Top 12 Luxury Stocks According to Hedge Funds

5. Tapestry, Inc. (NYSE:TPR)

Number of Hedge Fund Holders: 38

Tapestry, Inc. (NYSE:TPR) operates a global house of luxury brands, including Kate Spade New York, Coach, and Stuart Weitzman. In fiscal Q1 2025, international revenue gains for the company grew by 2% in constant currency, which included a 27% increase in Europe.

The company is focusing on increasing consumer engagement across its portfolio. It acquired around 1.4 million new customers in fiscal Q1 2025 in North America alone, with all its brands experiencing an increase. More than 50% of these customers were millennials and Gen Z, reflecting the success of Tapestry, Inc.’s (NYSE:TPR) strategy to recruit younger customers to its brands. These customers continued to transact at a higher average unit retail (AUR) than the balance of the company’s customer base.

The company also improved lapsed customer reactivation in North America and delivered compelling omnichannel experiences to engage its customers. It maintained strength in its digital offerings, which grew high single digits compared to 2023 and represented more than 25% of its revenue at accretive margins. Tapestry, Inc. (NYSE:TPR) is also focusing on fueling product excellence and fashion innovation through quality, creativity, and compelling value. This is reflected in the company’s brands, as Coach delivered continued growth in its handbags in fiscal Q1 2025, supported by AUR gains.

Tapestry, Inc.’s (NYSE:TPR) agile supply chain lends it a key competitive advantage, allowing it to effectively adapt to the evolving fashion landscape. It ranks seventh on our list of the 12 luxury brands to buy according to hedge funds.