TPR Stock Rises 54% in 6 Months: A Bullish Signal for Investors?

Core Insights - Tapestry, Inc. (TPR) has seen a significant stock price increase of 53.7% over the past six months, outperforming the Zacks Retail-Apparel and Shoes industry's decline of 14.6% [1] - The stock closed at $70.41, approaching its 52-week high of $90.85 reached on February 18, 2025 [2] - Tapestry's operational efficiency and growth initiatives have contributed to its strong performance compared to the broader Retail-Wholesale sector and the S&P 500 index [1] Performance Metrics - Tapestry's stock is trading above its 100-day and 200-day simple moving averages of $69.29 and $55.89, indicating a positive market sentiment [5] - Coach, a key brand for Tapestry, reported an 11% increase in revenues in Q2 of fiscal 2025, with a 270-basis-point improvement in gross margin [8] - Tapestry's international strategy has led to a 42% year-over-year revenue increase in Europe and a 2% growth in Greater China [11][12] Strategic Developments - Tapestry announced the sale of its Stuart Weitzman brand to Caleres for $105 million, focusing on its core brands, Coach and Kate Spade [9] - The company is enhancing its digital and direct-to-consumer strategies, with DTC sales rising 4% in Q2, driven by strong digital sales [13] - AI-powered customer engagement is improving pricing strategies and attracting younger consumers, solidifying Tapestry's market position [14] Financial Outlook - Tapestry has raised its full-year revenue forecast to exceed $6.85 billion, reflecting a 3% year-over-year increase [15] - The company expects a 100-basis-point improvement in operating margin and EPS forecasted between $4.85 and $4.90, indicating a 13-14% increase from the prior year [16] - Analysts have positively revised EPS estimates, with the current fiscal year consensus at $4.91 per share, reflecting a year-over-year growth of 14.5% [19] Valuation Insights - Tapestry's forward 12-month P/E ratio is 13.53, lower than the industry average of 15.40 and the sector's 22.38, indicating potential undervaluation [17] - The company's Value Score of A highlights its attractiveness as an investment option [17] - The Zacks Consensus Estimate for Tapestry's sales for the current and next fiscal years is projected at $6.87 billion and $7.11 billion, respectively, implying year-over-year growth of 3% and 3.4% [20]