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TPR Stock Trades 17% Below 52-Week High: An Opportunity for Investors?
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Tapestry, Inc. (TPR - Free Report) shares are currently trading 16.7% below its 52-week high of $90.85 attained on Feb. 18, 2025, making investors contemplate their next moves. In the past year, TPR stock has gained 66.7%, outperforming the Zacks Retail-Apparel and Shoes industry’s 6.8% decline.
The company’s enhanced operational efficiency and growth initiatives have also helped it to outperform the broader Retail-Wholesale sector and the S&P 500 index’s growth of 12.1% and 9.3%, respectively, during the same period.
TPR Stock Past-Year Performance
Image Source: Zacks Investment Research
This leading designer and marketer of lifestyle products closed yesterday’s trading session at $75.72. The stock is trading above both its 100- and 200-day simple moving averages of $68.09 and $55.17, respectively, highlighting a continued uptrend. This technical strength, along with sustained momentum, indicates positive market sentiment and investors’ confidence in Tapestry’s financial health and growth prospects.
TPR Trades Above 100 & 200-Day Moving Averages
Image Source: Zacks Investment Research
Coach Brand: Key Growth Catalyst for Tapestry
Coach remains the pivotal driver behind Tapestry’s growth, delivering impressive year-over-year revenue increases. In the second quarter of fiscal 2025, the brand achieved an 11% year-over-year increase in reported revenues and a 10% rise in constant currency, alongside a 270-basis-point improvement in gross margin.
Tapestry announced a definitive agreement on Feb. 19 to sell its Stuart Weitzman brand to Caleres for $105 million in cash. The move aligns with Tapestry’s strategy to focus on its core brands, Coach and Kate Spade.
With collections such as the Tabby, Brooklyn and Empire leading the way, Coach is steadily gaining market share in the handbag segment. Its strong global pricing power reinforces its status in the accessible luxury sector and highlights its potential as a long-term investment.
Global Expansion Fuels TPR’s Growth
TPR's international strategy continues to yield significant revenue gains in critical markets. Europe, in particular, emerged as major growth driver, with a 42% year-over-year revenue increase in the fiscal second quarter, driven by robust local demand and effective customer acquisition initiatives.
In Greater China, the company returned to revenue growth with a 2% year-over-year rise, demonstrating resilience despite economic headwinds. Meanwhile, the broader Asia-Pacific region (excluding China) experienced 11% growth, led by strong performances in markets such as South Korea, Malaysia, Australia and New Zealand. These achievements highlight Tapestry’s effective global execution and long-term growth potential.
Tapestry’s Digital and Direct-to-Consumer Momentum
TPR is continuing to enhance its digital and DTC strategies, which is driving notable growth. In the fiscal second quarter, DTC sales increased by 4%, thanks to a robust high-single-digit boost in digital sales and a modest gain in global brick-and-mortar performance. Across all channels, profitability has also seen improvements.
Furthermore, the implementation of AI-powered customer engagement has improved pricing strategies while reducing the need for frequent promotions. The company’s success in attracting and retaining younger consumers — especially Gen Z and Millennials — further strengthens its competitive market position.
TPR Raises FY25 Outlook
Tapestry has revised its full-year financial forecast upward, now expecting revenues to exceed $6.85 billion, a 3% year-over-year increase despite currency fluctuations. This surpasses its earlier projection of $6.75 billion, which estimated 1-2% growth on both a reported and constant-currency basis.
Additionally, the company foresees a 100-basis-point improvement in operating margin, an upgrade from the previously expected expansion of over 50 basis points. Earnings per share (EPS) are now projected to range between $4.85 and $4.90, reflecting a 13-14% increase from the prior year and outperforming the previous estimate of $4.50-$4.55.
Is Tapestry a Value Play Stock?
The company is currently trading at a notable low price-to-earnings (P/E) multiple, below the averages of both the industry and the sector. Its forward 12-month P/E ratio is 14.57, lower than the industry and the sector’s ratios of 15.74 and 22.49, respectively. This undervaluation highlights its potential for investors seeking attractive entry points. Moreover, TPR's Value Score of A underscores its appeal as an investment option.
TPR Looks Attractive From a Valuation Standpoint
Image Source: Zacks Investment Research
Estimate Revisions Favor TPR Stock
Analysts have responded positively to Tapestry’s prospects, indicated by upward revisions in the Zacks Consensus Estimate for EPS. In the past 60 days, analysts have increased their estimates for the current fiscal year by 29 cents. The consensus estimate for earnings is pegged at $4.91 per share. The consensus estimate for the next fiscal year has also been raised 30 cents to $5.30 per share. This indicates year-over-year growth of 14.5% and 8%, respectively.
The Zacks Consensus Estimate for the current and next fiscal year’s sales is pegged at $6.87 billion and $7.11 billion, implying year-over-year growth of 3% and 3.4%, respectively.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Image Source: Zacks Investment Research
Final Thought on Tapestry Stock
Tapestry stands out as a compelling investment opportunity backed by its dynamic digital and direct-to-consumer strategies. The strong performance of its Coach brand and a clear focus on core brands underscore its growth potential. Strategic international expansion and enhanced operational efficiency further strengthen its market position. AI-driven pricing strategies are contributing to improved profitability. Overall, Tapestry’s robust outlook and attractive valuation make it an appealing choice for long-term investors. The company currently carries a Zacks Rank #2 (Buy).
The Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Gap’s fiscal 2025 earnings and revenues indicates growth of 7.7% and 1.6%, respectively, from the fiscal 2024 reported levels. GAP delivered a trailing four-quarter average earnings surprise of 77.5%.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for DECK’s fiscal 2025 earnings and revenues implies growth of 21% and 15.6%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 36.8%.
G-III Apparel is a manufacturer, designer and distributor of apparel and accessories under licensed brands, owned brands and private label brands. It carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for GIII’s fiscal 2025 earnings and revenues implies declines of 4.5% and 1.2%, respectively, from the year-ago actuals. GIII delivered a trailing four-quarter average earnings surprise of 117.8%.
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TPR Stock Trades 17% Below 52-Week High: An Opportunity for Investors?
Tapestry, Inc. (TPR - Free Report) shares are currently trading 16.7% below its 52-week high of $90.85 attained on Feb. 18, 2025, making investors contemplate their next moves. In the past year, TPR stock has gained 66.7%, outperforming the Zacks Retail-Apparel and Shoes industry’s 6.8% decline.
The company’s enhanced operational efficiency and growth initiatives have also helped it to outperform the broader Retail-Wholesale sector and the S&P 500 index’s growth of 12.1% and 9.3%, respectively, during the same period.
TPR Stock Past-Year Performance
Image Source: Zacks Investment Research
This leading designer and marketer of lifestyle products closed yesterday’s trading session at $75.72. The stock is trading above both its 100- and 200-day simple moving averages of $68.09 and $55.17, respectively, highlighting a continued uptrend. This technical strength, along with sustained momentum, indicates positive market sentiment and investors’ confidence in Tapestry’s financial health and growth prospects.
TPR Trades Above 100 & 200-Day Moving Averages
Image Source: Zacks Investment Research
Coach Brand: Key Growth Catalyst for Tapestry
Coach remains the pivotal driver behind Tapestry’s growth, delivering impressive year-over-year revenue increases. In the second quarter of fiscal 2025, the brand achieved an 11% year-over-year increase in reported revenues and a 10% rise in constant currency, alongside a 270-basis-point improvement in gross margin.
Tapestry announced a definitive agreement on Feb. 19 to sell its Stuart Weitzman brand to Caleres for $105 million in cash. The move aligns with Tapestry’s strategy to focus on its core brands, Coach and Kate Spade.
With collections such as the Tabby, Brooklyn and Empire leading the way, Coach is steadily gaining market share in the handbag segment. Its strong global pricing power reinforces its status in the accessible luxury sector and highlights its potential as a long-term investment.
Global Expansion Fuels TPR’s Growth
TPR's international strategy continues to yield significant revenue gains in critical markets. Europe, in particular, emerged as major growth driver, with a 42% year-over-year revenue increase in the fiscal second quarter, driven by robust local demand and effective customer acquisition initiatives.
In Greater China, the company returned to revenue growth with a 2% year-over-year rise, demonstrating resilience despite economic headwinds. Meanwhile, the broader Asia-Pacific region (excluding China) experienced 11% growth, led by strong performances in markets such as South Korea, Malaysia, Australia and New Zealand. These achievements highlight Tapestry’s effective global execution and long-term growth potential.
Tapestry’s Digital and Direct-to-Consumer Momentum
TPR is continuing to enhance its digital and DTC strategies, which is driving notable growth. In the fiscal second quarter, DTC sales increased by 4%, thanks to a robust high-single-digit boost in digital sales and a modest gain in global brick-and-mortar performance. Across all channels, profitability has also seen improvements.
Furthermore, the implementation of AI-powered customer engagement has improved pricing strategies while reducing the need for frequent promotions. The company’s success in attracting and retaining younger consumers — especially Gen Z and Millennials — further strengthens its competitive market position.
TPR Raises FY25 Outlook
Tapestry has revised its full-year financial forecast upward, now expecting revenues to exceed $6.85 billion, a 3% year-over-year increase despite currency fluctuations. This surpasses its earlier projection of $6.75 billion, which estimated 1-2% growth on both a reported and constant-currency basis.
Additionally, the company foresees a 100-basis-point improvement in operating margin, an upgrade from the previously expected expansion of over 50 basis points. Earnings per share (EPS) are now projected to range between $4.85 and $4.90, reflecting a 13-14% increase from the prior year and outperforming the previous estimate of $4.50-$4.55.
Is Tapestry a Value Play Stock?
The company is currently trading at a notable low price-to-earnings (P/E) multiple, below the averages of both the industry and the sector. Its forward 12-month P/E ratio is 14.57, lower than the industry and the sector’s ratios of 15.74 and 22.49, respectively. This undervaluation highlights its potential for investors seeking attractive entry points. Moreover, TPR's Value Score of A underscores its appeal as an investment option.
TPR Looks Attractive From a Valuation Standpoint
Image Source: Zacks Investment Research
Estimate Revisions Favor TPR Stock
Analysts have responded positively to Tapestry’s prospects, indicated by upward revisions in the Zacks Consensus Estimate for EPS. In the past 60 days, analysts have increased their estimates for the current fiscal year by 29 cents. The consensus estimate for earnings is pegged at $4.91 per share. The consensus estimate for the next fiscal year has also been raised 30 cents to $5.30 per share. This indicates year-over-year growth of 14.5% and 8%, respectively.
The Zacks Consensus Estimate for the current and next fiscal year’s sales is pegged at $6.87 billion and $7.11 billion, implying year-over-year growth of 3% and 3.4%, respectively.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Image Source: Zacks Investment Research
Final Thought on Tapestry Stock
Tapestry stands out as a compelling investment opportunity backed by its dynamic digital and direct-to-consumer strategies. The strong performance of its Coach brand and a clear focus on core brands underscore its growth potential. Strategic international expansion and enhanced operational efficiency further strengthen its market position. AI-driven pricing strategies are contributing to improved profitability. Overall, Tapestry’s robust outlook and attractive valuation make it an appealing choice for long-term investors. The company currently carries a Zacks Rank #2 (Buy).
Other Key Picks
Some other top-ranked stocks are The Gap, Inc. (GAP - Free Report) , Deckers Outdoor Corporation (DECK - Free Report) and G-III Apparel Group, Ltd. (GIII - Free Report) .
The Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Gap’s fiscal 2025 earnings and revenues indicates growth of 7.7% and 1.6%, respectively, from the fiscal 2024 reported levels. GAP delivered a trailing four-quarter average earnings surprise of 77.5%.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for DECK’s fiscal 2025 earnings and revenues implies growth of 21% and 15.6%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 36.8%.
G-III Apparel is a manufacturer, designer and distributor of apparel and accessories under licensed brands, owned brands and private label brands. It carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for GIII’s fiscal 2025 earnings and revenues implies declines of 4.5% and 1.2%, respectively, from the year-ago actuals. GIII delivered a trailing four-quarter average earnings surprise of 117.8%.