Tapestry (TPR)
Key Statistics
EV/EBIT = 16.7x
ROE = 39.82%
Debt/Equity = 307%
FCF Yield = 5.6%
Dividend Yield = 1.99%
Market Cap = $14.58 billion
The Company
Tapestry, Inc. (TPR) is a leading fashion company that unites three iconic brands: Coach, Kate Spade New York, and Stuart Weitzman. Originally established as Coach, Inc., the company rebranded as Tapestry, Inc. in 2018 after acquiring Stuart Weitzman in 2015 and Kate Spade in 2018.
The stock has seen a remarkable surge over the past year, nearly doubling in value over the last 12 months, with much of the gain occurring in the last quarter. This recent rally was fueled by strong Q2 earnings, as Tapestry exceeded expectations with $2.00 EPS and $2.2 billion in revenue, driven by an 11% increase in Coach sales. Additionally, the company raised its FY25 outlook and strengthened its appeal among Gen Z consumers, attracting 2.7 million new customers.
Founded in 1941 in New York City, Coach began as a small family-run workshop specializing in handcrafted leather goods. Inspired by the durability and feel of baseball gloves, the brand built its reputation on superior craftsmanship. Over the decades, Coach expanded into a global luxury house, offering handbags, accessories, footwear, and ready-to-wear collections.
In 2000, Coach, Inc. went public, accelerating its growth and market reach. Seeking diversification, the company acquired Stuart Weitzman Holdings LLC in 2015, a luxury footwear brand known for elegant, high-quality shoes. In 2017, the company made a transformative move by acquiring Kate Spade & Company, a lifestyle brand recognized for its playful, colorful aesthetic and extensive accessory offerings.
Recently, Tapestry experienced a 1.9% decrease in total store count from 1,429 in 2023 to 1,402 in 2024, with reductions across Coach (-9 stores), Kate Spade (-19 stores), and Stuart Weitzman (+1 store). North America saw a 2.8% decline, while international locations dropped 1.3%.
Despite fewer physical stores, average store square footage increased, emphasizing a shift toward larger, more immersive retail experiences. Coach expanded its total square footage by 0.7%, driven by a 2.1% increase internationally. Kate Spade’s space grew 1.9%, particularly in North America (+2.5%), while Stuart Weitzman’s footprint declined by 1.5%, primarily due to a 2.4% international decrease.
Tapestry also continues investing in digital commerce, operating e-commerce sites across the U.S., Canada, Japan, Greater China, Europe, Australia, and Asia. In addition to its own platforms, the company leverages third-party digital marketplaces to enhance global accessibility.
Tapestry organizes its business into three key brand segments: Coach, Kate Spade, and Stuart Weitzman.
