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Is Coach Becoming the Most Influential Brand in Tapestry's Portfolio?
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Key Takeaways
Coach sales rose 13% in Q4, with double-digit gains across North America, China and Europe.
Premium pricing and higher handbag units boosted profitability and expanded margins.
Over 1M new North America customers joined, nearly 70% from Gen Z and millennials.
Tapestry, Inc.’s (TPR - Free Report) Coach brand delivered exceptional performance in the fourth quarter of fiscal 2025, achieving 13% year-over-year sales growth on a constant-currency basis. Growth was broad-based, with North America increasing 16%, China 22% and Europe 12%. These results reinforced Coach’s leadership in the accessible luxury segment and its role as Tapestry’s top-performing brand.
Profitability strengthened during the quarter, driven by disciplined promotions and premium pricing power. Average Unit Retail rose in the mid-teens, led by North America, while handbag units also grew globally. This combination of higher prices and increasing volumes demonstrated the brand’s ability to expand margins while deepening consumer demand.
Leather goods were the primary growth driver, led by the continued success of the Tabby family, including the Tabby Shoulder Bag 26, Chain Tabby and Quilted Tabby. The New York collection exceeded expectations and was expanded with the Brooklyn and Empire lines. Archival-inspired pieces, such as the Large Kisslock bag, sold out within minutes, while accessories like the Cherry charm resonated strongly with Gen Z, further fueling engagement.
Coach also saw momentum in footwear, with sneakers growing mid-single digits, led by the Soho and High Line families. Marketing campaigns such as “On Your Own Time” and “Not Just for Walking” strengthened cultural relevance, while immersive retail activations and pop-ups delivered experiences aligned with younger consumers’ preference for shopping in person. Customer acquisition was another highlight, with more than one million new customers added in North America during the fiscal fourth quarter, nearly 70% of whom were Gen Z and millennials.
Looking ahead, Coach is expected to deliver high single-digit revenue growth at constant currency in fiscal 2026. Management emphasized that the brand’s strong equity, product innovation pipeline and cultural momentum will enable it to offset tariff pressures while maintaining profitability. With this foundation, Coach remains central to Tapestry’s long-term growth strategy and is well-positioned for sustainable global expansion.
TPR’s Price Performance, Valuation & Estimates
Shares of Tapestry have gained 59.5% year to date against the industry’s decline of 6.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, TPR trades at a forward price-to-earnings ratio of 18.76X, slightly down from the industry’s average of 19.11X. It has a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Tapestry’s fiscal 2026 earnings implies year-over-year growth of 7.1%, whereas the same for fiscal 2027 indicates an uptick of 8.8%. The earnings estimates for fiscal 2026 and 2027 have been revised upward by 1 cent and downward by 14 cents per share, respectively, in the past 30 days.
The Zacks Consensus Estimate for Levi Strauss’ current financial-year earnings indicates growth of 4% from the year-ago actual. LEVI delivered a trailing four-quarter average earnings surprise of 25.9%.
Genesco is a Nashville-based specialty retail and branded company that sells footwear and accessories in retail stores. It currently flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for GCO’s fiscal 2026 earnings and sales implies growth of 67% and 3%, respectively, from the year-ago actuals. Genesco delivered a trailing four-quarter average earnings surprise of 28.1%.
The TJX Companies is a leading off-price retailer of apparel and home fashions. It carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for The TJX Companies’ current fiscal-year earnings and sales indicates growth of 7% and 5.4%, respectively, from the year-ago actuals. TJX delivered a trailing four-quarter average earnings surprise of 5.4%.
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Is Coach Becoming the Most Influential Brand in Tapestry's Portfolio?
Key Takeaways
Tapestry, Inc.’s (TPR - Free Report) Coach brand delivered exceptional performance in the fourth quarter of fiscal 2025, achieving 13% year-over-year sales growth on a constant-currency basis. Growth was broad-based, with North America increasing 16%, China 22% and Europe 12%. These results reinforced Coach’s leadership in the accessible luxury segment and its role as Tapestry’s top-performing brand.
Profitability strengthened during the quarter, driven by disciplined promotions and premium pricing power. Average Unit Retail rose in the mid-teens, led by North America, while handbag units also grew globally. This combination of higher prices and increasing volumes demonstrated the brand’s ability to expand margins while deepening consumer demand.
Leather goods were the primary growth driver, led by the continued success of the Tabby family, including the Tabby Shoulder Bag 26, Chain Tabby and Quilted Tabby. The New York collection exceeded expectations and was expanded with the Brooklyn and Empire lines. Archival-inspired pieces, such as the Large Kisslock bag, sold out within minutes, while accessories like the Cherry charm resonated strongly with Gen Z, further fueling engagement.
Coach also saw momentum in footwear, with sneakers growing mid-single digits, led by the Soho and High Line families. Marketing campaigns such as “On Your Own Time” and “Not Just for Walking” strengthened cultural relevance, while immersive retail activations and pop-ups delivered experiences aligned with younger consumers’ preference for shopping in person. Customer acquisition was another highlight, with more than one million new customers added in North America during the fiscal fourth quarter, nearly 70% of whom were Gen Z and millennials.
Looking ahead, Coach is expected to deliver high single-digit revenue growth at constant currency in fiscal 2026. Management emphasized that the brand’s strong equity, product innovation pipeline and cultural momentum will enable it to offset tariff pressures while maintaining profitability. With this foundation, Coach remains central to Tapestry’s long-term growth strategy and is well-positioned for sustainable global expansion.
TPR’s Price Performance, Valuation & Estimates
Shares of Tapestry have gained 59.5% year to date against the industry’s decline of 6.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, TPR trades at a forward price-to-earnings ratio of 18.76X, slightly down from the industry’s average of 19.11X. It has a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Tapestry’s fiscal 2026 earnings implies year-over-year growth of 7.1%, whereas the same for fiscal 2027 indicates an uptick of 8.8%. The earnings estimates for fiscal 2026 and 2027 have been revised upward by 1 cent and downward by 14 cents per share, respectively, in the past 30 days.
Image Source: Zacks Investment Research
TPR currently carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks are Levi Strauss & Co. (LEVI - Free Report) , Genesco Inc. (GCO - Free Report) and The TJX Companies, Inc. (TJX - Free Report) .
Levi Strauss designs and markets jeans, casual wear and related accessories. It sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Levi Strauss’ current financial-year earnings indicates growth of 4% from the year-ago actual. LEVI delivered a trailing four-quarter average earnings surprise of 25.9%.
Genesco is a Nashville-based specialty retail and branded company that sells footwear and accessories in retail stores. It currently flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for GCO’s fiscal 2026 earnings and sales implies growth of 67% and 3%, respectively, from the year-ago actuals. Genesco delivered a trailing four-quarter average earnings surprise of 28.1%.
The TJX Companies is a leading off-price retailer of apparel and home fashions. It carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for The TJX Companies’ current fiscal-year earnings and sales indicates growth of 7% and 5.4%, respectively, from the year-ago actuals. TJX delivered a trailing four-quarter average earnings surprise of 5.4%.