Tapestry (TPR) Stock Forecast & Price Target

Tapestry is well positioned because Coach drives 86% of fiscal 2026 revenue and all operating profit, and its strong brand equity, pricing power, and lower promotional activity have supported higher AURs, margin expansion, and resilient demand across North America, Greater China, and Europe. The latest quarter showed broad-based momentum, with Coach revenue up 15%, net sales of $1.877 billion, and adjusted gross margin rising to 78.1%, while operating margin improved to 19.3% despite tariff headwinds and heavier marketing investment. The outlook is further strengthened by an estimated 70% of future growth coming from international markets and by disciplined capital returns, even as Kate Spade’s reset may temporarily pressure results before potentially contributing to longer-term profitable growth.

Tapestry is vulnerable because its earnings power is overwhelmingly concentrated in Coach, which generated 86% of fiscal 2026 revenue and all operating profit, leaving the company exposed if Coach growth slows or China demand reverses. The analyst’s lower FY27 EPS estimate of $7.90 reflects more modest top-line performance, while Kate Spade’s expected 9% revenue decline underscores the risk that the turnaround may keep dragging on consolidated results. Although margins remain supported by new customer acquisition and AUR expansion, the stock’s 16.3x FY27 earnings multiple leaves less room for error amid tariffs, macro pressure, and rising competition.