Tapestry, Inc. (TPR): luxury retail player with growing potential
Tapestry, Inc. $TPR-2.8% is an American luxury fashion and accessories retailer that owns Coach, Kate Spade and Stuart Weitzman. The company has been successfully adapting to market changes and has seen its stock rise more than 20% in 2025, hitting an all-time high in February on the back of strong quarterly results.
Despite a recent decline of more than 8% on concerns over tariffs on Chinese goods and a weaker retail sector, Barclays remains optimistic about the company's future.
Key Growth Drivers for Tapestry, Inc.:
Strong brands (Coach, Kate Spade, Stuart Weitzman)
- Brands with a global presence and a loyal customer base
- Expansion in Asia and Europe
Successful strategy to fight tariffs
- CFO Scott Roe said the company has prepared in advance for possible additional tariffs on Chinese goods
-Historic high in February thanks to strong quarterly $TPR-2.8%results
- The stock's +20% growth in 2025 was partially held back by concerns about higher prices and lower consumer spending
Upbeat outlook from Barclays
-$TPR'-2.8%s ability to adapt to changing conditions gives the company an advantage over competitors
Risks of investing in Tapestry (TPR)
US vs. China tariff policy
- Increased tariffs could make production more expensive and reduce demand
Weakening retail sector
- Concerns about lower consumer spending power
Competitive environment in the luxury segment
- Strong players such as LVMH (Louis Vuitton), Kering (Gucci) or Richemont (Cartier)
Is it worth investing in Tapestry (TPR)?
WHY YES?
A strong brand with a global reach
Ability to adapt to tariffs
Optimistic outlook for 2025
Historical profitability and growing revenues
What to watch out for?
- Customs policy can impact margins
- Weaker consumer demand
- Competitive pressure from LVMH and others
➡ Conclusion: Tapestry $TPR-2.8% is a strong player in luxury retail that can adapt to market challenges. Although it faces challenges in the short term, it remains a promising investment in the long term due to its strong brands, successful strategy and steady growth.
I only have $MC.PA-1.5% too. The company is not doing well and the growth is weak, so I sold part of the position already.
The problem with $TPR-2.8% is a lot of competition and the stock is mostly expensive right now too.
I have $MC.PA-1.5% and that's enough for me. Overall, the sector is not doing well right now, so I prefer to buy tech stocks.
I was much more interested in $RMS.PA-2.2% stock from this sector. The business is much better and of higher quality.