Options Movement At Tapestry: David Howard Exercises Worth $2.47M

A significant insider transaction involving the exercise of company stock options was reported on November 19, by David Howard, Chief Legal Officer at Tapestry (NYSE:TPR), as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday revealed that Howard, Chief Legal Officer at Tapestry in the Consumer Discretionary sector, exercised stock options for 35,968 shares of TPR stock. The exercise price of the options was $37.4 per share.

The Thursday morning update indicates Tapestry shares up by 1.7%, currently priced at $106.18. At this value, Howard's 35,968 shares are worth $2,473,848.

Get to Know Tapestry Better

Based in New York City, Tapestry is the parent company of accessories and fashion brand Coach, which accounted for 80% of its revenue and well over 90% of its operating profit in fiscal 2025. Handbags accounted for 58% of the brand's fiscal 2025 revenue. Coach products are sold through more than 900 company-owned stores, e-commerce, and third-party stores in North America, Asia, and Europe. Tapestry also owns Kate Spade (17% of fiscal 2025 revenue), which operates about 170 stores and generated 52% of its sales from handbags in fiscal 2025. Kate Spade is known for its colorful patterns and graphics. Tapestry sold its smallest brand, luxury footwear maker Stuart Weitzman, to Caleres in August 2025.

Tapestry: Financial Performance Dissected

Revenue Growth: Tapestry displayed positive results in 3 months. As of 30 September, 2025, the company achieved a solid revenue growth rate of approximately 13.07%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Interpreting Earnings Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 76.29%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Tapestry's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.32.

Debt Management: With a high debt-to-equity ratio of 10.51, Tapestry faces challenges in effectively managing its debt levels, indicating potential financial strain.

Market Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 79.7 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 3.15, Tapestry's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Tapestry's EV/EBITDA ratio, surpassing industry averages at 41.5, positions it with an above-average valuation in the market.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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Uncovering the Importance of Insider Activity

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Deciphering Transaction Codes in Insider Filings

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Tapestry's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.