapestry Inc TPR

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Stock XNYS Rating as of
$119.24 +4.20 (3.65%)
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As of Delayed Price Closed

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Coach’s Enduring Brand Popularity Provides Tapestry With Competitive Edge in Affordable Luxury

David Swartz

We believe Tapestry has a narrow moat based on the brand strength and pricing power of Coach (86% of June-ended fiscal 2026 revenue). After some lean years, the firm has turned Coach around through store closures, restrictions on markdowns, and increased e-commerce. Tapestry has been highly successful in marketing and introducing products to solidify Coach as a leader in the attractive affordable luxury handbag category. Further, we expect growth in complementary categories like footwear and fashion. Coach’s sales and profitability have risen lately, with gross margins in the high 70s in fiscal years 2025 and 2026, as the brand has gained a strong following among younger consumers.

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Price vs Fair Value

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TPR is trading at a LOCK|bq>t#^ premium.
Price
$119.24
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Coach is one of the share leaders in the desirable category of handbags and other leather goods. Coach bags achieve better pricing than many peers, allowing for luxury-level gross margins above 75%.

Bears

Although Tapestry offers many products, women's handbags and other accessories account for about 85% of its revenue. As such, Tapestry is not very diversified as compared with some luxury brand operators.

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Trading Information

Previous Close Price
$115.04
Day Range
$114.36–119.30
52-Week Range
$93.00–164.80
Bid/Ask
$117.11 / $119.24
Shares Outstanding
198.44M
Market Cap
$23.78B
Volume/Avg
3M / 3M

Key Statistics

Price/Earnings (Normalized)
16.91
Price/Sales
3.13
Dividend Yield (Trailing)
1.39%
Dividend Yield (Forward)
1.55%
Dividend Payment Schedule
Mar, Jun, Sep, Dec
Total Yield
7.96%

Company Profile

Based in New York City, Tapestry is the parent company of accessories and fashion brand Coach, which accounted for 86% of its revenue and all its operating profit in fiscal 2026. Coach was founded as a leathergoods company in 1941, and handbags represented 58% of its fiscal 2026 revenue. Coach products are sold through nearly 1,000 company-owned stores, company-operated digital channels, and wholesale partners in North America, Asia, and Europe. Tapestry also owns Kate Spade (13% of fiscal 2026 revenue), which operates more than 300 worldwide stores and generated 55% of its revenue from handbags in fiscal 2025. Founded in 1993, Kate Spade is known for its colorful patterns and graphics.
Sector
Consumer Cyclical
Industry
Luxury Goods
Stock Style Box
Mid Core
Total Number of Employees
20,600
Website
https://www.tapestry.com

Competitors

Valuation

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Metric
TPR
RL
CPRI
Price/Earnings (Normalized)
 16.9120.848.84
Price/Book Value
 34.537.9411.92
Price/Sales
 3.132.690.50
Price/Cash Flow
 13.4816.217.37
Price/Earnings
TPR
RL
CPRI

Financial Strength

Metric
TPR
RL
CPRI
Quick Ratio
 1.011.330.39
Current Ratio
 1.752.041.19
Interest Coverage
 34.7122.39—
Quick Ratio
TPR
RL
CPRI

Profitability

Metric
TPR
RL
CPRI
Return on Assets (Normalized)
 22.71%14.07%4.72%
Return on Equity (Normalized)
 232.80%39.80%424.57%
Return on Invested Capital (Normalized)
 33.06%18.97%6.31%
Return on Assets
TPR
RL
CPRI

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