Tapestry (NYSE:TPR) Issues Earnings Results, Beats Expectations By $0.35 EPS

Tapestry (NYSE:TPR) released its quarterly earnings data on Thursday. The luxury accessories retailer reported $1.66 EPS for the quarter, topping analysts’ consensus estimates of $1.31 by $0.35, FiscalAI reports. Tapestry had a net margin of 8.44% and a return on equity of 229.70%. The firm had revenue of $1.92 billion for the quarter, compared to the consensus estimate of $1.79 billion. During the same quarter in the previous year, the firm earned $1.03 earnings per share. The firm’s revenue was up 21.2% on a year-over-year basis. Tapestry updated its FY 2026 guidance to 6.950-6.950 EPS.

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

• Tapestry raised its fiscal 2026 outlook, now guiding to approximately $7.95 billion in revenue, ~$6.95 EPS and an operating margin near 23%, reflecting pro forma constant-currency growth of about 16%.
• Coach drove the quarter’s outperformance with ~29% constant-currency revenue growth, ~2 million new customers (strong Gen Z recruitment), leather-goods unit volumes +20% and higher AURs, and management reiterated a long-term ambition for Coach as a $10 billion brand.
• Kate Spade lagged: Q3 revenue fell ~11% (sequential improvement but below expectations due partly to a strategic pullback in promotions); while margins exceeded plan, management still expects a low double-digit revenue decline for the brand this year.
• Margins showed strength (Q3 gross margin 76.9%, +80 bps with ~190 bps operational expansion), but management flagged meaningful tariff/duty headwinds (~180 bps in Q3) even as they expect FY gross-margin tailwinds from the Stuart Weitzman divestiture and AUR-driven operational improvement.
• Capital return is aggressive: $150M buybacks in Q3 and YTD ~$1.05B, a FY2026 plan to return ~$1.6 billion (?100% of expected adj. FCF) including ~$1.3B in repurchases, while leverage remains low (gross debt/EBITDA ~1.1x).

Tapestry Trading Up 2.2%

Shares of TPR traded up $2.91 on Friday, hitting $133.43. 4,316,187 shares of the stock traded hands, compared to its average volume of 1,973,301. The company has a quick ratio of 1.10, a current ratio of 1.84 and a debt-to-equity ratio of 3.48. The firm has a market capitalization of $27.01 billion, a P/E ratio of 42.77, a P/E/G ratio of 1.49 and a beta of 1.45. The stock’s 50 day moving average is $146.44 and its two-hundred day moving average is $132.25. Tapestry has a 1 year low of $76.29 and a 1 year high of $161.97.

Tapestry Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 22nd. Investors of record on Friday, June 5th will be paid a dividend of $0.40 per share. The ex-dividend date of this dividend is Friday, June 5th. This represents a $1.60 annualized dividend and a dividend yield of 1.2%. Tapestry’s dividend payout ratio is presently 66.12%.

Analysts Set New Price Targets

TPR has been the topic of several recent research reports. Robert W. Baird upped their price target on shares of Tapestry from $160.00 to $165.00 and gave the company an “outperform” rating in a report on Wednesday, April 29th. Barclays set a $179.00 price target on shares of Tapestry and gave the company an “overweight” rating in a report on Friday, February 6th. BNP Paribas Exane initiated coverage on shares of Tapestry in a report on Friday, February 13th. They issued an “outperform” rating and a $176.00 price target on the stock. Telsey Advisory Group upped their price target on shares of Tapestry to $150.00 and gave the company an “outperform” rating in a report on Thursday, February 5th. Finally, Argus set a $165.00 price target on shares of Tapestry in a report on Thursday, March 12th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $160.67.

Insider Buying and Selling at Tapestry

In related news, CFO Scott A. Roe sold 44,290 shares of the company’s stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $152.62, for a total transaction of $6,759,539.80. Following the transaction, the chief financial officer owned 139,128 shares of the company’s stock, valued at approximately $21,233,715.36. This represents a 24.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Thomas Greco sold 14,245 shares of the company’s stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $154.44, for a total transaction of $2,199,997.80. Following the transaction, the director directly owned 21,302 shares in the company, valued at $3,289,880.88. The trade was a 40.07% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 164,956 shares of company stock valued at $25,297,262. 1.32% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Tapestry

Institutional investors and hedge funds have recently bought and sold shares of the stock. Acumen Wealth Advisors LLC acquired a new position in Tapestry during the fourth quarter worth approximately $28,000. Triumph Capital Management acquired a new position in Tapestry during the third quarter worth approximately $29,000. Towarzystwo Funduszy Inwestycyjnych PZU SA acquired a new position in Tapestry during the fourth quarter worth approximately $32,000. DV Equities LLC acquired a new position in Tapestry during the fourth quarter worth approximately $37,000. Finally, HM Payson & Co. increased its position in Tapestry by 125.8% during the fourth quarter. HM Payson & Co. now owns 289 shares of the luxury accessories retailer’s stock worth $37,000 after purchasing an additional 161 shares during the last quarter. Institutional investors and hedge funds 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 fiscal third-quarter expectations, posting EPS of $1.66 on revenue of $1.92 billion, and also raised full-year guidance, which points to improving business momentum. Business Wire release
• Positive Sentiment: JPMorgan raised its price target on TPR to $200 from $190 and kept an overweight rating, signaling confidence in further upside from current levels. Benzinga report
• Positive Sentiment: BTIG reaffirmed a buy rating and set a $180 target, adding to the list of analysts turning more constructive after the earnings update. Benzinga report
• Neutral Sentiment: Tapestry announced a quarterly dividend of $0.40 per share, which supports shareholder returns but is not a major near-term catalyst. Earnings transcript
• Negative Sentiment: Despite the earnings beat, shares were pressured by concerns about tariffs and weaker performance at Kate Spade, suggesting investors are focusing on margin and brand-mix risks. Zacks article

About Tapestry

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.