Tapestry, Inc. TPR continues to leverage digital capabilities as a major growth driver, helping the company deepen consumer engagement, attract customers and expand market share globally. In the third quarter of fiscal 2026, Tapestry delivered 23% growth in its direct-to-consumer business, including an approximately 25% increase in digital sales. Management noted that both online and physical stores generated strong and rising profitability, highlighting the effectiveness of its omnichannel strategy.
The company’s digital ecosystem is closely tied to its consumer-focused operating model. During the quarter, Tapestry acquired more than 2.4 million customers globally, with Gen Z remaining a key contributor to growth. Through data-driven consumer insights, targeted digital marketing and personalized engagement, the company has strengthened customer retention and repeat purchasing behavior. Management emphasized that engaging consumers early supports higher lifetime value and creates a durable competitive advantage.
Coach continued to lead digital momentum, adding approximately 2 million customers during the quarter. The brand increased marketing investments by about 50% year over year, with a greater focus on digital brand-building initiatives. Its “Explore Your Story” campaign, inspired by Gen Z’s interest in storytelling and self-expression, generated strong engagement and helped reinforce emotional connections with consumers across key markets.
Digital strength was particularly evident in Greater China, where revenues soared 55% year over year. Management highlighted that growth was led by digital channels, supported by creative campaigns, localized activations and focused investments aimed at younger consumers. The company’s partnership with streetwear brand CLOT and immersive consumer experiences further boosted engagement and customer acquisition.
Tapestry plans to continue investing in technology and digital infrastructure to enhance customer experiences, improve operational efficiency and support sustainable long-term growth.
TPR’s Price Performance, Valuation & Estimates
Shares of Tapestry have surged 78.6% in the past year compared with the industry’s growth of 5.5%.
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From a valuation standpoint, TPR trades at a forward price-to-earnings ratio of 18.62X, up from the industry’s average of 14.87X.
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The Zacks Consensus Estimate for Tapestry’s fiscal 2027 earnings implies year-over-year growth of 36.3%, whereas the same for fiscal 2028 indicates an uptick of 9.5%. Earnings estimates for fiscal 2027 and 2028 have been increased by 46 cents and 50 cents, respectively, in the past 30 days.
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TPR currently flaunts a Zacks Rank #1 (Strong Buy).
Other Key Picks
Some other top-ranked stocks are Genesco Inc. GCO, Levi Strauss & Co. LEVI and Fossil Group, Inc. FOSL.
Genesco is a specialty retail and branded company that sells footwear and accessories in retail stores. The company sports a Zacks Rank #1 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 implies growth of 55.2% from the year-ago actual. GCO delivered a trailing four-quarter average earnings surprise of 3.8%.
Levi Strauss designs and markets jeans, casual wear and related accessories for men, women and children. It currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Levi Strauss’ current fiscal-year earnings and sales suggests growth of 11.9% and 5.2%, respectively, from the year-ago actuals. LEVI delivered a trailing four-quarter average earnings surprise of 21.4%.
Fossil Group is involved in designing, marketing and distributing consumer fashion accessories. The company has a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Fossil Group’s current financial-year earnings and sales indicates growth of 87.6% and a decline of 4.9%, respectively, from the year-ago actuals. FOSL delivered a negative trailing four-quarter average earnings surprise of 381.8%.
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Fossil Group, Inc. (FOSL): Free Stock Analysis Report
Genesco Inc. (GCO): Free Stock Analysis Report
Tapestry, Inc. (TPR): Free Stock Analysis Report
Levi Strauss & Co. (LEVI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).