TPR Down 16% In A Day. How Confident Are You In The Stock?
Tapestry (TPR) stock is down 15.7% in a day. While history suggests price dips recover, there is risk – specific to growth and downturn resilience. Consider the following data:
- Size: A $24 Bil company with $6.9 Bil in revenue currently trading at $95.69.
- Fundamentals: Last 12 month revenue growth of 2.7% and operating margin of 17.9%.
- Liquidity: Has Debt to Equity ratio of 0.2 and Cash to Assets ratio of 0.1
- Valuation: Currently trading at P/E multiple of 27.4 and P/EBIT multiple of 21.2
- Has returned (median) 97.7% within a year following sharp dips since 2010. See TPR Dip Buy Analysis.
While we like to buy dips if the fundamentals check out – for TPR, see Buy or Sell TPR Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and TPR drops another 20-30% to $66.98 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience.
Below is a deep dive into Tapestry (TPR) downturn resilience – specifically, its performance vs the market during past crises? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
Below are the details, but before that, as a quick background: TPR provides luxury accessories and branded lifestyle products globally through three segments: Coach, Kate Spade, and Stuart Weitzman, with an extensive retail network including 939 Coach stores.
2022 Inflation Shock
- TPR stock fell 46.0% from a high of $49.12 on 7 May 2021 to $26.52 on 11 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 25 October 2024
- Since then, the stock increased to a high of $95.69 on 14 August 2025 $95.69
| TPR | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -46.0% | -25.4% |
| Time to Full Recovery | 898 days | 464 days |
2020 Covid Pandemic
- TPR stock fell 64.1% from a high of $29.47 on 12 February 2020 to $10.58 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 24 November 2020
| TPR | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -64.1% | -33.9% |
| Time to Full Recovery | 246 days | 148 days |
2018 Correction
- TPR stock fell 64.4% from a high of $54.64 on 27 April 2018 to $19.45 on 15 August 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 14 November 2024
| TPR | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -64.4% | -19.8% |
| Time to Full Recovery | 1918 days | 120 days |
2008 Global Financial Crisis
- TPR stock fell 78.2% from a high of $53.79 on 20 April 2007 to $11.73 on 9 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 18 November 2010
| TPR | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -78.2% | -56.8% |
| Time to Full Recovery | 619 days | 1480 days |
Worried that TPR could fall much more? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.