Tapestry Inc (TPR)

The analysis of Tapestry Inc’s days of sales outstanding (DSO) over the reported periods reveals fluctuations that warrant close examination. As of June 30, 2021, the DSO was approximately 12.72 days, indicating a relatively efficient collection of receivables relative to sales. This metric increased modestly to about 13.78 days by June 30, 2022, suggesting a slight elongation in the receivables collection period. The DSO then decreased to approximately 11.59 days as of June 30, 2023, reflecting an improvement in collection efficiency during that year.

However, a significant shift occurred in the subsequent period, with the DSO rising sharply to approximately 25.41 days by June 30, 2024. This nearly doubling of the collection period indicates a substantial slowdown in receivables turnover, potentially pointing to issues such as extended credit terms, slower payments from customers, or other operational factors affecting cash collections. Notably, the DSO decreased again to approximately 12.46 days as of June 30, 2025, reverting to levels comparable to those seen in 2021, which may suggest remedial actions, changes in credit policy, or improved collection efforts.

Overall, the long-term trend from 2021 through 2025 shows periods of stability interspersed with notable fluctuations. The sharp increase in DSO in 2024 indicates a temporary weakening in collection efficiency, whereas the subsequent decline points toward a recovery or adjustment in receivables management. Continuous monitoring of these trends is essential to assess the underlying reasons and to ensure that receivables are managed effectively to support the company’s liquidity and operational efficiency.

Peer comparison

Jun 30, 2025