What Happened?
Shares of luxury fashion conglomerate Tapestry (NYSE: TPR) jumped 5.7% in the pre-market session after multiple analysts raised their price targets on the company, citing optimism ahead of its upcoming earnings report. This wave of optimism from Wall Street analysts comes just ahead of the company's fourth-quarter earnings report, scheduled for August 14. Telsey Advisory Group reiterated its "outperform" rating and significantly increased its price target on the stock to $125 from $92.
Similarly, Evercore ISI also maintained an "Outperform" rating while raising its price target to $130 from $97. Analysts at Evercore see potential upside to consensus estimates for Tapestry's upcoming results. This confidence is supported by the company's strong performance in the previous quarter and a raised full-year outlook, fueling expectations for another positive report.
After the initial pop the shares cooled down to $111.54, up 3.3% from previous close.
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What Is The Market Telling Us
Tapestry’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock gained 3.6% on the news that the company completed the sale of its Stuart Weitzman brand, a strategic move that coincided with a broader market rally in consumer stocks. The divestment allowed Tapestry to concentrate its resources on its core Coach and Kate Spade brands. This corporate news was bolstered by a favorable economic backdrop, as weak U.S. jobs data fueled investor hopes for a potential interest rate cut by the Federal Reserve. The prospect of lower borrowing costs typically encouraged consumer spending, which benefited companies like Tapestry. Adding to the positive momentum, a UBS analyst maintained a neutral stance but significantly raised the price target on the stock.
Tapestry is up 69.9% since the beginning of the year, and at $111.54 per share, it is trading close to its 52-week high of $112.15 from August 2025. Investors who bought $1,000 worth of Tapestry’s shares 5 years ago would now be looking at an investment worth $7,150.
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