Tapestry (TPR) Stock Forecast & Price Target

Tapestry, the parent company of Coach and Kate Spade, is positioned for significant growth, with Coach expected to achieve mid-single-digit topline growth through FY28 and a long-term revenue target exceeding $10 billion. The Amplify plan aims to capitalize on structural improvements that have been implemented in recent years, further driving both revenue growth and margin expansion, with expectations for Coach’s operating margin to reach the mid-30% range. Additionally, Coach, which accounted for 80% of Tapestry's revenues in fiscal 2025, generated $5.6 billion, underscoring the brand's strong market presence and financial potential.

Tapestry's reliance on the Coach brand, which generated 80% of its revenue and over 90% of its operating profit in fiscal 2025, poses significant risks given the brand's historical challenges linked to inadequate marketing and customer acquisition strategies. Additionally, external factors such as volatility in commodity costs, consumer spending fluctuations, and macroeconomic conditions like rising interest rates and weakened consumer confidence contribute to an uncertain outlook for the company's performance. Despite Coach's strong brand awareness in the U.S., its underperformance at the point of sale indicates potential issues regarding product relevance and clarity, which may hinder future revenue growth.