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Tapestry, Inc.
S&P 500
$28.2B
Market Cap
106.2
P/E
1.68
PEG
8.7%
ROCE
9.8%
ROE
4.18
D/E
5.9%
OPM
-21.0%
% from 52W High
64
α RS
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About

Tapestry, Inc. provides accessories and lifestyle brand products in North America, Greater China, rest of Asia, and internationally.

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📈 Growth Pattern
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⭐ Superinvestors Holding TPR
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 662.3K $93.5M 0.12% Mar 2026
Jim Simons Renaissance Technologies LLC 476.5K $67.2M 0.11% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q3 2026
Revenue
$1.92B
+23% YoY pro forma constant currency
Operating Income
$430.1M
+55% YoY
Operating Margin
22.4%
+490 bps YoY
EPS
$1.66
+62% YoY
What Went Right
  • Acquired over 2.4 million new customers globally, with Gen Z acquisition accelerating.
  • Coach revenue grew 29% constant currency, with North America up 27%, Greater China up 55%, Europe up 27%.
  • Non-GAAP operating margin expanded 490 bps to 22.4%, exceeding expectations.
  • Returned $1.6 billion to shareholders via dividends and buybacks, on track for full year.
What to Watch
  • Kate Spade revenue declined 11% constant currency, with an expected high single-digit decline in Q4.
  • Tariff and duty headwind of 180 bps on gross margin in Q3, expected 120 bps for full fiscal year.
  • Potential disruption in Middle East (less than 1% of sales) being monitored, not material yet.
  • Heavy dependence on Coach brand; Kate Spade turnaround still in progress with modest profit loss expected.
Management Guidance
  • Full fiscal 2026 revenue of approximately $7.95 billion (16% pro forma constant currency growth).
  • Full-year operating margin of approximately 23%, up ~300 bps YoY.
  • Full-year EPS of approximately $6.95, representing growth of over 35% YoY.
  • Q4 pro forma revenue growth of low double-digits (constant currency), with EPS of approximately $1.20.
Investor Lens
The thesis is stronger after this call. Tapestry delivered a standout quarter and raised guidance, demonstrating structural advantages and compounding growth from customer acquisition and brand strength. The Coach brand continues to gain market share and drive margin expansion, while Kate Spade, though still challenged, is showing early signs of progress. The balanced capital allocation and strong cash flow further support shareholder returns. Risks remain around tariffs and Kate Spade's recovery, but overall the outlook is robust.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Record Q3 with 23% constant currency growth and raised outlook.
Revenue
Revenue was $1,920.6 million, representing pro forma constant currency growth of 23% versus prior year. Coach led with 29% constant currency growth, while Kate Spade declined 11%. By region, North America grew 20%, Greater China 55%, and Europe 21%.
Profitability
Non-GAAP operating income rose 55% to $430.1 million. Non-GAAP diluted EPS increased 62% to $1.66, exceeding guidance.
Margins
Non-GAAP operating margin expanded 490 bps to 22.4%, driven by gross margin expansion of 80 bps to 76.9% and SG&A leverage of 410 bps. Tariff headwinds partially offset, with 180 bps impact on gross margin.
Balance Sheet
Ended the quarter with $1.1 billion in cash and short-term investments, total borrowings of $2.4 billion, net debt of $1.3 billion, and gross leverage of 1.1x. CapEx of $50 million, free cash flow of $229 million for the quarter; full-year free cash flow expected to approach $1.6 billion.
Key Risks
Three risks flagged: 1) tariff and duty headwinds (180 bps in Q3, 120 bps for full year), 2) Kate Spade turnaround still in progress with declining revenue, and 3) potential Middle East disruption, though less than 1% of sales.
Outlook
Full fiscal 2026 guidance raised: revenue of $7.95 billion (+16% pro forma constant currency), operating margin ~23%, and EPS ~$6.95. For Q4, pro forma revenue growth of low double-digits and EPS of ~$1.20.
Generated by AI · Q3 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q3 2026 Q3 2026 2026-05-07
Delivered double-digit revenue, margin, and EPS growth in Q3, driven by strong global demand, especially among Gen Z, and raised full-year guidance. Coach saw exceptional growth, while Kate Spade's turnaround continues. Significant capital returns planned for FY26.
Q2 2026 Q2 2026 2026-02-05
Record Q2 results with 18% revenue growth, 390 bps margin expansion, and 34% EPS increase led to a raised full-year outlook. Coach saw 25% growth and strong Gen Z gains, while Kate Spade showed early turnaround signs. $1.5B in shareholder returns planned for fiscal 2026.
Q1 2026 Q1 2026 2025-11-06
Pro forma revenue grew 16% and EPS rose 35% year-over-year, led by strong double-digit growth at Coach and robust customer acquisition, especially among Gen Z. Fiscal 2026 guidance was raised, with $1.3 billion in free cash flow and significant capital returns planned.
Q4 2025 Q4 2025 2025-08-14
Record year with $7B revenue, 20% operating margin, and $5.10 adjusted EPS, driven by double-digit growth at Coach and strong customer acquisition. Fiscal 2026 guidance anticipates continued growth despite $160M tariff headwinds, with over $1B in capital returns planned.
Q3 2025 Q3 2025 2025-05-08
Record Q3 results featured 8% revenue growth and 27% EPS increase, led by Coach's 15% top-line gain and strong Gen Z acquisition. Gross margin hit a 15-year high, and fiscal 2025 guidance was raised for revenue, EPS, and cash flow, with continued focus on brand investment and shareholder returns.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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