Street View: Coach remains Tapestry's growth engine as Kate Spade turnaround lags

Morningstar

14/08/2026 17:08

** Tapestry TPR.N forecast muted annual sales on Thursday, as persistent weakness at Kate Spade overshadows Q4 earnings beat
** Expects fiscal 2027 revenue of $8.4 bln-$8.5 bln; midpoint of range slightly below est. $8.46 billion, per LSEG-compiled data
** Q4 sales rose 14% in constant currency but Kate Spade sales fell 7%
** Median PT of 22 brokerages covering the stock is $165
COACH GAINS, KATE SPADE STRUGGLES
** Citi ("buy" rating, PT: $170) says Coach's growth outlook remains impressive despite slowdown, with reduced promotions and growing Gen Z clientele supporting durable growth 
** Telsey Advisory Group ("outperform" rating, PT: $175) notes Coach's momentum across regions, customer gains and higher handbag prices show Tapestry's growth plan is working, while Kate Spade remains an opportunity rather than a near-term driver
** Jefferies ("hold" rating, PT: $144) calls forecast prudent on steady Coach demand and pricing strength; suggests growth can remain resilient despite tougher comparisons, leaving room for upside 
** Morningstar says Coach continues to outperform peers but argues TPR still reflects overly optimistic growth expectations though Kate Spade turnaround remains elusive.

 (Reporting by Shania S Thomas in Bengaluru)
 ((shanias.thomas@thomsonreuters.com;))