Tapestry Inc (TPR)

History and Background

Tapestry, Inc. (formerly Coach, Inc.) was founded in 1941 as a family-run workshop in New York City. Initially known for its leather goods, the company experienced significant growth throughout the 20th century. In 2017, Coach, Inc. acquired Kate Spade and Stuart Weitzman, leading to a name change to Tapestry, Inc. to reflect its multi-brand portfolio.

Core Business Areas

• Coach: Offers handbags, accessories, footwear, ready-to-wear, and fragrances. Known for its modern luxury designs and accessible price points.
• Kate Spade: Provides handbags, accessories, apparel, jewelry, shoes, home du00e9cor, and stationery. Emphasizes playful and colorful designs aimed at a younger demographic.
• Stuart Weitzman: Specializes in luxury footwear, including boots, heels, sandals, and flats. Focuses on quality craftsmanship and innovative designs.

Leadership and Structure

Joanne Crevoiserat serves as the Chief Executive Officer of Tapestry, Inc. The company operates with a brand-focused organizational structure, with separate leadership teams and design philosophies for each of its core brands. The board of directors provides overall governance and strategic guidance.

Key Offerings

• Coach Handbags: Coach's signature handbags are a key revenue driver. Market share data indicates Coach holds a significant portion of the global handbag market, competing with brands like Michael Kors and Tory Burch. Competitors: Michael Kors (CPRI), Tory Burch, Louis Vuitton (LVMH).
• Kate Spade Handbags and Accessories: Kate Spade offers a range of handbags, wallets, and accessories known for their colorful and playful designs, targeting a younger demographic. Revenue from Kate Spade contributed substantially to Tapestry's overall sales. Competitors: Rebecca Minkoff, Marc Jacobs, Michael Kors (CPRI).
• Stuart Weitzman Boots: Stuart Weitzman is known for its luxury footwear, particularly its iconic boots. Competitors: Jimmy Choo (CPRI), Christian Louboutin, Manolo Blahnik.

Industry Overview

The fashion and accessories industry is characterized by evolving trends, increasing competition, and growing e-commerce penetration. Luxury and accessible luxury brands are navigating changing consumer preferences, globalization, and sustainability concerns.

Positioning

Tapestry, Inc. is positioned as a multi-brand company in the accessible luxury segment, offering a diverse portfolio of products targeting different customer segments. Its competitive advantages include brand recognition, established distribution channels, and design expertise.

Total Addressable Market (TAM)

The global market for handbags, footwear, and accessories is estimated to be in the hundreds of billions of dollars. Tapestry is positioned to capture a portion of this market, particularly in the accessible luxury segment.

Key Competitors

• CPRI
• KORS
• PVH

Competitive Landscape

Tapestry faces competition from other accessible luxury brands. It has advantages in brand recognition and diversification, but disadvantages in potential brand dilution and market reach compared to some larger competitors.

Kate Spade

• Year: 2017
• Acquisition Price (USD millions): 2400
• Strategic Rationale: Expanded Tapestry's brand portfolio to include a younger, more fashion-forward brand.

Stuart Weitzman

• Year: 2015
• Acquisition Price (USD millions): 574
• Strategic Rationale: Added a luxury footwear brand to Tapestry's portfolio, diversifying its product offerings.

Historical Growth: Tapestry's historical growth has been driven by brand acquisitions, international expansion, and e-commerce growth.

Future Projections: Analyst projections suggest continued growth in revenue and earnings, driven by international expansion and digital sales.

Recent Initiatives: Recent initiatives include investments in e-commerce platforms, expansion into new international markets, and sustainability initiatives.

Tapestry Inc. is a moderately strong company with a well-diversified brand portfolio. Its Coach brand remains a significant asset, but Kate Spade and Stuart Weitzman contribute to overall revenue. Tapestry needs to watch out for increasing competition and changes in consumer trends, while capitalizing on e-commerce growth and international expansion opportunities.

Data Sources:

• Company SEC Filings (10-K, 10-Q)
• Analyst Reports
• Industry Reports
• Company Press Releases

Disclaimers:

This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be made based on thorough research and consultation with a qualified financial advisor. Market share data is based on estimates and may not be precise.