Tapestry: Navigating Luxury Retail Landscape Well

Welbeck Ash Research
2.33K Followers

Summary

  • Tapestry is positioned well in the fashion industry due to its strong brands Coach and Kate Spade, with Coach showing signs of improved growth.
  • Margins have remained stable, but improvement in the performance of Kate Spade could lead to an overall improvement. This would further widen its superiority over peers.
  • The business does have execution risk with delivering improvement and is facing slowing growth, but we believe this is sufficiently priced in.
  • Tapestry is trading at 11x FCF, has a FCF yield of 9%, and is trading at a 37% discount to its peers. The business looks fairly undervalued.

Designer Kate Spade Found Dead At 55 In Her Manhattan Apartment

Drew Angerer

Investment thesis

Our current investment thesis is:

  • Tapestry (NYSE:TPR) is positioned well in the fashion industry, owing to Coach and Kate Spade, both of which are strong brands. Coach in particular is showing signs of improved growth in the

This article was written by

2.33K Followers
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of LVMHF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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