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TPR (Tapestry) Degree of Operating Leverage : -2.11 (As of Mar. 2025)


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What is Tapestry Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Tapestry's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.11. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Tapestry's Degree of Operating Leverage or its related term are showing as below:

TPR's Degree of Operating Leverage is ranked better than
79.52% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 1.295 vs TPR: -2.11

Tapestry Degree of Operating Leverage Historical Data

The historical data trend for Tapestry's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tapestry Degree of Operating Leverage Chart

Tapestry Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.57 -17.18 0.87 -16.65 -18.67

Tapestry Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.12 -18.67 100.73 -16.54 -2.11

Competitive Comparison of Tapestry's Degree of Operating Leverage

For the Luxury Goods subindustry, Tapestry's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tapestry's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Tapestry's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Tapestry's Degree of Operating Leverage falls into.


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Tapestry Degree of Operating Leverage Calculation

Tapestry's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1112 (Mar. 2025) / 1178.6 (Mar. 2024) - 1 )/( 6878.6 (Mar. 2025) / 6699.6 (Mar. 2024) - 1 )
=-0.0565/0.0267
=-2.11***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Tapestry  (NYSE:TPR) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Tapestry Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Tapestry's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Tapestry Business Description

Address
10 Hudson Yards, New York, NY, USA, 10001
Based in New York City, Tapestry is the parent company of accessories and fashion brand Coach, which accounts for about 80% of its sales and more than 90% of its operating profit. Coach products are sold through 900 company-owned stores, e-commerce, and third-party stores in North America, Asia, and Europe. Tapestry also owns Kate Spade, which generated 54% of its sales from handbags in fiscal 2024. Kate Spade is known for its colorful patterns and graphics. Meanwhile, Tapestry's smallest brand, luxury footwear maker Stuart Weitzman, is set to be sold to Caleres in the summer of 2025.
Executives
Manesh Dadlani officer: VP, Controller and PAO 10 HUDSON YARDS, NEW YORK NY 10001
Todd Kahn officer: SVP and General Counsel 516 WEST 34TH STREET, NEW YORK NY 10001
David E Howard officer: SVP, GC & Secretary 10 HUDSON YARDS, NEW YORK NY 10001
Scott A. Roe officer: CFO and Head of Strategy 105 CORPORATE CENTER BLVD., GREENSBORO NC 27408
Denise Kulikowsky officer: Chief People Officer 80 GRASSLANDS ROAD, ELMSFORD NY 10523
Lau Alan Ka Ming director 10 HUDSON YARDS, NEW YORK NY 10001
Thomas A. Glaser officer: Chief Operations Officer 10 HUDSON YARDS, 19TH FLOOR, NEW YORK NY 10001
Sarah Dunn officer: SVP, Human Resources 516 WEST 34TH STREET, NEW YORK NY 10001
Johanna W. Faber director 10 HUDSON YARDS, NEW YORK NY 10001
Annabelle Yu Long director 516 WEST 34TH STREET, NEW YORK NY 10001
Ivan Menezes director C/O TAPESTRY, INC., 10 HUDSON YARDS, NEW YORK NY 10001
Thomas Greco director PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Pamela Lifford director 10 HUDSON YARDS, NEW YORK NY 10001
John P Bilbrey director
Elizabeth Fraser officer: CEO & Brand Pres. Kate Spade 10 HUDSON YARDS, NEW YORK NY 10001