Princeton Dumps $2.8 Million Worth of Tapestry (NYSE: TPR) Shares, Keeps Position

Princeton Global Asset Management LLC reduced its stake in Tapestry (NYSE:TPR) during the quarter ending September 30, 2025, selling 26,534 shares valued at an estimated $2.78 million. As reported in an October 9, 2025 SEC filing, this transaction leaves Princeton with 54,082 Tapestry shares, worth $6.12 million, now representing 1.02% of its assets under management. This partial divestment follows a significant 158.1% surge in Tapestry's stock over the past year, suggesting a move to realize profits and potentially rebalance exposure to the cyclical luxury retail sector, despite the company's recent strong sales and success in attracting younger demographics.

Analysis

Princeton Global Asset Management (PGAM) reduced its stake in Tapestry (TPR) by selling 26,534 shares, valued at approximately $2.78 million, as per an October 9, 2025 SEC filing. This divestment occurred after TPR's stock surged 158.1% over the past year, significantly outperforming the S&P 500 by 141.82 percentage points. PGAM's remaining holding of 54,082 shares now constitutes 1.02% of its assets under management, indicating a strategic rebalancing.

The partial sale appears to be a strategic move to realize profits following a substantial gain, with the stock nearly quadrupling in two years. This action also reflects a cautious stance on the luxury retail sector, which is noted for its cyclical and potentially fickle nature. Despite the reduction, TPR remains a constituent of PGAM's portfolio, albeit at a reduced weighting compared to their top holdings like Broadcom and Microsoft.

Tapestry itself exhibits strong underlying fundamentals, reporting record sales and margins in its most recent quarter. The company's ability to attract younger demographics, with 70% of new customers being millennials and Gen Z, suggests a positive long-term growth trajectory. With TTM revenue at $7 billion and a 1.28% dividend yield, the company demonstrates solid operational health.

However, the article notes that TPR is trading nearly three times above its previous all-time highs, indicating a potentially stretched valuation. While the company's operational strength and market outperformance are clear, the fund's decision to trim suggests a prudent approach to managing exposure to high-flying assets, especially in a sector prone to volatility.

Key Decisions for Investors

• Consider evaluating profit-taking strategies for Tapestry (TPR) positions, given the stock's substantial 158.1% year-over-year gain and Princeton Global Asset Management's recent partial divestment.
• Assess the cyclical nature of the luxury retail sector and its potential impact on long-term holdings, potentially rebalancing exposure to mitigate sector-specific risks.
• Monitor Tapestry's continued operational strength, particularly its success in attracting younger demographics and sustaining record sales, while critically evaluating its current valuation against historical performance.
• Review overall portfolio allocations to ensure diversification and alignment with risk tolerance, especially for high-performing assets that may have become overweighted.