Tapestry Expects 70% of Growth from International Markets in Coming Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 19 2026
0mins
Tapestry expects roughly 70% of its growth over the next several years to come from international markets, with expansion led by its Coach brand and focused primarily on China and Europe, Reuters' Elisa Anzolin reports. "Our penetration right now is relatively lower in international markets," Tapestry CEO Joanne Crevoiserat told Reuters on Monday, adding that "There is so much more potential if we think about the population in China, particularly with young consumers."
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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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- 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.
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- 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
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- 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.
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- 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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- 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
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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
