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Tapestry's Growth Story Accelerates on Coach Brand Strength
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Key Takeaways
Coach revenues rose 25% y/y in Q2'26, accelerating from the prior quarter.
Coach added 2.9 million customers globally, with Gen Z driving growth across age groups.
TPR sees Coach as a scalable growth engine, with a long-term goal of reaching $10 billion in sales.
Tapestry, Inc.’s (TPR - Free Report) flagship Coach brand continues to deliver exceptional momentum, emerging as the key driver of the company’s strong second-quarter fiscal 2026 performance. Coach’s sustained brand heat, strong customer acquisition and product innovation are reinforcing its position in the accessible luxury market while supporting Tapestry’s long-term growth outlook.
During the quarter, Coach posted 25% year-over-year revenue growth, significantly outpacing expectations and accelerating from the prior quarter. The brand added 2.9 million customers globally, with Gen Z shoppers remaining a major growth engine. Management highlighted that rising relevance among younger consumers is also positively influencing demand across older demographics, broadening the brand’s reach and durability.
A major pillar of this momentum remains Coach’s core leather goods business, where demand stayed broad-based across key franchises such as Tabby, Brooklyn and the New York family. Importantly, both average unit retail and unit volumes grew at mid-teen rates, signaling healthy full-price demand rather than promotion-led sales. This reflects the brand’s strong value proposition, craftsmanship and disciplined pricing strategy.
Geographically, Coach’s momentum was equally compelling, with North America sales up 27%, Greater China rising 37% and Europe increasing 26%. These gains underline the brand’s global resonance and effective regional execution, supported by targeted marketing investments and immersive retail experiences.
Tapestry remains confident in Coach’s long-term trajectory, supported by a strong innovation pipeline, sustained marketing investments and immersive retail experiences. With management targeting Coach to evolve into a $10-billion brand over time, its current momentum reinforces its role as a durable and scalable growth engine within the company’s broader strategy.
TPR’s Price Performance, Valuation & Estimates
Shares of Tapestry have soared 138.6% in the past year compared with the industry’s growth of 31%.
Image Source: Zacks Investment Research
From a valuation standpoint, TPR trades at a forward price-to-earnings ratio of 21.93X, up from the industry’s average of 16.00X. 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 26.5%, whereas the same for fiscal 2027 indicates an uptick of 7.6%. Earnings estimates for fiscal 2026 and 2027 have been unchanged in the past 30 days.
The Zacks Consensus Estimate for FIGS’ current financial-year sales and earnings indicates growth of 11.7% and 15.8%, respectively, from the year-ago reported numbers. The company delivered a trailing four-quarter earnings surprise of 187.5%, on average.
Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales implies growth of 8.6% and 4.3%, respectively, from the year-ago actuals. ANF delivered a trailing four-quarter average earnings surprise of 8.4%.
Allbirds is a lifestyle brand with naturally derived materials to make footwear and apparel products. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Allbirds’ 2026 sales implies growth of 0.9% from the year-ago actuals. BIRD delivered a trailing four-quarter average earnings surprise of 15.4%.
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Tapestry's Growth Story Accelerates on Coach Brand Strength
Key Takeaways
Tapestry, Inc.’s (TPR - Free Report) flagship Coach brand continues to deliver exceptional momentum, emerging as the key driver of the company’s strong second-quarter fiscal 2026 performance. Coach’s sustained brand heat, strong customer acquisition and product innovation are reinforcing its position in the accessible luxury market while supporting Tapestry’s long-term growth outlook.
During the quarter, Coach posted 25% year-over-year revenue growth, significantly outpacing expectations and accelerating from the prior quarter. The brand added 2.9 million customers globally, with Gen Z shoppers remaining a major growth engine. Management highlighted that rising relevance among younger consumers is also positively influencing demand across older demographics, broadening the brand’s reach and durability.
A major pillar of this momentum remains Coach’s core leather goods business, where demand stayed broad-based across key franchises such as Tabby, Brooklyn and the New York family. Importantly, both average unit retail and unit volumes grew at mid-teen rates, signaling healthy full-price demand rather than promotion-led sales. This reflects the brand’s strong value proposition, craftsmanship and disciplined pricing strategy.
Geographically, Coach’s momentum was equally compelling, with North America sales up 27%, Greater China rising 37% and Europe increasing 26%. These gains underline the brand’s global resonance and effective regional execution, supported by targeted marketing investments and immersive retail experiences.
Tapestry remains confident in Coach’s long-term trajectory, supported by a strong innovation pipeline, sustained marketing investments and immersive retail experiences. With management targeting Coach to evolve into a $10-billion brand over time, its current momentum reinforces its role as a durable and scalable growth engine within the company’s broader strategy.
TPR’s Price Performance, Valuation & Estimates
Shares of Tapestry have soared 138.6% in the past year compared with the industry’s growth of 31%.
Image Source: Zacks Investment Research
From a valuation standpoint, TPR trades at a forward price-to-earnings ratio of 21.93X, up from the industry’s average of 16.00X. 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 26.5%, whereas the same for fiscal 2027 indicates an uptick of 7.6%. Earnings estimates for fiscal 2026 and 2027 have been unchanged in the past 30 days.
Image Source: Zacks Investment Research
TPR currently carries a Zacks Rank #2 (Buy).
Other Key Picks
Some other top-ranked stocks are FIGS Inc. (FIGS - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Allbirds Inc. (BIRD - Free Report) .
FIGS is a direct-to-consumer healthcare apparel and lifestyle brand. It flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year sales and earnings indicates growth of 11.7% and 15.8%, respectively, from the year-ago reported numbers. The company delivered a trailing four-quarter earnings surprise of 187.5%, on average.
Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales implies growth of 8.6% and 4.3%, respectively, from the year-ago actuals. ANF delivered a trailing four-quarter average earnings surprise of 8.4%.
Allbirds is a lifestyle brand with naturally derived materials to make footwear and apparel products. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Allbirds’ 2026 sales implies growth of 0.9% from the year-ago actuals. BIRD delivered a trailing four-quarter average earnings surprise of 15.4%.