Tapestry, Inc. Shows Strong Performance Amid Market Challenges

With a market cap of $14.6 billion, Tapestry, Inc. (TPR) specializes in luxury accessories and branded lifestyle products both in North America and worldwide. Established in 1941 and headquartered in New York, Tapestry operates three main segments: Coach, Kate Spade, and Stuart Weitzman, providing a range of men’s and women’s accessories, footwear, watches, fragrances, and more.

As a company valued at over $10 billion, TPR is classified as a “large-cap” stock, highlighting its significant size and influence within the luxury goods market.

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Share Performance and Market Trends

Currently, TPR shares are trading 19.8% below their 52-week high of $90.85, reached on February 18. However, the stock has increased by 11.6% over the past three months, surpassing the broader S&P 500 Index ($SPX), which has decreased by 4.2% in the same timeframe.

Over the last six months, TPR has impressively surged by 57.4%, in contrast to the $SPX’s 1.3% drop. Furthermore, in the past 52 weeks, TPR has experienced a robust 51.5% increase, while the $SPX has only risen by 7.4%.

As of early September, TPR has consistently stayed above its 200-day moving average. However, it has remained below its 50-day moving average since early March, which indicates a bullish trend in the stock.

Recent Earnings and Future Outlook

Following its Q2 earnings release on February 6, TPR shares jumped 12%. The company reported a 5% rise in revenue, totaling $2.2 billion, largely driven by a 10% growth in its Coach segment. Additionally, the company’s earnings per share (EPS) reached $2, surpassing Wall Street expectations by 14.9%.

Looking ahead, Tapestry has increased its revenue forecast, projecting a 3% growth, aiming for $6.9 billion in fiscal 2025. Its EPS is expected to rise between 13% to 14% year-over-year, landing somewhere between $4.85 and $4.90.

Competitive Landscape

In comparison, rival The RealReal, Inc. (REAL) has seen significant growth over the past six months, with a notable surge of 90.8%. However, its shares have increased by only 43.2% over the past year, falling short of TPR’s performance within the same timeframe.

Analyst Perspectives

Among the 21 analysts currently covering TPR, the consensus rating is classified as a “Moderate Buy.” The average price target stands at $89.40, suggesting a potential upside of 22.7% from current prices.

On the date of publication, Kritika Sarmah 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 the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.