Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Tapestry, Inc. (NYSE: TPR) is a global house of luxury accessories and lifestyle brands. The Company's brands include Coach, Kate Spade New York, and Stuart Weitzman. The Company operates through three segments: Coach, Kate Spade and Stuart Weitzman.

Kalkine’s Dividend Income Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• The stock has corrected by 30.46% in the last three months as well as by 27.07% in the past six months.
• The stock is leaning towards the lower band of its 52-week range of USD 47.47 and 52-week low price of USD 27.54, with the current price near a decent support range of USD 27.00-USD 30.00, from where the price has taken a support in the past.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current oversold RSI of 22.52, with expectations of a short-term upward momentum or some consolidation.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~46.30% of the total shareholding, signifying diverse shareholding. The Vanguard Group, Inc., and Fidelity Management & Research Company LLC are the biggest shareholders, holding the maximum stake in the company at ~13.77% and ~5.38%, respectively.

1.4 Consistent dividend payments with impressive dividend yield:

Tapestry, Inc. revealed that its Board of Directors has approved a quarterly cash dividend of USD 0.35 per common share. This dividend will be disbursed to shareholders on September 25, 2023, with those on record as of the close of business on September 8, 2023, being eligible to receive it.

1.5 Key Metrics

TPR's impressive financial performance not only showcases its consistent revenue and profitability growth but also highlights its astute cost management strategies. This commitment to efficiency is particularly evident in its higher gross, net, pre-tax, and operating margins when compared to industry peers. Such a strong financial footing undoubtedly positions TPR as a formidable player in its sector. Furthermore, the company's ability to generate a higher return on equity (ROE) compared to its industry peers is a testament to its efficient capital utilization and strategic decision-making. This not only enhances shareholder value but also signifies TPR's prowess in maximizing returns on investments. Considering these accomplishments, TPR appears well-positioned for sustained growth and continued success in the foreseeable future. Its financial stability, coupled with its ability to outperform competitors, underscores its potential to capture a larger market share and solidify its position as an industry leader.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of FY23:

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

• The stock has corrected by 30.46% in the last three months as well as by 27.07% in the past six months.
• The stock is leaning towards the lower band of its 52-week range of USD 47.47 and 52-week low price of USD 27.54, with the current price near a decent support range of USD 27.00-USD 30.00, from where the price has taken a support in the past.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current oversold RSI of 22.52, with expectations of a short-term upward momentum or some consolidation.

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 19, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.