Tapestry Stock Rises 56% in a Year: A Signal to Buy or Time to Wait?

Core Insights - Tapestry, Inc. (TPR) has seen a significant share price increase of 56.2% over the past year, outperforming the Zacks Retail-Apparel and Shoes industry's decline of 6.8% and the broader Retail-Wholesale sector's growth of 11.3% [1][2]. Performance Overview - TPR stock closed at $63.78, which is 29.8% below its 52-week high of $90.85 reached on February 18, 2025 [2]. - The company is currently trading at a low forward 12-month P/E ratio of 12.16, compared to the industry average of 13.98 and the sector's 21.99, indicating potential for attractive entry points for investors [5]. Growth Drivers - Tapestry's digital and direct-to-consumer (DTC) channels have shown robust performance, with DTC sales increasing by 4%, driven by digital revenue growth and steady physical retail performance [8]. - Coach, a key brand for Tapestry, reported an 11% increase in revenues and a 270-basis-point improvement in gross margin in the fiscal second quarter [10]. - Tapestry's international growth strategy is yielding results, with Europe experiencing a 42% year-over-year revenue increase, and Greater China returning to growth with a 2% sales increase [12][13]. Financial Outlook - Tapestry has raised its fiscal 2025 revenue guidance to exceed $6.85 billion, reflecting a 3% year-over-year increase, and has adjusted its EPS estimate to a range of $4.85 to $4.90, indicating a 13-14% year-over-year improvement [14][15]. - The Zacks Consensus Estimate for Tapestry's current fiscal year earnings has increased to $4.92 per share, with projected sales of $6.88 billion, implying year-over-year growth of 3.1% [16].