Jim Cramer Expresses Optimism on Tapestry Amid Strategic Shifts Under Crevoiserat

Jim Cramer, the prominent financial commentator, recently expressed favorable views on Tapestry, Inc. (TPR), citing positive changes unfolding under CEO Joanne Crevoiserat. He emphasized the company’s evolving brand strategy and disciplined capital allocation as key drivers of renewed investor confidence. Cramer pointed to Tapestry’s recent quarterly earnings report, which showed a 9% year-over-year increase in comparable store sales across its core brands, including Coach and Kate Spade. The company reported adjusted earnings per share of $1.78, surpassing analyst estimates by 12 cents, while revenue reached $1.32 billion, a 5% improvement from the prior-year period. The turnaround efforts have been anchored in a shift toward digital-first growth, with e-commerce sales accounting for 43% of total revenue—up from 37% in the same quarter last year. Additionally, Tapestry has reduced inventory levels by 18% compared to Q3 2024, improving working capital efficiency. These operational improvements come amid a broader industry challenge in the consumer discretionary sector, where many retailers face margin pressures and slowing foot traffic. Cramer’s endorsement has already influenced market sentiment, with TPR shares rising 4.6% in early trading following his remarks. Analysts note that the stock’s price-to-earnings ratio of 18.3x now appears attractive relative to the sector average of 22.1x. Institutional ownership has increased by 3.2 percentage points over the past quarter, suggesting growing confidence among professional investors. The developments at Tapestry are particularly notable given the broader headwinds in luxury retail, including elevated interest rates and cautious consumer spending. However, Crevoiserat’s focus on brand equity and customer-centric innovation appears to be paying off, positioning TPR as a potential outperformer in the coming fiscal year.