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Fundamentals for Tapestry, Inc.
Business Operations:
Sector: Consumer CyclicalIndustry: Luxury Goods
Tapestry, Inc. provides accessories and lifestyle brand products in North America, Greater China, rest of Asia, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women's handbags, fashion designs, business cases, computer bags, messenger style bags, backpacks, travel bags, and totes; and 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 under the Coach, Kate Spade, and Stuart Weitzman brand names. 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.
Revenue projections:
Investors may be wary of Tapestry, Inc. as its revenues are expected to fall below the prior year's levels. A revenue decrease often leads to concerns about profitability, as it is likely to affect the company's bottom line, prompting investors to take a more cautious approach.
Financial Ratios:
| currentRatio | 1.62600 |
|---|---|
| forwardPE | 20.31232 |
| debtToEquity | 715.47500 |
| earningsGrowth | 0.94200 |
| revenueGrowth | 0.14000 |
| grossMargins | 0.75981 |
| operatingMargins | 0.28764 |
| trailingEps | 2.58000 |
| forwardEps | 7.20991 |
Tapestry, Inc.'s current ratio of 1.626 highlights the company's solid liquidity, indicating that it can easily service its short-term debt. Tapestry, Inc.'s ample cash reserves and current assets ensure that the company is well-positioned to meet its immediate financial liabilities.
Tapestry, Inc.'s Forward PE is positioned well, reflecting a favorable balance between stock price and earnings. The stock isn't overpriced, offering room for growth and making it a potentially rewarding investment as its value has room to rise further.
TPR's high debt-to-equity ratio suggests a heavily leveraged capital structure. The company relies on debt to fund operations, which could heighten financial risks, particularly if economic conditions deteriorate or profitability declines.
TPR's positive earnings and revenue growth indicate that the company is expected to continue expanding its business. These trends reflect strong financial health, with increasing profits and sales suggesting sustained growth and success for TPR.
TPR's positive gross and operating margins highlight its strong profitability. The company's ability to control costs while generating revenue indicates efficient operations and a healthy financial position.
With a forward EPS greater than its trailing EPS, TPR is expected to see higher profitability this year. The forecasted increase in earnings reflects optimism about the company's financial growth and potential for improved performance over the prior year.
Price projections:
The price of TPR has consistently remained close to the lower end of price projections. This trend may reflect uncertainty in the market regarding the company's ability to deliver on growth expectations.
Insider Transactions:
18 Tapestry, Inc. transactions were recorded, when the market price was 116.36650509304471.During the period under review, no sell transactions were recorded.More buys than sells near the current price levels of Tapestry, Inc. might signal a favorable outlook for the stock. Investors seem to be showing confidence by purchasing more, potentially expecting positive future performance.
Recommendation changes over time:
Analysts have shown a buy bias for TPR, marking it as a favorable investment option. This could inspire investors to see TPR as a strong place to park their money, given the positive outlook and growth potential associated with the stock in recent evaluations.
DISCLAIMER: We provide information and our musings based on events, but nothing on this site can be considered professional advice of any kind.
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