A Resilient Luxury Market and Coach’s Brand Power Are Propelling Narrow-Moat Tapestry

We think Tapestry has successfully restructured Coach (74% of fiscal 2022 revenue) but needs to prove the value of Kate Spade and Stuart Weitzman. All three of Tapestry’s brands suffered sales and operating profit declines during the pandemic, but results have been improving rapidly as it implements its three-year Acceleration Program strategy to cut costs and improve margins and as handbag pricing has risen.