Top 11 Luxury Clothing Stocks to Invest in Now

7. Tapestry, Inc. (NYSE:TPR)

Analyst Upside Potential as of September 12, 2024: 19.05%

No. of Hedge Funds as of Q2 2024: 32

Tapestry, Inc. (NYSE:TPR) operates an iconic global house of brands, including Coach, Kate Spade New York, and Stuart Weitzman. These brands specialize in manufacturing and distributing accessories and lifestyle collections, including handbags, jewelry, apparel, footwear, home decor, and more. Women’s accessories include leather accessories such as micro and mini handbags, wristlets, cosmetic cases, money pieces, and pouches. In addition, men’s items include small leather goods, watches, bag collections, apparel, and footwear. The high-end products are sold through the company’s direct-to-consumer, licensing, and wholesale businesses. Direct-to-consumer business includes outlet and retail stores, brand e-commerce sites, and concession shop-in-shops.

Tapestry, Inc. (NYSE:TPR) delivered a 1% total revenue growth on a constant currency basis in Q4 fiscal 2024, highlighting the positive effects of the company’s globally diversified business model. These positive results were led by a 6% international growth, with gains achieved in key regions. This includes a 14% growth in Europe, 5% in Japan, and 9% in Other Asia, collectively representing around 20% of the company’s sales and posing additional growth opportunities.

The company is focused on building and maintaining lasting customer relationships by cultivating emotional connections via its brands. This strategy has brought in more than 6.5 million new customers in North America alone, more than 50% of whom are millennials and Gen Z. These trends remain consistent with Tapestry’s efforts to expand its consumer base by including younger customers for its brands.

Tapestry Inc. (NYSE:TPR) has also improved lapsed customer reactivation in North America, showcasing its ability to maintain its existing customer base while striving for new customer engagement. The company also offers efficient omnichannel experiences to its customers, increasing brick-and-mortar sales for the year on a constant currency basis. With increased productivity being the primary driver of this growth, Tapestry Inc. (NYSE:TPR) boasts a highly profitable growth trajectory.

The stock has a consensus Buy rating from analysts, and its median price target of $42.56 implies an upside of 19.05% from current levels. It is currently trading at a forward P/E of 9.36, a 40.7% discount to its sector.