Recent News
On September 10, 2025 Tapestry presented its “Amplify” growth strategy at Investor Day, initiating multi‑year targets that call for mid‑single digit annual revenue growth, operating margin expansion to over 22% by fiscal 2028, and low‑double‑digit EPS growth in fiscal 2027–2028; the company announced a new $3.0 billion share repurchase authorization and plans to return $4.0 billion to shareholders through fiscal 2028 via repurchases and dividends.
Technical Analysis
ADX at 23.82 indicates an emerging trend strength; that emerging trend increases the plausibility of near‑term directional follow‑through given other momentum signals.
DI+ sits at 18.47 and shows an increasing trend while DI− equals 27.56 with a decreasing trend; the combination gives a bullish directional bias because DI+ increasing and DI− decreasing together favor buyers over sellers.
MACD at −1.15 has been increasing and currently exceeds the signal line at −1.79; the MACD crossing above its signal line constitutes a bullish momentum signal and suggests the recent negative momentum has begun to recede.
MRO reads −9.14 and the oscillator trend declines further; a negative MRO indicates the market price sits below the target model and therefore carries potential to re‑rate upward, though the falling MRO trend reduces the immediacy of that potential.
RSI at 50.34 with a dip & reversal pattern signals improving short‑term momentum from neutral territory; that improvement aligns with the MACD cross and supports a near‑term upward bias while RSI remains away from overbought extremes.
Price sits near $110.70, above the 200‑day average of $92.08 and above the 20‑day average of $104.20; the 12‑day EMA shows a dip & reversal, which supports a short‑term recovery thesis that complements the mid‑term valuation case.
Bollinger bands (1× at $101.15–$107.26, 2× at $98.09–$110.32) show current price near the upper 1× band and below the 2× upper band, implying limited near‑term volatility expansion; volume at 2.27M sits below the 10‑ and 50‑day averages, so moves need higher volume to confirm directional conviction.
Fundamental Analysis
Profitability and margins: EBIT equals $331.5M and EBIT margin registers 19.45%; that EBIT margin stands above the industry peer mean of 11.94% and above the peer median of 7.91%, and sits somewhat below the peer high of 23.96%. EBIT margin moved −157.86% QoQ and improved 14.34% YoY, indicating sizable sequential variability but positive year‑over‑year progress.
Earnings and analyst metrics: Reported EPS of $1.38 exceeded the estimate of $1.26 by $0.12, an EPS surprise of 9.52%. Trailing PE equals 78.73× and forward PE equals 86.05×; those multiples reflect elevated market expectations relative to absolute earnings today.
Revenue and top‑line: Total revenue equals $1.7046B with revenue growth at −1.08%; year‑over‑year revenue growth reads −79.46% (as reported). Asset turnover remains low at 0.2634 but rose 136.96% YoY. Gross margin at 76.29% sits well above the industry peer mean of 47.98% and above the peer high of 65.73%, reflecting a high‑margin product mix and pricing power in core categories.
Cash generation and capital allocation: Operating cash flow totals $112.6M and free cash flow $80.2M, with a free cash flow yield of 0.36%. Cash and short‑term investments total $743.2M, while net debt stands at $1.9159B; the balance sheet shows available liquidity alongside meaningful leverage—total debt equals $4.1993B and total equity equals $399.5M, producing a debt‑to‑equity ratio near 10.51× and debt‑to‑assets of 65.99%.
Return metrics: Return on equity registers 68.79% and exceeds the industry peer mean of 6.58% and the peer median of 5.40%; return on assets equals 4.25% and sits slightly above the industry peer mean of 3.02%. Elevated ROE reflects high operating returns on a relatively small equity base rather than low leverage neutrality.
Valuation context: Price‑to‑book equals 55.94× and price‑to‑sales equals 13.11×—both multiples trade materially above typical peer levels (industry peer mean P/B 6.91, median 7.92). WMDST values the stock as under‑valued; that valuation sits alongside high multiples and a capital return program (new $3.0B repurchase authorization and $4.0B planned returns) that should reduce shares outstanding and support per‑share metrics if executed and supported by cash flow.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-06 |
| NEXT REPORT DATE: | 2026-02-05 |
| CASH FLOW | Begin Period Cash Flow | $ 1.1 B |
| Operating Cash Flow | $ 112.6 M | |
| Capital Expenditures | $ -32.40 M | |
| Change In Working Capital | $ -291.90 M | |
| Dividends Paid | $ -83.30 M | |
| Cash Flow Delta | $ -380.50 M | |
| End Period Cash Flow | $ 719.5 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.7 B | |
| Forward Revenue | $ 379.6 M | |
| COSTS | ||
| Cost Of Revenue | $ 404.1 M | |
| Depreciation | $ 37.2 M | |
| Depreciation and Amortization | $ 51.6 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 1.4 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.3 B | |
| EBITDA | $ 383.1 M | |
| EBIT | $ 331.5 M | |
| Operating Income | $ 328.2 M | |
| Interest Income | — | |
| Interest Expense | $ 12.8 M | |
| Net Interest Income | $ -12.80 M | |
| Income Before Tax | $ 318.7 M | |
| Tax Provision | $ 43.9 M | |
| Tax Rate | 13.8 % | |
| Net Income | $ 274.8 M | |
| Net Income From Continuing Operations | $ 274.8 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.26 | |
| EPS Actual | $ 1.38 | |
| EPS Difference | $ 0.12 | |
| EPS Surprise | 9.524 % | |
| Forward EPS | $ 1.19 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 6.4 B | |
| Intangible Assets | $ 1.7 B | |
| Net Tangible Assets | $ -1.29 B | |
| Total Current Assets | $ 2.6 B | |
| Cash and Short-Term Investments | $ 743.2 M | |
| Cash | $ 719.5 M | |
| Net Receivables | $ 289.5 M | |
| Inventory | $ 1.0 B | |
| Long-Term Investments | $ 132.9 M | |
| LIABILITIES | ||
| Accounts Payable | $ 495.5 M | |
| Short-Term Debt | $ 256.8 M | |
| Total Current Liabilities | $ 1.7 B | |
| Net Debt | $ 1.9 B | |
| Total Debt | $ 4.2 B | |
| Total Liabilities | $ 6.0 B | |
| EQUITY | ||
| Total Equity | $ 399.5 M | |
| Retained Earnings | $ -3.36 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 1.94 | |
| Shares Outstanding | 205.700 M | |
| Revenue Per-Share | $ 8.29 | |
| VALUATION | Market Capitalization | $ 22.3 B |
| Enterprise Value | $ 25.8 B | |
| Enterprise Multiple | 67.361 | |
| Enterprise Multiple QoQ | -255.066 % | |
| Enterprise Multiple YoY | 537.796 % | |
| Enterprise Multiple IPRWA | high: 97.054 median: 97.054 mean: 75.361 TPR: 67.361 low: -16.472 |
|
| EV/R | 15.139 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 15.928 | |
| Asset To Liability | 1.067 | |
| Debt To Capital | 0.913 | |
| Debt To Assets | 0.66 | |
| Debt To Assets QoQ | 11.371 % | |
| Debt To Assets YoY | 2886.063 % | |
| Debt To Assets IPRWA | high: 0.709 TPR: 0.66 median: 0.296 mean: 0.284 low: 0.038 |
|
| Debt To Equity | 10.511 | |
| Debt To Equity QoQ | 131.244 % | |
| Debt To Equity YoY | 10230.604 % | |
| Debt To Equity IPRWA | TPR: 10.511 high: 6.666 median: 0.821 mean: 0.82 low: 0.046 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 55.945 | |
| Price To Book QoQ | 143.485 % | |
| Price To Book YoY | 1521.258 % | |
| Price To Book IPRWA | TPR: 55.945 high: 9.067 median: 7.923 mean: 6.909 low: 0.332 |
|
| Price To Earnings (P/E) | 78.734 | |
| Price To Earnings QoQ | -14.078 % | |
| Price To Earnings YoY | 81.682 % | |
| Price To Earnings IPRWA | high: 147.441 median: 147.441 mean: 110.461 TPR: 78.734 low: -107.031 |
|
| PE/G Ratio | 2.408 | |
| Price To Sales (P/S) | 13.112 | |
| Price To Sales QoQ | 14.635 % | |
| Price To Sales YoY | 92.093 % | |
| Price To Sales IPRWA | high: 17.59 TPR: 13.112 mean: 9.259 median: 9.104 low: 0.27 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 86.051 | |
| Forward PE/G | 2.632 | |
| Forward P/S | 58.877 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 145.67 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.263 | |
| Asset Turnover Ratio QoQ | 6.125 % | |
| Asset Turnover Ratio YoY | 136.959 % | |
| Asset Turnover Ratio IPRWA | high: 0.375 median: 0.317 mean: 0.315 TPR: 0.263 low: 0.026 |
|
| Receivables Turnover | 6.447 | |
| Receivables Turnover Ratio QoQ | -7.384 % | |
| Receivables Turnover Ratio YoY | 8.456 % | |
| Receivables Turnover Ratio IPRWA | high: 9.456 TPR: 6.447 mean: 2.539 median: 2.422 low: 0.693 |
|
| Inventory Turnover | 0.43 | |
| Inventory Turnover Ratio QoQ | -8.626 % | |
| Inventory Turnover Ratio YoY | 7.084 % | |
| Inventory Turnover Ratio IPRWA | high: 0.869 median: 0.869 mean: 0.771 TPR: 0.43 low: 0.226 |
|
| Days Sales Outstanding (DSO) | 14.154 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 117.869 | |
| Cash Conversion Cycle Days QoQ | -1.513 % | |
| Cash Conversion Cycle Days YoY | 3.941 % | |
| Cash Conversion Cycle Days IPRWA | high: 302.197 TPR: 117.869 mean: 104.508 median: 95.172 low: -55.897 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.89 | |
| CapEx To Revenue | -0.019 | |
| CapEx To Depreciation | -0.871 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.8 B | |
| Net Invested Capital | $ 3.0 B | |
| Invested Capital | $ 3.0 B | |
| Net Tangible Assets | $ -1.29 B | |
| Net Working Capital | $ 901.9 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.432 | |
| Current Ratio | 1.525 | |
| Current Ratio QoQ | -18.301 % | |
| Current Ratio YoY | -69.094 % | |
| Current Ratio IPRWA | high: 3.928 mean: 2.227 median: 2.19 TPR: 1.525 low: 0.339 |
|
| Quick Ratio | 0.932 | |
| Quick Ratio QoQ | -29.034 % | |
| Quick Ratio YoY | -78.706 % | |
| Quick Ratio IPRWA | high: 2.318 median: 1.447 mean: 1.406 TPR: 0.932 low: 0.205 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 10.961 | |
| Cost Of Debt | 0.272 % | |
| Interest Coverage Ratio | 25.898 | |
| Interest Coverage Ratio QoQ | -166.177 % | |
| Interest Coverage Ratio YoY | 210.094 % | |
| Interest Coverage Ratio IPRWA | high: 47.355 TPR: 25.898 mean: -5.618 median: -13.836 low: -25.85 |
|
| Operating Cash Flow Ratio | 0.092 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 106.388 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 3.299 | |
| Dividend Payout Ratio | 0.303 | |
| Dividend Rate | $ 0.40 | |
| Dividend Yield | 0.004 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -3.301 % | |
| Revenue Growth | -1.079 % | |
| Revenue Growth QoQ | -112.336 % | |
| Revenue Growth YoY | -79.463 % | |
| Revenue Growth IPRWA | high: 55.875 % mean: 10.329 % median: 5.614 % TPR: -1.079 % low: -33.951 % |
|
| Earnings Growth | 32.692 % | |
| Earnings Growth QoQ | 3266.838 % | |
| Earnings Growth YoY | 200.754 % | |
| Earnings Growth IPRWA | high: 335.294 % median: 250.0 % mean: 160.569 % TPR: 32.692 % low: -202.703 % |
|
| MARGINS | ||
| Gross Margin | 76.294 % | |
| Gross Margin QoQ | -0.03 % | |
| Gross Margin YoY | 1.342 % | |
| Gross Margin IPRWA | TPR: 76.294 % high: 65.735 % mean: 47.977 % median: 42.176 % low: 27.732 % |
|
| EBIT Margin | 19.447 % | |
| EBIT Margin QoQ | -157.857 % | |
| EBIT Margin YoY | 14.34 % | |
| EBIT Margin IPRWA | high: 23.963 % TPR: 19.447 % mean: 11.94 % median: 7.91 % low: -6.481 % |
|
| Return On Sales (ROS) | 19.254 % | |
| Return On Sales QoQ | 22.294 % | |
| Return On Sales YoY | 13.206 % | |
| Return On Sales IPRWA | high: 23.209 % TPR: 19.254 % mean: 12.025 % median: 7.91 % low: -6.481 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 80.2 M | |
| Free Cash Flow Yield | 0.359 % | |
| Free Cash Flow Yield QoQ | -82.807 % | |
| Free Cash Flow Yield YoY | -60.679 % | |
| Free Cash Flow Yield IPRWA | high: 10.581 % TPR: 0.359 % mean: 0.219 % median: 0.014 % low: -20.114 % |
|
| Free Cash Growth | -80.51 % | |
| Free Cash Growth QoQ | -130.627 % | |
| Free Cash Growth YoY | 45.738 % | |
| Free Cash Growth IPRWA | high: 221.465 % TPR: -80.51 % median: -95.868 % mean: -99.684 % low: -285.423 % |
|
| Free Cash To Net Income | 0.292 | |
| Cash Flow Margin | 9.251 % | |
| Cash Flow To Earnings | 0.574 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 4.246 % | |
| Return On Assets QoQ | -157.016 % | |
| Return On Assets YoY | 208.576 % | |
| Return On Assets IPRWA | high: 7.035 % TPR: 4.246 % mean: 3.022 % median: 1.967 % low: -10.003 % |
|
| Return On Capital Employed (ROCE) | 7.137 % | |
| Return On Equity (ROE) | 0.688 | |
| Return On Equity QoQ | -214.107 % | |
| Return On Equity YoY | 999.169 % | |
| Return On Equity IPRWA | TPR: 0.688 high: 0.245 mean: 0.066 median: 0.054 low: -0.216 |
|
| DuPont ROE | 43.712 % | |
| Return On Invested Capital (ROIC) | 9.416 % | |
| Return On Invested Capital QoQ | -160.737 % | |
| Return On Invested Capital YoY | -410.964 % | |
| Return On Invested Capital IPRWA | high: 10.887 % TPR: 9.416 % mean: 4.819 % median: 3.405 % low: -3.04 % |
|