How Tapestry (NYSE:TPR) Is Winning Over Gen Z—And Why It’s Fueling Their Stock Surge

Tapestry’s stock isn’t just climbing—it’s getting a turbo boost from Gen Z’s wallets. Here’s how the luxury conglomerate cracked the code.

The Gen Z Playbook: More Than Just Hype

Forget stale marketing—Tapestry’s digital-first approach cuts through the noise. Social commerce, micro-influencers, and limited drops keep younger consumers hooked. No surprise their Q2 earnings beat expectations (again).

Why Wall Street’s Finally Paying Attention

Analysts shrugged for years, but now even the suits can’t ignore the numbers: Gen Z now accounts for 28% of Tapestry’s new customers. Cue the institutional buying frenzy—better late than never, right?

The Cynical Take

Let’s be real: this ‘revelation’ only matters because it juiced the stock price. If Gen Z suddenly pivots to blockchain handbags, watch how fast those ‘long-term growth’ reports get revised.

Confident Investing Starts Here:

• Easily unpack a company''s performance with TipRanks'' new KPI Data for smart investment decisions
• Receive undervalued, market resilient stocks right to your inbox with TipRanks'' Smart Value Newsletter

The word from TD Cowen, via analyst Oliver Chen—who has a four-star rating on TipRanks—notes that Tapestry has made some serious inroads with Gen Z. And given that Gen Z is rapidly stepping up to be the big name in disposable income—such as it is these days—that is giving Tapestry some extra market firepower. This projection was not only enough for Chen to hike his rating from Hold to Buy, but also to hike the price target from $90 to its new $100 per share.

Chen notes that “continued brand momentum” is likely to help fuel Coach, which is of course part of Tapestry. Better yet, Coach currently has “…low…brand awareness…in China and Europe.” That will provide what Chen calls a “…long-term growth opportunity” as Tapestry looks to make gains wherever it can. In fact, Chen looks for Tapestry to branch out into the footwear market next, where its efforts are currently comparatively light.

“Growth Amid Challenges”

Meanwhile, other analysis suggests that there are some good opportunities for growth with Tapestry, despite the fact that the landscape is not looking especially hospitable for high-end brands right now. For instance, Tapestry has very little sourcing going on in China, which is going to insulate it from a lot of tariff pressures.

Even the economic troubles are likely to be light for Tapestry, particularly among its target market of high-end, well-heeled shoppers. These shoppers are least likely to be troubled by economic downturn, reports note, and will likely continue to buy anyway.

Is Tapestry a Good Stock to Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on TPR stock based on 14 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 92.99% rally in its share price over the past year, the average TPR price target of $90.69 per share implies 10.69% upside potential.

Disclosure