Tapestry, Inc. (TPR) Stock Analysis

Tapestry’s primary competitive advantage lies in its portfolio of well-established brands—Coach, Kate Spade, and, until recently, Stuart Weitzman.¹ Coach, which accounts for roughly 76% of fiscal 2024 sales, is particularly strong in the “affordable luxury” segment, maintaining pricing power and brand loyalty even as consumer preferences shift.² Tapestry’s direct-to-consumer (DTC) model, with nearly 1,400 company-operated stores and a digital channel representing about 30% of sales, enables superior customer data collection and margin control compared to wholesale-heavy peers.³

Relative to competitors such as Capri Holdings (Michael Kors, Versace) and Ralph Lauren, Tapestry’s DTC focus and digital investments have driven higher gross margins—73% in the last twelve months, versus Capri’s ~65%⁴. The company’s agile supply chain has also limited the impact of tariffs and supply disruptions, a notable advantage over less diversified rivals⁵.

Tapestry’s customer acquisition is robust: in FY24, it added over 6.5 million new North American customers, with more than half from Gen Z and Millennials, supporting long-term relevance⁶. However, the company remains exposed to North American demand (59% of sales) and is less diversified geographically than LVMH or Kering. While Tapestry’s multi-brand strategy and operational discipline underpin its edge, continued innovation and international expansion are necessary to sustain it against global luxury leaders.