Opinions Paul Harris, CFA
Tapestry Inc.TPRCOMMENTJul 04, 2014
Paul Harris, CFAStock 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.
J C Penney (JPC-N) or Coach (COH-N)? This is the one that he would buy. It is a really well run company with a great yield of 3.8%, and trading at 19X earnings. Had some real problems on the North American side on same-store sale numbers that they are trying to improve. Very good management and no debt. Have a really good opportunity to grow their brand internationally, especially in emerging markets.