Tapestry, Inc. (TPR): Among Stocks That Analysts Think Will Go Up

Tapestry, Inc. (TPR) has been making waves in the luxury goods sector, with analysts predicting a bullish outlook for the company's stock. The company's strong fiscal 2025 second quarter results, driven by operational excellence, customer acquisition, and brand rejuvenation, have positioned it well against competitors in the volatile retail environment. Let's dive into the key factors contributing to Tapestry's success and the analysts' bullish sentiment.



Operational Excellence and Gross Margin Expansion

Tapestry's impressive operational improvements led to a 280 basis point expansion in gross margin to 74.4% during the fiscal second quarter. This was driven by a 260 basis point improvement in operations, indicating sustainable margin enhancement through better pricing power and operational efficiency. The company's focus on operational excellence and cost management has resulted in improved profitability across all channels (Source: Tapestry's Q2 Earnings Presentation).

Customer Acquisition and Brand Rejuvenation

Tapestry welcomed approximately 2.7 million new customers in North America during the fiscal second quarter, with over half being Gen Z and Millennials. This strong customer acquisition strategy, combined with high-single-digit digital growth and low-single-digit brick-and-mortar sales increase, demonstrates the company's ability to effectively engage with consumers across channels and target younger, more engaged demographics (Source: Tapestry's Q2 Earnings Presentation).

Regional Growth and Diversification

Tapestry experienced strong performance across regions, with notable growth in Europe (+42%), North America (+4%), and APAC (+1%). This regional diversification helps mitigate risks associated with relying too heavily on a single market and contributes to the company's overall success (Source: Tapestry's Q2 Earnings Presentation).



Analyst Ratings and Price Targets

According to 18 analysts, the average rating for Tapestry stock is "Buy," indicating that analysts believe this stock is likely to outperform the market over the next twelve months. The average price target for Tapestry stock is $80.72, with a low estimate of $52 and a high estimate of $110. The average target predicts a decrease of -5.99% from the current stock price of $85.86 (Source: Benzinga).

Expert Insights

Lorraine Hutchinson, BofA Securities senior retail analyst, shares her thoughts on Tapestry's stock hitting an all-new high: "Tapestry's shares surged nearly 15% to a record high as the owner of fashion retail brands set record holiday-quarter revenue and boosted its guidance on strong sales of its Coach products" (Source: CNBC Television).



In conclusion, Tapestry, Inc. (TPR) has demonstrated impressive growth and resilience in the face of a volatile retail environment. With a strong focus on operational excellence, customer acquisition, and brand rejuvenation, the company has positioned itself well against competitors and earned the bullish sentiment of analysts. As the company continues to execute on its strategic initiatives and adapt to changing market dynamics, investors should keep a close eye on Tapestry as a potential outperformer in the luxury goods sector.