Winston
Tapestry logo

Tapestry

TPR
55
Luxury Goods · Consumer Cyclical
Price
$149.75
-0.78 (-0.52%)
Market Cap
$30.26B
Winston Score
55
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Winston is curious
A decent business — some strong pillars, some weaker.

Winston Score between 40 and 70. The stock passes some quality checks but not all.

Tapestry is an American fashion company that owns three handbag and accessories brands: Coach, Kate Spade, and Stuart Weitzman. It sells purses, wallets, shoes, and clothing to everyday shoppers who want a recognizable brand without paying the highest luxury prices. Coach is by far the largest brand and drives most of the company's sales.

Tapestry makes money by selling its products through its own retail stores, its websites, and department stores across North America, Asia, and Europe. It generates roughly $6.5 billion in annual revenue, and its high gross margins reflect the pricing power that comes with owning established brand names. The company's biggest growth opportunity is expanding Coach in China and attracting younger shoppers, while its main risk is that consumer spending on discretionary items like handbags tends to drop sharply during economic downturns.

Winston Score History

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+21.2% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+73.5% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

0.5%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$1.0B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

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Growth + cash flow

Tapestry is a rare growth stock that's already generating positive cash flow while growing at 21%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count falling — buybacks

21.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 283.0M (2021) → 222.5M (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
76.9%
Premium pricing power — 76.9% gross margin
Operating Margin
22.3%
Excellent — 22.3% operating margin
ROCE
10.0%
Below par — 10.0% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+10.9%
Steady sales growth (10.9% YoY)
EPS YoY
-27.0%
Earnings shrinking (-27.0% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
327%
Turns 327% of profit into real cash
FCF Margin
23.1%
Converts sales into free cash efficiently (23.1%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
5.29
Heavy debt load (5.29)
Interest Cover
13.41x
Comfortably covers interest (13.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
50.9x
Expensive — P/E 50.9

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+30.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (50.9 → 20.9)

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Dividends

Dividend Yield
1.07%
Small dividend — 1.07% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+14.3%
Dividend growing fast (14.3% YoY)

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