Tapestry Strengthens Global Presence With Strong International Growth

Tapestry, Inc. TPR continues to build strong momentum across international markets, with Greater China, Europe and the broader Asia-Pacific regions emerging as key contributors to the company’s accelerating global growth. The company’s consumer-led strategy, localized marketing initiatives and direct-to-consumer business model are helping its brands resonate strongly with younger consumers across major international markets.Greater China remained the strongest international growth driver in the third quarter of fiscal 2026, with revenues increasing 55% in constant currency. Tapestry noted that strong customer acquisition, robust digital demand and successful Chinese New Year campaigns fueled the outperformance. The company’s targeted investments, culturally relevant activations and focus on Gen Z consumers continue to strengthen brand desirability in the region. Management also stated that it remains well-positioned to sustain strong momentum in this large and important market going forward.Europe also delivered strong results, with revenues growing 21% in constant currency, supported by healthy local consumer demand and rising Gen Z customer acquisition. Management emphasized that growth was primarily driven by the direct business, helping the company achieve notable market share gains. Tapestry believes Europe remains significantly underpenetrated and sees meaningful long-term opportunities to further expand its presence and consumer reach across the region.Across the broader Asia-Pacific market, revenues in Other Asia increased 16%, led by strong performances in South Korea and Australia. The company also continued investing in immersive retail concepts, localized experiences and digital engagement initiatives globally, helping deepen customer relationships and strengthen international brand relevance.Looking ahead, Tapestry raised its fiscal 2026 outlook following its strong quarterly execution and improving international momentum. The company expects fiscal 2026 revenues of $7.95 billion, indicating 16% pro-forma constant-currency growth. Management expects international momentum to remain solid across major regions. Tapestry anticipates mid-teens growth in North America, nearly 20% growth in Europe and more than 30% growth in Greater China. Other Asia is expected to post low-double-digit growth.TPR’s Price Performance, Valuation & EstimatesShares of Tapestry have risen 30.7% in the past six months compared with the industry’s growth of 1%. Image Source: Zacks Investment Research From a valuation standpoint, TPR trades at a forward price-to-earnings ratio of 18.44X, up from the industry’s average of 14.33X. Image Source: Zacks Investment Research 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 7.4%. Earnings estimates for fiscal 2026 and 2027 have been increased by 48 cents and 38 cents, respectively, in the past seven days. Image Source: Zacks Investment Research TPR currently carries a Zacks Rank #2 (Buy).Other Key PicksSome other top-ranked stocks are V.F. Corporation VFC, Victoria's Secret & Co. VSCO and Levi Strauss & Co. LEVI.V.F. Corp designs, manufactures and markets branded apparel and related products in the United States and internationally. It 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 V.F. Corp’s current fiscal-year earnings and sales indicates growth of 10.8% and a decline of 3.2%, respectively, from the year-ago actuals. VFC delivered a trailing four-quarter average earnings surprise of 25.9%.Victoria's Secret is a specialty retailer of women's intimates, sleepwear, apparel, sport and swimwear, and prestige fragrances and body care. It currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 55.1%, on average. 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.Levi Strauss designs and markets jeans, casual wear and related accessories for men, women and children. It currently carries a Zacks Rank #2.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%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks