Tapestry Trading Volume Slumps to 198th in Market Activity as Strategic Divestiture and Analyst Buy Consensus Fuel Growth Optimism

On August 18, 2025, Tapestry (TPR) closed with a 0.82% decline, trading on a volume of $0.46 billion—a 32.84% drop from the previous day, ranking 198th in market activity. The luxury retailer’s strategic divestiture of the Stuart Weitzman brand to Caleres for $105 million is expected to sharpen its focus on core brands Coach and Kate Spade. Recent fiscal updates show Tapestry raised its FY25 guidance, projecting EPS between $4.85 and $4.90 (up 8% from prior estimates) and 3.5% constant currency growth, reflecting strong performance from its accessories segment.

Analysts highlight Tapestry’s resilience amid tariff risks, citing its low reliance on Chinese sourcing and high international revenue mix. The company’s 75.4% gross margin underscores brand strength, particularly in full-price sales for Coach. However, challenges remain, including sensitivity to economic shifts and the need to adapt to rapidly evolving youth-driven fashion trends. Shareholder returns remain a priority, with 17 consecutive years of dividends and aggressive buybacks, though the stock currently trades above its fair value estimate.

Strategic moves and brand consolidation have drawn a "Buy" consensus from analysts, with price targets ranging from $64 to $139. Long-term optimism centers on Coach’s potential to dominate younger demographics and expand market share. The $105 million from the Stuart Weitzman sale offers flexibility for growth initiatives, though risks persist in maintaining profitability amid shifting consumer preferences and macroeconomic volatility.

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