Is TD Cowen’s Endorsement of “One Coach” Recasting Tapestry’s (TPR) Brand Reliance on Coach?

• Earlier this week, TD Cowen met with Tapestry’s leadership and reaffirmed confidence after record first-quarter fiscal 2026 results, highlighting Coach’s strong revenue growth and a shift toward 65% evergreen products that support better inventory management and product breadth.
• The firm also emphasized progress under the “One Coach” strategy, while flagging Kate Spade as a longer-term turnaround, underscoring the company’s reliance on its flagship brand for current momentum.
• We’ll now examine how TD Cowen’s upbeat view on the “One Coach” strategy could reshape Tapestry’s existing investment narrative and assumptions.

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Tapestry Investment Narrative Recap

To own Tapestry, you need to believe Coach can carry the portfolio while Kate Spade slowly stabilizes, and that margin pressure from tariffs and heavy investment can be offset by higher full price selling and mix. TD Cowen’s upbeat read on “One Coach” and record Q1 FY26 results support Coach as the key near term catalyst, but do not materially change the biggest risk, which remains the slow and uncertain Kate Spade turnaround.

The recent Q1 FY26 earnings release is the most relevant backdrop here, with sales rising to US$1,704.6 million and net income to US$274.8 million, reinforcing TD Cowen’s focus on Coach’s strength. Together with the large ongoing buyback authorization of up to US$3,000 million through fiscal 2028, these results frame how much current momentum and capital allocation depend on Coach sustaining its current brand heat and pricing power.

Yet beneath the strong Coach story, investors should be aware that Kate Spade’s impairment and ongoing weakness could still...

Read the full narrative on Tapestry (it's free!)

Tapestry's narrative projects $7.8 billion revenue and $1.4 billion earnings by 2028. This requires 3.6% yearly revenue growth and about a $1.2 billion earnings increase from $183.2 million today.

Uncover how Tapestry's forecasts yield a $121.68 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community span roughly US$113.63 to US$137.26 per share, showing how far apart individual views can be. When you set those against Tapestry’s reliance on Coach as the main earnings engine, it underlines why many investors compare multiple opinions before deciding how much future brand concentration risk they are comfortable with.

Explore 3 other fair value estimates on Tapestry - why the stock might be worth just $113.63!

Build Your Own Tapestry Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Tapestry research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Tapestry research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Tapestry's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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