Tapestry (TPR) Stock Forecast & Price Target

Tapestry is viewed positively because Coach remains an exceptionally powerful engine, generating 86% of fiscal 2026 revenue and all operating profit, with handbags still a 58% mix and nearly 2 million new customers added in the quarter, while revenue rose 15% in the segment. Strong execution is also showing up in the numbers, as 4Q26 net sales reached $1.877 billion, adjusted EPS was $1.32, gross margin expanded to 78.1%, and operating margin improved to 19.3% despite tariff pressure and higher marketing spend. The outlook is further supported by broad international growth in North America, Greater China, and Europe, plus long-term upside from Coach’s pricing power and Kate Spade’s turnaround potential.

Tapestry is vulnerable because Coach supplies 86% of fiscal 2026 revenue and all operating profit, leaving the company heavily dependent on one brand whose handbag-led mix can amplify any slowdown or margin pressure. A reversal in Coach’s strong China trends would quickly weaken top-line momentum, while Kate Spade’s ongoing brand reset creates execution risk if the expected return to profitable top-line growth in FY27 fails to materialize. The stock also faces downside if management diverts too much time or capital to Kate Spade, potentially delaying the turnaround and eroding shareholder value.