On Monday, Florida-based Abacus FCF Advisors disclosed a new position in Tapestry (TPR +0.69%), acquiring 153,086 shares in a transaction valued at approximately $17.3 million.
What Happened
According to a filing with the Securities and Exchange Commission released on Monday, Abacus FCF Advisors disclosed a new stake of 153,086 shares in Tapestry. The estimated value of the trade was $17.33 million. The fund now reports 60 positions and $752.3 million in U.S. equity assets as of September 30.
What Else to Know
This new position in Tapestry represents 2.3% of Abacus FCF Advisors LLC’s 13F reportable assets under management as of September 30, placing it outside the fund’s top five holdings.
Top holdings after the filing:
- NYSE:ABBV: $29.2 million (3.9% of AUM)
- NYSE:MA: $26.2 million (3.5% of AUM)
- NASDAQ:APP: $26.1 million (3.5% of AUM)
- NASDAQ:BKNG: $22 million (2.9% of AUM)
- NASDAQ:AAPL: $20.8 million (2.8% of AUM)
As of Tuesday afternoon, shares of Tapestry were priced at $116.98, up a staggering 163% over the past year and well outperforming the S&P 500's 15% gain over the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $7 billion |
| Net Income (TTM) | $183.2 million |
| Dividend Yield | 1.4% |
| Price (as of Tuesday afternoon) | $116.98 |
Company Snapshot
- Tapestry offers luxury accessories and lifestyle products, including handbags, footwear, jewelry, and apparel under the Coach and Kate Spade brands.
- The company generates revenue through a mix of direct-to-consumer retail, e-commerce, and wholesale channels, with a global store network and licensed product categories.
- It targets fashion-conscious consumers in the United States, Japan, Greater China, and international markets seeking premium branded goods.
Tapestry, Inc. operates in the global luxury goods sector with a multi-brand portfolio. Its scale and established retail presence provide a competitive edge in delivering high-quality, design-driven products to diverse markets.
Foolish Take
Abacus FCF Advisors added luxury retail exposure last quarter with its $17.3 million purchase of Tapestry (NYSE: TPR) shares, marking a notable bet on discretionary consumer strength. The move aligns with the Florida-based firm’s strategy of owning cash-generative companies with durable brands, complementing positions like AbbVie, Mastercard, and Apple that anchor its portfolio.
The timing comes as Tapestry unveiled its new “Amplify” growth strategy at its 2025 Investor Day last month. The firm said it’s targeting mid-single-digit annual revenue growth and low-double-digit EPS gains through fiscal 2028. Tapestry also announced a $3 billion share repurchase authorization and plans to return $4 billion to shareholders via dividends and buybacks over the next three years. CEO Joanne Crevoiserat highlighted Tapestry’s data-driven focus on Gen Z consumers and continued expansion across North America, China, and Europe.
For long-term investors, Abacus’s entry underscores a likely growing conviction in Tapestry’s turnaround and capital-return potential following the sale of Stuart Weitzman, which closed in August, and a renewed focus on its core Coach and Kate Spade brands. The stock, after all, has been a standout performer this year, surging nearly 80%—which is enough to make it one of the 20 top-performing stocks in the S&P 500.
Glossary
13F reportable assets: Assets disclosed by institutional investment managers in quarterly SEC Form 13F filings, showing U.S. equity holdings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Stake: The amount of ownership or interest an investor holds in a company, often expressed in shares or percentage.
Top holdings: The largest investments in a fund's portfolio, typically ranked by market value.
Dividend yield: A financial ratio showing annual dividends paid as a percentage of the stock's current price.
Direct-to-consumer: A sales approach where companies sell products directly to customers, bypassing third-party retailers or wholesalers.
Wholesale channels: Distribution methods where products are sold in bulk to retailers or distributors, not directly to end consumers.
Licensed product categories: Product lines produced by third parties under agreement to use a company’s brand or trademarks.
Multi-brand portfolio: A collection of different brands owned and managed by a single parent company.
TTM: The 12-month period ending with the most recent quarterly report.
