How is Tapestry Strengthening Customer Engagement Through Omnichannel?

Tapestry, Inc.’s TPR omnichannel strategy is a significant competitive advantage, strengthening customer engagement while driving revenue growth and profitability. The seamless integration of digital and physical retail channels enables the company to deliver a consistent and compelling customer experience.

In the third quarter of fiscal 2025, direct-to-consumer sales grew 9% year over year, fueled by mid-teens growth in digital and mid-single-digit growth in brick-and-mortar stores. Digital now accounts for about 30% of total revenues and continues to expand at accretive margins, while profitability improved across all channels, aided by creative innovation and advanced analytics. Net sales were $1,584.6 million, reflecting a 6.9% year-over-year increase and 8% growth on a constant-currency basis. 

The omnichannel model enhances customer experience and helps capture full-price demand across touchpoints. Innovative retail formats such as Coach Play, immersive storytelling and in-store cafés have attracted higher traffic, longer dwell times and more repeat visits, particularly among Gen Z consumers. These experiential elements reinforce Tapestry’s strategy of meeting customers wherever they choose to engage while strengthening emotional connections to its brands. Such initiatives have been scaled to deliver a consistent, engaging experience throughout the retail fleet.

Tapestry has also significantly increased marketing investments, now approaching 10% of sales, up from the pre-pandemic levels of 3-4%. These funds are deployed more effectively through media planning and longer-running campaigns that emphasize brand values and emotional storytelling. This approach has deepened cultural relevance and driven stronger engagement, especially with younger consumers.

In the third quarter alone, Tapestry acquired more than 1.2 million customers in North America, with two-thirds coming from Gen Z and Millennials. These customers transacted at higher average unit retail (AUR) levels and demonstrated improved first-year retention, particularly at Coach, signaling strong future lifetime value.

By combining digital growth, experiential retail, strategic marketing and inclusive brand messaging, Tapestry’s omnichannel strategy continues to resonate with younger audiences and drive sustainable, profitable growth globally.

Tapestry’s Valuation Picture

TPR is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 16.93X, which positions it at a discount compared with the Retail-Apparel and Shoes industry’s average of 17.99X. Also, TPR is priced lower than the Retail-Wholesale sector’s average of 24.97X.

TPR Looks Attractive From a Valuation Standpoint

TPR’s Stock Performance

Shares of this Zacks Rank #2 (Buy) company have rallied 44.3% in the past three months compared with the Zacks industry’s 25.5% growth. This leading lifestyle specialty retailer’s ongoing strategic initiative and operational efficiencies have enabled it to outperform the broader sector and the S&P 500 index’s growth of 14.3% and 18.2%, respectively, during the same period.

TPR Stock Past 3-Month Performance

Closing at $92.21 as of yesterday, the TPR stock traded at its 52-week high of $93.48. The stock is trading above its 50 and 200-day SMAs (simple moving averages) of $80.65 and $67.92, respectively, highlighting a continued uptrend.

TPR Trades Above 50 & 200-Day SMAs

Upward Estimate Revisions Favor Tapestry Stock

The positive sentiment surrounding TPR is reflected in the upward revisions in the Zacks Consensus Estimate for earnings. In the past 60 days, the consensus estimate has moved up seven cents to $5.05 per share for the current fiscal year and by seven cents to $5.43 for the next fiscal year, indicating year-over-year growth of 17.7% and 7.6%, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The Zacks Consensus Estimate for the current and the next fiscal year’s sales is pegged at $6.96 billion and $7.17 billion, implying year-over-year growth of 4.3% and 3%, respectively.

Other Key Picks

Some other top-ranked stocks are Stitch Fix SFIX, Canada Goose GOOS and Allbirds Inc. BIRD.

Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Stitch Fix’s current fiscal year’s earnings implies a surge of 71.7% from the year-ago actual. SFIX delivered a trailing four-quarter average earnings surprise of 51.4%.

Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Canada Goose’s current fiscal year’s earnings and sales indicates growth of 10% and 2.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 57.2%.

Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for BIRD’s current financial-year earnings implies growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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