Tapestry: Products Are Trending Up, Brand Value Is Rising

Chen Yang
499 Followers

Summary

  • Coach products are getting more fashionable and youthful, resulting in customers’ increased desirability and ~20% AUR(unit price) growth.
  • Coach’s recent web traffic is increasing steadily, with an estimated 100% YoY growth.
  • Solid financials, with an FCF margin of 13%, and an EBITDA margin of 20%.
  • Current PEG ratio is only 0.55, based on PE of 11 and EPS growth of 20%, is too low for an ascending consumer brand.
  • China digital transformation is successful.

Coach New York store

Sundry Photography/iStock Editorial via Getty Images

In this article, I argue that Tapestry's (NYSE:TPR) Coach rebranding is successful, as evidenced by increasing positive product reviews on social media, its customers age distribution statistics, current online sales and traffic performance in China and the United States. Given Coach's current market

This article was written by

499 Followers
AICPA | MBA | Former buy-side equity investment analyst & banking analyst Style: Deep Value, Contrarian, GARP, L/S Equity.Try to find investments that has more than 2x potentials. Based in San Francisco Bay Area.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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