This edition of Stock Spotlight features Tapestry Inc. (TPR), a luxury accessories conglomerate that gained +82% since Hedgeye's Retail Team first mentioned it on The Call @ Hedgeye on Sept. 9th, 2024.
TPR still offers plenty of growth potential—while carrying significant risks.
FUNDAMENTALS: Fashion Juggernaut Amid Industry Upheaval
Tapestry (TPR), the parent company of Coach, Kate Spade, and Stuart Weitzman has been on a transformative journey. Our Retail team flagged TPR as a long on The Call during the early stages of the Capri Holdings (CPRI) merger in early September of 2024.
While the merger was ultimately blocked by a federal judge, Tapestry adapted with strategic precision. It announced the sale of its Stuart Weitzman brand to Caleres in February 2024—a smart divestiture to streamline operations and focus on core brands. This decision added liquidity and removed a lingering distraction.
Fundamentally, TPR remains sound, as discussed on The Call on May 8, 2025. May earnings beat expectations with a 6.9% jump in sales year-over-year. EPS came in ahead of Street at $0.95, and Coach continues to shine with revenues up 13%, despite ongoing brand challenges at Kate Spade.
QUANTITATIVE SIGNAL: NEUTRAL
Hedgeye CEO Keith McCullough’s quantitative signals—originally developed during his years as a hedge fund manager and continually refined since 2008—leverage a proprietary algorithm that analyzes price, volume, and volatility to forecast likely trading ranges. To date, these signals have generated over 6,200 winners for Hedgeye Nation.
While TPR has shown resilience through volatile times—including a +16% surge following the October 2024 FTC ruling—Keith’s signal is currently neutral.
MACRO: resilience amidst headwinds
The macro backdrop has shifted decisively into Quad 4—a regime of slowing growth and disinflation—which historically punishes Consumer Discretionary stocks. That’s exactly what’s happening: the sector is down over 11% year-to-date.
While the macro tape has been tough, Brian McGough’s Retail team has nailed the call on TPR—identifying it as a name that could outperform even as the rest of the sector got crushed.
BOTTOM LINE: THE PROCESS DELIVERED—AND WE'RE NOT DONE YET
Hedgeye's Retail team called it at $41. It peaked at $90. Today it's still up +86%.
TPR remains a long on Hedgeye’s Retail Position Monitor, and we will continue to monitor potential luxury M&A deals, brand performance, and pricing signals across the sector. With the deal behind them and cash on hand, TPR could be entering a new phase of growth.
Want to catch moves like this before they happen? Tune into The Call @ Hedgeye—our daily webcast hosted by Hedgeye CEO Keith McCullough, where our analysts discuss their favorite stock ideas and real-time market catalysts.
