Tapestry Targets 70% Growth from International Markets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 19 2026
0mins
Source: seekingalpha
- International Expansion: Tapestry aims for approximately 70% of its growth over the next few years to come from international markets, particularly China and Europe, as CEO Joanne Crevoiserat highlighted the relatively low penetration in these regions, indicating significant potential.
- Strong Performance in China: Tapestry's sales in China have increased at a double-digit rate over the past two years, despite a weak handbag market overall, suggesting that the company is successfully building brand loyalty among young consumers.
- Impressive Financial Results: In Q1, Tapestry reported a pro forma sales growth of 25%, with both gross and operating margins expanding, while its non-GAAP EPS of $1.66 exceeded the consensus estimate of $1.60 and was significantly higher than last year's $1.03.
- Growing Customer Base: Tapestry acquired over 2.4 million new customers globally, with Gen Z consumers representing over 35% of this new customer base, demonstrating the company's strong ability to attract and retain new generations of consumers, thereby solidifying its position in a large total addressable market.
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Analyst Views on TPR
Wall Street analysts forecast TPR stock price to fall
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 145.390
Low
120.00
Averages
136.57
High
155.00
Current: 145.390
Low
120.00
Averages
136.57
High
155.00
About TPR
Tapestry, Inc. is a house of accessories and lifestyle brands. The Company's global house of brands include Coach and kate spade new york. Coach brand is a global fashion house of accessories and lifestyle collections. Kate Spade New York is a global lifestyle brand that designs things for the everyday, delivering seasonal collections of handbags, ready-to-wear, jewelry, footwear, gifts, home decor and more. Its products include women's handbags, women's accessories, men's and other products. Women's accessories include small leather goods which include mini and micro handbags, money pieces, wristlets, pouches and cosmetic cases. Men's includes bag collections, small leather goods, footwear, watches, sunglasses, and ready-to-wear items. Its products are sold to customers through its direct-to-consumer (DTC), wholesale and licensing businesses. Its DTC business includes retail and outlet stores, branded e-commerce sites as well as concession shop-in-shops.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- International Expansion: Tapestry aims for approximately 70% of its growth over the next few years to come from international markets, particularly China and Europe, as CEO Joanne Crevoiserat highlighted the relatively low penetration in these regions, indicating significant potential.
- Strong Performance in China: Tapestry's sales in China have increased at a double-digit rate over the past two years, despite a weak handbag market overall, suggesting that the company is successfully building brand loyalty among young consumers.
- Impressive Financial Results: In Q1, Tapestry reported a pro forma sales growth of 25%, with both gross and operating margins expanding, while its non-GAAP EPS of $1.66 exceeded the consensus estimate of $1.60 and was significantly higher than last year's $1.03.
- Growing Customer Base: Tapestry acquired over 2.4 million new customers globally, with Gen Z consumers representing over 35% of this new customer base, demonstrating the company's strong ability to attract and retain new generations of consumers, thereby solidifying its position in a large total addressable market.
See More
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- Brand Performance Issues: The Athleta brand has seen quarterly sales decline for several consecutive quarters, while Old Navy's sales growth has slowed, indicating challenges in brand appeal for Gap, which exacerbates pressures during its turnaround process.
- Profit Forecast Increase: Despite the sales forecast cut, Gap raised its annual profit outlook, expecting approximately $80 million in relief from tariffs to boost gross profit and operating income in fiscal 2026, demonstrating a proactive strategy in cost management.
- Shareholder Returns: In the first quarter of fiscal 2023, Gap returned $464 million in cash to shareholders through share repurchases and dividends, indicating the company's commitment to shareholder returns even amid sales pressures, aiming to bolster investor confidence.
See More
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- Technology Licensing Strategy: Amazon is licensing its internally developed AI shopping technology to other retailers, enabling them to launch customized shopping tools in as little as 60 days, thereby enhancing Amazon's technological influence in the retail sector.
- Customer Engagement: Amazon has signed a partnership with Tapestry-owned luxury brand Kate Spade to utilize the service for launching a gifting assistant, demonstrating market demand and application potential for its technology.
- Competitive Market Landscape: In the AI shopping space, Amazon faces challenges from competitors like OpenAI and Google, which are also rolling out shopping-related AI tools, although some initiatives have stumbled due to technical issues, highlighting market uncertainties.
- Retailer Autonomy: Amazon encourages retailers to develop their own AI tools, emphasizing their deep understanding of products and customers, which allows them to maintain control over the shopping experience and enhances their competitive edge in the market.
See More
Amazon Launches AI Shopping Tool for Retailers
- Technology Licensing Expansion: Amazon is licensing its internally developed Alexa for Shopping technology to retailers, enabling them to launch customized AI shopping tools in as little as 60 days, thereby enhancing customer experience and strengthening market competitiveness.
- Customer Case: Luxury brand Kate Spade has become the first customer to utilize this service, successfully launching a gifting assistant, showcasing Amazon's market appeal and technological prowess in the retail AI space.
- Market Competition Landscape: As competitors like OpenAI and Google also roll out shopping AI tools, Amazon's initiative not only continues its technology commercialization but may also solidify its leadership position in a fiercely competitive market.
- Retailer Autonomy: Amazon encourages retailers to build their own AI tools, emphasizing their deep understanding of products and customers, which allows them to maintain control over the shopping experience, thereby enhancing brand loyalty and customer satisfaction.
See More
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- Energy Market Reflection: Chevron CEO Mike Wirth highlighted that the current energy market resembles the 1970s, and while the U.S. is less reliant on Middle Eastern oil, high energy prices could still trigger a recession, impacting retailers' sales performance.
- Retail Performance Disparity: Dollar Tree reported a 9% sales increase in the fiscal fourth quarter with a 5% rise in same-store sales, contrasting with Target's prolonged weak performance, illustrating the varying impacts of economic uncertainty on different retailers.
- Luxury Market Pressure: Amid a potential recession, luxury brands like Tapestry may experience sales slowdowns, particularly with the underperformance of the Kate Spade brand, indicating the vulnerability of high-end consumer goods during economic downturns.
- Consumer Sentiment Impact: Deteriorating consumer sentiment could lead to a recession in 2026, significantly pressuring non-essential retailers like Best Buy and AutoNation, reflecting the profound influence of economic emotions on consumer behavior.
See More
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- Market Risk Warning: Chevron CEO Mike Wirth has indicated that the current oil market resembles the 1970s, suggesting that sustained high oil prices could lead to a global recession, particularly impacting countries heavily reliant on Middle Eastern oil.
- Reduced U.S. Dependence: While the U.S. is less dependent on Middle Eastern oil than in the 1970s, high oil prices could still indirectly affect the U.S. economy, as rising global oil prices may dampen consumer confidence and spending.
- Divergent Retail Performance: Amid increasing economic uncertainty, discount retailers like Dollar Tree and Walmart are benefiting from consumers trading down to cheaper options, while Target faces challenges with declining same-store sales, highlighting a trend of divergence in retail performance.
- Luxury Sales Pressure: With an uncertain economic outlook, luxury brands like Tapestry may experience a slowdown in sales, particularly given poor performance in the Japanese market, which could foreshadow similar challenges in other markets as the geopolitical situation persists.
See More
Tapestry Targets 70% Growth from International Markets
- International Expansion: Tapestry aims for approximately 70% of its growth over the next few years to come from international markets, particularly China and Europe, as CEO Joanne Crevoiserat highlighted the relatively low penetration in these regions, indicating significant potential.
- Strong Performance in China: Tapestry's sales in China have increased at a double-digit rate over the past two years, despite a weak handbag market overall, suggesting that the company is successfully building brand loyalty among young consumers.
- Impressive Financial Results: In Q1, Tapestry reported a pro forma sales growth of 25%, with both gross and operating margins expanding, while its non-GAAP EPS of $1.66 exceeded the consensus estimate of $1.60 and was significantly higher than last year's $1.03.
- Growing Customer Base: Tapestry acquired over 2.4 million new customers globally, with Gen Z consumers representing over 35% of this new customer base, demonstrating the company's strong ability to attract and retain new generations of consumers, thereby solidifying its position in a large total addressable market.
See More
