Tapestry, Inc.: Investment Report

Overview

Tapestry, Inc., the parent company of Coach, Kate Spade, and Stuart Weitzman, is a leading luxury accessories and branded lifestyle products manufacturer. With a rich history dating back to 1941, the company has established itself as a prominent player in the luxury goods industry. This report provides an in-depth analysis of Tapestry's current stock performance, financial health, growth prospects, and industry trends, helping investors make informed decisions about this stock.

Core Metrics

• Current price: 40.4 USD
• 52-week high: 48.8 USD
• 52-week low: 25.99 USD
• Market Cap: 9.3 billion USD
• P/E Ratio: 11.54
• Earnings per Share: 3.5 USD
• 50-day average: 40.90 USD
• 200-day average: 39.84 USD
• Analyst Recommendations: Buy (16 analysts)

Financial Performance

Tapestry's financial performance has been relatively stable, with a slight decline in revenue growth (-0.018). The company's gross margins remain strong at 0.72706, and EBITDA margins are at 0.2148. With a total cash position of 7.41 billion USD and an operating cash flow of 1.4 billion USD, Tapestry has a solid foundation to invest in its growth initiatives.

Growth Prospects

The luxury goods industry is expected to continue growing, driven by increasing demand from emerging markets and a shift towards online shopping. Tapestry is well-positioned to capitalize on these trends, with its diversified portfolio of brands and a strong e-commerce presence. The company's focus on sustainability and digital transformation initiatives is also expected to drive long-term growth.

News and Updates

Recent news articles highlight Tapestry's efforts to address cartel-related issues in Mexico, which could impact its supply chain. The company has also reported Q4 results, beating analyst expectations, but analysts have slashed their forecasts. Additionally, Tapestry's stock has been rising, outperforming the market.

Upgrades and Downgrades

In recent weeks, several analyst firms have made changes to their ratings on Tapestry. UBS maintained its Neutral rating, while Wells Fargo and JP Morgan reaffirmed their Overweight ratings. Telsey Advisory Group also maintained its Outperform rating. These rating changes reflect the company's stable financial performance and growth prospects.

Summary

In conclusion, Tapestry, Inc. presents a compelling investment opportunity, driven by its strong brand portfolio, solid financial foundation, and growth prospects in the luxury goods industry. While the company faces some headwinds, such as supply chain disruptions, its focus on digital transformation and sustainability initiatives is expected to drive long-term growth. With a Buy rating from 16 analysts, Tapestry is an attractive addition to a diversified investment portfolio.

Disclosures

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