Is anyone here following Tapestry($TPR)? Do you think the popularity of their coach handbags will hold strong?

For those of you who are unfamiliar with the company, Tapestry is a company that sells luxury goods through their three brands(actually two, they sold one) Coach, Kate Spade and Stuart Weitzman.

Coach’s most popular product is women’s handbags, Kate Spade’s most popular products is women’s handbags and Stuart Weitzman’s(they recently just sold Stuart Weitzman but the deal won’t be finished till mid year I believe) most popular product is women’s shoes. The company’s most popular product is women’s handbags and this accounted for nearly 70% of their revenue for Fiscal year 2024(July, 2023 - June, 2024).

Coach is the brand that brings in the most revenue, followed Kate Spade. For Fiscal 2024, revenue from Coach represented 76.4%, revenue from Kate Spade represented 20% snd revenue from Stuart Weitzman represented 3.6%.

In 2022, the company released its growth strategy/program called “Future Speed”. Their goals were to retain customers, grow their market for women’s handbags and build an Omni channel experience for customer’s.

Their projected revenue to increase to $8 billion dollars for fiscal 2025. For reference, they made $6.66 billion in fiscal 2023 and $6.671 billion in fiscal 2024. According to GAAP, their net income was $806 million for fiscal 2024 and $936 million for fiscal 2023. Their net income actually grew according to Non-GAAP and was reported to be $1 billion. They were attempting to acquire a company called Capri and had money tied up in that and thus the decrease in net income according to GAAP.

The company has experienced an increase in popularity of their Coach handbags over the last year( the stock is up 77% over the past year). According to Google Trends, the popularity of “Coach” was at its highest in the past 5 years. Their most profitable quarter is their second quarter(October - December) and on Google Trends, this period is usually when “Coach” becomes popular. For second quarter fiscal 2025(October, 2024 - December, 2024), “Coach” was at its highest popularity compared to the past 5 years with of second quarters. The company has also experienced increased popularity on TikTok and according to the latest quarterly report, they have been acquiring more and more Gen Z and Millennial customers.

The company terminated its acquisition of Capri and has also just recently sold Stuart Weitzman(which was just making them lose money).

The company also did an ASR(accelerated share repurchase) worth $2 billion dollars. This included money they got back that was tied up for the acquisition of Capri.

Growing popularity(and thus sales), ASR(not acquiring Capri) and selling Stuart Weitzman ha set garnered the stock a 70% gain since November of 2024. All these events happened between November 2024 and now. Their growing sales has led the company to suggest guidance for fiscal 2025 of a 3% gain in YOU revenue. This is coming from a company that had mostly 1% YOY revenue growth.

The bull case for Tapestry is that their popularity remains strong for the next few years and this will then further increase their revenue. As of Feb 20, 2025, Baird increase their price target from $94 to $100.

The company traders at $84 and at a P/E ratio of 25-26.

The bear case for Tapestry is if their popularity dries up and its was just one time fashion trend. Bear in mind that the brand Coach is already very popular and well established. The popularity just increased their customer base more.

If anyone else has been following the company, what do you think is the future of the popularity of Coach handbags?