Recent News
On January 22, 2026 Tapestry announced it will host its fiscal 2026 second-quarter earnings call on February 5, 2026; the notice flagged the timing and access details for the company’s investor call.
Technical Analysis
Directional indicators: ADX at 33.97 signals a strong trend environment currently supporting price continuation; DI+ shows a dip-and-reversal pattern, which reads as bullish, while DI- is decreasing, also supporting the bullish directional bias.
MACD momentum reads bullish: MACD at 5.66 and rising, with the MACD above its 3.34 signal line, indicates accelerating upside momentum and confirms positive price momentum vs. recent averages.
MRO sits positive at 13.63 and trending lower, implying price currently sits above the WMDST target and carries measurable mean-reversion pressure; the magnitude suggests moderate potential for a price pullback toward intrinsic valuation if momentum eases.
RSI at 63.19 with a dip-and-reversal pattern reflects regained buying interest but not extreme overextension; combined with price trading above the 20- and 50-day averages, momentum favors further gains while leaving room for short-term consolidation.
Price structure and bands: Close at $154.67 trades above the 20-day average ($136.31) and well above the 200-day average ($105.94), and approaches the 52-week high of $157.00. Price sits at or above the 1× Bollinger upper band, which, together with the positive MRO, raises short-term mean-reversion risk even as trend indicators remain supportive.
Fundamental Analysis
Profitability and margins: EBIT of $714,500,000 yields an EBIT margin of 28.6%, well above the industry peer mean of 12.0% and approaching the peer high of 32.08%. QoQ EBIT margin expanded by 46.8%, and YoY EBIT margin rose by 69.5%, signalling substantial margin leverage versus the prior periods.
Revenue and growth: Reported revenue totaled $2,502,400,000 with a headline revenue growth metric of 46.8%; on a QoQ basis revenue shows a decline of 44.4% while YoY revenue rose 2.6%. These interval-specific moves merit attention to seasonality and period definitions when interpreting the large QoQ swing.
Cash flow and liquidity: Operating cash flow of $1,081,100,000 and free cash flow of $1,037,500,000 produce a free cash flow yield of 4.17%, above the industry peer mean of 0.97%. Cash and short-term investments total $1,077,700,000 and the cash conversion ratio sits at 2.33, indicating efficient conversion of earnings into cash. Current ratio 1.63 and quick ratio 1.10 provide modest short-term liquidity cushion versus operating liabilities.
Leverage and capital structure: Total debt $3,943,700,000 versus total equity $551,200,000 yields debt-to-equity of roughly 7.15x and debt-to-EBITDA of 5.14x, reflecting elevated leverage relative to typical apparel peers; interest expense remains low and interest coverage near 41x, limiting immediate solvency pressure but leaving capital structure sensitivity to earnings swings.
Returns and efficiency: Return on invested capital about 19.5% and return on assets about 8.71% highlight strong capital productivity; return on equity reports at roughly 101.8%, a consequence of relatively small equity base versus earnings and cash flows.
Earnings and valuation multiples: GAAP EPS $2.68 came $0.46 above the $2.22 estimate, a +20.7% surprise. Trailing P/E 45.8 and forward P/E ~65.8 reflect elevated earnings multiples; price-to-book at 45.2 far exceeds the industry peer mean near 6.0. WMDST values the stock as under-valued, which places the company’s momentum and cash-generation profile as key drivers of the valuation gap.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-05 |
| NEXT REPORT DATE: | 2026-05-07 |
| CASH FLOW | Begin Period Cash Flow | $ 719.5 M |
| Operating Cash Flow | $ 1.1 B | |
| Capital Expenditures | $ -43.60 M | |
| Change In Working Capital | $ 408.7 M | |
| Dividends Paid | $ -81.30 M | |
| Cash Flow Delta | $ 333.8 M | |
| End Period Cash Flow | $ 1.1 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.5 B | |
| Forward Revenue | $ 396.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 614.0 M | |
| Depreciation | $ 39.0 M | |
| Depreciation and Amortization | $ 53.1 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 1.8 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.9 B | |
| EBITDA | $ 767.6 M | |
| EBIT | $ 714.5 M | |
| Operating Income | $ 716.4 M | |
| Interest Income | — | |
| Interest Expense | $ 17.4 M | |
| Net Interest Income | $ -17.40 M | |
| Income Before Tax | $ 697.1 M | |
| Tax Provision | $ 135.8 M | |
| Tax Rate | 19.5 % | |
| Net Income | $ 561.3 M | |
| Net Income From Continuing Operations | $ 561.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.22 | |
| EPS Actual | $ 2.68 | |
| EPS Difference | $ 0.46 | |
| EPS Surprise | 20.721 % | |
| Forward EPS | $ 1.76 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 6.5 B | |
| Intangible Assets | $ 1.7 B | |
| Net Tangible Assets | $ -1.13 B | |
| Total Current Assets | $ 2.8 B | |
| Cash and Short-Term Investments | $ 1.1 B | |
| Cash | $ 1.1 B | |
| Net Receivables | $ 338.0 M | |
| Inventory | $ 896.4 M | |
| Long-Term Investments | $ 146.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 564.6 M | |
| Short-Term Debt | $ 17.1 M | |
| Total Current Liabilities | $ 1.7 B | |
| Net Debt | $ 1.3 B | |
| Total Debt | $ 3.9 B | |
| Total Liabilities | $ 6.0 B | |
| EQUITY | ||
| Total Equity | $ 551.2 M | |
| Retained Earnings | $ -3.29 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 2.72 | |
| Shares Outstanding | 202.700 M | |
| Revenue Per-Share | $ 12.35 | |
| VALUATION | Market Capitalization | $ 24.9 B |
| Enterprise Value | $ 27.8 B | |
| Enterprise Multiple | 36.163 | |
| Enterprise Multiple QoQ | -46.315 % | |
| Enterprise Multiple YoY | 22.789 % | |
| Enterprise Multiple IPRWA | high: 85.499 median: 85.499 mean: 66.742 TPR: 36.163 low: -26.368 |
|
| EV/R | 11.093 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 11.849 | |
| Asset To Liability | 1.092 | |
| Debt To Capital | 0.877 | |
| Debt To Assets | 0.604 | |
| Debt To Assets QoQ | -8.498 % | |
| Debt To Assets YoY | 1343.212 % | |
| Debt To Assets IPRWA | TPR: 0.604 high: 0.577 median: 0.299 mean: 0.272 low: 0.084 |
|
| Debt To Equity | 7.155 | |
| Debt To Equity QoQ | -31.933 % | |
| Debt To Equity YoY | 3051.733 % | |
| Debt To Equity IPRWA | TPR: 7.155 high: 3.243 median: 0.801 mean: 0.707 low: 0.131 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 45.161 | |
| Price To Book QoQ | -19.276 % | |
| Price To Book YoY | 356.38 % | |
| Price To Book IPRWA | TPR: 45.161 high: 6.991 median: 6.991 mean: 6.026 low: 0.514 |
|
| Price To Earnings (P/E) | 45.823 | |
| Price To Earnings QoQ | -41.801 % | |
| Price To Earnings YoY | 43.373 % | |
| Price To Earnings IPRWA | high: 69.625 mean: 49.311 median: 46.829 TPR: 45.823 low: -7.846 |
|
| PE/G Ratio | 0.486 | |
| Price To Sales (P/S) | 9.947 | |
| Price To Sales QoQ | -24.132 % | |
| Price To Sales YoY | 65.129 % | |
| Price To Sales IPRWA | TPR: 9.947 high: 8.286 median: 7.923 mean: 7.394 low: 0.408 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 65.826 | |
| Forward PE/G | 0.699 | |
| Forward P/S | 63.221 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.469 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.388 | |
| Asset Turnover Ratio QoQ | 47.369 % | |
| Asset Turnover Ratio YoY | 85.464 % | |
| Asset Turnover Ratio IPRWA | high: 0.496 TPR: 0.388 mean: 0.34 median: 0.331 low: 0.199 |
|
| Receivables Turnover | 7.976 | |
| Receivables Turnover Ratio QoQ | 23.712 % | |
| Receivables Turnover Ratio YoY | 4.702 % | |
| Receivables Turnover Ratio IPRWA | TPR: 7.976 high: 4.986 mean: 2.581 median: 2.323 low: 1.586 |
|
| Inventory Turnover | 0.641 | |
| Inventory Turnover Ratio QoQ | 49.111 % | |
| Inventory Turnover Ratio YoY | 12.222 % | |
| Inventory Turnover Ratio IPRWA | high: 1.07 median: 0.932 mean: 0.862 TPR: 0.641 low: 0.402 |
|
| Days Sales Outstanding (DSO) | 11.441 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 107.964 | |
| Cash Conversion Cycle Days QoQ | -8.404 % | |
| Cash Conversion Cycle Days YoY | -12.541 % | |
| Cash Conversion Cycle Days IPRWA | high: 338.107 TPR: 107.964 mean: 101.59 median: 95.506 low: 40.976 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.33 | |
| CapEx To Revenue | -0.017 | |
| CapEx To Depreciation | -1.118 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.9 B | |
| Net Invested Capital | $ 2.9 B | |
| Invested Capital | $ 2.9 B | |
| Net Tangible Assets | $ -1.13 B | |
| Net Working Capital | $ 1.1 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.628 | |
| Current Ratio | 1.626 | |
| Current Ratio QoQ | 6.627 % | |
| Current Ratio YoY | 2.695 % | |
| Current Ratio IPRWA | high: 4.056 mean: 2.107 median: 2.063 TPR: 1.626 low: 1.061 |
|
| Quick Ratio | 1.104 | |
| Quick Ratio QoQ | 18.397 % | |
| Quick Ratio YoY | 5.324 % | |
| Quick Ratio IPRWA | high: 2.526 median: 1.399 mean: 1.389 TPR: 1.104 low: 0.328 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 5.138 | |
| Cost Of Debt | 0.344 % | |
| Interest Coverage Ratio | 41.063 | |
| Interest Coverage Ratio QoQ | 58.555 % | |
| Interest Coverage Ratio YoY | 172.052 % | |
| Interest Coverage Ratio IPRWA | high: 587.448 mean: 59.4 TPR: 41.063 median: -15.015 low: -35.493 |
|
| Operating Cash Flow Ratio | 0.441 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 119.691 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 6.904 | |
| Dividend Payout Ratio | 0.145 | |
| Dividend Rate | $ 0.40 | |
| Dividend Yield | 0.003 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.635 % | |
| Revenue Growth | 46.803 % | |
| Revenue Growth QoQ | -4437.627 % | |
| Revenue Growth YoY | 2.566 % | |
| Revenue Growth IPRWA | high: 61.21 % TPR: 46.803 % mean: 9.266 % median: 6.032 % low: -12.144 % |
|
| Earnings Growth | 94.203 % | |
| Earnings Growth QoQ | 188.153 % | |
| Earnings Growth YoY | -1.952 % | |
| Earnings Growth IPRWA | high: 660.0 % TPR: 94.203 % mean: 18.411 % median: 8.163 % low: -44.737 % |
|
| MARGINS | ||
| Gross Margin | 75.464 % | |
| Gross Margin QoQ | -1.088 % | |
| Gross Margin YoY | 1.448 % | |
| Gross Margin IPRWA | TPR: 75.464 % high: 73.981 % mean: 46.359 % median: 40.597 % low: 38.591 % |
|
| EBIT Margin | 28.553 % | |
| EBIT Margin QoQ | 46.825 % | |
| EBIT Margin YoY | 69.514 % | |
| EBIT Margin IPRWA | high: 32.08 % TPR: 28.553 % mean: 11.999 % median: 8.095 % low: 1.476 % |
|
| Return On Sales (ROS) | 28.629 % | |
| Return On Sales QoQ | 48.691 % | |
| Return On Sales YoY | 69.966 % | |
| Return On Sales IPRWA | high: 31.384 % TPR: 28.629 % mean: 11.899 % median: 8.095 % low: -19.556 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 1.0 B | |
| Free Cash Flow Yield | 4.168 % | |
| Free Cash Flow Yield QoQ | 1061.003 % | |
| Free Cash Flow Yield YoY | 16.036 % | |
| Free Cash Flow Yield IPRWA | high: 7.203 % TPR: 4.168 % mean: 0.97 % median: 0.392 % low: -16.417 % |
|
| Free Cash Growth | 1193.641 % | |
| Free Cash Growth QoQ | -1582.6 % | |
| Free Cash Growth YoY | 194.026 % | |
| Free Cash Growth IPRWA | TPR: 1193.641 % high: -27.419 % median: -45.322 % mean: -214.696 % low: -647.462 % |
|
| Free Cash To Net Income | 1.848 | |
| Cash Flow Margin | 30.259 % | |
| Cash Flow To Earnings | 1.349 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 8.706 % | |
| Return On Assets QoQ | 105.04 % | |
| Return On Assets YoY | 194.221 % | |
| Return On Assets IPRWA | high: 12.202 % TPR: 8.706 % mean: 3.324 % median: 2.109 % low: -4.85 % |
|
| Return On Capital Employed (ROCE) | 14.841 % | |
| Return On Equity (ROE) | 1.018 | |
| Return On Equity QoQ | 48.042 % | |
| Return On Equity YoY | 338.459 % | |
| Return On Equity IPRWA | TPR: 1.018 high: 0.238 mean: 0.07 median: 0.056 low: -0.097 |
|
| DuPont ROE | 118.079 % | |
| Return On Invested Capital (ROIC) | 19.513 % | |
| Return On Invested Capital QoQ | 107.232 % | |
| Return On Invested Capital YoY | -141.063 % | |
| Return On Invested Capital IPRWA | TPR: 19.513 % high: 18.458 % mean: 5.58 % median: 3.609 % low: -6.966 % |
|