02:54 PM EDT, 10/17/2025 (MT Newswires) -- Tapestry (TPR) may be vulnerable to a pullback around its Q1 print despite strong Coach trends, with high market expectations skewing the risk-reward to the downside, UBS said in a research note Friday. Tapestry is scheduled to report its Q1 results on Nov. 6.

UBS forecasts fiscal 2026 Q1 earnings per share of $1.36, topping the $1.25 consensus, and sees a likely modest fiscal 2026 guide raise, but noted the market already expects a 10 to 15 cent beat and a guidance bump. UBS flagged elevated Coach promotions over July-August and softer Asia traffic as potential margin and momentum headwinds.

The firm also noted crowded long positioning in TPR and the options market pricing for a bigger-than-usual move, saying a miss versus lofty expectations could push the stock lower even if fundamentals remain solid.

UBS maintained a neutral rating with a $105 price target.

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