Tapestry, Inc. (TPR) AI Stock Analysis

Tapestry, Inc. is a provider of luxury accessories and branded lifestyle products, serving consumers across the United States, Japan, Greater China, and international markets. The company operates through three segments: Coach, Kate Spade, and Stuart Weitzman. Its product range includes women's and men's accessories such as handbags, wallets, footwear, ready-to-wear apparel, watches, fragrances, cold weather items, and jewelry. It also offers home goods including bedding and tableware. Tapestry operates a global physical footprint of 945 Coach stores, 398 Kate Spade stores, and 100 Stuart Weitzman stores, supported by e-commerce platforms, concession shop-in-shops, and independent distributors.

Tapestry increased its revenue from $6.68B in FY2022 to $8.00B in FY2026, delivering a 5-year revenue CAGR of 6.9%. Gross margin steadily widened from 69.6% in FY2022 to 77.8% in FY2026. Following an operating margin contraction to 5.9% and net income of $183.2M in FY2025, operating margin rebounded to 23.9% in FY2026, driving net income to $1.53B and diluted EPS to $7.05. In the latest quarter ended June 30, 2026, quarterly revenue grew 8.9% year-over-year, while quarterly earnings surged 73.7%.

As of June 30, 2026, Tapestry held $1.15B in cash and short-term investments against total debt of $3.95B, resulting in net debt of $2.80B. Shareholders' equity was $692.1M, yielding a debt-to-equity ratio of 5.71 and a current ratio of 1.75. During FY2026, the company generated $1.98B in operating cash flow and funded $166.0M in capital expenditures, yielding $1.81B in free cash flow. Capital return included $1.55B in share buybacks and $326.1M in dividends paid, contributing to a 24.2% share count reduction over five years.

Tapestry shares closed at $120.18 on October 16, 2026, representing a market capitalization of $23.85B and an enterprise value of $24.84B. The stock trades at a trailing P/E of 16.5x and a forward P/E of 14.2x, below the median of its S&P 500 Consumer Cyclical peers of 20.1x and 15.7x, respectively. Its EV/EBITDA of 11.6x is also lower than the peer median of 13.8x, though its price-to-sales of 3.0x sits above the peer median of 2.0x. Over the past year, the stock returned 4.5% compared to 16.8% for the S&P 500, but outperformed over five years with a 248.2% return against 83.0% for the index.

Tapestry pays a forward annual dividend of $1.85 per share, representing a dividend yield of 1.54%. The company has paid dividends for 18 consecutive years and has an annualized 5-year dividend growth rate of 34.8%. Dividends are distributed quarterly, supported by a payout ratio of 23.6%. The last ex-dividend date was September 4, 2026.

Wall Street coverage includes 11 Strong Buy, 6 Buy, 4 Hold, and 1 Sell ratings, with zero Strong Sell recommendations. The mean price target is $165.25, reflecting 37.5% upside from the close of $120.18. For the current fiscal year ending June 30, 2027, consensus estimates project revenue of $8.55B and EPS of $7.98, representing 13.1% EPS growth. Tapestry has beaten EPS estimates in each of the last 4 quarters, with its next earnings report scheduled for November 5, 2026.

This page is an AI-written research summary of Tapestry, Inc. (TPR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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