Tapestry Sees Price Target Raised to $160 as Coach Q2 Sales Surge 25%
Baird raised its price target on Tapestry to $160 from $140 and kept an Outperform rating following Q2 results. Tapestry raised adjusted EPS guidance to $6.40-$6.45, lifted revenue outlook above $7.75 billion and targeted 180 bps of margin improvement after Coach’s 25% Q2 revenue jump to $2.14 billion on Tabby handbag demand.
1. Analyst Price Target Increase
On February 6, Baird raised its price target for Tapestry to $160 from $140 and reaffirmed an Outperform rating after updating its model with Q2 financial metrics.
2. Strong Coach Q2 Performance
Coach delivered a 25% revenue increase to $2.14 billion in the second quarter, led by Tabby handbag sales priced between $295 and $725 and strong demand from Gen Z shoppers.
3. Raised Full-Year Guidance and Buybacks
Tapestry lifted fiscal 2026 adjusted EPS guidance to $6.40-$6.45, increased its revenue outlook above $7.75 billion, expanded its operating margin improvement target to 180 basis points and boosted share buyback plans to $1.2 billion.