NEW YORK—Todd Kahn, the CEO and Brand President of Coach , a division of Tapestry, Inc. (NYSE:TPR), has sold shares worth approximately $4.19 million, according to a recent SEC filing. The transactions, which took place on November 22 and 25, involved the sale of common stock at prices ranging from $58.00 to $60.84 per share.
In total, Kahn sold 65,321 shares over two days. The sales were part of a broader series of transactions that also included multiple acquisitions of common stock through option exercises. These acquisitions amounted to $10.31 million, with transaction prices ranging from $0.00 to $41.00 per share.
Additionally, Kahn engaged in transactions to cover the costs associated with exercising derivative securities, resulting in sales totaling $18.94 million, as noted in the filing.
These transactions reflect Kahn's ongoing management of his equity holdings in Tapestry, Inc., a company known for its luxury brands including Coach, Kate Spade, and Stuart Weitzman.
In other recent news, Tapestry Inc. has received attention from various analyst firms following robust first-quarter earnings and the unveiling of a $2.8 billion stock buyback plan. TD Cowen maintained its Hold rating on the company, citing the success of the Coach brand and potential growth in the China market. Baird also held an Outperform rating, raising the price target to $64 following the termination of a potential deal.
Tapestry's decision to focus on sustainable revenue growth for its Kate Spade brand was noted by both Baird and Telsey Advisory Group, the latter adjusting its outlook on Tapestry, increasing the price target to $67. In addition, Telsey highlighted the potential for significant earnings growth stemming from Tapestry's new share buyback authorization.
Tapestry's first-quarter results exceeded expectations, leading to an increase in full-year revenue and earnings guidance. The Coach brand demonstrated resilience with a 2% increase in constant currency in the last quarter, while Stuart Weitzman experienced an unexpected sales increase. However, the Kate Spade brand saw a sales dip.
These recent developments follow the termination of a merger agreement and the company's decision to contest an injunction blocking the acquisition of Capri Holdings (NYSE:CPRI). Despite mixed results, Tapestry remains optimistic about its future, aiming for a full-year revenue growth of 1-2% and expecting to expand its gross margin by over 50 basis points by fiscal 2025.
InvestingPro Insights
The recent stock transactions by Todd Kahn, CEO and Brand President of Coach, come at a time when Tapestry, Inc. (NYSE:TPR) is experiencing significant market momentum. According to InvestingPro data, Tapestry's stock has shown impressive returns, with a 106.05% price total return over the past year and a 50.9% return in the last three months alone. This strong performance has pushed the stock to trade near its 52-week high, with the current price at 99.38% of that peak.
InvestingPro Tips highlight that Tapestry has maintained dividend payments for 16 consecutive years and has raised its dividend for 4 consecutive years, demonstrating a commitment to shareholder returns. This is particularly noteworthy given the company's current dividend yield of 2.3%.
The company's financial health appears robust, with InvestingPro data showing a market capitalization of $14.22 billion and impressive gross profit margins of 73.91% for the last twelve months as of Q1 2025. This aligns with one of the InvestingPro Tips, which notes Tapestry's "impressive gross profit margins."
Investors considering Tapestry's stock may be interested to know that InvestingPro offers 17 additional tips for TPR, providing a more comprehensive analysis of the company's financial position and market performance. These insights could be particularly valuable given the recent insider transactions and the stock's strong market performance.
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