Analyst Note
| David Swartz |Narrow-moat Tapestry’s sales and earnings exceeded our estimates in fiscal 2021’s (March-ending) third quarter as handbag sales continue to outpace other categories, a trend we think will continue. However, its shares, which we view as fully valued, fell about 4% on the report as investors may have been hoping for a quicker return to prepandemic sales levels. Regardless, we expect to raise our per share fair value estimate of $40.50 on Tapestry by a mid-single-digit percentage.