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Valued at a market cap of $10.4 billion, Tapestry, Inc. (TPR) provides luxury accessories and branded lifestyle products. The New York-based company offers a range of lifestyle products including handbags, women's and men's accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrances, and watches.
Companies valued at $10 billion or more are generally described as “large-cap” stocks and Tapestry fits right into that category. The company owns three major brands: Coach, Kate Spade New York, and Stuart Weitzman, and is renowned for its continuous efforts towards making the fashion industry more sustainable through its social impact initiatives.
Shares of TPR are trading 7.1% below their 52-week high of $48.80, recorded on Feb. 23. The fashion company has gained 6.3% over the past three months, lagging behind the broader Consumer Discretionary Select Sector SPDR Fund’s (XLY) 10.9% return over the same time frame.
However, in the longer term, TPR stock is up 23.2% on a YTD basis, surpassing XLY’s 12.1% gains. Moreover, shares of TPR have rallied 59.1% over the past 52 weeks, significantly outperforming XLY’s 23.8% returns over the same time frame.
TPR has been trading above its 200-day and 50-day moving average since early September, indicating a bullish trend.
TPR’s outperformance over the past year is driven by the company’s effective efforts to expand its consumer base and include younger customers through its strategy of cultivating emotional connections via its brands.
Moreover, on Aug. 15, shares of TPR rose 3.3% after reporting better-than-expected Q4 adjusted earnings of $0.92 per share and revenues of $1.69 billion. This was primarily driven by strong growth in revenues from the European markets. The company’s optimistic outlook for fiscal year 2025 further boosted investor confidence.
TPR’s outperformance becomes more evident compared to its rival, PVH Corp. (PVH), which gained 27.5% over the past 52 weeks and declined 21.4% on a YTD basis.
Despite TPR’s outperformance over the past year, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 18 analysts covering the stock, and the mean price target of $49.12 suggests a premium of just 8.2% to its current levels.
On the date of publication, Sohini Mondal 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.
