NYSE · Consumer Cyclical

Tapestry, Inc.

TPR · Luxury Goods

$143.50

▼ -2.37 (-1.62%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 76.9%

Operating Margin 22.3%

Net Income Margin 17.9%

Fin. Health

D⤢

Years to Pay Off Debt 11.4 yrs

Working Capital vs Long-Term Debt -$1.1B

Working Capital $1.2B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 42.49x

Cash Flow

A⤢

Free Cash Flow $226M

CapEx % of Net Income 10.7%

Owner Earnings $434M

Profitability

Gross Profit Margin 76.9%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 22.3%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 17.9%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 11.4 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$1.1B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $1.2B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $226M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 10.7%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $434M

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Tapestry, Inc.

Tapestry, Inc. provides accessories and lifestyle brand products in North America, Greater China, rest of Asia, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women's handbags, fashion designs, business cases, computer bags, messenger style bags, backpacks, travel bags, and totes; and accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories, including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, technology accessories, gifting, straps, and charms. The company also provides women's and men's footwear, which casual and dress shoes, boots, sneakers, and sandals; and other products which includes outerwear, ready-to-wear, jewelry, watches, eyewear, fragrance, scarves, hats, gloves, and other products. It offers its products through retail and outlet stores, brand e-commerce sites, and concession shop-in-shops under the Coach, Kate Spade, and Stuart Weitzman brand names. The company was formerly known as Coach, Inc. and changed its name to Tapestry, Inc. in October 2017. Tapestry, Inc. was founded in 1941 and is headquartered in New York, New York.

Market Data

Market Cap $29.0B

Enterprise Value $33.0B

P/E (TTM) 43.62

Dividend Yield 1.06%

Exchange NYSE

Key Margins

Gross Profit 76.9%

Operating Margin 22.3%

Net Margin 17.9%

Company Info

Sector Consumer Cyclical

Industry Luxury Goods

Employees 12500

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Tapestry, Inc. at $143.50.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

At $143.50, the stock trades at a 1181% premium to its Graham Number of $11.20. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	76.9%▲	75.5%•	N/A
Operating Margin %	22.3%•	N/A•	N/A
Net Income %	17.9%▼	22.4%•	N/A
Diluted EPS	1.65▼	2.68•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$6.5B	$6.5B	N/A
Total Debt	$3.9B▼	$3.9B•	N/A
Working Capital	$1.2B▲	$1.1B•	N/A
Years to Pay Debt	11.41	7.03	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$226M▼	$1.0B•	N/A
Owner Earnings	$434M	$658M	N/A
CapEx % of Net Income	10.7%	7.8%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	0	0
Tax Rate For Calcs	0	0
Normalized EBITDA	483,000	767,600
Total Unusual Items	0	0	-120,100
Total Unusual Items Excluding Goodwill	0	0	-120,100
Net Income From Continuing Operation Net Minority Interest	343,800	561,300
Reconciled Depreciation	53,900	53,100
Reconciled Cost Of Revenue	444,100	614,000
EBITDA	483,000	767,600
EBIT	429,100	714,500
Net Interest Income	-13,100	-17,400
Interest Expense	13,100	17,400
Normalized Income	343,800	561,300
Net Income From Continuing And Discontinued Operation	343,800	561,300
Total Expenses	1,493,100	1,786,000
Total Operating Income As Reported	427,500	716,400
Diluted Average Shares	208,300	209,800
Basic Average Shares	202,500	204,100
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	343,800	561,300
Net Income Common Stockholders	343,800	561,300
Net Income	343,800	561,300
Net Income Including Noncontrolling Interests	343,800	561,300
Net Income Continuous Operations	343,800	561,300
Tax Provision	72,200	135,800
Pretax Income	416,000	697,100
Other Income Expense	1,600	-1,900
Other Non Operating Income Expenses	1,600	-1,900
Special Income Charges	0	0	-120,100
Other Special Charges			120,100
Net Non Operating Interest Income Expense	-13,100	-17,400
Interest Expense Non Operating	13,100	17,400
Operating Income	427,500
Operating Expense	1,049,000	1,172,000
Selling General And Administration	1,049,000	1,172,000
Gross Profit	1,476,500	1,888,400
Cost Of Revenue	444,100	614,000
Total Revenue	1,920,600	2,502,400
Operating Revenue	1,920,600	2,502,400

Balance Sheet

	2026	2025	2024
Ordinary Shares Number	202,300	202,700
Share Issued	202,300	202,700
Net Debt	1,330,600	1,343,100
Total Debt	3,923,200	3,943,700
Tangible Book Value	-995,200	-1,133,500
Invested Capital	3,059,500	2,947,600
Working Capital	1,241,300	1,074,200
Net Tangible Assets	-995,200	-1,133,500
Capital Lease Obligations	1,546,100	1,547,300
Common Stock Equity	682,400	551,200
Total Capitalization	3,059,500	2,930,500
Total Equity Gross Minority Interest	682,400	551,200
Stockholders Equity	682,400	551,200
Gains Losses Not Affecting Retained Earnings	-230,300	-201,600
Other Equity Adjustments	-230,300	-201,600
Retained Earnings	-3,174,300	-3,286,900
Additional Paid In Capital	4,085,000	4,037,700
Capital Stock	2,000	2,000
Common Stock	2,000	2,000
Total Liabilities Net Minority Interest	5,784,300	5,979,800
Total Non Current Liabilities Net Minority Interest	4,308,300	4,263,200
Other Non Current Liabilities	490,500	452,200
Derivative Product Liabilities
Non Current Deferred Liabilities	204,900	198,300
Non Current Deferred Taxes Liabilities	204,900	198,300
Long Term Debt And Capital Lease Obligation	3,612,900	3,612,700
Long Term Capital Lease Obligation	1,235,800	1,233,400
Long Term Debt	2,377,100	2,379,300
Current Liabilities	1,476,000	1,716,600
Other Current Liabilities
Current Debt And Capital Lease Obligation	310,300	331,000
Current Capital Lease Obligation	310,300	313,900
Current Debt		17,100	303,400
Other Current Borrowings
Line Of Credit	0	17,100
Current Notes Payable			303,400
Payables And Accrued Expenses	1,165,700	1,385,600
Current Accrued Expenses	666,000	821,000
Interest Payable
Payables	499,700	564,600
Total Tax Payable
Income Tax Payable
Accounts Payable	499,700	564,600
Total Assets	6,466,700	6,531,000
Total Non Current Assets	3,749,400	3,740,200
Other Non Current Assets	162,500	146,800
Non Current Deferred Assets	31,800	33,800
Non Current Deferred Taxes Assets	31,800	33,800
Goodwill And Other Intangible Assets	1,677,600	1,684,700
Other Intangible Assets	717,200	718,000
Goodwill	960,400	966,700
Net PPE	1,877,500	1,874,900
Accumulated Depreciation	-1,285,400	-1,259,600
Gross PPE	3,162,900	3,134,500
Leases
Construction In Progress
Other Properties	3,162,900	3,134,500
Machinery Furniture Equipment
Land And Improvements
Current Assets	2,717,300	2,790,800
Other Current Assets	103,700	107,800
Assets Held For Sale Current	0	0
Prepaid Assets	135,200	139,400
Inventory	843,900	896,400
Receivables	565,900	569,500
Taxes Receivable	260,900	231,500
Accounts Receivable	305,000	338,000
Allowance For Doubtful Accounts Receivable	-6,200	-7,200
Gross Accounts Receivable	311,200	345,200
Cash Cash Equivalents And Short Term Investments	1,068,600	1,077,700
Other Short Term Investments	22,100	24,400
Cash And Cash Equivalents	1,046,500	1,053,300

Cash Flow

	2026	2025	2024
Free Cash Flow	225,800	1,037,500
Repurchase Of Capital Stock	-150,200	-403,500
Repayment Of Debt	-17,000	0
Issuance Of Debt	0
Capital Expenditure	-36,800	-43,600
Interest Paid Supplemental Data	86,200	40,800
Income Tax Paid Supplemental Data	102,500	16,400
End Cash Position	1,046,500	1,053,300
Other Cash Adjustment Outside Changein Cash
Beginning Cash Position	1,053,300	719,500
Effect Of Exchange Rate Changes	-4,300	1,800
Changes In Cash	-2,500	332,000
Financing Cash Flow	-228,800	-705,700
Cash Flow From Continuing Financing Activities	-228,800	-705,700
Net Other Financing Charges	-400	-2,100
Proceeds From Stock Option Exercised	19,800	21,200
Cash Dividends Paid	-81,000	-81,300
Common Stock Dividend Paid	-81,000	-81,300
Net Common Stock Issuance	-150,200	-403,500
Common Stock Payments	-150,200	-403,500
Net Issuance Payments Of Debt	-17,000	-240,000
Net Short Term Debt Issuance
Net Long Term Debt Issuance	-17,000	0
Long Term Debt Payments	-17,000	0
Long Term Debt Issuance	0
Investing Cash Flow	-36,300	-43,400
Cash Flow From Continuing Investing Activities	-36,300	-43,400
Net Investment Purchase And Sale	1,000	200
Sale Of Investment	1,600	500
Purchase Of Investment	-600	-300
Net Business Purchase And Sale	-500	0	0
Sale Of Business	-500	0	0
Net PPE Purchase And Sale	-36,800	-43,600
Purchase Of PPE	-36,800	-43,600
Operating Cash Flow	262,600	1,081,100
Cash Flow From Continuing Operating Activities	262,600	1,081,100
Change In Working Capital	-159,000	408,700
Change In Other Current Liabilities	-15,000	28,600
Change In Other Current Assets	-25,000	99,900
Change In Payables And Accrued Expense	-190,300	210,200
Change In Accrued Expense	-133,400	134,600
Change In Payable	-56,900	75,600
Change In Account Payable	-56,900	75,600
Change In Inventory	52,400	124,500
Change In Receivables	18,900	-54,500
Changes In Account Receivables	18,900	-54,500
Other Non Cash Items	-14,900	-14,700
Stock Based Compensation	27,600	29,000
Provisionand Write Offof Assets	800	3,400
Deferred Tax	10,400	40,300
Deferred Income Tax	10,400	40,300
Depreciation Amortization Depletion	53,900	53,100
Depreciation And Amortization	53,900	53,100
Amortization Cash Flow	14,500	14,100
Amortization Of Intangibles	14,500	14,100
Depreciation	39,400	39,000
Net Income From Continuing Operations	343,800	561,300

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $1.6B ▲ $1.9B +21.2%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 76.1% ▲ 76.9% +0.8pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Net Margin

Prior year: 12.8% ▲ 17.9% +5.1pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$1.9B/qtr (≈$7.7B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.84x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$226M

vs Positive

Operating Cash Flow

$263M

Latest quarter · Buffett's cash reality check

ROIC

6.8%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

42.5x

Net Assets: $682M

⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.

Peers & Industry

No auto-detected peers for Luxury Goods. You can manually compare TPR against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.32%

Low — management has little skin in the game

Return on Equity (ROE)

50.4%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

5.3%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$2.0B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-0.5% YoY

Debt is declining — management is deleveraging

Leadership Team

Joanne Crevoiserat

President, CEO & Director

Age 61

Pay: $6,766,671

1.968% of net income

Scott Roe CPA

CFO & COO

Age 60

Pay: $3,344,624

0.973% of net income

Todd Kahn

CEO & Brand President of Coach

Age 61

Pay: $4,022,611

1.170% of net income

Yann Bozec

President of Tapestry Asia Pacific and President & CEO of Coach Asia Pacific

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	9.08%	18,347,453
Vanguard Capital Management LLC	6.51%	13,155,814
Vanguard Portfolio Management LLC	5.01%	10,113,766
State Street Corporation	4.65%	9,397,609
Geode Capital Management, LLC	4.01%	8,096,493
Schroder Investment Management Group	3.50%	7,072,496
FMR, LLC	2.52%	5,098,567
Srs Investment Management, Llc	2.50%	5,051,844

⚠️ Very high debt-to-equity — leverage risk

Risk Analysis

Beta (Market Risk)

1.45

Moderate volatility — moves slightly more than market

Short Interest

9.0% of float

Moderate short interest

Debt-to-Equity

5.75x

High leverage — significant financial risk

Current Ratio

1.84x

Adequate liquidity

52-Week Price Range

Low: $83.26 Current: $143.50 High: $161.97

Currently at 77% of 52-week range

Tapestry, Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis