# Tapestry (TPR.US)

Canonical: https://gigainvestors.com/s/TPR

Analysis as of: 2026-10-16T07:32:28.954Z. Financial observations: FY1998–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $119.75 per share; close as of 2026-10-15.

Estimated value: low $68.87 per share, central $77.68 per share, high $89.40 per share. Buy at or below the central value $77.68 per share. Valuation as of 2026-10-16T07:32:28.954Z; scenarios are not confidence intervals.

Expected annual return: 7.4% at the stated quote. About 7.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.71×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.18×

- FY2018: 0.11×

- FY2019: 0.14×

- FY2020: -0.11×

- FY2021: 0.17×

- FY2022: 0.18×

- FY2023: 0.18×

- FY2024: 0.17×

- FY2025: 0.06×

- FY2026: 0.24×

### moat: pass

- ROIC, median of available years: 27.5%

- ROIC, second-lowest year: 13.3%

- Typical minus recent gross margin: -5.3 pp

- Typical gross margin (annual median): 70.2%

- Recent gross margin (lower of latest and 3-year median): 75.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.4%

- ROIC including acquisitions, ten-year median: 19.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 60.3%

- FY2018: 21.2%

- FY2019: 29.1%

- FY2020: -10.8%

- FY2021: 26.6%

- FY2022: 28.7%

- FY2023: 26.7%

- FY2024: 28.3%

- FY2025: 13.3%

- FY2026: 62.0%

### economics: pass

- Owner earnings / net income, 5-yr: 1.10×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.7B

- Net income, five-year total: $4.3B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -1.7 pp

- Working capital / revenue, final three-year average: 11.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.13×

- FY2023: 1.04×

- FY2024: 1.15×

- FY2025: 1.56×

- FY2026: 1.03×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 29.1% vs 28.3%

- Per-share earnings: 1.65 to 3.50 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.8%

- Ordinary dilution, 5-year annual growth: -5.8%

- Market cap gain: $16B

- Cumulative retained earnings: -$3.3B

- Diluted shares, 10-year annual growth: -2.8%

- Diluted shares, 5-year annual growth: -5.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 9.9%

- Per-share value change: $1.85

- Per-share value, starting three-year median: $1.65

- Per-share value, ending three-year median: $3.50

- Buybacks concentrated in cheaper years (correlation): 0.08

- Average buyback yield: 5.5%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $2.4B

- Cumulative net income, 10 years: $6.1B

- ROIC, first three-year median: 29.1%

- ROIC, last three-year median: 28.3%

Chart: Earnings per share; fiscal year observations.

- FY2017: $2.09

- FY2018: $1.38

- FY2019: $2.21

- FY2020: -$2.34

- FY2021: $2.95

- FY2022: $3.17

- FY2023: $3.88

- FY2024: $3.50

- FY2025: $0.82

- FY2026: $7.27

### accounting: pass

- Sloan accruals: -6.7%

- Receivables to sales index (DSRI): 0.86×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 5.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.30×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 2.42×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -4.5%

- FY2018: -9.0%

- FY2019: -2.2%

- FY2020: -13.4%

- FY2021: -5.8%

- FY2022: 0.0%

- FY2023: -0.6%

- FY2024: -3.3%

- FY2025: -15.7%

- FY2026: -6.7%

## Holders

## Price story

Down 23% since Feb 2026 · "Tapestry (TPR) Is Down 20.7% After Soft 2027 Outlook Tempers Dividend Hike And Buybacks" (finance.yahoo.com, Aug 2026) · sales +14.2%

Story as of 2026-10-16T09:59:42.919Z; price observation 2026-10-15.

Price needs cash profits to grow 6.6% a year for ten years

- 2025-05-08: Tapestry, Inc. Reports Fiscal 2025 Third Quarter Results and Raises Full Year Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/tapestry-inc-reports-fiscal-2025-104500494.html))

- 2025-09-10: Coach parent Tapestry expects to offset tariff costs by 2028, plans $3 billion buyback ([finance.yahoo.com](https://finance.yahoo.com/news/coach-parent-tapestry-expects-offset-174450357.html))

- 2026-01-07: Slowing Growth And Margin Pressures Could Be A Game Changer For Tapestry (TPR) ([finance.yahoo.com](https://finance.yahoo.com/news/slowing-growth-margin-pressures-could-171318515.html))

- 2026-02-06: Why Tapestry (TPR) Is Up 12.5% After Raising Guidance On Coach Strength And Buybacks ([finance.yahoo.com](https://finance.yahoo.com/news/why-tapestry-tpr-12-5-180746297.html))

- 2026-08-14: Tapestry (TPR) Is Down 20.7% After Soft 2027 Outlook Tempers Dividend Hike And Buybacks ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/tapestry-tpr-down-20-7-141250598.html))

### Sales · FY2025–2026

sales +14.2%; source https://www.sec.gov/Archives/edgar/data/1116132/000111613226000018/tpr-20260627.htm; observed 2026-08-13.

- FY2017: $4.5B 

- FY2018: $5.9B 

- FY2019: $6.0B 

- FY2020: $5.0B 

- FY2021: $5.7B 

- FY2022: $6.7B 

- FY2023: $6.7B 

- FY2024: $6.7B 

- FY2025: $7.0B 

- FY2026: $8.0B 

### Gross margin · FY2026

gross margin 77.8%; source https://www.sec.gov/Archives/edgar/data/1116132/000111613226000018/tpr-20260627.htm; observed 2026-08-13.

- FY2017: 68.6% 

- FY2018: 65.5% 

- FY2019: 67.3% 

- FY2020: 65.3% 

- FY2021: 71.0% 

- FY2022: 69.6% 

- FY2023: 70.8% 

- FY2024: 73.3% 

- FY2025: 75.4% 

- FY2026: 77.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in luxury goods; annual sales are USD 8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1116132/000111613226000018/tpr-20260627.htm (filed 2026-08-13); FY2026: revenue 8004200000; grossProfit 6229000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TPR.US: Tapestry, Inc. provides accessories and lifestyle brand products in North America, Greater China, rest of Asia, and internationally. The company operates in two segments, Coach and Kate Spade. It offers handbags, fashion designs, business cases, computer bags, messenger style bags, backpacks, travel bags, and totes; accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories, including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, technology accessories, gifting, straps, and charms. The company also provides women's and men's footwear, which casual and dress shoes, boots, sneakers, and sandals; and other products which includes outerwear, ready-to-wear, jewelry, watches, eyewear, fragrance, scarves, hats, gloves, and other products. It offers its products through retail and outlet stores, brand e-commerce sites, and concession shop-in-shops, as well as third-party digital platforms, including marketplaces. 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.

### Why customers stay

Margins ranged from 73.3% to 77.8% during 2024–26; it earns 27.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2024: grossProfit / revenue = 73.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2025: grossProfit / revenue = 75.4%.

- Source: https://www.sec.gov/Archives/edgar/data/1116132/000111613226000018/tpr-20260627.htm (filed 2026-08-13); FY2026: grossProfit / revenue = 77.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); 10-year return on capital observations [[2017,0.6026873429589058],[2018,0.2116474981680283],[2019,0.2909114054253519],[2020,-0.1080026806324307],[2021,0.2660777686511265],[2022,0.2868684563422604],[2023,0.2666050882538938],[2024,0.28258213201126964],[2025,0.1325566491461675],[2026,0.6199708377891044]]; median 0.2745936101325817. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 70% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1116132/000111613226000018/tpr-20260627.htm (filed 2026-08-13); Gross margin observations: [[2021,0.7103527487252667],[2022,0.6956990051611938],[2023,0.707847287904037]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 1.6 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2017: growth capex 0; upkeep 283100000; cash acquisitions 0; owner earnings 520700000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2018: growth capex 7100000; upkeep 260300000; cash acquisitions 2375800000; owner earnings 397500000. Growth capex plus acquisitions / owner earnings = 5.9947169811320755.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2019: growth capex 6000000; upkeep 268200000; cash acquisitions 43500000; owner earnings 643400000. Growth capex plus acquisitions / owner earnings = 0.07693503263910476.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2021: growth capex 0; upkeep 116000000; cash acquisitions 0; owner earnings 936900000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2022: growth capex 0; upkeep 93900000; owner earnings 968400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2023: growth capex 0; upkeep 184200000; owner earnings 976000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2024: growth capex 0; upkeep 108900000; owner earnings 936100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); FY2025: growth capex 0; upkeep 122700000; owner earnings 285400000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1116132/000111613226000018/tpr-20260627.htm (filed 2026-08-13); FY2026: growth capex 0; upkeep 166000000; owner earnings 1578900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); Dividend observations: [[2017,378000000],[2018,384100000],[2019,390700000],[2020,380300000],[2021,53700000],[2022,264400000],[2023,283300000],[2024,321400000],[2025,299300000],[2026,326100000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1116132/000111613226000018/tpr-20260627.htm (filed 2026-08-13); FY2026: cash repurchases 1554600000 USD.

### Are managers owners

Insiders own 0.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TPR.US SharesStats.PercentInsiders = 0.422 percentage points; cache date 2026-10-16.

### What could break it

"We are subject to risks associated with leasing retail space subject to non-cancelable leases." (SEC filing, Aug 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1116132/000111613226000018/tpr-20260627.htm (filed 2026-08-13); We are subject to risks associated with leasing retail space subject to non-cancelable leases.

### What the price says

The price assumes cash profits grow 6.6% yearly over ten years; actual growth was 20.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-13); Ten-year compound average after fade. Initial solved rate 0.08200822671906238. Price 119.75; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 1.1236826388686032 → FY2026 7.5114176974310185. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $35.89 per share

- 2016-11: $36.39 per share

- 2016-12: $35.02 per share

- 2017-01: $37.35 per share

- 2017-02: $38.09 per share

- 2017-03: $41.33 per share

- 2017-04: $39.39 per share

- 2017-05: $46.21 per share

- 2017-06: $47.34 per share

- 2017-07: $47.14 per share

- 2017-08: $41.70 per share

- 2017-09: $40.28 per share

- 2017-10: $40.95 per share

- 2017-11: $41.69 per share

- 2017-12: $44.23 per share

- 2018-01: $47.04 per share

- 2018-02: $50.91 per share

- 2018-03: $52.61 per share

- 2018-04: $53.77 per share

- 2018-05: $43.72 per share

- 2018-06: $46.71 per share

- 2018-07: $47.12 per share

- 2018-08: $50.69 per share

- 2018-09: $50.27 per share

- 2018-10: $42.31 per share

- 2018-11: $38.93 per share

- 2018-12: $33.75 per share

- 2019-01: $38.71 per share

- 2019-02: $34.94 per share

- 2019-03: $32.49 per share

- 2019-04: $32.27 per share

- 2019-05: $28.56 per share

- 2019-06: $31.73 per share

- 2019-07: $30.93 per share

- 2019-08: $20.65 per share

- 2019-09: $26.05 per share

- 2019-10: $25.86 per share

- 2019-11: $26.89 per share

- 2019-12: $26.97 per share

- 2020-01: $25.77 per share

- 2020-02: $23.45 per share

- 2020-03: $12.95 per share

- 2020-04: $14.88 per share

- 2020-05: $13.60 per share

- 2020-06: $13.28 per share

- 2020-07: $13.36 per share

- 2020-08: $14.73 per share

- 2020-09: $15.63 per share

- 2020-10: $22.23 per share

- 2020-11: $28.32 per share

- 2020-12: $31.08 per share

- 2021-01: $31.62 per share

- 2021-02: $42.14 per share

- 2021-03: $41.21 per share

- 2021-04: $47.85 per share

- 2021-05: $44.89 per share

- 2021-06: $43.48 per share

- 2021-07: $42.30 per share

- 2021-08: $40.32 per share

- 2021-09: $37.02 per share

- 2021-10: $38.98 per share

- 2021-11: $40.12 per share

- 2021-12: $40.60 per share

- 2022-01: $37.95 per share

- 2022-02: $40.90 per share

- 2022-03: $37.15 per share

- 2022-04: $32.92 per share

- 2022-05: $34.50 per share

- 2022-06: $30.52 per share

- 2022-07: $33.63 per share

- 2022-08: $34.73 per share

- 2022-09: $28.43 per share

- 2022-10: $31.68 per share

- 2022-11: $37.77 per share

- 2022-12: $38.08 per share

- 2023-01: $45.57 per share

- 2023-02: $43.51 per share

- 2023-03: $43.11 per share

- 2023-04: $40.81 per share

- 2023-05: $40.02 per share

- 2023-06: $42.80 per share

- 2023-07: $43.15 per share

- 2023-08: $33.32 per share

- 2023-09: $28.75 per share

- 2023-10: $27.56 per share

- 2023-11: $31.67 per share

- 2023-12: $36.81 per share

- 2024-01: $38.79 per share

- 2024-02: $47.53 per share

- 2024-03: $47.48 per share

- 2024-04: $39.92 per share

- 2024-05: $43.49 per share

- 2024-06: $42.79 per share

- 2024-07: $40.09 per share

- 2024-08: $40.97 per share

- 2024-09: $46.98 per share

- 2024-10: $47.45 per share

- 2024-11: $62.28 per share

- 2024-12: $65.33 per share

- 2025-01: $72.94 per share

- 2025-02: $85.42 per share

- 2025-03: $70.41 per share

- 2025-04: $70.65 per share

- 2025-05: $78.55 per share

- 2025-06: $87.81 per share

- 2025-07: $108.03 per share

- 2025-08: $101.82 per share

- 2025-09: $113.22 per share

- 2025-10: $109.82 per share

- 2025-11: $109.28 per share

- 2025-12: $127.77 per share

- 2026-01: $126.91 per share

- 2026-02: $155.47 per share

- 2026-03: $141.11 per share

- 2026-04: $145.04 per share

- 2026-05: $145.46 per share

- 2026-06: $146.38 per share

- 2026-07: $152.37 per share

- 2026-08: $123.39 per share

- 2026-09: $115.04 per share

- 2026-10: $119.75 per share

## Annual estimated value (USD per share)

- FY2017: low $30.71 per share, central $33.49 per share, high $37.18 per share

- FY2018: low $24.35 per share, central $27.16 per share, high $30.91 per share

- FY2019: low $25.06 per share, central $28.55 per share, high $32.57 per share

- FY2020: low $18.39 per share, central $20.27 per share, high $22.76 per share

- FY2021: low $30.41 per share, central $33.68 per share, high $38.02 per share

- FY2022: low $31.91 per share, central $35.89 per share, high $41.19 per share

- FY2023: low $46.23 per share, central $52.26 per share, high $60.28 per share

- FY2024: low $78.62 per share, central $89.12 per share, high $98.86 per share

- FY2025: low $54.30 per share, central $61.17 per share, high $70.33 per share

- FY2026: low $65.02 per share, central $73.33 per share, high $84.40 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1116132/000111613226000018/tpr-20260627.htm); period 2026-06-27, filed 2026-08-13.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.