Is Tapestry Stock Outperforming the Nasdaq?

New York-based Tapestry, Inc. (TPR) provides luxury accessories and branded lifestyle products. Valued at a market cap of $18.1 billion, the company operates three global brands, including Coach, Kate Spade New York, and Stuart Weitzman, offering a diverse range of leather goods, handbags, accessories, footwear, and ready-to-wear apparel through retail stores, e-commerce, and wholesale channels. 

Companies worth $10 billion or more are typically classified as “large-cap stocks,” and Tapestry fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the luxury goods industry. The company's key strength lies in its portfolio of globally recognized, accessible luxury brands, which combine heritage craftsmanship with modern design to appeal to a wide range of consumers. It excels in brand building and customer engagement, particularly through digital channels, data-driven personalization, and strong omni-channel retail capabilities.

This luxury goods company is currently trading 4% below its 52-week high of $90.85, reached on Feb. 18. Tapestry has surged 15.2% over the past three months, outpacing the Nasdaq Composite’s ($NASX) 9.5% uptick during the same time frame.

In the longer term, TPR has rallied 104.2% over the past 52 weeks, significantly outperforming NASX’s 13.8% rise over the same time frame. Moreover, on a YTD basis, shares of Tapestry are up 33.6%, compared to NASX’s 3.1% return. 

To confirm its bullish trend, TPR has been trading above its 200-day moving average over the past year, with minor fluctuations, and has consistently remained above its 50-day moving average since early May. 

On May 8, shares of Tapestry closed up 3.7% as it delivered a strong Q3 performance. The company’s revenue grew 6.9% year-over-year to $1.6 billion, while its adjusted EPS of $1.03 improved 27.2% from the year-ago quarter and exceeded the consensus estimates by 15.7%. A robust rise in the Coach brand’s revenue overshadowed declines in revenue from the other two brands. Moreover, the company acquired over 1.2 million new customers in North America, driven by a growing number of Gen Z and Millennial consumers. Adding to the uptick, TPR raised its fiscal 2025 guidance and now expects revenue of approximately $6.95 billion, and projects adjusted EPS of around $5 at the mid-point, representing a high-teens percentage growth year-over-year. 

TPR has also significantly outperformed its rival, Capri Holdings Limited (CPRI), which declined 46.3% over the past 52 weeks and 19.7% on a YTD basis. 

Given Tapestry’s recent outperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of "Strong Buy” from the 21 analysts covering it, and the mean price target of $92.75 suggests a 6.3% premium to its current price levels.