Tapestry, Inc. Shines in Stock Growth and Earnings Performance
New York-based Tapestry, Inc. (TPR) is a leading designer and marketer of apparel, fine accessories, and gifts for both women and men. With a market capitalization of $12.2 billion, Tapestry operates through several well-known segments, including Coach, Kate Spade & Company, and Stuart Weitzman.
Remarkable Stock Performance
Tapestry has significantly outperformed the broader market over the past year. The stock prices for TPR have risen by 41.9% year-to-date and an impressive 90.2% over the last 52 weeks. This performance surpasses the S&P 500 Index, which has gained 25.7% in 2024 and 36.8% over the past year.
Diving deeper, TPR also outperformed the Consumer Discretionary Select Sector SPDR Fund (XLY), which saw gains of 20.3% year-to-date and 33% over the last year.
Q1 Earnings Exceed Expectations
After releasing promising Q1 earnings on November 7, Tapestry’s stock prices surged by 3.6%. The company reported $1.5 billion in revenue, surpassing Wall Street projections by 2.3%. Additionally, Tapestry’s adjusted earnings per share (EPS) reached $1.02, exceeding estimates by 7.4%, which boosted investor morale.
However, comparing this quarter to the same period last year, total sales decreased slightly by 0.37% due to weaker performance from Kate Spade in North America and Coach in Greater China. This decline was somewhat balanced by stronger sales in other segments. Moreover, Tapestry experienced a 51 basis point contraction in net margins to 12.4%, resulting in an 11.7% year-over-year drop in adjusted net income, totaling $186.6 million.
Positive Outlook Ahead
Looking forward, analysts project a 5.8% year-over-year growth in adjusted EPS for the current fiscal year ending in June 2025, anticipating a figure of $4.54. Tapestry also boasts a strong history of earnings surprises, having exceeded analysts’ bottom-line estimates in each of the past four quarters.
The consensus rating for TPR stock stands at “Moderate Buy.” Among the 18 analysts covering it, 11 recommend “Strong Buy,” one suggests “Moderate Buy,” and six advise a “Hold” rating.
Analyst Ratings and Price Targets
This current configuration indicates a slightly less optimistic outlook than a month prior when 12 analysts recommended a “Strong Buy” rating. On November 8, analyst Rick Patel from Raymond James reaffirmed an “Outperform” rating while increasing the price target to $57.
Although TPR’s average price target of $54.12 presents a modest upside of 3.6% from current prices, the highest target of $66 suggests significant potential growth of 26.4%.
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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.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.
