Opinions Andrew Hamlin
Tapestry Inc.TPRHOLDJun 05, 2014
Stock price when the opinion was issued
As of Jun 23, 2026. Market Open.
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Premium contentPremium contentStockchase Research Editor: Michael O'Reilly TPR is an international manufacturer of luxury items that include the Coach and Kate Spade brands. They have built cash reserves back above $2 billion during the pandemic, while paying down debt. They trade at 16x earnings, compared to peers like RL at 49x. They have re-instated the dividend at a good yield, while keeping the payout ratio under 50% of cash flow. We would buy this with a stop loss at $30, looking to achieve $53.50 -- upside potential over 29%. Yield 2.45%. (Analysts’ price target is $53.13)
Got an analyst upgrade today and the stock surged and lifted the entire retail clothing sector. He prefers tried-and-true Lululemon though.
Bruce MurrayBruce MurrayBruce MurrayBruce MurrayThis is gone through a respectable 1st round of recovery. They’ve renovated about 500 stores and are planning to renovate a couple of more. They’ve removed their products from about a quarter of the Department stores, and have reduced the number of promotions/sales which has helped their profit margins. These are entry-level luxury items, and people only buy 1 or 2 of them, unless they expand their offerings. They are not buying 4 or 5. Not sure where the growth is going to come from. Feels the easy money has already been made.
Everyone knows the brand. He owned the stock in the past. Where is the demand going to come from: as you start to see some improvement in the labour market you will see the high end come back again. A year to a year and a half from now it should do well again. Nice yield. KORs has also done very well here. Both stores are quite busy. CCH has the dividend.