Tapestry's Q2 Performance Boosts FY26 Outlook Amid Strong Coach Sales
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14h ago
0mins
Should l Buy TPR?
Source: seekingalpha
- Significant Sales Growth: Tapestry (TPR) exceeded Q2 EPS expectations, raising its FY26 outlook to $6.40-$6.45, reflecting strong brand performance with an 80% year-over-year increase.
- Strong Coach Brand Performance: Coach saw a 25% sales increase in Q2, contributing 14% to Tapestry's total sales, while attracting 2.9 million new customers, highlighting its popularity among Gen Z.
- Massive Market Potential: CEO Joanne Crevoiserat noted that Tapestry targets nearly 2 billion consumers, with 275 million at market entry, currently holding less than 1% market share, indicating substantial growth opportunities ahead.
- Growth Risks and Challenges: Despite Tapestry's recent success, analysts caution that tariffs and brand dilution may hinder future double-digit growth, particularly affecting Kate Spade, and emphasize the need to monitor risks from changing fashion cycles.
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Analyst Views on TPR
Wall Street analysts forecast TPR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TPR is 136.57 USD with a low forecast of 120.00 USD and a high forecast of 155.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 143.190
Low
120.00
Averages
136.57
High
155.00
Current: 143.190
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.
Tapestry's Q2 Performance Boosts FY26 Outlook Amid Strong Coach Sales
- Significant Sales Growth: Tapestry (TPR) exceeded Q2 EPS expectations, raising its FY26 outlook to $6.40-$6.45, reflecting strong brand performance with an 80% year-over-year increase.
- Strong Coach Brand Performance: Coach saw a 25% sales increase in Q2, contributing 14% to Tapestry's total sales, while attracting 2.9 million new customers, highlighting its popularity among Gen Z.
- Massive Market Potential: CEO Joanne Crevoiserat noted that Tapestry targets nearly 2 billion consumers, with 275 million at market entry, currently holding less than 1% market share, indicating substantial growth opportunities ahead.
- Growth Risks and Challenges: Despite Tapestry's recent success, analysts caution that tariffs and brand dilution may hinder future double-digit growth, particularly affecting Kate Spade, and emphasize the need to monitor risks from changing fashion cycles.
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Tapestry's Q2 Performance Boosts FY26 Outlook Amid Strong Coach Sales
- Significant Sales Growth: Tapestry (TPR) exceeded Q2 EPS expectations, raising its FY26 outlook to $6.40-$6.45, reflecting strong brand performance with an 80% year-over-year increase.
- Strong Coach Brand Performance: Coach saw a 25% sales increase in Q2, contributing 14% to Tapestry's total sales, while attracting 2.9 million new customers, highlighting its popularity among Gen Z.
- Massive Market Potential: CEO Joanne Crevoiserat noted that Tapestry targets nearly 2 billion consumers, with 275 million at market entry, currently holding less than 1% market share, indicating substantial growth opportunities ahead.
- Growth Risks and Challenges: Despite Tapestry's recent success, analysts caution that tariffs and brand dilution may hinder future double-digit growth, particularly affecting Kate Spade, and emphasize the need to monitor risks from changing fashion cycles.
See More
US Stocks Plunge as Tech Sector Leads Decline
- Tech Sector Decline: Qualcomm's (QCOM) forecast of weaker-than-expected Q2 revenue led to an over 8% drop in its stock, triggering a sell-off across the tech sector, with the Nasdaq 100 index hitting a 2.5-month low, indicating waning investor confidence in technology stocks.
- Weak Labor Market Signals: Challenger's report revealed a staggering 117.8% year-over-year increase in job cuts for January, totaling 108,435, the highest for January since 2009, while initial jobless claims rose by 22,000 to 231,000, highlighting vulnerabilities in the US labor market that could hinder economic recovery.
- Bitcoin Plunge: Bitcoin (^BTCUSD) plummeted over 12% to a 1.25-year low, reflecting deepening negative momentum in the cryptocurrency market, with approximately $2 billion flowing out of Bitcoin ETFs in the past month, signaling a decline in investor confidence.
- Earnings Season Impact: Despite 150 S&P 500 companies set to report earnings this week, market focus on economic data intensifies, with S&P 500 earnings expected to grow by 8.4% in Q4, yet overall market sentiment remains suppressed by recent economic weakness.
See More
Stocks Shift to Negative Territory for the Year
- Market Performance: The S&P 500 index declined for the third consecutive day, dropping by 1.2%.
- Year-to-Date Status: This decline has pushed the index into negative territory for the year.
See More
US Stocks Plunge Sharply, Led by Technology Sector Declines
- Technology Sector Decline: Qualcomm (QCOM) forecasts Q2 revenue between $10.2 billion and $11.0 billion, below the consensus of $11.18 billion, leading to an over 8% drop in its stock and exacerbating the overall decline in the Nasdaq 100 index, heightening market panic.
- Weak Labor Market Signals: Challenger's report shows January job cuts surged 117.8% year-on-year to 108,435, marking the highest level since 2009, indicating fragility in the US labor market and increasing investor concerns about economic outlook.
- Bitcoin Price Crash: Bitcoin (^BTCUSD) is down more than 7% today, hitting a 1.25-year low and falling about 45% from its October record high, reflecting negative sentiment in the cryptocurrency market and a trend of capital outflows.
- Impact of Earnings Season: Despite 150 S&P 500 companies set to report earnings this week and 81% of the 237 companies that have reported exceeding expectations, market concerns over future economic data continue to suppress stock performance, with S&P earnings growth expected to reach 8.4% in Q4.
See More
Consumer Stocks Show Downward Trend
- Consumer Stock Performance: On Thursday afternoon, consumer stocks experienced a general decline, reflecting a cautious market sentiment likely influenced by expectations of economic slowdown.
- Market Sentiment Shift: Investor confidence in consumer goods weakened, leading to a drop in related stock prices, indicating concerns over future consumer spending that could impact corporate earnings outlook.
- Industry Impact: The decline in the consumer goods sector may trigger a ripple effect on the stock prices of related companies, especially amid increasing economic uncertainty, potentially leading to greater sales pressure on businesses.
- Investment Strategy Reevaluation: As consumer stocks fall, investors may need to reassess their portfolios, considering how to better allocate assets to mitigate risks in the face of an economic slowdown.
See More
Significant Stock Movements in Midday Trading
- McKesson Earnings Beat: McKesson's fiscal third-quarter earnings per share exceeded Wall Street's highest estimates, and the adjusted full-year EPS guidance was raised above analyst consensus, leading to a 16% stock price increase, indicating strong performance in the medical supply sector.
- Bob's Discount Furniture IPO: Bob's Discount Furniture debuted on the New York Stock Exchange with shares priced at $17, recently rising 10%, marking a successful entry into the public market and laying the groundwork for future growth.
- Fluence Energy Earnings Miss: Fluence Energy reported first-quarter revenue of $475.2 million, falling short of the $481.2 million consensus, with a per-share loss of 34 cents missing the 21-cent loss estimate, resulting in a 31% stock price drop, reflecting market concerns over its profitability.
- Cardinal Health Guidance Raised: Cardinal Health reported quarterly adjusted earnings of $2.63 per share, exceeding the $2.36 consensus, with revenue of $65.63 billion surpassing the $64.14 billion estimate, leading to an 8% stock price increase, showcasing strong growth potential in the healthcare services sector.
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