Tapestry, Inc.: Investment Report

Overview

Tapestry, Inc. is a leading luxury accessories and branded lifestyle products company with a diverse portfolio of iconic brands, including Coach, Kate Spade, and Stuart Weitzman. The company's strong performance in the fourth quarter of 2024, despite a challenging consumer environment, makes it an attractive investment opportunity. In this report, we will delve into the company's financial performance, growth prospects, and recent news and updates to provide a comprehensive overview of the stock.

Core Metrics

• Current price: $40.40 USD
• 52-week high: $48.80 USD
• 52-week low: $25.99 USD
• Market Cap: $9.3 billion USD
• P/E Ratio: 11.54
• Earnings per Share: $3.50
• 50-day average: $40.90
• 200-day average: $39.84
• Analyst Recommendations: 16 analysts, with a consensus rating of Buy

Financial Performance

Tapestry, Inc. reported strong fourth-quarter fiscal 2024 results, with revenue exceeding estimates despite a challenging consumer environment. The company's gross margin expanded, and operating cash flow improved to $1.4 billion. The company's total cash position stood at $7.42 billion, with free cash flow of $1.01 billion. The company's EBITDA margin was 21.48%, with revenue growth of -0.018. The company's strong financial performance is a testament to its ability to navigate challenging market conditions.

Growth Prospects

Tapestry, Inc. has a strong growth trajectory, driven by its iconic brands and expanding e-commerce presence. The company's Kate Spade brand has been a significant contributor to growth, with the brand's revenue increasing by 10% in the fourth quarter. The company's e-commerce channel accounted for 25% of total revenue, with online sales increasing by 15% in the quarter. The company's focus on digital marketing and social media engagement has helped to drive brand awareness and attract new customers.

News and Updates

Recent news articles have highlighted Tapestry, Inc.'s strong fourth-quarter results, with the company beating estimates on both revenue and earnings. The company's gross margin expansion and improved operating cash flow have been cited as key positives. Analysts have praised the company's ability to navigate challenging market conditions, with several firms reaffirming their Buy ratings.

Upgrades and Downgrades

In recent weeks, several analysts have reaffirmed their Buy ratings on Tapestry, Inc. Evercore ISI maintained its Buy rating, citing the company's strong performance and favorable outlook. Telsey Advisory Group also reiterated its Outperform rating, highlighting the company's growth prospects and expanding e-commerce presence.

Summary

In conclusion, Tapestry, Inc. is a compelling investment opportunity, driven by its strong financial performance, growth prospects, and expanding e-commerce presence. The company's iconic brands, including Coach, Kate Spade, and Stuart Weitzman, provide a solid foundation for future growth. With a strong cash position and improving operating cash flow, the company is well-positioned to navigate challenging market conditions. We recommend a Buy rating on Tapestry, Inc., with a price target of $45.00 USD.

Disclosures

The information on this website should not be construed as or relied upon in any manner as investment, legal, tax, or other advice. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. Any projections, estimates, forecasts, targets, prospects and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Any charts provided here or on other content distribution outlets are for informational purposes only, and should not be relied upon when making any investment decision. Under no circumstances should any information provided on this website or social media platforms be construed as an offer soliciting the purchase or sale of any security, nor should it be construed as an offer to provide investment advisory services.