In a remarkable display of market resilience, Tapestry Inc. (NYSE:TPR), the parent company of luxury brand Coach , has seen its stock price surge to a 52-week high, reaching a peak of $52.1. This impressive milestone underscores a period of robust growth for the company, which has witnessed an extraordinary 1-year change, climbing by 81.21%. Investors have rallied behind Tapestry's strategic initiatives and strong brand performance, propelling the stock to new heights and reflecting a renewed confidence in the luxury goods sector.
In other recent news, Tapestry Inc., the parent company of luxury brand Coach, has raised its annual earnings forecast due to strong demand for its Tabby handbags. This increase has led to first-quarter revenue and profit estimates being surpassed. The Tabby handbags have attracted a younger clientele and have been a significant sales driver for several years, contributing to over a third of Tapestry's total revenue. Furthermore, the company reported a first-quarter revenue of $1.51 billion, outperforming analysts' expectations. Tapestry has also adjusted its 2025 earnings per share projection to between $4.50 and $4.55, a slight increase from the previous forecast.
In the realm of mergers, Tapestry is planning to appeal a decision made last month by U.S. District Judge Jennifer Rochon, which blocked its proposed $8.5 billion merger with Capri, the parent company of Michael Kors. Analysts from firms such as Telsey Advisory Group and Axinn, Veltrop & Harkrider LLP have suggested that if the merger fails, Capri might look for another company to partner with.
On the analyst front, Citi maintained its Buy rating on Tapestry Inc. with a consistent price target of $55.00. Evercore ISI adjusted its outlook on Tapestry, increasing the price target and maintaining an Outperform rating on the stock. The firm highlighted that if the merger is blocked, Tapestry could resume its previously paused share buyback program, potentially increasing earnings per share estimates.
These are recent developments in Tapestry's financial performance, merger plans, and analyst ratings.
InvestingPro Insights
Tapestry's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's stock is currently trading near its 52-week high, with a price that is 95.77% of its peak value. This strong performance is further supported by InvestingPro data showing a remarkable 87.57% total return over the past year, corroborating the article's mention of an 81.21% 1-year change.
InvestingPro Tips highlight Tapestry's financial strength and shareholder-friendly policies. The company has maintained dividend payments for 16 consecutive years and has raised its dividend for 3 consecutive years, demonstrating a commitment to returning value to shareholders. This is particularly noteworthy given the current dividend yield of 2.81%.
Tapestry's impressive gross profit margins, as noted in the InvestingPro Tips, are quantified by the latest data showing a gross profit margin of 73.29% for the last twelve months as of Q4 2024. This high margin suggests strong pricing power and efficient cost management, which are crucial factors in the luxury goods sector.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Tapestry, providing a deeper understanding of the company's financial health and market position.
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