Durable, Confident, and Culture

研报英文原文证据摘录

Durable, Confident, and Culture

continues to outperform expectations for the top and bottom Tapestry (TPR) operates a house of

line in North America, China and Europe, we see continued upside in the shares. If modern luxury accessories and lifestyle

the accessible and expressive luxury category continues to be more resilient than brands, including Coach and Kate Spade.

its higher-priced luxury competitors, we also see continued gains. While the reset Coach offers modern luxury accessories

actions at Kate Spade will pressure revenue and profitability in FY26, if successful, and lifestyle collections with expertise

better results at this brand could unlock sustainable profitable growth for the in leather goods and accessories. Kate

long term. Expectations from the Street on Kate Spade are modest. Kate Spade Spade offers handbags, ready-to-wear

is expected to return to profitable top-line growth in FY27 and accelerate to mid- jewelry, footwear, gifts and home décor.

single-digit revenue growth and a high-single-digit operating margin in Fiscal 2028.

Our upside scenario fair value estimate for TPR shares is $190.

Downside Scenario: $125/sh

■ The downside scenario would include a slowdown in top-line performance for the

Coach brand and/or margin degradation. Within the Coach brand, China has been

outstanding, so any reversal in these trends would hinder the shares. Kate Spade is

expected to return to profitable top-line growth in FY27. If this doesn't materialize,

this could lead to stock downside. We would also see downside if management

allocates too much time or capital into the Kate Spade turnaround plan, which is

undergoing a brand reset. Our downside fair value estimate is $125 per share.

BTIG, LLC Robert Drbul (332) 400-5186 www.btig.com