Coach Leads, but Tapestry’s Acquisition of Capri Bolsters Its Position in Handbags and Global Luxury

We think Tapestry has successfully restructured Coach (74.5% of its fiscal 2023 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 Acceleration Program strategy to cut costs and improve margins and as handbag pricing has risen.