12 Best Luxury Stocks to Buy Now

2. Tapestry, Inc. (NYSE:TPR)

Number of Hedge Fund Holders: 60

Tapestry, Inc. (NYSE:TPR) is one of the best luxury stocks to buy now. BNP Paribas initiated coverage of Tapestry, Inc. (NYSE:TPR) with an Outperform rating on February 13, setting a price target of $176. The company also received a rating update from TD Cowen on February 10, with the firm lifting the price target on the stock to $175 from $150 while maintaining a Buy rating on the shares. The firm updated its model to take into account the fiscal Q2 2026 earnings results.

UBS also lifted the price target on Tapestry, Inc. (NYSE:TPR) to $141 from $125 on February 9, maintaining a Neutral rating on the shares. The rating updates came after Tapestry, Inc. (NYSE:TPR) reported its fiscal Q2 2026 results on February 5, reporting a revenue of $2.5 billion, up 14% compared to the prior year period. The company also attained pro forma revenue growth 18%, supported by a 25% gain at the coach brand.

Tapestry, Inc. (NYSE:TPR) drove operating margin expansion of 620 basis points on a GAAP Basis and 390 basis points on a non-GAAP basis, supported by gross margin increase and SG&A leverage. The company now expects to return $1.5 billion to shareholders through dividends and share repurchases in Fiscal 2026. This is around 100 percent of its anticipated adjusted free cash flow, and reflects an increase from its previous outlook of $1.3 billion, supported by a robust balance sheet, considerable free cash flow generation, and strong operational results.

Tapestry, Inc. (NYSE:TPR) operates a global house of luxury brands, including Kate Spade New York, Coach, and Stuart Weitzman.