1-Star Price
INVESTOR
5-Star Price
INVESTOR
Economic Moat
INVESTOR
Capital Allocation
INVESTOR
We think Tapestry has successfully restructured Coach (74% of fiscal 2022 revenue) but needs to prove the value of Kate Spade and Stuart Weitzman. All three of Tapestry’s brands suffered sales and operating profit declines during the pandemic, but results have been improving rapidly as it implements its three-year Acceleration Program strategy to cut costs and improve margins and as handbag pricing has risen.
Coach, Kate Spade, and Stuart Weitzman are the fashion and accessory brands that comprise Tapestry. The firm’s products are sold through about 1,400 company-operated stores, wholesale channels, and e-commerce in North America (67% of fiscal 2022 sales), Europe, Asia (28% of fiscal 2022 sales), and elsewhere. Coach (74% of fiscal 2022 sales) is best known for affordable luxury leather products. Kate Spade (22% of fiscal 2022 sales) is known for colorful patterns and graphics. Women’s handbags and accessories produced 69% of Tapestry's sales in fiscal 2022. Stuart Weitzman, Tapestry's smallest brand, generates nearly all its revenue from women’s footwear.
