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Tapestry, Inc. (the "Company") is a house of iconic accessories and lifestyle brands. Each of our brands are unique and independent, while sharing a commitment to innovation and authenticity defined by distinctive products and differentiated customer experiences across channels and geographies.
Operating margin is thin at 5.92%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 5.1%, steady but not accelerating. Margins contracted 11.2pp, which offsets some of the top-line progress.
ROIC dropped from 10.91% to 4.63%, capital efficiency is deteriorating. Operating margin contracted 11.2pp YoY, cost discipline may be slipping.
Profitability & Returns
Revenue (TTM)
$7.85B
▲ +5.1% YoY
Net Income (TTM)
$663M
▼ -77.5% YoY
Op. Margin
11.32%
▼ -11.2pp YoY
ROIC
15.40%
▼ -6.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$1.75B
▼ -4.6% YoY
Op. Cash Flow (TTM)
$1.90B
▼ -3.1% YoY
Net Debt
$2.87B
Cash & Equiv.
$1.07B
5Y CAGR: +7.2%
5Y CAGR: +40.2%
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