| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 63 | 16.2x | 17.8x | Around median | |
Growth | 88 | 14.2% | 7.1% | Top tier | |
Quality | 96 | 33.6% | 4.5% | Top tier | |
Safety | 73 | 1.3x | 2.6x | Top tier | |
Capital Return | 54 | 1.35% | 2.12% | Around median | |
Momentum | 40 | 52.6% | 2.9% | Around median | |
Sentiment | 53 | 12 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Tapestry, Inc. is a luxury goods group that relies on its Coach and Kate Spade brands, with a primary focus on handbags, leather goods, and footwear. The company generates sales through a direct-to-consumer-led model, including stores and digital platforms; in fiscal 2026 Q4, direct-to-consumer revenue rose 11%, digital sales grew at a mid-single-digit rate, and global store sales increased at a mid-teens rate. Coach is the primary growth and profitability driver, while Tapestry continues to invest in rebuilding demand for Kate Spade.
In fiscal 2026 Q4, Tapestry reported revenue of $1.88 billion versus FactSet estimates of $1.87 billion, while net income according to EDGAR data was approximately $347.8 million. Adjusted earnings per share reached $1.32, exceeding analysts' expectations of $1.28 and rising 28% from the comparable period. The gross margin reported on the call was 78.1%, up 180 basis points, while operating margin expanded 250 basis points and operating income rose 25%.
Fiscal 2026 revenue was approximately $8.0 billion and net income according to EDGAR was approximately $1.5 billion, with earnings per share of $7.27 according to the financial statements, while management presented adjusted earnings per share of $7.05 and growth of 38%. Coach led the operating mix; its revenue grew 14% in constant currency in fiscal 2026 Q4, while work continued on the Kate Spade turnaround. Geographically, Tapestry's revenue in the same quarter rose 7% in North America, 19% in Europe, 28% in Greater China, and 22% in the rest of Asia, while declining 4% in Japan due to the deliberate reduction of promotions.
The average analyst price target is $173.83, above the upper end of the 52-week range of $164.8, with a wide target range between $140 and $232 and an overall Buy consensus. This divergence reflects a split between Coach's strength and margin expansion on one hand, and the risks of Kate Spade's decline and the expected slowdown in growth during fiscal 2027 on the other.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Coach is the primary driver, as management expects high-single-digit growth for the brand in fiscal 2027 with an operating margin of approximately 36%. In fiscal 2026 Q4, Coach revenue grew 14% in constant currency and the brand acquired more than 2 million new customers. The Brooklyn, Tabby, Teri, Empire, and Chelsea families support demand for leather goods, while Soho and Margot led footwear growth at a high-teens rate. Management is targeting a path that could make Coach a $10 billion revenue brand, without specifying a timeframe for achieving this.
Tapestry expects revenue between $8.4 billion and $8.5 billion, representing mid-single-digit growth. It expects adjusted earnings per share between $7.80 and $7.90, with low-teens growth and adjusted free cash flow approaching $1.7 billion. The company is also targeting 50 basis points of operating margin expansion to approximately 24%. Fiscal 2027 includes a 53rd week that is expected to add approximately 1 percentage point to annual revenue growth without affecting operating margin.
Management expects Kate Spade revenue to decline at a high-single-digit rate in fiscal 2027 and the brand to record a modest operating loss due to continued investment in the brand. Fiscal 2027 Q1 expectations also include a low-teens decline. The brand acquired more than 450 thousand new customers in fiscal 2026 Q4 and approximately 2 million customers during the year, supported by Margot, 454, and Duo. However, management said that unaided brand awareness has not yet improved and that revenue progress was slower than planned.
Automated analysis for informational purposes only — not investment advice.
Gross margin reached 78.1% in fiscal 2026 Q4, up 180 basis points despite approximately 60 basis points of pressure from tariffs and customs duties. The pressure reached approximately 30 basis points at Coach and approximately 250 basis points at Kate Spade. Fiscal 2027 guidance assumes a tariff rate in the mid-twenties on U.S. imports, with a neutral net annual impact after mitigation measures. Nevertheless, management expects tariffs to shift from a modest benefit in the first half to a headwind in the second half of fiscal 2027.
The company returned $1.7 billion to shareholders in fiscal 2026, including $326 million in dividends and $1.35 billion to repurchase approximately 11.5 million shares. Management is targeting another $1.7 billion of capital returns in fiscal 2027, including approximately $1.35 billion in share repurchases. The board also approved a 16% increase in the annual dividend to $1.85 per share. This plan is supported by liquidity of approximately $1.2 billion and adjusted free cash flow of $1.86 billion in fiscal 2026.
