Tapestry Inc. (NYSE:TPR) Quarterly Earnings Preview
- The anticipated EPS of $1 represents an 8.7% increase from the same period last year.
- Projected revenues are expected to be $1.68 billion, a 5.7% rise year-over-year.
- The company's P/E ratio is approximately 26.73, and its debt-to-equity ratio stands at 2.75.
Tapestry Inc. (NYSE:TPR), a renowned name in the luxury fashion industry, is gearing up to release its quarterly earnings on August 14, 2025. Known for its high-end shoes and handbags, Tapestry has captured the attention of investors and analysts alike. The company is expected to report earnings per share (EPS) of $1, with projected revenues of $1.68 billion.
The anticipated EPS of $1 represents an 8.7% increase from the same period last year, showcasing Tapestry's growth trajectory. This growth is supported by a projected 5.7% rise in revenue year-over-year. However, it's important to note that there has been a slight downward revision of 0.4% in the consensus EPS estimate over the past 30 days. Such revisions can influence investor sentiment and stock performance.
Tapestry's financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 26.73, indicating how much investors are willing to pay for each dollar of earnings. Its price-to-sales ratio is about 3.35, reflecting the market's valuation of its sales. These figures suggest a strong market valuation, but also highlight the importance of meeting or exceeding earnings expectations.
The company's debt-to-equity ratio stands at 2.75, indicating a significant level of debt compared to equity. This could be a point of concern for investors, as it suggests reliance on borrowed funds. However, Tapestry's current ratio of 1.76 shows its ability to cover short-term liabilities with short-term assets, providing some reassurance about its financial stability.
As Tapestry prepares to release its earnings, the market is keenly watching for any surprises. A positive earnings surprise, as suggested by the Zacks Consensus Estimate, could lead to an upward movement in the stock price. Conversely, if the results fall short, the stock could decline. The management's discussion during the earnings call will be crucial in shaping future earnings expectations and stock performance.
| Symbol | Price | %chg |
|---|---|---|
| HRTA.JK | 860 | -1.16 |
| TITAN.NS | 3523 | -0.2 |
| TITAN.BO | 3522.8 | 0 |
| KALYANKJIL.NS | 522.8 | 0 |
Tapestry Inc. (NYSE:TPR) Downgraded by Bank of America Securities
- Bank of America Securities downgraded Tapestry Inc. (NYSE:TPR) from a "Buy" to a "Neutral" rating despite raising the price target from $95 to $115.
- The stock's valuation concerns arise after a 66% year-to-date surge, with a forward P/E ratio of about 20x, significantly above its 10-year average of 13x.
- Analyst Lorraine Hutchinson forecasts a strong fourth quarter for Tapestry, with an expected EPS of 98 cents, a 5.4% sales growth, and a 16.4% operating margin.
Tapestry Inc. (NYSE:TPR), the parent company of the well-known Coach brand, has recently faced a downgrade from Bank of America Securities. The downgrade from a "Buy" to a "Neutral" rating was issued on July 29, 2025, when the stock was priced at $107.40. This decision reflects concerns about the stock's valuation after a significant rally this year.
Despite the downgrade, Bank of America Securities analyst Lorraine Hutchinson raised the price target for Tapestry from $95 to $115. This adjustment indicates confidence in the company's potential, even as the stock has surged 66% year-to-date, outpacing the S&P's 9% increase. The stock's current valuation is near the top of its historical range, with a forward P/E ratio of about 20x, compared to its 10-year average of 13x.
Hutchinson's analysis highlights the strong performance of the Coach brand, which is expected to maintain robust growth in the coming quarters. She forecasts a strong fourth quarter for Tapestry, with an expected EPS of 98 cents, aligning with management's guidance. Additionally, she anticipates a 5.4% sales growth and a 16.4% operating margin, suggesting a positive outlook for the company's financial performance.
The downgrade has led to a 2.4% decline in Tapestry's stock price, which is currently trading between $105.75 and $108.30. The company's market capitalization is approximately $22.31 billion, with a trading volume of 5,417,855 shares on the NYSE. Despite the recent dip, Tapestry's stock remains near its 52-week high of $110.44, indicating investor interest and confidence in the company's future prospects.
