Today let’s talk about Tapestry, which has been a growth leader over the past 3 months.
During this period, Tapestry’s stock has risen by +59%. At the same time, the Consumer Discretionary sector, to which the company belongs, grew by +10%, and the S&P 500 index by +12%. As you can see, Tapestry stocks show better returns than the sector average.
Tapestry is an American manufacturer of fashion apparel and accessories. The company manufactures its products under the Coach, Kate Spade New York, and Stuart Weitzman brands. Tapestry has 1.4K stores, and more than 90% of its customers come from North America and Asia.
The company operates in the Textiles, Apparel & Luxury Goods industry. It was founded in 1941. In 2017, it was listed on the NYSE and in the same year was included in the S&P 500 index. For the past 3 years, the company has been led by Joanne Crevoiserat and a team of experienced managers.
Tapestry’s main competitors are Nike, Lululemon Athletica, and Ralph Lauren. As you can see from the table above, they are ahead of Tapestry in terms of capitalization, but the company has a number of competitive advantages.
Tapestry’s strengths are based on its ability to scale. In 2015, the company expanded its product line by acquiring Stuart Weitzman for $574M, in 2017 – Kate Spade New York for $2.4B, and in late 2023 – Capri Holdings, which owns Michael Kors, Versace and Jimmy Choo, for $8.5B.
Tapestry published its latest report on February 08. 28% of the revenue structure is made up of product manufacturing costs and 72% of gross revenue. Over the past quarter, the company made a profit of $322M. And its market capitalization is now $11B.
