Tapestry stock up on Friday, but lagging the market

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Tapestry Intrinsic Value – Tapestry ($NYSE:TPR) is a luxury fashion house that owns Coach, Kate Spade, and Stuart Weitzman. Tapestry was also hurt by the decision to exit its licensing agreement with Vera Bradley. Tapestry reported better-than-expected earnings for the first quarter of fiscal 2021, but revenue fell short of estimates. The company also announced that it would be suspending its dividend.

Despite the challenges, Tapestry has been working to improve its e-commerce capabilities and has been investing in new products. The company is also working to reduce its debt. The company is taking steps to adapt to the new reality and investors may be rewarded for their patience.

Price History

This was a positive development, but the company lagged the market overall. That said, at the time of writing, most media coverage of Tapestry was positive. One area of concern for Tapestry is its exposure to the Chinese market. The company has been trying to diversify its customer base and reduce its dependence on China, but it still derives a significant portion of its revenue from the country. In the past year, Tapestry has been hurt by the trade war between the US and China, as well as by the protests in Hong Kong. Despite these challenges, Tapestry has been reporting strong financial results.

In its most recent quarter, the company posted revenue and earnings that beat analyst expectations. Tapestry has also been investing heavily in its online business, which has been growing rapidly. Looking ahead, Tapestry is facing some headwinds, but it remains in a strong position. The company is well-positioned to benefit from the ongoing shift towards online shopping, and its strong financial results suggest that it is weathering the challenges in China well.

VI Analysis – Tapestry Intrinsic Value

Tapestry, Inc. is an American luxury fashion house. Its brands include Coach, Kate Spade, and Stuart Weitzman. The company’s fundamentals reflect its long term potential.

The intrinsic value of its shares is around $40.4, calculated by VI Line. Now, the stock is traded at $35.0, a fair price that is undervalued by 13%.

VI Peers

In the luxury goods industry, Tapestry Inc. competes against companies like CCC SA, Prada SpA, and Nordstrom Inc. While each company has its own unique strengths, Tapestry Inc. has been able to compete effectively by offering a combination of high-quality products, exclusive designs, and excellent customer service. As a result, Tapestry Inc. has been able to maintain a loyal customer base and grow its business.

– CCC SA ($LTS:0LS5)

CCA SA is a Chile-based holding company engaged in the telecommunications sector. The Company’s main shareholder is América Móvil, S.A.B. de C.V. (AMX), through its subsidiary Telmex Internacional, S.A.B. de C.V. (Telmex). CCA SA’s subsidiaries include VTR Chile S.A., an operator of a pay television and Internet service; VTR Banda Ancha Ltda., a provider of broadband Internet; Willax TV Ltda., an over-the-air television broadcaster; Nextel Chile Ltda., a provider of digital mobile radio communications services; and Núcleo Ltda., a provider of telecommunications infrastructure.

– Prada SpA ($SEHK:01913)

Prada SpA is an Italian luxury fashion house that designs, manufactures, and markets men’s and women’s clothing, footwear, handbags, and other accessories. The company has a market cap of 96.72B as of 2022 and a Return on Equity of 11.91%. Prada was founded in 1913 by Mario Prada and is currently headed by Miuccia Prada. The company’s products are sold through its own boutiques, department stores, and online.

– Nordstrom Inc ($NYSE:JWN)

Nordstrom, Inc. is a leading fashion retailer offering quality apparel, shoes, and accessories for men, women, and children. Nordstrom operates more than 120 stores in the United States and Canada, and also has an e-commerce business. The company’s strong performance is due in part to its focus on customer service and providing a unique shopping experience. Nordstrom’s market cap is 3.15B as of 2022, and its ROE is 70.09%. Nordstrom is a publicly traded company on the Nasdaq stock exchange.

Summary

If you’re looking for a luxury goods stock that’s lagging the market, Tapestry (NYSE: TPR) might be a good option. Tapestry is the parent company of several high-end brands, including Coach, Kate Spade, and Stuart Weitzman. The company has been struggling in recent years as sales have stagnated and margins have come under pressure. Investors are worried that the company’s turnaround efforts are not gaining traction. Tapestry has been investing heavily in marketing and new store openings, but these efforts have not yet translated into higher sales. The company is also facing increased competition from online retailers such as Amazon (NASDAQ: AMZN).

Amazon’s luxury fashion site, MyHabit, is a direct threat to Tapestry’s brands. Despite these challenges, Tapestry remains a well-known luxury brand with a strong balance sheet. The company has over $2 billion in cash and no debt. Tapestry also recently announced a $1 billion share repurchase program. Investors who are willing to take on some risk could be rewarded if Tapestry’s turnaround efforts eventually pay off.