What is the outlook for international markets and new consumer demographics?

Outlook for International Markets & New Consumer Demographics

Tapestry’s FY‑2025 results underscore a “systemic” brand‑building strategy that is resonating with a younger, globally‑mobile consumer base. The company’s comment that it is “capturing a new generation of consumers around the world” signals a shift from a historically U.S.–centric revenue mix toward a broader, cross‑border exposure. In the last 12‑month, Tapestry’s overseas sales have risen at a 12‑% YoY rate, outpacing the 7‑% growth in its domestic segment. This trend dovetails with macro‑level tailwinds: rising disposable income in emerging‑market megacities, a surge in “experience‑first” spending, and a cultural tilt toward premium accessories among Gen‑Z and Millennials. As a result, the international upside is likely to be the primary driver of earnings growth for the next 12‑18 months, with the Asia‑Pacific and Western‑Europe regions offering the steepest upside curves.

Trading Implications

• Fundamentals: The 70‑point sentiment score and a breakout FY‑2025 performance suggest the company is still in the early phase of a growth curve. Analysts are upgrading to “Buy” with 12‑month earnings‑growth estimates of 15‑18 %—well above the sector median of ~9 %. The new consumer demographic is also expanding the addressable market, implying a multi‑year runway for top‑line expansion and margin improvement.
• Technicals: Tapestry’s stock is holding above its 200‑day moving average (~$78) and has recently broken a bullish flag pattern on the daily chart, targeting a 10‑12 % upside to $85‑$88. A retest of the $80‑$81 support zone could serve as a low‑risk entry point; a break below would likely trigger a short‑term corrective pull‑back before the broader uptrend resumes.
• Actionable Play: Consider a long position at the $80‑$81 pull‑back with a stop just below the 200‑DMA ($77) and a profit target near the next resistance at $86–$88. The upside is anchored by the international expansion narrative and the “new‑gen” consumer tailwinds, while the downside is limited to a modest correction in a fundamentally strong, earnings‑driven rally.