Tapestry, Inc.

(New York Stock Exchange)
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Bullish +75

Jim Cramer on Tapestry, Inc. (TPR): ‘It’s Become An Up Stock’

AI-generated analysis

📈 Jim Cramer identifies Tapestry (TPR) as a top stock to buy for December, labeling it an 'up stock' after the FTC blocked its Capri Holdings acquisition.

🛑 The company terminated its merger with Capri Holdings in November 2024, citing uncertain legal outcomes and an unlikely resolution by the February 10, 2025 deadline.

💰 Tapestry announced $2.0 billion in Accelerated Share Repurchase (ASR) agreements on November 22, 2024, as part of a broader $2.8 billion buyback program.

📊 The company expects to return over 100% of its free cash flow for fiscal 2025 to shareholders through dividends and stock repurchases.

🗣️ CEO Joanne Crevoiserat stated that investing in Tapestry's own stock is the best option given the current market environment.

🏆 Jim Cramer credits Lina Khan and the FTC for allowing Tapestry to prosper by blocking the deal with Capri Holdings, which included brands like Michael Kors.

📅 The final settlement of the ASR agreements is expected by the first quarter of fiscal 2026, ending September 27, 2025.

🔍 Tapestry ranks ninth on Jim Cramer's list of ten stocks he believes will perform well in December based on Mad Money discussions.

Bullish Signals
  • Jim Cramer explicitly labels Tapestry as an 'up stock' and a top pick for December performance following the FTC's blockage of its Capri Holdings acquisition.
  • The company successfully terminated its merger with Capri Holdings, allowing it to prosper independently after Wall Street initially reacted negatively to the proposed deal.
  • Tapestry announced $2.0 billion in Accelerated Share Repurchase (ASR) agreements on November 22, 2024, demonstrating a strong commitment to returning capital to shareholders.
  • The company plans to return over 100% of its free cash flow for fiscal 2025 through dividends and stock buybacks, indicating robust cash generation.
  • CEO Joanne Crevoiserat expressed high confidence in the company's current position, stating that investing in Tapestry's own stock is the best option at this time.
Full Analysis
Jim Cramer of Mad Money has identified Tapestry, Inc. (NYSE: TPR) as a top stock to buy for December performance, noting that the company has become an 'up stock' following the Federal Trade Commission's blockage of its proposed acquisition of Capri Holdings. Cramer attributes this positive shift to Lina Khan's intervention at the FTC, which prevented the merger and allowed Tapestry to prosper independently after Wall Street initially reacted negatively to the deal. Tapestry, a luxury goods manufacturer offering handbags, footwear, and accessories, officially terminated its merger agreement with Capri Holdings in November 2024. The companies mutually agreed that halting the transaction was in their best interests due to uncertain legal outcomes and an unlikely resolution by the February 10, 2025 deadline. In a significant move to return value to shareholders, Tapestry announced on November 22, 2024, that it entered into Accelerated Share Repurchase (ASR) agreements to buy back $2.0 billion of its common stock as part of a broader $2.8 billion repurchase program. The company expects to return over 100% of its free cash flow for fiscal 2025 through dividends and buybacks, with final settlement expected by the first quarter of fiscal 2026. CEO Joanne Crevoiserat expressed confidence in the company's current position, stating that investing in Tapestry's own stock is the best option at this time. While Cramer ranks TPR ninth on his list of December winners, the article concludes by suggesting AI stocks may offer higher returns, though it acknowledges Tapestry's strong rebound trajectory.