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Tapestry's International Growth Accelerates on China & Europe Gains
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Key Takeaways
Tapestry posted 19% Europe and Asia-Pacific revenue growth, led by a 28% gain in Greater China.
Coach drove gains of 30% in Greater China and 25% in Europe, while Japan revenues fell 4%.
Tapestry expects mid-teens growth in Europe and Greater China as international markets expand in fiscal 2027.
Tapestry, Inc. (TPR - Free Report) is gaining momentum across international markets, supported by customer acquisition and increasing brand relevance. In the fourth quarter of fiscal 2026, revenues in Europe rose 19% on a pro forma constant-currency basis, while total Asia-Pacific revenues advanced 19%. Greater China led the gains with 28% growth, underscoring the expanding global appeal of Tapestry’s brands.
The strength extended across most overseas markets. Revenues in Other Asia increased 22%, led by South Korea and Australia. Coach remained the primary growth engine, delivering gains of 30% in Greater China and 25% in Europe. Revenues in Japan declined 4% as Tapestry deliberately reduced promotions to enhance brand health and profitability.
Customer acquisition and localized engagement underpinned the performance. Greater China benefited from broad-based channel growth, led by digital, while targeted marketing and brand activations resonated with Gen Z consumers. Europe gained from higher spending by local customers and continued recruitment of younger shoppers, helping Tapestry capture additional market share.
The company has considerable room for expansion. Coach’s meaningful European presence remains concentrated primarily in the United Kingdom, leaving opportunities across an estimated 35 to 40 additional countries. Management intends to invest in marketing, stores and localized product offerings to increase awareness and customer acquisition across Europe and China, where brand penetration remains relatively low.
International markets are expected to make a larger contribution in fiscal 2027. Tapestry forecasts mid-teens constant-currency growth in Europe and Greater China, high-single-digit growth in Other Asia and a return to growth in Japan. The higher-margin international mix should support profitable growth as the company targets revenues of $8.4-$8.5 billion and adjusted earnings of $7.80-$7.90 per share.
TPR’s Price Performance, Valuation & Estimates
Shares of Tapestry have risen 16.1% over the past year, comfortably outperforming the industry, which has declined 10.2% during the period.
Image Source: Zacks Investment Research
From a valuation standpoint, TPR trades at a forward price-to-earnings ratio of 15.07, above the industry’s average of 12.73. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Tapestry’s fiscal 2027 earnings implies year-over-year growth of 12.6%, whereas the same for fiscal 2028 indicates an uptick of 11%. Earnings estimates for fiscal 2027 and 2028 have been increased by 17 cents and 4 cents, respectively, over the past 30 days.
Image Source: Zacks Investment Research
TPR’s Zacks Rank & Key Picks
Tapestry currently carries a Zacks Rank #3 (Hold).
FIGS, Inc. (FIGS - Free Report) is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.
Boot Barn Holdings, Inc. (BOOT - Free Report) is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.
Fossil Group, Inc. (FOSL - Free Report) is involved in designing, marketing and distributing consumer fashion accessories. It also carries a Zacks Rank #2.
The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings suggests growth of 96.7% from the year-ago actuals. FOSL delivered a trailing four-quarter average negative earnings surprise of 236.2%.
View the Zacks #1 Rank List
Image: Bigstock
Tapestry's International Growth Accelerates on China & Europe Gains
Key Takeaways
Tapestry, Inc. (TPR - Free Report) is gaining momentum across international markets, supported by customer acquisition and increasing brand relevance. In the fourth quarter of fiscal 2026, revenues in Europe rose 19% on a pro forma constant-currency basis, while total Asia-Pacific revenues advanced 19%. Greater China led the gains with 28% growth, underscoring the expanding global appeal of Tapestry’s brands.
The strength extended across most overseas markets. Revenues in Other Asia increased 22%, led by South Korea and Australia. Coach remained the primary growth engine, delivering gains of 30% in Greater China and 25% in Europe. Revenues in Japan declined 4% as Tapestry deliberately reduced promotions to enhance brand health and profitability.
Customer acquisition and localized engagement underpinned the performance. Greater China benefited from broad-based channel growth, led by digital, while targeted marketing and brand activations resonated with Gen Z consumers. Europe gained from higher spending by local customers and continued recruitment of younger shoppers, helping Tapestry capture additional market share.
The company has considerable room for expansion. Coach’s meaningful European presence remains concentrated primarily in the United Kingdom, leaving opportunities across an estimated 35 to 40 additional countries. Management intends to invest in marketing, stores and localized product offerings to increase awareness and customer acquisition across Europe and China, where brand penetration remains relatively low.
International markets are expected to make a larger contribution in fiscal 2027. Tapestry forecasts mid-teens constant-currency growth in Europe and Greater China, high-single-digit growth in Other Asia and a return to growth in Japan. The higher-margin international mix should support profitable growth as the company targets revenues of $8.4-$8.5 billion and adjusted earnings of $7.80-$7.90 per share.
TPR’s Price Performance, Valuation & Estimates
Shares of Tapestry have risen 16.1% over the past year, comfortably outperforming the industry, which has declined 10.2% during the period.
Image Source: Zacks Investment Research
From a valuation standpoint, TPR trades at a forward price-to-earnings ratio of 15.07, above the industry’s average of 12.73. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Tapestry’s fiscal 2027 earnings implies year-over-year growth of 12.6%, whereas the same for fiscal 2028 indicates an uptick of 11%. Earnings estimates for fiscal 2027 and 2028 have been increased by 17 cents and 4 cents, respectively, over the past 30 days.
Image Source: Zacks Investment Research
TPR’s Zacks Rank & Key Picks
Tapestry currently carries a Zacks Rank #3 (Hold).
FIGS, Inc. (FIGS - Free Report) is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.
Boot Barn Holdings, Inc. (BOOT - Free Report) is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.
Fossil Group, Inc. (FOSL - Free Report) is involved in designing, marketing and distributing consumer fashion accessories. It also carries a Zacks Rank #2.
The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings suggests growth of 96.7% from the year-ago actuals. FOSL delivered a trailing four-quarter average negative earnings surprise of 236.2%.