Tapestry Reports Strong Growth Amid Positive Retail Sales
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 16 2024
0mins
Source: Business Insider
Tapestry Inc. shares rose 4.06% as the stock reached a 20-day high, reflecting strong investor confidence.
Tapestry reported a remarkable 25% year-over-year increase in net sales and a 62% rise in adjusted earnings, driven by strong brand performance, particularly from Coach, which accounted for 88% of total sales. This impressive growth comes amid a backdrop of positive retail sales data, which saw a 0.42% month-over-month increase and a 7.19% year-over-year rise, indicating robust consumer spending despite inflationary pressures. Analysts expect Tapestry to maintain an annual EPS growth of 13% in the coming years, further solidifying its market position.
The strong performance of Tapestry highlights its resilience in the current economic climate, showcasing its ability to leverage brand strength and pricing power. This positions the company favorably for future growth, making it an attractive option for investors looking for stability in the consumer goods sector.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TPR?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TPR
Wall Street analysts forecast TPR stock price to fall
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 145.870
Low
120.00
Averages
136.57
High
155.00
Current: 145.870
Low
120.00
Averages
136.57
High
155.00
About TPR
Tapestry, Inc. is a house of accessories and lifestyle brands. The Company's global house of brands include Coach and kate spade new york. Coach brand is a global fashion house of accessories and lifestyle collections. Kate Spade New York is a global lifestyle brand that designs things for the everyday, delivering seasonal collections of handbags, ready-to-wear, jewelry, footwear, gifts, home decor and more. Its products include women's handbags, women's accessories, men's and other products. Women's accessories include small leather goods which include mini and micro handbags, money pieces, wristlets, pouches and cosmetic cases. Men's includes bag collections, small leather goods, footwear, watches, sunglasses, and ready-to-wear items. Its products are sold to customers through its direct-to-consumer (DTC), wholesale and licensing businesses. Its DTC business includes retail and outlet stores, branded e-commerce sites as well as concession shop-in-shops.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
PVH Corp. Aims for Steady Profitability Amid Uneven Apparel Demand
- Direct-to-Consumer Growth: In Q1 of fiscal 2026, PVH's direct-to-consumer revenues rose 6% year-over-year and 3% in constant currency, reflecting strong performance from Calvin Klein and Tommy Hilfiger, which lays a solid foundation for future profitability.
- Inventory Management Optimization: PVH's inventory decreased by 5% year-over-year to $1.51 billion, enhancing the company's flexibility amid demand fluctuations, while effective inventory control and lower product costs mitigated the impact of tariffs and market pressures on gross margins.
- Stable Gross Margin: Despite facing increased tariffs and a promotional environment, PVH maintained a gross margin of 58.6% in Q1, flat with the prior year, demonstrating effectiveness in cost management and product mix optimization.
- Cautious Market Outlook: PVH expects flat overall revenues for fiscal 2026, despite facing soft demand and tariff uncertainties in the EMEA region, necessitating heightened vigilance in execution and strategy to navigate future challenges.
See More
Tapestry Stock Growth Potential Analysis
- Earnings Growth Potential: Tapestry's historical EPS growth rate stands at 15.8%, with a projected increase of 36.4% this year, significantly surpassing the industry average of 28.7%, indicating strong future profitability that could drive stock price appreciation.
- Cash Flow Growth Advantage: Currently, Tapestry's year-over-year cash flow growth rate is 10.6%, well above the industry average of -3.2%, enabling the company to expand without relying on costly external funding, thereby enhancing its market competitiveness.
- Upward Earnings Estimates: The current-year earnings estimates for Tapestry have been revised upward by 0.1% over the past month, a positive trend that correlates with short-term stock price increases, reflecting growing market confidence in its future performance.
- Zacks Rating Advantage: Tapestry has not only achieved an A Growth Score but also holds a Zacks Rank #1 (Strong Buy), indicating its potential to outperform the market and attract the attention of growth-oriented investors.
See More
Oil Price Drop Fuels Apparel Stock Surge
- Oil Price Impact: Following the Trump administration's announcement of a new peace deal leading to the reopening of the Strait of Hormuz, oil prices fell over 5%, with Brent crude dropping from $126 in May to $83, which reduces logistics and raw material costs for retailers, thereby improving their margins.
- Apparel Retailer Surge: As a result of the oil price decline, Ralph Lauren's stock rose 3.6%, while Tapestry's stock increased by 5.6%, reflecting market optimism towards the apparel sector, particularly during the autumn and winter inventory purchasing cycle.
- Strong Consumer Spending: According to the CNBC/NRF Retail Monitor, sales rose 0.42% month-over-month and 7.19% year-over-year in May, indicating robust consumer health and suggesting that retailers will report higher profits in the second half of the year.
- Tapestry Investment Returns: Tapestry has risen 21% since the beginning of the year, currently trading at $156.11, close to its 52-week high of $160.49, with investors who bought $1,000 worth of shares five years ago now seeing their investment worth $3,585, highlighting strong long-term growth potential.
See More
Consumer Goods Companies Report Mixed Results Amid Inflation
- Tapestry Strong Growth: Tapestry reported a 25% year-over-year increase in net sales and a 62% rise in adjusted earnings, showcasing its brand strength and pricing power, particularly with Coach accounting for 88% of total sales.
- On Holding Continuous Expansion: On Holding achieved a 26% revenue growth in Q1, with gross margin rising to 64.2%, indicating its ability to drive full-price sales without discounts, while direct-to-consumer sales grew 29%.
- SharkNinja Diversified Development: Despite high inflation, SharkNinja posted a 15% sales increase in Q1, demonstrating the effectiveness of its diversification strategy across cleaning, cooking, and beauty products, particularly with strong performance from Luxe Cafe coffee machines and Shark Beauty products.
- Future Growth Potential: Analysts expect Tapestry and SharkNinja to see annual earnings growth of 13% and 18%, respectively, while On Holding continues to build strong brand awareness globally, allowing investors to purchase these stocks at reasonable P/E ratios.
See More
Tapestry, On Holding, and SharkNinja Show Strong Growth Amid Challenges
- Tapestry's Impressive Performance: Tapestry reported a 25% year-over-year increase in net sales and a 62% rise in adjusted earnings in the latest quarter, showcasing its brand strength and pricing power, particularly among younger consumers, with expected annual EPS growth of 13% in the coming years.
- On Holding's Sustained Growth: On Holding achieved a 26% constant-currency revenue growth across over 90 countries, with gross margin rising to 64.2%, indicating success in full-price sales, while direct-to-consumer sales grew by 29%, reflecting strong brand appeal.
- SharkNinja's Diversified Growth: SharkNinja posted a 15% sales increase despite high inflation, with a slight decline in food preparation products, yet strong performance in cleaning and beauty products highlights the success of its diversified portfolio, with expected annual earnings growth exceeding 18%.
- Significant Market Opportunities: Despite economic pressures on consumers, companies like Tapestry, On Holding, and SharkNinja demonstrate robust sales growth, indicating substantial market opportunities amidst challenges, making these stocks appealing for investors at reasonable forward P/E ratios.
See More
Tapestry, Sonos, and YETI Shares Surge Amid Strong Retail Sales Data
- Strong Retail Sales: According to the CNBC/NRF Retail Monitor, retail sales in May, excluding autos and gas, rose 0.42% month-over-month and 7.19% year-over-year, indicating robust consumer spending despite inflation and high gas prices, which enhances market optimism for retailers.
- Resilient Labor Market: NRF President Matthew Shay noted that the resilient labor market and consumers' continued willingness to spend are key drivers of sales growth, providing a positive outlook for retailers despite pressures from high borrowing costs and rising oil prices.
- Stock Performance Surge: Following the positive retail sales data, Tapestry (NYSE:TPR) shares jumped 4.4%, while Sonos (NASDAQ:SONO) and YETI (NYSE:YETI) both rose by 4.5%, reflecting renewed investor confidence in consumer goods companies and potentially presenting good buying opportunities.
- Market Overreaction: Although Sonos shares have declined 11.8% since the beginning of the year, today's surge indicates a positive market reaction to retail sales data, even as the overall economic environment remains uncertain, prompting investors to carefully assess future consumer trends.
See More
PVH Corp. Aims for Steady Profitability Amid Uneven Apparel Demand
- Direct-to-Consumer Growth: In Q1 of fiscal 2026, PVH's direct-to-consumer revenues rose 6% year-over-year and 3% in constant currency, reflecting strong performance from Calvin Klein and Tommy Hilfiger, which lays a solid foundation for future profitability.
- Inventory Management Optimization: PVH's inventory decreased by 5% year-over-year to $1.51 billion, enhancing the company's flexibility amid demand fluctuations, while effective inventory control and lower product costs mitigated the impact of tariffs and market pressures on gross margins.
- Stable Gross Margin: Despite facing increased tariffs and a promotional environment, PVH maintained a gross margin of 58.6% in Q1, flat with the prior year, demonstrating effectiveness in cost management and product mix optimization.
- Cautious Market Outlook: PVH expects flat overall revenues for fiscal 2026, despite facing soft demand and tariff uncertainties in the EMEA region, necessitating heightened vigilance in execution and strategy to navigate future challenges.
See More
Tapestry Stock Growth Potential Analysis
- Earnings Growth Potential: Tapestry's historical EPS growth rate stands at 15.8%, with a projected increase of 36.4% this year, significantly surpassing the industry average of 28.7%, indicating strong future profitability that could drive stock price appreciation.
- Cash Flow Growth Advantage: Currently, Tapestry's year-over-year cash flow growth rate is 10.6%, well above the industry average of -3.2%, enabling the company to expand without relying on costly external funding, thereby enhancing its market competitiveness.
- Upward Earnings Estimates: The current-year earnings estimates for Tapestry have been revised upward by 0.1% over the past month, a positive trend that correlates with short-term stock price increases, reflecting growing market confidence in its future performance.
- Zacks Rating Advantage: Tapestry has not only achieved an A Growth Score but also holds a Zacks Rank #1 (Strong Buy), indicating its potential to outperform the market and attract the attention of growth-oriented investors.
See More
Oil Price Drop Fuels Apparel Stock Surge
- Oil Price Impact: Following the Trump administration's announcement of a new peace deal leading to the reopening of the Strait of Hormuz, oil prices fell over 5%, with Brent crude dropping from $126 in May to $83, which reduces logistics and raw material costs for retailers, thereby improving their margins.
- Apparel Retailer Surge: As a result of the oil price decline, Ralph Lauren's stock rose 3.6%, while Tapestry's stock increased by 5.6%, reflecting market optimism towards the apparel sector, particularly during the autumn and winter inventory purchasing cycle.
- Strong Consumer Spending: According to the CNBC/NRF Retail Monitor, sales rose 0.42% month-over-month and 7.19% year-over-year in May, indicating robust consumer health and suggesting that retailers will report higher profits in the second half of the year.
- Tapestry Investment Returns: Tapestry has risen 21% since the beginning of the year, currently trading at $156.11, close to its 52-week high of $160.49, with investors who bought $1,000 worth of shares five years ago now seeing their investment worth $3,585, highlighting strong long-term growth potential.
See More
Consumer Goods Companies Report Mixed Results Amid Inflation
- Tapestry Strong Growth: Tapestry reported a 25% year-over-year increase in net sales and a 62% rise in adjusted earnings, showcasing its brand strength and pricing power, particularly with Coach accounting for 88% of total sales.
- On Holding Continuous Expansion: On Holding achieved a 26% revenue growth in Q1, with gross margin rising to 64.2%, indicating its ability to drive full-price sales without discounts, while direct-to-consumer sales grew 29%.
- SharkNinja Diversified Development: Despite high inflation, SharkNinja posted a 15% sales increase in Q1, demonstrating the effectiveness of its diversification strategy across cleaning, cooking, and beauty products, particularly with strong performance from Luxe Cafe coffee machines and Shark Beauty products.
- Future Growth Potential: Analysts expect Tapestry and SharkNinja to see annual earnings growth of 13% and 18%, respectively, while On Holding continues to build strong brand awareness globally, allowing investors to purchase these stocks at reasonable P/E ratios.
See More
Tapestry, On Holding, and SharkNinja Show Strong Growth Amid Challenges
- Tapestry's Impressive Performance: Tapestry reported a 25% year-over-year increase in net sales and a 62% rise in adjusted earnings in the latest quarter, showcasing its brand strength and pricing power, particularly among younger consumers, with expected annual EPS growth of 13% in the coming years.
- On Holding's Sustained Growth: On Holding achieved a 26% constant-currency revenue growth across over 90 countries, with gross margin rising to 64.2%, indicating success in full-price sales, while direct-to-consumer sales grew by 29%, reflecting strong brand appeal.
- SharkNinja's Diversified Growth: SharkNinja posted a 15% sales increase despite high inflation, with a slight decline in food preparation products, yet strong performance in cleaning and beauty products highlights the success of its diversified portfolio, with expected annual earnings growth exceeding 18%.
- Significant Market Opportunities: Despite economic pressures on consumers, companies like Tapestry, On Holding, and SharkNinja demonstrate robust sales growth, indicating substantial market opportunities amidst challenges, making these stocks appealing for investors at reasonable forward P/E ratios.
See More
Tapestry, Sonos, and YETI Shares Surge Amid Strong Retail Sales Data
- Strong Retail Sales: According to the CNBC/NRF Retail Monitor, retail sales in May, excluding autos and gas, rose 0.42% month-over-month and 7.19% year-over-year, indicating robust consumer spending despite inflation and high gas prices, which enhances market optimism for retailers.
- Resilient Labor Market: NRF President Matthew Shay noted that the resilient labor market and consumers' continued willingness to spend are key drivers of sales growth, providing a positive outlook for retailers despite pressures from high borrowing costs and rising oil prices.
- Stock Performance Surge: Following the positive retail sales data, Tapestry (NYSE:TPR) shares jumped 4.4%, while Sonos (NASDAQ:SONO) and YETI (NYSE:YETI) both rose by 4.5%, reflecting renewed investor confidence in consumer goods companies and potentially presenting good buying opportunities.
- Market Overreaction: Although Sonos shares have declined 11.8% since the beginning of the year, today's surge indicates a positive market reaction to retail sales data, even as the overall economic environment remains uncertain, prompting investors to carefully assess future consumer trends.
See More
