Goldman Sachs’ List Of Stocks Popular With Mutual Fund Managers: Top 20 Stocks

13. Tapestry, Inc. (NYSE:TPR)

Number of  Mutual Funds: 19

Number of Hedge Fund Investors in Q2 2024: 32

Tapestry, Inc. (NYSE:TPR) is a luxury apparel and accessories company. Some of its products include handbags, sunglasses, gloves, and belts. This makes it one of the rare cyclical and consumer oriented stocks that have managed to gain 19% year to date and a stronger 62% over the past twelve months. Consumer sentiment has weakened in America because of high rates and inflation, but despite this, Tapestry, Inc. (NYSE:TPR) has managed to avoid revenue drops. Part of this is due to the firm’s customer base as luxury product buyers are typically better insulated against insulation when compared to the everyday consumer. For instance, during its fiscal fourth quarter, Tapestry, Inc. (NYSE:TPR)’s revenue and EPS stood at $1.59 billion and $0.92, respectively. These beat analyst revenue estimates of $1.57 billion and $0.88. The beats were fueled by the firm’s recovery in Europe where its sales grew by 17%. Tapestry, Inc. (NYSE:TPR) is also looking to expand its portfolio by acquiring rival firm Capri, which owns Michael Kors. Any positive development on this front could mean that the stock does well. Additionally, with the economic conditions yet to improve in America for consumers, the narrative is also focused on Tapestry, Inc. (NYSE:TPR)’s ability to control costs.

Tapestry, Inc. (NYSE:TPR)’s management shared details about another key market, China, during the Q4 2024 earnings call:

“Well, we are building and continue to drive a healthy business. That’s been our focus not only in China, but around the world and I think evidenced in our margin delivery that continues at Tapestry, but like many others, we’re seeing macro headwinds impacting the landscape. Despite this, we did grow in fiscal ’24. And as we think about the forward view, we are expecting the market to be basically in line in fiscal ’25 with where it was in ’24. But we — our long-term view on China and the opportunity that exists in that market has not changed. We’re taking a prudent approach in the short term in how we’re planning and in our guidance, but we continue to stay close to the consumer. Our teams are moving as that consumer is moving. We’re building the business in a very healthy way in the market. And maybe I’ll toss it to Todd to give some color around what we’re seeing at Coach specifically.”