NYSE:TPR

Stock Analysis Report

Executive Summary

Tapestry, Inc. provides luxury accessories and branded lifestyle products in the United States, Japan, China, Hong Kong, Macau, Europe, Canada, Taiwan, South Korea, Malaysia, Australia, New Zealand, and Singapore.


Snowflake Analysis

6 star dividend payer and undervalued.


Similar Companies

Share Price & News

How has Tapestry's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TPR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.2%

TPR

-2.4%

US Luxury

-1.1%

US Market


1 Year Return

-22.6%

TPR

8.8%

US Luxury

17.8%

US Market

Return vs Industry: TPR underperformed the US Luxury industry which returned 9.3% over the past year.

Return vs Market: TPR underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

TPRIndustryMarket
7 Day-4.2%-2.4%-1.1%
30 Day2.6%-2.2%1.5%
90 Day5.5%4.1%6.6%
1 Year-18.6%-22.6%11.0%8.8%20.2%17.8%
3 Year-19.1%-27.7%62.1%54.8%47.5%38.1%
5 Year-22.5%-35.7%46.3%36.6%71.2%52.4%

Price Volatility Vs. Market

How volatile is Tapestry's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tapestry undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TPR ($27.99) is trading below our estimate of fair value ($58.45)

Significantly Below Fair Value: TPR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TPR is good value based on its PE Ratio (13.6x) compared to the Luxury industry average (17.8x).

PE vs Market: TPR is good value based on its PE Ratio (13.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: TPR is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: TPR is overvalued based on its PB Ratio (2.3x) compared to the US Luxury industry average (1.2x).


Next Steps

Future Growth

How is Tapestry forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPR's forecast earnings growth (13.8% per year) is above the savings rate (1.7%).

Earnings vs Market: TPR's earnings (13.8% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: TPR's earnings are forecast to grow, but not significantly.

Revenue vs Market: TPR's revenue (4.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: TPR's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TPR's Return on Equity is forecast to be high in 3 years time (23.6%)


Next Steps

Past Performance

How has Tapestry performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPR has a large one-off loss of $164.0M impacting its December 28 2019 financial results.

Growing Profit Margin: TPR's current net profit margins (9.7%) are lower than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: TPR's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: TPR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TPR had negative earnings growth (-19.5%) over the past year, making it difficult to compare to the Luxury industry average (3.5%).


Return on Equity

High ROE: TPR's Return on Equity (17.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tapestry's financial position?


Financial Position Analysis

Short Term Liabilities: TPR's short term assets ($2.5B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: TPR's short term assets ($2.5B) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: TPR's debt to equity ratio (48.1%) is considered high.

Reducing Debt: TPR's debt to equity ratio has increased from 1.6% to 48.1% over the past 5 years.

Debt Coverage: TPR's debt is well covered by operating cash flow (47.2%).

Interest Coverage: TPR's interest payments on its debt are well covered by EBIT (17.8x coverage).


Balance Sheet

Inventory Level: TPR has a high level of physical assets or inventory.

Debt Coverage by Assets: TPR's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Tapestry's current dividend yield, its reliability and sustainability?

4.82%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years5.0%

Current dividend yield vs market & industry

Notable Dividend: TPR's dividend (4.82%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TPR's dividend (4.82%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: TPR's dividends per share have been stable in the past 10 years.

Growing Dividend: TPR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.8%), TPR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TPR's dividends in 3 years are forecast to be well covered by earnings (46.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Jide Zeitlin (55yo)

0.4yrs

Tenure

US$410,039

Compensation

Mr. Jide J. Zeitlin is the Founder of The Keffi Group. Mr. Zeitlin serves as a Treasurer of Teach For America, Inc., Milton Academy and Common Ground Community. Mr. Zeitlin founded Independent Mobile Infra ...


Leadership Team

NamePositionTenureCompensationOwnership
Jide Zeitlin
CEO & Chairman of the Board0.4yrsUS$410.04k0.043% $3.3m
Todd Kahn
President3.8yrsUS$2.98m0.024% $1.8m
Andrea Resnick
Global Head of Investor Relations & Corporate Communications0yrsUS$1.44m0.016% $1.2m
Joshua Schulman
CEO & Brand President of Coach2.7yrsUS$4.53m0.0040% $309.8k
Joanne Crevoiserat
CFO, CEO & Brand President of Kate Spade0.5yrsno datano data
Thomas Glaser
Chief Operations Officer0.6yrsno datano data
Michael Braine
Chief Information Officer0yrsno datano data
Sarah Dunn
Global Human Resources Officer5.8yrsUS$1.83m0.023% $1.7m
Jo Baldwin
Global Head of Creative Studio& VP4.3yrsno datano data
Caroline Pasquier
Senior Vice President of Global Public Relations and Communications3.9yrsno datano data

3.2yrs

Average Tenure

55yo

Average Age

Experienced Management: TPR's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jide Zeitlin
CEO & Chairman of the Board0.4yrsUS$410.04k0.043% $3.3m
Susan Kropf
Lead Independent Director0.4yrsUS$270.04k0.0091% $700.0k
William Nuti
Director Emeritus1.3yrsUS$54.54k0.0032% $243.4k
Ivan Menezes
Independent Non Executive Director15yrsUS$240.04k0.018% $1.4m
Darrell Cavens
Outside Director1.6yrsUS$390.16k0.0033% $255.7k
Anne Gates
Outside Director2.2yrsUS$240.04k0.00070% $54.1k
David Denton
Independent Director5.8yrsUS$270.04k0.0093% $719.3k
Yu Long
Independent Director4.1yrsUS$90.00kno data

3.1yrs

Average Tenure

55yo

Average Age

Experienced Board: TPR's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TPR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tapestry, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tapestry, Inc.
  • Ticker: TPR
  • Exchange: NYSE
  • Founded: 1941
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$7.726b
  • Shares outstanding: 276.03m
  • Website: https://www.tapestry.com

Number of Employees


Location

  • Tapestry, Inc.
  • 10 Hudson Yards
  • New York
  • New York
  • 10001
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TPRNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2000
COYDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2000
0LD5LSE (London Stock Exchange)YesCommon StockGBUSDOct 2000
6388SEHK (The Stock Exchange of Hong Kong Ltd.)HDR USD0.01HKHKDDec 2017
TPRY34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 1 COM USD0.01BRBRLMay 2019

Biography

Tapestry, Inc. provides luxury accessories and branded lifestyle products in the United States, Japan, China, Hong Kong, Macau, Europe, Canada, Taiwan, South Korea, Malaysia, Australia, New Zealand, and Singapore. The company operates through three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women’s accessories, including handbags, such as wallets, money pieces, wristlets, and cosmetic cases; novelty accessories comprising address books, time management accessories, travel accessories, sketchbooks, and portfolios; key rings; and charms. The company also provides bag collections, including business cases, computer bags, messenger-style bags, backpacks, and totes; small leather goods, such as wallets, card cases, travel organizers, and belts; and footwear, watches, sunglasses, novelty accessories, and ready-to-wear for men. In addition, it offers women's footwear; sunglasses; bracelets, necklaces, rings, and earrings; fragrances and watches; various women's seasonal lifestyle apparel collections that include outerwear; and ready-to-wear and cold weather accessories, which comprise gloves, scarves, and hats. Further, the company provides kids ready-to-wear items; fashion bedding and tableware; and stationery and gifts. Additionally, it licenses rights to market and distribute its eyewear, watches, and fragrances under the Coach brand; and fashion beddings, eyewear, footwear, tableware, stationery and gifts, tech accessories, and watches under the Kate Spade brand. The company sells its products to consumers through a network of Coach, Kate Spade, and Stuart Weitzman operated stores, including the Internet and concession shop-in-shops; and wholesale customers, as well as through independent third party distributors. As of June 29, 2019, it operated 1,540 stores. The company was formerly known as Coach, Inc. and changed its name to Tapestry, Inc. in October 2017. Tapestry, Inc. was founded in 1941 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 01:14
End of Day Share Price2020/02/21 00:00
Earnings2019/12/28
Annual Earnings2019/06/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.