Tapestry (TPR, Financial) has witnessed a significant uptick in options activity, with 6,036 call options traded, nearly doubling the anticipated volume. Implied volatility has climbed by approximately 2 points, reaching 52.53%. The most actively traded options are the May-25 68 calls and the May-25 67.5 puts, which collectively account for around 5,800 contracts. The Put/Call Ratio currently stands at 0.15, indicating a strong preference for calls over puts. Investors are looking forward to the company's earnings announcement scheduled for May 8.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Tapestry Inc (TPR, Financial) is $83.94 with a high estimate of $110.00 and a low estimate of $62.00. The average target implies an upside of 17.64% from the current price of $71.36. More detailed estimate data can be found on the Tapestry Inc (TPR) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Tapestry Inc's (TPR, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Tapestry Inc (TPR, Financial) in one year is $46.21, suggesting a downside of 35.24% from the current price of $71.355. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Tapestry Inc (TPR) Summary page.
TPR Key Business Developments
Release Date: February 06, 2025
- Total Revenue Growth: 5% increase, driven by 10% growth at Coach.
- International Revenue Growth: 7% increase at constant currency, with Europe up 42%.
- Greater China Revenue Growth: 2% increase.
- North America Revenue Growth: 4% increase.
- Gross Margin Expansion: 280 basis points above prior year.
- Operating Margin Expansion: 210 basis points increase.
- Earnings Per Share (EPS): Record EPS of $2, a 23% increase over prior year.
- Free Cash Flow: Approximately $890 million inflow.
- Inventory Levels: 14% above prior year.
- Coach Revenue Growth: 10% constant currency revenue gains.
- Kate Spade Revenue Decline: 10% decrease.
- Stuart Weitzman Revenue Decline: 16% decrease at constant currency.
- Share Repurchase Program: $2 billion accelerated share repurchase program executed.
- Fiscal Year 2025 Revenue Guidance: Over $6.85 billion, approximately 3% growth.
- Fiscal Year 2025 EPS Guidance: Raised to $4.85 to $4.90, representing 13% to 14% growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tapestry Inc (TPR, Financial) delivered record quarterly revenue and earnings per share, exceeding expectations.
- Coach achieved a 10% growth in constant currency revenue with significant margin expansion, driven by strong gains in leather goods.
- The company acquired approximately 2.7 million new customers in North America, with over half being Gen Z and millennials.
- Tapestry Inc (TPR) reported a strong gross margin performance, achieving a record second quarter gross margin.
- The company raised its fiscal year 2025 outlook, expecting revenue of over $6.85 billion and EPS growth of 13% to 14%.
Negative Points
- Kate Spade's revenue trends declined by 10%, indicating challenges in brand performance.
- Stuart Weitzman experienced a 16% decrease in net sales, primarily due to softness in Greater China and North America.
- The company anticipates increased SG&A expenses, driven by higher marketing spend and investments at Kate Spade.
- Tapestry Inc (TPR) faces a planned second half currency headwind, impacting financial results.
- The company acknowledges that resetting the Kate Spade brand is a multi-quarter journey, indicating prolonged challenges.
