Tapestry (TPR) Stock Forecast & Price Target

Tapestry is viewed positively because Coach is delivering durable, broad-based momentum, with 4Q26 net sales of $1.877 billion up 9% y/y, adjusted EPS of $1.32, and operating margin expansion to 19.3% despite tariff pressure. Coach remains the core earnings engine, generating 86% of fiscal 2026 revenue and all operating profit, while new-customer acquisition, higher AUR, and international growth in North America, Greater China, and Europe support a structurally stronger model. The outlook is further reinforced by nearly 70% of future growth expected from international markets, strong gross margin at 78.1%, and disciplined capital returns through repurchases and dividends, even as Kate Spade provides additional long-term upside.

Tapestry is viewed negatively because its results are overwhelmingly dependent on Coach, which produced 86% of fiscal 2026 revenue and all operating profit, leaving the company exposed if Coach’s top-line momentum or China strength fades. Although Coach added more than 2 million new customers in the quarter and nearly 9 million in FY26, the business still faces margin risk from tariffs, a weakening macroeconomic environment, and intensifying competition. Kate Spade remains a drag, with revenue down 7% in the quarter and a multi-year turnaround still unproven, creating further downside if management devotes excessive time or capital without a sustained recovery.