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TapestryTPR -0.38%86 Degree of Operating Leverage is 37.78 as of Jun. 2026. GuruFocus rates TPR with a GF Score™ of 86/100 and a GF Value™ of $92.81 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,100 Retail - Cyclical companies, Tapestry ranks worse than 93.09% on this metric.
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 Jun. 2026 was 37.78. 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 worse than 93.09% of 1100
companies
in the Retail - Cyclical industry
Industry Median: 1.185
vs TPR: 37.78
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
Tapestry Degree of Operating Leverage Historical Data
* Premium members only.
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.
TPR vs SIG, CPRI, REAL: Degree of Operating Leverage Comparison
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 Degree of Operating Leverage vs 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.
* 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.
What does a Degree of Operating Leverage of 37.78 mean?
Tapestry (TPR) has a Degree of Operating Leverage of 37.78 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Tapestry and its competitors. According to the industry distribution chart, Tapestry ranks #1024 out of 1100 companies in the Retail - Cyclical industry, placing it in the top 93.1%.
Is Tapestry's Degree of Operating Leverage too high?
Tapestry's current Degree of Operating Leverage is 37.78. The Retail - Cyclical industry median Degree of Operating Leverage is 1.19. Tapestry's value of 37.78 is 3088.2% above this industry median. Based on the distribution chart, Tapestry ranks #1024 out of 1100 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Tapestry has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tapestry's Degree of Operating Leverage compare to SIG and CPRI?
According to the Retail - Cyclical industry distribution chart, Tapestry ranks #1024 out of 1100 companies for Degree of Operating Leverage. This places Tapestry in the lower half of its industry. The industry median Degree of Operating Leverage is 1.19. Tapestry's value of 37.78 is 3088.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Retail - Cyclical company?
The median Degree of Operating Leverage among Retail - Cyclical companies is 1.19, based on 1,100 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tapestry's current Degree of Operating Leverage of 37.78 is 3088.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Tapestry and its competitors. For the Retail - Cyclical industry, the median Degree of Operating Leverage is 1.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tapestry's current Degree of Operating Leverage is 37.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tapestry stock overvalued right now?
Based on GuruFocus' analysis, Tapestry (TPR) is currently considered Significantly Overvalued. The stock's GF Value™ is $92.81, compared to a current price of $122.14 — trading 31.6% above its estimated fair value. The current Degree of Operating Leverage is 37.78 and 3088.2% above the Retail - Cyclical industry median of 1.19. Tapestry's overall GF Score™ is 86/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Tapestry (TPR), the current Degree of Operating Leverage is 37.78 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tapestry (TPR) Overvalued in 2026?
Based on GuruFocus' analysis, Tapestry stock appears to be overvalued.
The current stock price of $122.14 is trading 31.6% above its estimated GF Value™ of $92.81.
GuruFocus considers Tapestry to be Significantly Overvalued.
Key valuation signals for TPR:
Degree of Operating Leverage: 37.78
GF Value™: $92.81 vs. price of $122.14 (31.6% above fair value)
Industry Position: 3088.2% above the Retail - Cyclical median (#1024 of 1100)
No single metric tells the full story. See the TPR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Based in New York City, Tapestry is the parent company of accessories and fashion brand Coach, which accounted for 80% of its revenue and well over 90% of its operating profit in fiscal 2025. Handbags accounted for 58% of the brand's fiscal 2025 revenue. Coach products are sold through more than 950 company-owned stores, company-operated digital channels, and wholesale partners in North America, Asia, and Europe. Tapestry also owns Kate Spade (17% of fiscal 2025 revenue), which operates about 335 worldwide stores and generated 52% of its sales from handbags in fiscal 2025. Kate Spade is known for its colorful patterns and graphics. Tapestry sold its smallest brand, luxury footwear maker Stuart Weitzman, to Caleres in August 2025.
86GF Score
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