Luxury accessories giant Tapestry Inc TPR is getting a clear growth split between its key brands, according to JPMorgan analyst Matthew R. Boss.

The spotlight firmly shines on Coach, which is staging a notable comeback with a projected 32% upside for the overall company stock by year-end, per Boss’ projections. Meanwhile, Kate Spade is lagging, creating a tale of two brand trajectories under the same roof.

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Coach's Growth Engine: Pricing Power Meets Younger Buyer Momentum

Coach is driving the bulk of Tapestry's growth story. JPMorgan's fieldwork highlights a more balanced multi-year revenue growth fueled by both average unit retail (AUR) price hikes and sustainable unit sales growth, says Boss.

Coach's handbag prices are climbing steadily, with management pointing to improved full-price selling and fresh, innovative product lines as key drivers. Although handbag unit sales had declined in recent years, new customer acquisition — especially from Gen-Z and Millennials — is turning the tide.

These younger buyers are not only spending more per purchase but are also returning frequently and influencing older customers to re-engage with the brand. Add in strong momentum in footwear and international store expansions, and Coach's growth runway looks durable and diversified.

Kate Spade Falters As Coach Shoulders The Growth Load

Kate Spade, on the other hand, has seen revenue declines this year, with management taking a cautious stance amid uncertain macroeconomic conditions. The brand's fourth quarter guidance suggests a drop in sales, contrasting sharply with Coach's low-double-digit growth expectations.

While Kate Spade remains an important part of Tapestry's portfolio, it currently plays a supporting role in the group's financial outlook.

Tapestry's upside potential is largely driven by Coach's revival, supported by pricing power, customer rejuvenation and expanding categories. With a $104 price target, investors have reason to watch closely as Coach leads the charge while Kate Spade works through challenges.

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