Tapestry (TPR) Stock Forecast & Price Target

Tapestry is attractive because Coach remains a powerful growth engine, generating 86% of fiscal 2026 revenue and all operating profit, with 15% quarterly revenue growth, 23.4% operating margins in FY26, and strong demand in North America, Greater China, and Europe. Its durable accessible-luxury positioning is supported by 2.0 million new customers, pricing power through higher AURs, and a structurally stronger mix shift toward higher-margin direct-to-consumer and Asian markets, which should help sustain earnings expansion despite tariff pressure. While Kate Spade is a smaller turnaround story, its modest expectations and potential to improve from a lower base add optionality, and management’s disciplined execution plus shareholder returns strengthen the long-term case.

Tapestry is vulnerable to an overreliance on Coach, which produced 86% of fiscal 2026 revenue and all operating profit, leaving results exposed if that brand’s momentum slows or if China reverses its outstanding trend. Although Coach added more than 2 million new customers during the quarter and nearly 9 million during fiscal 2026, the company still lowered its FY27 EPS estimate to $7.90 from $8.00, signaling more modest top-line expectations. Kate Spade remains a drag, with revenue down 7% during the quarter and a projected 9% decline in FY27, while tariffs, macro weakness, and competition could further pressure gross profit and margin durability.