Tapestry (NYSE:TPR) Announces Quarterly Earnings Results, Beats Expectations By $0.49 EPS

Tapestry (NYSE:TPR) issued its quarterly earnings results on Thursday. The luxury accessories retailer reported $2.69 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.20 by $0.49, FiscalAI reports. Tapestry had a net margin of 3.77% and a return on equity of 116.42%. The business had revenue of $2.50 billion for the quarter, compared to analyst estimates of $2.29 billion. During the same period in the previous year, the business posted $2.00 earnings per share. The business’s revenue was up 14.0% compared to the same quarter last year. Tapestry updated its FY 2026 guidance to 6.400-6.450 EPS.

Here are the key takeaways from Tapestry’s conference call:

• Strong Q2 outperformance — pro forma revenue growth of 18%, adjusted operating margin expanded ~390 bps, EPS of $2.69 (+34%), and management raised full?year guidance to revenue > $7.75B and EPS $6.40–$6.45.
• Coach is the primary growth engine — brand revenue +25%, 2.9 million new customers (Gen Z?led), leather goods drove mid?teens AUR and unit growth, and broad regional strength (NA +27%, Greater China +37%, Europe +26%).
• Kate Spade remains in reset — revenue down 14% as the company pulled back promotions and invested in a turnaround; early KPI improvements (brand consideration, Gen Z acquisition) were noted but the brand is still expected to finish the year down and modestly loss?making.
• Margins resilient despite tariffs — gross margin expanded to 75.5% (up 110 bps) from operational improvements and AUR gains, and management now expects full?year gross margin to rise ~20 bps, offsetting tariff headwinds.
• Heavy shareholder returns and healthy balance sheet — plan to return ~ $1.5B (100% of expected adjusted FCF) via $1.2B buybacks and a $1.60 annual dividend, with net debt and leverage well below long?term targets (gross debt/EBITDA ~1.2x).

Tapestry Price Performance

NYSE TPR traded up $13.02 on Thursday, reaching $142.94. The company’s stock had a trading volume of 4,839,193 shares, compared to its average volume of 2,366,103. The company has a current ratio of 1.52, a quick ratio of 0.93 and a debt-to-equity ratio of 5.95. Tapestry has a 52 week low of $58.39 and a 52 week high of $145.42. The firm has a market cap of $29.25 billion, a PE ratio of 127.55, a price-to-earnings-growth ratio of 2.18 and a beta of 1.63. The business has a 50-day moving average price of $125.90 and a 200 day moving average price of $114.39.

Insider Buying and Selling

In related news, insider Denise Kulikowsky sold 583 shares of Tapestry stock in a transaction dated Thursday, December 4th. The stock was sold at an average price of $115.17, for a total transaction of $67,144.11. Following the completion of the sale, the insider owned 19,285 shares of the company’s stock, valued at $2,221,053.45. The trade was a 2.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Todd Kahn sold 10,344 shares of the business’s stock in a transaction on Monday, November 24th. The shares were sold at an average price of $107.00, for a total transaction of $1,106,808.00. Following the completion of the sale, the chief executive officer directly owned 131,815 shares of the company’s stock, valued at approximately $14,104,205. This trade represents a 7.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 115,485 shares of company stock worth $12,034,058 over the last ninety days. Insiders own 1.32% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. State Street Corp raised its holdings in Tapestry by 19.3% in the 3rd quarter. State Street Corp now owns 9,229,777 shares of the luxury accessories retailer’s stock valued at $1,044,995,000 after acquiring an additional 1,494,193 shares in the last quarter. AQR Capital Management LLC grew its holdings in shares of Tapestry by 21.4% in the third quarter. AQR Capital Management LLC now owns 4,307,615 shares of the luxury accessories retailer’s stock valued at $487,708,000 after purchasing an additional 760,646 shares during the period. Northern Trust Corp raised its position in Tapestry by 7.6% in the 3rd quarter. Northern Trust Corp now owns 2,870,821 shares of the luxury accessories retailer’s stock valued at $325,034,000 after purchasing an additional 203,520 shares during the last quarter. Voloridge Investment Management LLC increased its stake in Tapestry by 160.5% during the third quarter. Voloridge Investment Management LLC now owns 1,886,518 shares of the luxury accessories retailer’s stock worth $213,592,000 after acquiring an additional 1,162,442 shares during the last quarter. Finally, Amundi grew its holdings in Tapestry by 69.6% in the 3rd quarter. Amundi now owns 1,726,876 shares of the luxury accessories retailer’s stock worth $199,437,000 after buying an additional 708,492 shares in the last quarter. Institutional investors own 90.77% of the company’s stock.

Key Tapestry News

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Tapestry beat Q2 estimates — reported $2.69 EPS vs. consensus ~$2.20 and revenue of $2.50B (+14% YoY) vs. ~$2.29B, signaling stronger holiday demand and margin leverage. Tapestry press release
• Positive Sentiment: Management raised FY26 guidance to $6.40–$6.45 EPS and higher revenue guidance (~$7.8B), well above prior consensus, giving investors clearer upside to estimates. Reuters: Tapestry lifts annual forecasts
• Positive Sentiment: Coach (notably the Tabby handbag) drove the outperformance and was called out as the growth engine for the quarter, helping offset softness elsewhere. This brand-level strength is the primary catalyst for the rally. SchaeffersResearch: Coach sales surge
• Positive Sentiment: Street reaction: firms boosted targets (e.g., Evercore ISI raised its price target to $150), supporting further upside from analysts’ upgrades. Evercore raises price target
• Neutral Sentiment: Full Q2 earnings call transcript and company slide deck are available for details on channel, regional and margin drivers for the quarter. Investors can use these to assess sustainability of the beat. Earnings call transcript
• Negative Sentiment: Kate Spade sales declined in the quarter — management noted the Coach strength offset declines at Kate Spade, which remains a watch item for growth consistency across the portfolio. WSJ: Coach sales surge; Kate Spade declines
• Negative Sentiment: Valuation and leverage: TPR’s forward P/E is elevated and the company has meaningful leverage on the balance sheet — investors should weigh growth vs. current valuation and margin sustainability when sizing positions.

Tapestry declared that its board has authorized a stock repurchase program on Thursday, November 6th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the luxury accessories retailer to purchase up to 4.9% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on TPR shares. Wells Fargo & Company boosted their target price on shares of Tapestry from $125.00 to $135.00 and gave the stock an “overweight” rating in a research report on Tuesday, December 16th. Sanford C. Bernstein reiterated an “outperform” rating and set a $150.00 price target on shares of Tapestry in a report on Tuesday, January 6th. Citigroup lifted their price objective on shares of Tapestry from $124.00 to $152.00 and gave the company a “buy” rating in a research note on Tuesday, January 20th. Wall Street Zen cut Tapestry from a “strong-buy” rating to a “buy” rating in a report on Saturday, December 6th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Tapestry from $147.00 to $148.00 and gave the stock an “overweight” rating in a research report on Monday, November 17th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $131.05.

Tapestry Company Profile

Tapestry, Inc is a New York City–based house of fashion brands that designs, produces and distributes a range of accessible luxury and lifestyle products. The company manages a portfolio led by Coach, along with Kate Spade New York and Stuart Weitzman, each offering distinct product lines that include handbags and leather goods, footwear, ready-to-wear apparel, accessories, small leather goods, jewelry and lifestyle items. Tapestry’s operations encompass product design, marketing, wholesale partnerships, retail store operations and digital commerce.

Historically, the Coach brand traces its roots to a leather workshop in New York dating to the mid-20th century.