Tapestry, Inc. TPR has demonstrated strong upward momentum, trading above its 100 and 200-day simple moving averages (SMAs). SMA is a key indicator of price stability and long-term bullish trends.

TPR ended yesterday’s trading session at $70.70, above its 100 and 200-day SMAs of $65.41 and $53.68, respectively, highlighting a continued uptrend. This technical strength, along with sustained momentum, indicates positive market sentiment and investors’ confidence in Tapestry’s financial health and growth prospects.

TPR Trades Above 100 & 200-Day Moving Averages

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Shares of this leading designer and marketer of lifestyle products are 3.5% below its 52-week high of $90.85 attained on Feb. 18, 2025, making investors contemplate their next moves. In the past six months, the TPR stock has gained 68.2% against the Zacks Retail-Apparel and Shoes industry’s 4.3% decline.

The company’s enhanced operational efficiency and growth initiatives have also helped it outperform the broader Retail-Wholesale sector and the S&P 500 index’s growth of 9.1% and 3.8%, respectively, during the same period.

TPR Stock Past Six-Month Performance

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Tapestry’s Robust Digital & DTC Performance

TPR continues to strengthen its digital and direct-to-consumer (DTC) strategies, driving solid growth. In the second quarter of fiscal 2025, DTC sales rose 4%, fueled by a high-single-digit increase in digital sales and a low-single-digit uptick in global brick-and-mortar sales. Profitability also improved across all channels.

Additionally, AI-powered customer engagement has enhanced pricing power while reducing the dependence on promotions. The company’s ability to attract and retain younger consumers, particularly Gen Z and Millennials, cements its strong market position.

Coach Brand: Driving Force Behind TPR

Coach has been Tapestry’s key growth driver, delivering impressive year-over-year revenue gains. In the fiscal second quarter, the brand reported an 11% revenue increase on a reported basis and 10% growth in constant currency, alongside a 270-basis-point expansion in the gross margin.

Coach continues to gain market share in handbags, with standout collections like the Tabby, Brooklyn and Empire performing exceptionally well. With strong global pricing power, the brand reinforces its leadership in accessible luxury and remains a compelling long-term investment.

Tapestry’s International Expansion Fuels Growth

TPR’s global strategy continues to drive substantial revenue gains in key markets. Europe emerged as a significant growth engine, with revenues rising 42% year over year in the fiscal second quarter, supported by strong local demand and successful customer acquisition efforts.

Meanwhile, Greater China returned to revenue growth, posting a 2% year-over-year increase, highlighting Tapestry’s resilience amid economic challenges. The broader Asia-Pacific region (excluding China) grew 11%, led by robust performances in South Korea, Malaysia, Australia and New Zealand. These results underscore the company’s strong global execution and long-term expansion potential.

TPR’s Upgrades FY25 Outlook

Tapestry has raised its full-year financial guidance. It expects revenues of more than $6.85 billion, suggesting a 3% year-over-year increase despite currency headwinds. This exceeds the prior forecast of $6.75 billion, which projected 1-2% growth on a reported and constant-currency basis.

The company also anticipates a 100-basis-point expansion in the operating margin compared with the previously mentioned more than 50 basis points. Earnings per share (EPS) are projected between $4.85 and $4.90, implying 13-14% growth from the prior year’s actual and exceeding the earlier guidance of $4.50-$4.55.

Is Tapestry a Value Play Stock?

The company is currently trading at a notable low price-to-earnings (P/E) multiple, below the averages of both the industry and the sector. Its forward 12-month P/E ratio is 13.64, lower than the industry and the sector’s ratios of 16.55 and 23.20, respectively. This undervaluation highlights its potential for investors seeking attractive entry points. Moreover, TPR's Value Score of A underscores its appeal as an investment option.

TPR Looks Attractive From a Valuation Standpoint

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Estimate Revisions Favor TPR Stock

Analysts have responded positively to Tapestry’s prospects, indicated in upward revisions in the Zacks Consensus Estimate for EPS. In the past 30 days, analysts have increased their estimates for the current fiscal year by 27 cents. The consensus estimate for earnings is pegged at $4.91 per share. The consensus estimate for the next fiscal year has also been raised 26 cents to $5.30 per share. This indicates year-over-year growth of 14.5% and 8%, respectively.

The Zacks Consensus Estimate for the current and next fiscal year’s sales is pegged at $6.87 billion and $7.11 billion, respectively, implying year-over-year growth of 3% and 3.4%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

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Final Words on Tapestry

Investors may find the TPR stock appealing due to its strong stock performance, trading above key moving averages and sustained upward momentum. The company’s growth is fueled by robust digital and DTC strategies, international expansion and the strength of its Coach brand. TPR presents a compelling investment opportunity, with an upgraded fiscal 2025 outlook, improving profitability and strong earnings growth potential, supported by positive analyst estimate revisions. The company currently carries a Zacks Rank #2 (Buy).

Other Key Picks

Some other top-ranked stocks are Boot Barn Holdings, Inc. BOOT, Deckers Outdoor Corporation DECK and lululemon athletica inc. LULU.

Boot Barn is a specialty retailer of premium, high-quality casual apparel. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Boot Barn’s fiscal 2025 earnings and revenues indicates growth of 21.4% and 14.9%, respectively, from the fiscal 2024 reported levels. BOOT delivered a trailing four-quarter average earnings surprise of 7.2%.

Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for DECK’s fiscal 2025 earnings and revenues implies growth of 21% and 15.6%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 36.8%.

lululemon is a yoga-inspired athletic apparel company that creates lifestyle components. It has a Zacks Rank of 2 at present. LULU delivered a 6.7% earnings surprise in the last reported quarter. 

The consensus estimate for lululemon’s fiscal 2025 earnings and revenues indicates growth of 12.5% and 9.7%, respectively, from the fiscal 2024 reported levels. LULU delivered a trailing four-quarter average earnings surprise of 6.7%.

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