Tapestry Inc (TPR, Financial) has experienced a remarkable surge in its stock price, with a 4.02% gain over the past week and an impressive 48.49% gain over the past three months. The company's market capitalization now stands at $9.84 billion, with a current stock price of $42.92. According to GF Value, Tapestry is currently modestly undervalued with a GF Value of $54.82, up from a past GF Value of $51.85. This marks a significant shift from being significantly undervalued three months ago, indicating a positive trend in the company's valuation.
Introducing Tapestry Inc
Tapestry Inc, operating in the cyclical retail industry, is the parent company of renowned fashion brands Coach, Kate Spade, and Stuart Weitzman. With a diverse sales distribution network, Tapestry's products are available through approximately 1,400 company-operated stores, wholesale channels, and e-commerce platforms. The company's recent strategic move to acquire Capri Holdings has expanded its portfolio to include Michael Kors, Versace, and Jimmy Choo, positioning Tapestry for further growth in the luxury fashion sector. 
Assessing Tapestry's Profitability
Tapestry's Profitability Rank stands strong at 8/10, reflecting its robust financial health. The company's Operating Margin is an impressive 17.57%, surpassing 92.01% of 1,102 companies in the industry. Its Return on Equity (ROE) is a remarkable 40.59%, and Return on Assets (ROA) is at 13.15%, both indicating efficient management and profitability. Tapestry's Return on Invested Capital (ROIC) is 17.43%, further showcasing its ability to generate cash flow relative to the capital invested. With nine years of profitability in the past decade, Tapestry's financial performance is commendable. 
Growth Trajectory of Tapestry Inc
Tapestry's Growth Rank is a solid 6/10. The company has demonstrated a 15.70% 3-Year Revenue Growth Rate per Share, outperforming 76.83% of 1,036 companies in its sector. Its 5-Year Revenue Growth Rate per Share stands at 6.40%. Looking ahead, Tapestry's Total Revenue Growth Rate is estimated at an impressive 19.92% for the next 3 to 5 years. The 3-Year EPS without NRI Growth Rate is at a robust 58.70%, and the 5-Year EPS without NRI Growth Rate is 12.00%. The EPS Growth Rate for the next 3 to 5 years is projected at 4.90%, indicating a steady upward trajectory for the company's earnings. 
Notable Shareholders in Tapestry Inc
Prominent investors have taken notice of Tapestry's potential. Jim Simons (Trades, Portfolio) holds 1,389,900 shares, representing 0.61% of the company. Ray Dalio (Trades, Portfolio) owns 585,391 shares, accounting for 0.26%, and Joel Greenblatt (Trades, Portfolio) has a stake of 279,823 shares, making up 0.12% of Tapestry's shares. These holdings by influential investors underscore the confidence in Tapestry's market position and future prospects.
Competitive Landscape
Tapestry's recent performance must be contextualized within its competitive landscape. Capri Holdings Ltd (CPRI, Financial) has a market capitalization of $5.52 billion, Signet Jewelers Ltd (SIG, Financial) is valued at $4.41 billion, and Movado Group Inc (MOV, Financial) stands at $599.692 million. Tapestry's market cap of $9.84 billion positions it as a leader in the industry, reflecting its strong brand portfolio and strategic growth initiatives.
Conclusion: Tapestry Inc's Market Position and Outlook
In summary, Tapestry Inc's stock performance has been stellar, with significant gains over the past three months. The company's profitability metrics are robust, with high rankings in Operating Margin, ROE, ROA, and ROIC. Growth prospects remain promising, with solid revenue and EPS growth rates. Tapestry's market position is strong, especially after the acquisition of Capri Holdings, and its valuation suggests it is modestly undervalued. Considering the confidence shown by notable investors and the company's competitive edge, Tapestry Inc presents an attractive opportunity for value investors looking for growth in the cyclical retail sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
