Track market-moving stories before they get noisy

Key Takeaways Tapestry's Coach brand posted 29% constant-currency revenue growth in fiscal Q3 2026, led by key regions.Coach added 2 million new customers as handbag volumes, pricing and Gen Z demand stayed strong.TPR expects about $7.95 billion revenues, a 23% operating margin and around $6.95 EPS in fiscal 2026. Tapestry, Inc. (TPR - Free Report) is strengthening its competitive position as robust global momentum behind its Coach brand continues to drive market share gains across key regions. In the fiscal third quarter of 2026, Coach delivered constant-currency revenue growth of 29%, fueled by strong demand across North America, Greater China and Europe. The brand's consistent execution, combined with Tapestry's consumer-led Amplify strategy, enabled the company to outperform the broader luxury market while raising its fiscal 2026 outlook.

Coach's growth is being supported by strong customer acquisition and sustained demand for its core leather goods business. During the quarter, the brand welcomed 2 million new customers, with Gen Z acquisition accelerating meaningfully. Handbag unit volumes increased more than 20%, while average unit retail advanced at a low double-digit rate, reflecting healthy pricing power and solid consumer demand. Signature franchises such as Tabby, Brooklyn, Empire and Chelsea continued to resonate globally, reinforcing Coach's leadership in the accessible luxury market.

The brand's global expansion strategy is translating into meaningful market share gains. Coach recorded constant-currency sales growth of 27% in North America, 58% in Greater China and 27% in Europe, significantly outperforming industry trends. Tapestry's direct-to-consumer model, supported by digital capabilities and data-driven consumer insights, helped deliver approximately 25% digital sales growth and more than 20% growth in brick-and-mortar stores, strengthening customer engagement and profitability across channels.

Marketing investments continue to enhance Coach's global brand appeal. Tapestry increased marketing spending by roughly 50% year over year, focusing on top-of-funnel brand building, Gen Z engagement and localized campaigns. Initiatives such as the "Explore Your Story" campaign, collaborations in China and immersive Coach Play stores further strengthened brand relevance, increased consumer traffic and supported new customer acquisition across key markets.

With less than a 1% share of its global addressable market, management reiterated its confidence that Coach has a significant runway for expansion and remains on track to become a $10 billion brand with best-in-class margins over time.

Management expects Coach revenues to grow more than 20% in fiscal 2026, reflecting continued strength across key markets, product categories and customer segments. It expects revenues of about $7.95 billion, an operating margin of approximately 23% and earnings per share of around $6.95. Supported by ongoing product innovation, expanding digital capabilities, strong Gen Z customer acquisition and disciplined brand investments, Coach remains well-positioned to drive Tapestry's long-term market share gains.

TPR’s Price Performance, Valuation & EstimatesShares of Tapestry have risen 41.2% over the past year compared with the industry’s 3.5% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, TPR trades at a forward price-to-earnings ratio of 19.38X, up from the industry’s average of 14.51X. 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 36.7%, whereas the same for fiscal 2028 indicates an uptick of 10.6%. Earnings estimates for fiscal 2027 and 2028 have been increased by 1 cent and 2 cents, respectively, in the past seven days.

Image Source: Zacks Investment Research

TPR’s Zacks Rank & Key PicksTapestry  currently carries a Zacks Rank #3 (Hold).

Genesco Inc. (GCO - Free Report) is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company 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 Genesco’s current fiscal-year earnings indicates growth of 55.2% from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 3.8%.

Canada Goose (GOOS - Free Report) is a global outerwear brand. Canada Goose is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. The company also holds a Zacks Rank #1 at present.

The Zacks Consensus Estimate for Canada Goose’s current fiscal-year earnings and sales indicates growth of 58.9% and 3.7%, respectively, from the year-ago actuals. GOOS delivered a trailing four-quarter average negative earnings surprise of 43.3%.

Designer Brands Inc. (DBI - Free Report) designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 137.5% and 0.5%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 112.8%.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Tapestry (TPR - Free Report) Founded in 1941 and headquartered in New York, Tapestry, Inc., which was formerly known as Coach, Inc., is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrance and watches. The company sells through direct-to-consumer, wholesale and licensing channels. Tapestry currently operates under two core brands following portfolio rationalization — Coach and Kate Spade. In third-quarter fiscal 2026, Coach generated $1.70 billion in revenues, while Kate Spade contributed $219.6 million. 

TPR is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Retail-Wholesale stock. TPR has a Momentum Style Score of A, and shares are up 0.6% over the past four weeks.

Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.02 to $6.97 per share. TPR boasts an average earnings surprise of +15.6%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TPR should be on investors' short list.

The GARP strategy seeks to offer an ideal investment by utilizing the best features of value and growth investing. Investors adopting the GARP approach prefer buying stocks priced below the market or any reasonable target determined by fundamental analysis. These stocks also have solid prospects in terms of cash flow, revenues, earnings per share (EPS) and so on.

Growth Metrics

A strong earnings growth history and impressive earnings prospects are the main concepts that GARP investors borrow from the growth investing strategy. However, instead of super-normal growth rates, pursuing stocks with a more stable and reasonable growth rate is a tactic of GARP investors. Hence, growth rates between 10% and 20% are considered ideal under the GARP strategy.

Another metric that growth and GARP investors consider is return on equity (ROE). GARP investors look for a strong and higher ROE than the industry average to identify superior stocks. Stocks with positive cash flows find precedence under the GARP plan.

Value Metrics

GARP investing prioritizes popular value metrics, the price-to-earnings (P/E) and price-to-book (P/B) ratios. Though this investing style picks stocks with higher P/E ratios than value investors, it avoids companies with extremely high P/E ratios.

Using the GARP principle, we ran a screen to identify stocks that should offer solid returns in the near term.

Along with the criteria discussed in the above section, we have considered a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Last 5-year EPS & projected 3-5-year EPS growth rates between 10% and 25% (Strong EPS growth history and prospects ensure improving business.)

ROE (over the past 12 months) greater than the industry average (Higher ROE than the industry average indicates superior stocks.)

P/E and P/B ratios less than the M-industry average (P/E and P/B ratios less than that of the industry indicate that the stocks are undervalued)

Here are four stocks from the 18 that made it through the screening process.

Fortinet presents a compelling near-term opportunity grounded in strong fundamentals. After raising fiscal 2026 revenue guidance to reflect 15% year-over-year growth, the company projects full-year revenues of $7.71-$7.87 billion and billings of $8.8-$9.1 billion. The second-quarter 2026 billings guidance of $2.09-$2.19 billion signals sustained momentum. FortiOS 8.0 and proprietary FortiASIC technology sharpen platform differentiation and support market share gains.

The June 2026 launch of FortiSOC — a unified, agentic AI-powered SOC platform consolidating six security operations functions into a single SaaS experience — opens a meaningful new services revenue stream. July 2026 FortiEndpoint expansions further reinforce its AI-era security stack. With Unified SASE billings accelerating and an AI-intensified threat environment driving enterprise demand, Fortinet's integrated platform strategy supports a constructive near-term outlook.

The Zacks Consensus Estimate for FTNT’s 2026 earnings has moved 0.3% north to $3.15 per share in the past 60 days. This Zacks Rank #1 company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 17.46%.

Tapestry's raised fiscal 2026 guidance — revenues exceeding $7.75 billion and EPS of $6.40-$6.45, suggesting over 25% year-over-year upside — reflects management's confidence in sustained forward momentum. Operating margin expansion of approximately 180 basis points and adjusted free cash flow of $1.5 billion underscore disciplined execution across the portfolio.

The Coach brand, Tapestry's primary growth engine, continues to drive top-line strength, while Kate Spade's creative revival has gained fresh impetus with Jonathan Saunders' appointment as executive creative director in July 2026. Mira, Tapestry's proprietary AI platform, was awarded a U.S. patent in May 2026, enhancing assortment planning, inventory management, and consumer responsiveness and providing a durable structural competitive edge. Returning approximately $1.6 billion — nearly 100% of adjusted free cash flow — via buybacks reinforces the company’s near-term capital allocation discipline.

The consensus estimate for this Zacks Rank #2 company’s fiscal 2026 earnings has moved 1.3% north to $6.96 per share in the past 60 days. TPR’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 15.59%.

Expedia Group's near-term outlook rests on a compelling convergence of strategic initiatives and management-reaffirmed guidance. For 2026, the company guides revenues of $15.6-$16.0 billion (up 6-9%) and gross bookings of $127-$129 billion (up 6-8%), with adjusted EBITDA margin expansion of 100-125 basis points. Its B2B segment, growing at an accelerated pace, alongside the pending CarTrawler acquisition — expected to be closed in the second half of 2026 — meaningfully broadens ground mobility and insurance offerings.

A June 2026 leadership appointment to head global advertising signals intent to monetize its premier ad network more aggressively. The June 2026 expansion of Rapid API to cover flights, cars, and activities positions the platform as a full-trip solution. A new $5 billion share repurchase authorization further underscores management's confidence in sustainable cash generation.

The consensus mark for this Zacks Rank #2 company’s 2026 earnings has remained steady at $19.73 per share in the past 60 days. EXPE surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 13.92%.

Ralph Lauren is positioned for near-term upside, backed by its fiscal 2027 guidance. Management targets mid-single-digit constant currency revenue growth (~4-5%) and 40-60 basis points of adjusted operating margin expansion for the full year, with a stronger first half. The fiscal first-quarter guidance indicates mid-to-high single-digit revenue growth and 80-120 basis points of margin expansion. Key growth drivers include continued average unit retail elevation, 6.5 million newly recruited direct-to-consumer customers, and expanding city ecosystem investments.

High-potential categories — Women's Apparel, Outerwear, and Handbags — represent additional revenue levers. The board's 10% dividend increase, with $1.00 per share paid on July 10, 2026, underscores cash generation confidence. A $2.1 billion cash position and a $1.4 billion repurchase authorization reinforce the investment case.

The consensus estimate for this Zacks Rank #2 company’s fiscal 2027 earnings has increased by 0.5% to $18.33 per share in the past 60 days. RL’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 9.14%.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Tapestry (TPR - Free Report) Founded in 1941 and headquartered in New York, Tapestry, Inc., which was formerly known as Coach, Inc., is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrance and watches. The company sells through direct-to-consumer, wholesale and licensing channels. Tapestry currently operates under two core brands following portfolio rationalization — Coach and Kate Spade. In third-quarter fiscal 2026, Coach generated $1.70 billion in revenues, while Kate Spade contributed $219.6 million. 

TPR is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. TPR has a Growth Style Score of A, forecasting year-over-year earnings growth of 36.5% for the current fiscal year.

Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.09 to $6.96 per share. TPR also boasts an average earnings surprise of +15.6%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TPR should be on investors' short list.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Tapestry (TPR - Free Report) Founded in 1941 and headquartered in New York, Tapestry, Inc., which was formerly known as Coach, Inc., is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrance and watches. The company sells through direct-to-consumer, wholesale and licensing channels. Tapestry currently operates under two core brands following portfolio rationalization — Coach and Kate Spade. In third-quarter fiscal 2026, Coach generated $1.70 billion in revenues, while Kate Spade contributed $219.6 million. 

TPR is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Retail-Wholesale stock. TPR has a Momentum Style Score of A, and shares are up 7.4% over the past four weeks.

For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.50 to $6.95 per share. TPR boasts an average earnings surprise of +15.6%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TPR should be on investors' short list.

Key Takeaways On May 7, 2026, Tapestry beat on earnings for the eleventh quarter in a row. Tapestry grew revenue by 21% in the fiscal third quarter, including 20% in North America.It is shareholder-friendly, with both a share buyback program and a dividend, yielding 1.1%. Tapestry, Inc. (TPR - Free Report) has two of the most recognizable retail brands in the world in Coach and Kate Spade New York. This Zacks Rank #1 (Strong Buy) is expected to grow its earnings 13.8% this fiscal year.

Tapestry has two global brands, Coach and Kate Spade New York. Coach was founded in 1941 in New York as the Original American House of Leather. Kate Spade was founded in 1993 on a collection of six iconic handbags.

Tapestry operates retail stores and e-commerce channels.

Another Earnings Beat for Tapestry in the Fiscal Third Quarter 2026On May 7, 2026, Tapestry reported its fiscal third quarter 2026 results and beat the Zacks Consensus Estimate by $0.35. Earnings were $1.66 versus the consensus of $1.31.

It was the eleventh earnings beat in a row. Tapestry has only missed on earnings once in the last five years.

Net sales jumped 21% to $1.92 billion and were also up 19% on a constant currency basis.

Gross margin was 76.9% up from 76.1% in the year ago quarter. The 80 basis points improvement in the margin was due to operational improvements of about 190 basis points as well as a favorable impact from the sale of Stuart Weitzman of 70 basis points.

Tariff and duty impacts were negative in the quarter by 180 basis points.

Tapestry acquired over 2.4 million new customers globally in the quarter, led by an increase in the number of GenZ customers. GenZ represented over 35% of new customers in the quarter.

It saw accelerated growth in core leathergoods, led by strong handbag revenue gains at Coach. Handbag units rose more than 20%.

Sales in most geographies were higher with North America, the company’s largest market, up 20%. Greater China jumped 55% and Europe gained 21%.

Only Japan was weak in the quarter, falling 10%.

Tapestry Raised Full Year 2026 GuidanceAfter such a strong quarter, it’s not surprising that Tapestry raised its fiscal full year 2026 guidance.

It now expects revenue of around $7.95 billion, which is growth of about 14%.

Earnings are now expected around $6.95, up from its previous guidance of $6.40 to $6.45.

Given the higher guidance, it’s not surprising that the analysts have raised earnings estimates. Two estimates are higher in the last 30 days and seven are higher in the prior 60 days.

The Zacks Consensus is calling for $6.95, up from $6.87 just 30 days ago. That’s earnings growth of 36.3% versus FY 2025 when the company made $5.10.

Two estimates are also higher in the last month for FY2027. It has pushed the Zacks Consensus for FY2027 to $7.61 from $7.46. This is another 9.4% earnings growth.

This is what it looks like on the price and consensus chart.

Image Source: Zacks Investment Research

Shares of Tapestry are up Double Digits in 2026Shares of Tapestry have rallied in the last year and while things got rockier in 2026 when the Middle East conflict began, the shares are still up double digits this year.

Image Source: Zacks Investment Research

Tapestry is attractively priced with a forward price-to-earnings (P/E) of 20.6. This is under the average P/E of the S&P 500 which is at 21.

The company is also shareholder friendly. It has been generating significant free cash flow.

It expects to return $1.6 billion to shareholders this year, up from its previous guidance of $1.5 billion. This is approximately 100% of its anticipated adjusted free cash flow.

The company pays a dividend, which is yielding 1.1%. It also has a shareholder buyback program of $1.3 billion. During the fiscal third quarter it repurchased about $150 million in shares. Year-to-date it has spent a total of $1.05 billion out of the $1.3 billion.

For investors looking for strong global retail brands with double digit revenue growth, Tapestry should be on your short list.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Tapestry (TPR - Free Report) Founded in 1941 and headquartered in New York, Tapestry, Inc., which was formerly known as Coach, Inc., is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrance and watches. The company sells through direct-to-consumer, wholesale and licensing channels. Tapestry currently operates under two core brands following portfolio rationalization — Coach and Kate Spade. In third-quarter fiscal 2026, Coach generated $1.70 billion in revenues, while Kate Spade contributed $219.6 million. 

TPR is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. TPR has a Growth Style Score of A, forecasting year-over-year earnings growth of 36.3% for the current fiscal year.

Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.50 to $6.95 per share. TPR boasts an average earnings surprise of +15.6%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TPR should be on investors' short list.

Key Takeaways Tapestry posted 62% y/y EPS growth and raised FY26 guidance after strong Q3 execution.Coach sales jumped 31%, driven by strength in North America, Greater China and Europe.TPR expects FY26 revenues of $7.95B and EPS of $6.95 after Q3 momentum. Tapestry, Inc. (TPR - Free Report) posted adjusted earnings of $1.66 per share in the third quarter of fiscal 2026, surging 62% year over year and beating the Zacks Consensus Estimate of $1.31 by 26.7%. Revenues rose 21% from the year-ago period to $1.92 billion, topping the consensus mark of $1.77 billion by 8.5%.

The company acquired more than 2.4 million customers globally during the quarter, led by growing Gen Z demand, which represented more than 35% of new customers. Existing customer demand also improved, reflecting broad-based brand strength and customer retention. Direct-to-consumer revenues increased 23% year over year on a pro-forma constant-currency basis, driven by nearly 25% digital growth and more than 20% growth in global brick-and-mortar sales.

Tapestry also raised its fiscal 2026 outlook, following better-than-expected quarterly execution. However, TPR shares declined 12.3% yesterday as investors reacted to tariff-related concerns, elevated expectations and persistent weakness at Kate Spade.

TPR Outperforms on Regional Demand & Channel StrengthOn a pro-forma constant-currency basis, the company delivered double-digit growth across several major markets. North America sales increased 20% year over year to $1.10 billion. Greater China revenues soared 55% on a constant-currency basis to $432.2 million.

Europe revenues rose 21% on a constant-currency basis to $118.6 million, whereas Other Asia revenues increased 16%. Japan sales declined 10% due to an intentional reduction in promotional activity.

Tapestry Leans on Coach as Kate Spade RebuildsCoach continued to be the primary engine of growth. Brand revenues climbed 31% year over year (29% in constant currency) to $1.70 billion, beating the Zacks Consensus Estimate of $1.55 billion, with strength across North America, Greater China and Europe. Management highlighted momentum in core leathergoods, supported by higher unit volumes and rising average unit retail.

Kate Spade revenue fell 10% year over year (11% in constant currency) to $219.6 million, lagging the consensus estimate of $226.7 million and reflecting pressure from a strategic pullback in promotions at retail. Even so, the brand showed progress in customer acquisition, adding roughly 400,000 customers during the quarter, alongside improved full-price selling in handbags.

TPR Expands Margins Despite Tariff & Duty PressureAdjusted gross profit increased 22% year over year to $1.48 billion. The adjusted gross margin expanded 80 basis points to 76.9%. The increase was primarily driven by approximately 190 basis points of operational improvement, along with a favorable 70-basis-point contribution from the Stuart Weitzman divestiture. These gains fully offset tariff and duty headwinds of nearly 180 basis points, including a 150-basis-point impact on Coach’s gross margin and a 440-basis-point impact on Kate Spade’s gross margin.

Adjusted operating income increased 55% year over year to $430.1 million. Meanwhile, the adjusted operating margin expanded 490 basis points to 22.4%.

Adjusted SG&A expenses totaled $1.05 billion. As a percentage of sales, adjusted SG&A leveraged 410 basis points year over year. The quarter included a 160-basis-point increase in marketing investments, which accounted for 12% of the total sales. The improvement reflected disciplined cost management and the company’s targeted reinvestment strategy aimed at supporting long-term growth initiatives.

TPR’s Q3 Store UpdateAs of the end of the fiscal third quarter, the company operated 330 Coach stores and 180 Kate Spade stores in North America. Internationally, the store count stood at 625 for Coach and 155 for Kate Spade.

Tapestry Converts Profit to Cash & Returns CapitalCash generation strengthened, supported by higher profitability and working-capital discipline. The operating cash flow was $263 million in the quarter. The adjusted free cash flow totaled $229 million in the quarter, while capital expenditure and cloud computing costs amounted to $50 million.

Tapestry ended the quarter with $1.07 billion in cash, cash equivalents and short-term investments and $2.38 billion in total borrowings, with a leverage ratio of 1.1X, based on gross-debt-to-adjusted-EBITDA. The company also continued to step up shareholder returns, including a dividend of 40 cents per share and $150 million in share repurchases during the quarter.

TPR Lifts FY26 Outlook After Q3 BeatReflecting the quarter’s outperformance and a stronger view for the fiscal fourth quarter, Tapestry raised its outlook. The company expects revenues of $7.95 billion, indicating pro-forma constant-currency growth of 16%, with foreign exchange expected to provide an 80-basis-point tailwind.

Regionally, TPR anticipates mid-teens growth in North America, approximately 20% growth in Europe and more than 30% growth in Greater China, while Japan revenues are projected to decline at a high-single-digit rate and Other Asia is expected to deliver low-double-digit growth. By brand, Coach revenues are expected to grow more than 20%, whereas Kate Spade is projected to post a low-double-digit decline.

The company expects an operating margin of 23%, representing a year-over-year expansion of nearly 300 basis points and exceeding its prior outlook by 120 basis points. The gross margin is anticipated to improve 110 basis points, driven mainly by operational gains tied to higher AUR and an additional structural benefit from the Stuart Weitzman divestiture. These improvements are expected to offset tariff and duty headwinds of 120 basis points, along with modest foreign exchange impacts.

Tapestry also expects SG&A leverage to improve from the prior guidance, supported by disciplined expense management despite continued growth-focused investments. Marketing spending as a percentage of sales is projected to rise 190 basis points year over year and approach 13% of revenues. Meanwhile, Coach is expected to expand operating margins, while Kate Spade is still projected to report a modest operating loss due to higher tariff impacts and ongoing brand investments.

Earnings per share are expected to be $6.95, suggesting year-over-year growth of more than 35% and exceeding the prior guidance of $6.40-$6.45. The adjusted free cash flow is projected to approach $1.6 billion, while CapEx and cloud computing costs are expected to be $200 million, with the majority allocated toward store openings, renovations and digital investments.

TPR Stock Past 3-Month Performance

Image Source: Zacks Investment Research

Shares of the company have lost 15.4% in the past three months compared with the industry’s decline of 8%.

Zacks Rank & Other Key PicksThe company currently has a Zacks Rank of 2 (Buy).

Some other top-ranked stocks are Victoria's Secret & Co. , Genesco Inc. (GCO - Free Report) and Tilly's, Inc. (TLYS - Free Report) .

Victoria's Secret is a specialty retailer of women's intimates, sleepwear, apparel, sport and swimwear, and prestige fragrances and body care. It currently sports a Zacks Rank of 1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 55.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for VSCO’s current fiscal-year sales and earnings indicates growth of 6.2% and 16.3%, respectively, from the year-ago reported numbers.

Genesco is a Nashville-based specialty retail and branded company, which sells footwear and accessories in retail stores. It currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings and sales suggests growth of 48.3% and 0.01%, respectively, from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 0.5%.

Tilly's is a specialty retailer in the action sports industry, selling clothing, shoes and accessories. It has a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for Tilly's current fiscal-year earnings and sales implies growth of 70.7% and 2.6%, respectively, from the year-ago actuals. TLYS delivered a trailing four-quarter average earnings surprise of 147%.

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This is the second technology patent secured by Tapestry; Mira helps teams turn insights into action, stay close to consumers and drive business outcomes

NEW YORK--(BUSINESS WIRE)--Tapestry, Inc. (NYSE: TPR), a global house of iconic brands consisting of Coach and kate spade new york, has been awarded a U.S. patent for Mira, a proprietary AI platform designed to connect data across all areas of the company to enable rapid, enterprise-wide decision-making. The patent includes the core system architecture and marks Tapestry's first AI patent and second technology patent overall.

WHAT IS MIRA?
In an era when consumers are moving faster than ever, harnessing the power of data to understand trends across the company is critical. Even more important is ensuring that our employees can access and derive insights from different data sources as easily as possible.

Used alongside Tapestry’s patented Global Data Fabric, Mira connects key data sources from across the company and can perform rapid and actionable analysis to surface insights, inspire innovative thinking and support informed decision-making.

What previously required days of manual analysis across multiple dashboards can now be accomplished in seconds to minutes. The potential use cases are plentiful, and Tapestry teams are already leveraging Mira to enhance assortment planning and inventory management and respond even more quickly to emerging consumer trends.

“Our teams bring deep expertise, human judgement and creativity; Mira provides business intelligence to help our teams move with speed and agility,” said Fabio Luzzi, Chief Data and Analytics Officer, Tapestry. “Together, that combination becomes a structural competitive advantage.”

HOW DOES MIRA WORK?
Unlike off-the-shelf AI tools Mira was designed by Tapestry’s Data and Analytics team with support from key business partners across the company to ensure the platform aligns with brand strategy, operational priorities and financial discipline. Mira is built with the language of retail and fashion in mind, learning from institutional knowledge and functioning within a secure, enterprise ecosystem with role-based access controls embedded from the start.

“We’re an 85-year-old fashion company harnessing cutting-edge innovation and technology. Mira is a powerful tool that puts business insights into the hands of decision makers across the company,” said Joanne Crevoiserat, Chief Executive Officer of Tapestry. “This is one more way we are moving with agility to deliver for our consumers and drive durable growth.”

About Tapestry, Inc.
Our global house of iconic accessories and lifestyle brands unites the magic of Coach and kate spade new york. Together, we stretch what’s possible – advancing brands further than they could go alone, expanding their reach to new geographies and generations. Inspired by our consumers, we create experiences and products that build lasting brand love and elevate everyday life. To learn more about Tapestry, please visit www.tapestry.com.

For important news and information regarding Tapestry, visit the Investor Relations section of our website at www.tapestry.com/investors. In addition, investors should continue to review our news releases and filings with the SEC. We use each of these channels of distribution as primary channels for publishing key information to our investors, some of which may contain material and previously non-public information. The Company’s common stock is traded on the New York Stock Exchange under the symbol TPR.

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Key Takeaways The GARP strategy identifies undervalued stocks with solid growth prospects for maximum returns.GARP combines value metrics like P/E ratios with growth rates between 10% and 25%.TPR, CHWY, ROST and NVDA represent promising GARP opportunities with strong fundamentals. If you are looking for a profitable portfolio of stocks offering the best of value and growth investing, you can try the growth at a reasonable price or GARP strategy.

The strategy helps investors gain exposure to undervalued stocks with impressive prospects. Unlike a blend strategy, a portfolio that uses GARP investing is expected to include stocks that offer the best of value and growth investing. Tapestry (TPR - Free Report) , Chewy (CHWY - Free Report) , Ross Stores (ROST - Free Report) and NVIDIA (NVDA - Free Report) are some GARP stocks that hold promise.

GARP Metrics: Mix of Growth & Value MetricsThe GARP strategy seeks to offer an ideal investment by utilizing the best features of value and growth investing. Investors adopting the GARP approach prefer buying stocks priced below the market or any reasonable target determined by fundamental analysis. These stocks also have solid prospects in terms of cash flow, revenues, earnings per share (EPS) and so on.

Growth Metrics

A strong earnings growth history and impressive earnings prospects are the main concepts that GARP investors borrow from the growth investing strategy. However, instead of super-normal growth rates, pursuing stocks with a more stable and reasonable growth rate is a tactic of GARP investors. Hence, growth rates between 10% and 20% are considered ideal under the GARP strategy.

Another metric that growth and GARP investors consider is return on equity (ROE). GARP investors look for a strong and higher ROE than the industry average to identify superior stocks. Stocks with positive cash flows find precedence under the GARP plan.

Value Metrics

GARP investing prioritizes popular value metrics, the price-to-earnings (P/E) and price-to-book (P/B) ratios. Though this investing style picks stocks with higher P/E ratios than value investors, it avoids companies with extremely high P/E ratios.

Using the GARP principle, we ran a screen to identify stocks that should offer solid returns in the near term.

Screening ParametersAlong with the criteria discussed in the above section, we have considered a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Last 5-year EPS & projected 3-5-year EPS growth rates between 10% and 25% (Strong EPS growth history and prospects ensure improving business.)

ROE (over the past 12 months) greater than the industry average (Higher ROE than the industry average indicates superior stocks.)

P/E and P/B ratios less than the M-industry average (P/E and P/B ratios less than that of the industry indicate that the stocks are undervalued.)

Here are four stocks from the six that made it through the screening process.

Tapestry’s fiscal third-quarter revenues of $1.92 billion increased 21% year over year, with GAAP operating margin expanding 630 basis points to 22.3%. Coach, the flagship brand of Tapestry, delivered 31% revenue growth, driven by handbag unit gains exceeding 20% and low double-digit AUR increases. Greater China surged 61%, while North America and Europe grew 20% and 31%, respectively. The company added more than 2.4 million new customers, with Gen Z representing over 35% of additions. Direct-to-consumer revenues grew 23% in constant currency. Tapestry raised full-year revenue, margin, EPS, and cash flow guidance, lifting shareholder return targets to $1.6 billion. The April 2026 board appointment of Pinterest's chief technology officer strengthens Tapestry's digital growth strategy.

The Zacks Consensus Estimate for Tapestry’s fiscal 2026 earnings has moved north by 7.6% to $6.95 per share in the past 30 days. This Zacks Rank #2 company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 15.59%.

NVIDIA’s fiscal 2026 revenues were $215.9 billion, up 65% year over year, with fourth-quarter Data Center revenues reaching $62.3 billion — a 75% annual increase. Non-GAAP gross margins expanded to 75.2% in the fourth quarter. The company guided fiscal first-quarter 2027 revenues of $78 billion, sustaining its growth trajectory. Recent announcements highlight expanding demand drivers: a May 2026 partnership with OpenAI targets deployment of at least 10 gigawatts of NVIDIA systems on the forthcoming Vera Rubin platform. A separate IREN collaboration targets up to 5 gigawatts of DSX-aligned AI infrastructure globally. A multiyear Corning partnership will scale U.S. optical connectivity manufacturing tenfold. Meanwhile, the Jetson AGX Thor platform's general availability meaningfully broadens NVIDIA’s addressable market into physical AI and robotics.

The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 earnings has moved north by 1.6% to $8.16 per share in the past 60 days. This Zacks Rank #2 company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 2.93%.

Chewy‘s fiscal 2025 net sales grew 8.3% on a normalized basis to $12.60 billion, gross margin expanded 60 basis points to 29.8%, and adjusted EBITDA climbed 26.1% to $719.2 million. Its record free cash flow of $562.4 million and 21.3 million active customers, up 4% year over year, reinforce its subscription-driven model, with Autoship representing 83.3% of net sales. In April 2026, Chewy announced the acquisition of Modern Animal, a 29-clinic veterinary platform, which instantly expanded Chewy Vet Care from 18 to 47 locations and added more than $125 million in annualized run-rate revenues. The board authorized a $500 million increase to the share repurchase program. Management guided fiscal 2026 net sales of $13.6–$13.75 billion.

The consensus estimate for this Zacks Rank #2 company’s fiscal 2026 earnings has moved north by 4.5% to $1.63 per share in the past 60 days. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, the average surprise being 1.51%.

Ross Stores ended fiscal 2025 on a strong footing, posting record net sales of $22.8 billion, up 8% year over year, with fourth-quarter comparable store sales growing 9%. The company's off-price model—delivering brand-name merchandise at 20% to 60% below regular retail prices—continues to gain traction with value-focused consumers. For fiscal 2026, Ross targets approximately 110 new store openings, representing 5% unit growth, toward a long-term goal of 2,900 Ross and 700 dd's DISCOUNTS locations. In March 2026, the board authorized a $2.55 billion stock repurchase program, 21% above the prior plan, alongside a 10% quarterly dividend increase to $0.445 per share. The company holds $4.6 billion in cash ahead of the May 21, 2026, first-quarter earnings release.

The consensus estimate for this Zacks Rank #2 company’s fiscal 2026 earnings has moved north by 1.7% to $7.32 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.17%.

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Published in artificial-intelligence retail tech-stocks

On May 20, 2026, Tapestry Inc TPR shares rose 3.2% today, closing at $135.79. The stock has shown volatility over the past year, with a 52-week high of $161.97 and a low of $76.29, reflecting a significant range in price performance.

GF Value™ verdict: TPR is currently priced at $135.79, which is 79.2% above its GF Value™ of $75.77, indicating it is significantly overvalued.GF Score™: TPR has a GF Score™ of 83/100, suggesting strong overall performance.Most notable signal: Insiders sold $3.8M worth of shares in the last three months, with no buying activity reported. Is TPR Overvalued or Undervalued? Tapestry Inc TPR is currently trading at $135.79, while the GF Value™ estimates its fair value at $75.77. This creates a substantial margin of safety for investors who may be looking for undervalued opportunities; however, in this case, the significant premium of 79.2% indicates that TPR is overvalued. The GF Valuation label classifies TPR as "Significantly Overvalued," which implies that the current price may not be sustainable relative to its intrinsic value.

Investors should be cautious as the overvaluation suggests potential risks if the stock price does not align with its underlying fundamentals. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

How Does TPR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 43.5x 13.0x Forward P/E 17.6x - The current P/E (TTM) of TPR stands at 43.5x, which is 235% above its 5-year median P/E of 13.0x. Additionally, the forward P/E of 17.6x indicates that the stock is trading above its historical valuation metrics. This P/E analysis aligns with the GF Value™ verdict, reinforcing the conclusion that TPR is overvalued based on historical performance.

What Does TPR's GF Score™ Tell Us? Metric Rating GF Score™ 83/100 Financial Strength 6/10 Profitability 9/10 Growth 7/10 Valuation 3/10 Momentum 9/10 The GF Score™ of 83/100 indicates that TPR performs well in several areas, particularly in profitability and momentum, where it scores 9/10. However, the valuation rank of 3/10 is a significant weakness, suggesting that the stock is not as favorably priced in the current market. Financial strength is rated at 6/10, which is moderate, while growth potential at 7/10 provides a positive outlook despite the valuation concerns.

What Are Insiders Doing with TPR Stock? Recent insider activity for Tapestry Inc shows that insiders sold $3.8 million worth of shares over the last three months, with no buying activity reported during this period. This trend may suggest a lack of confidence in the stock's current valuation and could be interpreted as a negative signal for potential investors. The absence of insider buying further emphasizes caution regarding the stock’s future performance.

What This Means for Investors Based on the GF Value™ assessment, Tapestry Inc TPR is currently considered overvalued. The substantial difference between the current price and the estimated fair value suggests that investors may face risks if the market corrects towards TPR's intrinsic value.

For the complete analysis, visit the Tapestry Inc TPR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is TPR's GF Score™?

TPR has a GF Score™ of 83/100, indicating strong overall performance based on multiple factors that are correlated with higher long-term returns.

Is TPR overvalued or undervalued?

TPR is considered overvalued based on its GF Value™ of $75.77 compared to the current price of $135.79.

What is TPR's P/E ratio?

TPR's P/E ratio (TTM) is 43.5x, which is significantly higher than its 5-year median P/E of 13.0x, indicating it is trading above its historical valuation levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

The oil shortages in the 1970s were terrible, predominantly caused by Middle Eastern countries curtailing deliveries to the United States. It was an ugly time, with gasoline lines and high energy prices (for the time period). Chevron (CVX +0.63%) CEO Mike Wirth just described the current energy market as similar to the one in the 1970s. That could be a big problem for retailers.

Tipping the economy in the wrong direction To be fair, the United States isn't as reliant on Middle Eastern oil today as it was in the 1970s. So the direct impact on the U.S. market won't be the same. However, countries like Japan, which import a lot of oil from the Middle East, could see a 1970s-style hit, including gasoline lines, if supply disruptions from the ongoing geopolitical conflict in the region continue. But the United States can't entirely avoid the impact, since oil is a commodity. There are fears that high energy prices alone could push the United States and the world into a recession.

Image source: Getty Images.

That's not unreasonable, noting that retailers like Dollar Tree (DLTR 0.78%) and Walmart (WMT +0.44%) are already benefiting from wealthier customers trading down to lower-price stores. For example, Dollar Tree's sales rose 9% in the fiscal fourth quarter, with same-store sales increasing 5%. By comparison, Target (TGT +2.01%), which is positioned to offer a higher-quality shopping experience, just ended a year-long stretch of weak performance, marked by falling same-store sales. While first-quarter 2026 same-store sales jumped 4.4%, the comparison was relatively easy. And management highlighted that "much more work in front of us" and it highlighted the still "uncertain operating environment."

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If there's a recession, it wouldn't be surprising to see Target lag its retail peers. But it probably won't be the only retailer that suffers. During economic downturns, consumers tend to pull back on large purchases and discretionary items. While Wall Street increasingly talks about a "K" shaped recovery, that may not be enough to save luxury retailers from experiencing sales weakness. Even wealthy customers who can easily withstand an economic pullback often cut back on spending during a recession.

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That means that retailers like Tapestry (TPR +1.40%), which owns Coach and Kate Spade, are likely to see a sales slowdown. The Coach brand has been performing strongly, but Kate Spade has been a weak spot. A recession could make selling expensive handbags a lot more difficult. Notably, the Japanese market isn't doing well for Tapestry, which could be a harbinger of things to come in other markets as the Middle East conflict drags on.

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Best Buy (BBY +1.85%) and AutoNation (AN 1.31%) could also be impacted. Best Buy, which sells electronics, and AutoNation, one of the largest auto retailers, offer products that customers can usually put off until economic times improve. That could leave them exposed if there is a recession this summer, or if worried consumers simply continue to tighten their budgets in anticipation of a recession that never arrives.

Fear is often enough During the Great Depression, President Franklin D. Roosevelt said, "The only thing we have to fear is fear itself." Specifically highlighting the impact that emotions were having on the U.S. economy. Humans haven't changed, and emotions are running high amid the ongoing conflict in the Middle East.

A recession is entirely possible in 2026 if consumer moods continue to darken. And such an outcome would likely be a big headwind for luxury retailers like Tapestry, those that sell non-essential items like Best Buy, and retailers with high-cost products, like car dealer AutoNation.

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Tapestry (TPR - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Here are three of the most important factors that make the stock of this maker of high-end shoes and handbags a great growth pick right now.

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Tapestry is 15.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 36.2% this year, crushing the industry average, which calls for EPS growth of 20.1%.

Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for Tapestry is 10.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of -6.7%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 21.2% over the past 3-5 years versus the industry average of 15%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Tapestry. The Zacks Consensus Estimate for the current year has surged 7.4% over the past month.

Bottom LineTapestry has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Tapestry well for outperformance, so growth investors may want to bet on it.