Tapestry Price Targets Raised to $175-$176 After 14% Q2 Revenue Growth
BNP Paribas initiated coverage of Tapestry with an Outperform rating and a $176 price target; TD Cowen and UBS lifted theirs to $175 and $141 respectively. The company posted Q2 revenue of $2.5 billion, up 14% year-over-year, expanded GAAP margins by 620bps and plans $1.5 billion in shareholder returns.
1. Analyst Rating Updates
BNP Paribas initiated coverage with an Outperform rating and a $176 price target. TD Cowen raised its target to $175 from $150 while maintaining a Buy rating, and UBS lifted its target to $141 from $125 with a Neutral rating.
2. Fiscal Q2 2026 Financial Results
Tapestry generated $2.5 billion in revenue for fiscal Q2, a 14% year-over-year increase. Pro forma revenue grew 18%, driven by a 25% sales gain at the Coach brand.
3. Margin Expansion and Profitability
GAAP operating margin expanded by 620 basis points and non-GAAP margin increased by 390 basis points, supported by higher gross margins and SG&A leverage. These improvements reflect enhanced cost management across the business.
4. Shareholder Return Plan
Tapestry now expects to return $1.5 billion to shareholders through dividends and share repurchases in fiscal 2026, up from its prior $1.3 billion outlook. This increase is underpinned by strong free cash flow generation and a robust balance sheet.