Should I Buy Tapestry Inc (TPR)? Finance YouTuber Analysis

The analyst believes that changes in tax rates and the introduction of a national consumption tax under Project 2025 would disproportionately benefit higher-income individuals and those who save/invest more. This shift is expected to favor retailers of luxury goods, making Tapestry an attractive investment.

“the combination of the changes and tax rates so both income and capital gains as well as the consumption tax should benefit retailers of luxury goods relative to those selling discount products now you could argue benefits of a growing economy and other effects but the policies themselves clearly favor higher income individuals on Lower taxes and and those that save or invest a larger portion of their income so here I would be watching stocks like lvmh tapestry tpr and maybe berbery group”

The analyst recommends Tapestry Inc. for its strong 3.3% dividend yield and resilience in the luxury retail sector, owning brands like Kate Spade and Coach. The company has demonstrated phenomenal e-commerce growth and higher gross profit margins compared to discount retailers, allowing it to better manage inflation and labor challenges.

“I like tapestry for two reasons here first is that those luxury retailers have held up much better than the off-brown and discount stores the strong Brands like tapestry have just been able to raise their prices to offset inflation and keep earnings higher.”

Hogue suggests Tapestry, owner of Coach and Kate Spade, due to its strong e-commerce focus (90% direct-to-consumer sales). This digital-first strategy protects its profits from the impact of a tight labor market and rising wages, unlike competitors reliant on physical stores.

“For example Tapestry ticker TPR owner of the iconic k-spade and coach brands with 90 percent of its sales direct to consumer.”

The YouTuber recommends buying Tapestry due to its strong e-commerce growth, with a 55% increase in the most recent quarter and 600,000 new customers. Despite strong sales, it trades at 13 times earnings and is expected to grow earnings by 13% this year. The company also pays a 2.5% dividend yield.

“Our first stock I'm buying is $10 billion retailer Tapestry Inc, ticker TPR. Tapestry owns the iconic Kate Spade, Stuart Weitzman and Coach Brands with 52% of sales from handbags and 62% from the North American market.”