Recent News
Jan 8, 2026 — UBS raised its price objective on Tapestry and assigned a Neutral rating. Feb 1, 2026 — Telsey Advisory Group reiterated an Outperform rating on the company. Feb 12, 2026 — the company’s CFO executed a stock sale valued at roughly $6.76 million. Mar 10, 2026 — American Century reduced its Tapestry holdings, selling 15,556 shares.
Technical Analysis
ADX sits at 19.99, just below the 20 threshold, indicating no established trend and implying range-bound conditions in the immediate term.
DI+ currently shows a dip-and-reverse, a bullish directional signal; DI- shows a dip-and-reverse as well, a bearish directional signal. Those opposing directional signals indicate competing upward and downward pressures that support a consolidation phase rather than a sustained directional move.
MACD at -0.80 with a decreasing trajectory and a signal line at 0.16 indicates bearish momentum; MACD remains below its signal line and declining, which favors further short-term weakness until momentum reverses.
MRO registers 9.46 (positive), indicating the price sits above the model target and therefore carries downward pressure toward alignment with intrinsic targets; the magnitude suggests modest potential for mean reversion.
RSI at 53.56 and decreasing signals momentum cooling from near-midpoint levels rather than an overbought condition, consistent with consolidation and potential pullback risk.
Price at $138.84 trades below the 20-day average ($143.02) and the 12/26-day EMAs (12-day EMA $143.27; 26-day EMA $144.51), indicating short-term weakness; price remains above the 200-day average ($116.78), preserving the longer-term uptrend context.
Ichimoku components (Tenkan-Sen $144.57; Kijun-Sen $149.41; Senkou A $140.92; Senkou B $130.86) place price below short-term conversion and baseline lines, signaling short-term pressure while the cloud’s Senkou A near $140.92 provides an intraday resistance area.
Bollinger band placement (upper ~ $145.81, lower ~ $140.22) shows price beneath the lower 1x band threshold, reinforcing the current bias toward consolidation and intermittent downside moves toward structural supports.
Fundamental Analysis
Tapestry delivered an EBIT margin of 28.55%, substantially above the industry peer mean (9.67%), median (8.10%), and the industry peer high (16.99%), reflecting margin leadership across the portfolio. QoQ EBIT margin improved roughly 46.83%, and YoY EBIT margin rose about 69.51%, indicating significant operating leverage and margin expansion over recent periods.
Revenue dynamics show a meaningful intra-period swing: quarter-over-quarter revenue declined about 44.38%, while year‑over‑year revenue grew roughly 2.57%. The quarterly drop contrasts with longer-term sales stability and likely reflects timing or seasonal effects that accompany strong margin management.
Reported EPS of $2.69 exceeded the estimate of $2.23, producing an EPS surprise near +20.63%, underscoring earnings beat quality rather than one-off accounting effects.
Free cash flow reached $1,037,500,000 with a free cash flow yield of 4.17%, above the industry peer mean of 1.82%, supporting capital returns and balance-sheet flexibility. Operating cash flow of $1,081,100,000 and a cash conversion ratio above 2.3 further confirm cash generation strength.
Leverage metrics remain elevated: debt-to-equity stands at approximately 7.15x with total equity of $551.2 million and total debt near $3.94 billion. Interest coverage at 41.06x demonstrates ample capacity to service debt despite leverage magnitude. Return on equity measures ~101.83%, driven by high profitability on a relatively small equity base.
Valuation context: WMDST values the stock as under-valued. Market multiples include a PE of 45.82 and a price-to-book near 45.16; those multiples imply high expectations priced into equity metrics even as operating profitability and cash returns justify a premium on fundamentals.
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 | $ 407.1 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 | $ 2.23 | |
| EPS Actual | $ 2.69 | |
| EPS Difference | $ 0.46 | |
| EPS Surprise | 20.628 % | |
| Forward EPS | $ 1.80 | |
| 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: 64.616 TPR: 36.163 low: 7.225 |
|
| 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: 0.27 low: 0.034 |
|
| 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: 0.71 low: 0.045 |
|
| 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: 9.303 median: 6.991 mean: 6.131 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: 125.538 median: 125.538 mean: 95.166 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: 7.057 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: 0.335 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 | high: 8.231 TPR: 7.976 mean: 2.686 median: 2.323 low: 1.346 |
|
| 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: 0.844 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: 102.983 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: 4.224 mean: 2.159 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: 2.869 mean: 1.439 median: 1.399 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: 701.0 mean: 117.767 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 | TPR: 46.803 % high: 36.811 % mean: 8.006 % median: 6.032 % low: -12.568 % |
|
| Earnings Growth | 94.203 % | |
| Earnings Growth QoQ | 188.153 % | |
| Earnings Growth YoY | -1.952 % | |
| Earnings Growth IPRWA | high: 223.077 % TPR: 94.203 % mean: 10.956 % 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: 47.839 % median: 40.597 % low: 23.469 % |
|
| EBIT Margin | 28.553 % | |
| EBIT Margin QoQ | 46.825 % | |
| EBIT Margin YoY | 69.514 % | |
| EBIT Margin IPRWA | TPR: 28.553 % high: 16.988 % mean: 9.673 % median: 8.095 % low: -0.512 % |
|
| Return On Sales (ROS) | 28.629 % | |
| Return On Sales QoQ | 48.691 % | |
| Return On Sales YoY | 69.966 % | |
| Return On Sales IPRWA | TPR: 28.629 % high: 16.988 % mean: 9.82 % median: 8.095 % low: -0.512 % |
|
| 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: 25.352 % TPR: 4.168 % mean: 1.82 % 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: 837.98 % median: -45.322 % mean: -83.544 % 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 | TPR: 8.706 % high: 3.965 % mean: 2.362 % median: 2.109 % low: 0.036 % |
|
| 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: 0.131 mean: 0.057 median: 0.056 low: 0.001 |
|
| 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: 6.729 % mean: 4.163 % median: 3.609 % low: -0.137 % |
|