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New York-based Tapestry, Inc. (TPR) is a prominent designer and marketer of apparel, fine accessories, and gifts for women and men. With a market cap of $12.2 billion, Tapestry operates through Coach, Kate Spade & Company, and Stuart Weitzman segments.
Tapestry has substantially outperformed the broader market over the past year. TPR stock prices have soared 41.9% on a YTD basis and a staggering 90.2% over the past 52 weeks, outpacing the S&P 500 Index’s ($SPX) 25.7% gains in 2024 and 36.8% returns over the past year.
Zooming in further, TPR has also outpaced the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 20.3% gains on a YTD basis and 33% returns over the past 52 weeks.
Tapestry stock prices surged 3.6% after the release of its better-than-expected Q1 earnings on Nov. 7. The company reported a revenue of $1.5 billion for the quarter which surpassed Wall Street’s topline expectations by a notable 2.3%. Moreover, its adjusted EPS of $1.02 also exceeded analysts’ earnings estimates by 7.4%, bolstering investors’ confidence.
However, when compared to the year-ago quarter, Tapestry’s overall sales declined by a marginal 37 basis points primarily due to the underperforming Kate Spade sales in North America and Coach sales in Greater China which were partially offset by the sales from other segments. Additionally, Tapestry observed a 51 basis points net margin contraction to 12.4%, leading to a 11.7% year-over-year drop in adjusted net income to $186.6 million.
For the current fiscal year, ending in Jun. 2025, analysts expect a 5.8% year-over-year growth in adjusted EPS to $4.54. Moreover, Tapestry has a robust earnings surprise history. It has surpassed Wall Street’s bottom-line estimates in each of the past four quarters.
TPR stock has a consensus “Moderate Buy” rating overall. Among the 18 analysts covering the stock, 11 recommend “Strong Buy,” one advises “Moderate Buy,” and six suggest a “Hold” rating.
This configuration is slightly less bullish than a month ago when 12 analysts recommended a “Strong Buy” rating.
On Nov. 8, Raymond James analyst Rick Patel reiterated the firm’s “Outperform” rating while raising the price target to $57.
While TPR’s mean price target of $54.12 represents a modest premium of 3.6% to current price levels, the Street-high target of $66 suggests a massive potential upside of 26.4%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
