(NYSE: TPR) is the umbrella company that owns Coach, Kate Spade, and Stuart Weitzman. It is also looking to buy peer Capri Holdings (NYSE: CPRI), adding nameplates Versace, Jimmy Choo, and Michael Kors to the mix to create a giant luxury brand company.

It seems Tapestry is working from a position of strength, as well, given a strong top and bottom line showing in the fiscal first quarter of 2024. But dig a little, and there are some issues to worry about.

Sales chimed in at $1.5 billion at Tapestry in the fiscal first quarter of 2024. Gross margin improved by 250 basis points. Adjusted earnings of $0.93 per share were up 18% year over year. According to the headline of the earnings release, "Tapestry, Inc. delivers record first quarter revenue and EPS."

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Source Fool.com