Tapestry (NYSE:TPR) Stock Analysis: Wells Fargo Rating, Revenue, and Growth Outlook

• Wells Fargo maintained an "Overweight" rating for Tapestry but lowered its price target, reflecting cautious sentiment.
• Despite strong fourth-quarter revenue, Tapestry's stock price declined due to a soft outlook for future growth.
• The Coach brand is a significant growth driver, particularly in Greater China, while the Kate Spade brand faces challenges.

Tapestry (NYSE:TPR) is a global house of luxury fashion brands. The company owns and operates several well-known names in the fashion industry, including Coach and Kate Spade. It designs and sells high-end accessories like handbags, footwear, and ready-to-wear clothing to customers around the world.

On August 13, 2026, the investment firm Wells Fargo maintained its Overweight rating for Tapestry. An Overweight rating means the firm expects the stock to perform better than the market average. While the rating was positive, Wells Fargo lowered its price target on the stock to $160.00 from $165.00.

This adjustment reflects concerns about Tapestry's future growth prospects. Despite Tapestry reporting strong fourth-quarter revenue of $1.88 billion, its stock price fell 15.1%. As highlighted by The Wall Street Journal, this decline was caused by a soft outlook for the new fiscal year, which suggested growth would slow down.

The company's brand performance is also mixed. The Coach brand is a primary growth driver, with its revenue increasing by 14% on a constant-currency basis. This growth was strong in Greater China, with a 30% increase. However, the Kate Spade brand is struggling, with its revenue decreasing by 7%.

For fiscal year 2027, management projects earnings per share (EPS) to be between $7.80 and $7.90. EPS is a measure of a company's profit per outstanding share. This financial forecast, while showing growth, did not meet higher investor expectations, causing a "resetting of expectations," as noted by GuruFocus.