Tapestry (NYSE:TPR) Announces Quarterly Earnings Results

Tapestry (NYSE:TPR) posted its earnings results on Thursday. The luxury accessories retailer reported $1.32 EPS for the quarter, beating the consensus estimate of $1.28 by $0.04, FiscalAI reports. The firm had revenue of $1.88 billion during the quarter, compared to the consensus estimate of $1.87 billion. Tapestry had a return on equity of 229.70% and a net margin of 8.44%.The business’s quarterly revenue was up 8.9% on a year-over-year basis. During the same period last year, the company earned $1.04 earnings per share. Tapestry updated its FY 2027 guidance to 7.800-7.900 EPS.

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

• Positive Sentiment: Tapestry reported a strong fiscal 2026, with revenue up 17% on a pro forma constant-currency basis to $8 billion, operating margin expanding 340 basis points to over 23%, and EPS rising 38% to $7.05—achieving its Investor Day targets two years ahead of schedule.
• Positive Sentiment: Coach remained the primary growth engine, with fourth-quarter revenue up 14% in constant currency and strength across North America, Greater China, and Europe. Management highlighted continued customer acquisition, higher handbag AURs, footwear momentum, and a long-term path toward a $10 billion brand.
• Negative Sentiment: Kate Spade’s top-line recovery remained slower than planned; although customer acquisition and handbag initiatives showed progress, fiscal 2027 guidance calls for a high-single-digit revenue decline and a modest operating loss as the company continues investing in brand desirability.
• Positive Sentiment: Management guided fiscal 2027 revenue to $8.4–$8.5 billion, operating margin near 24%, and EPS of $7.80–$7.90, representing mid-single-digit sales growth and low-double-digit EPS growth. Tapestry also plans to return approximately $1.7 billion to shareholders, including a 16% dividend increase and about $1.35 billion in share repurchases.
• Neutral Sentiment: Tariffs and macro uncertainty remain key risks, with the company assuming a mid-20% tariff rate on U.S. imports; mitigation actions are expected to make the fiscal-year P&L impact roughly neutral, though quarterly profitability may be uneven. Capital spending will rise to about $300 million, primarily for Coach store openings, renovations, and technology investments.

Tapestry Trading Down 16.4%

TPR traded down $25.18 on Thursday, hitting $128.56. The company had a trading volume of 8,498,848 shares, compared to its average volume of 2,403,408. The business’s fifty day simple moving average is $146.94 and its 200 day simple moving average is $144.75. The company has a quick ratio of 1.27, a current ratio of 1.84 and a debt-to-equity ratio of 3.48. Tapestry has a 12-month low of $92.62 and a 12-month high of $164.80. The company has a market cap of $25.97 billion, a PE ratio of 41.21, a PEG ratio of 1.46 and a beta of 1.43.

Key Stories Impacting Tapestry

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Tapestry reported fiscal fourth-quarter adjusted EPS of $1.32, exceeding the $1.26-$1.28 analyst range, while revenue reached $1.88 billion versus approximately $1.87 billion expected. Earnings increased from $1.04 a year earlier, and revenue grew 8.9% year over year. Tapestry Fiscal 2026 Results
• Positive Sentiment: Coach remained the primary growth engine, helping drive margin expansion and stronger cash generation despite tariff pressures. The company also announced a 16% dividend increase and plans to return approximately $1.7 billion to shareholders through dividends and share repurchases. Tapestry Q4 Earnings and Dividend Raise
• Neutral Sentiment: Management forecast fiscal 2027 EPS of $7.80-$7.90, broadly consistent with the $7.82 consensus estimate. The company expects revenue of $8.4-$8.5 billion, with the upper end roughly matching analyst expectations. Tapestry Fiscal 2027 Forecast
• Negative Sentiment: The outlook was viewed as soft because it implies limited sales growth, particularly as Kate Spade’s recovery is taking longer than expected. Investors appear concerned that Coach’s momentum may not fully offset weakness at the company’s other major brand. Reuters Tapestry Outlook Report
• Negative Sentiment: The earnings beat and shareholder-return plans failed to overcome concerns about the fiscal 2027 revenue outlook, resulting in heavy selling as the market reassessed Tapestry’s growth trajectory and valuation. Why Tapestry Shares Were Falling

Insider Activity at Tapestry

In other Tapestry news, CEO Todd Kahn sold 19,557 shares of the business’s stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $140.02, for a total transaction of $2,738,371.14. Following the transaction, the chief executive officer owned 123,258 shares in the company, valued at $17,258,585.16. The trade was a 13.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 1.32% of the company’s stock.

Institutional Trading of Tapestry

Several institutional investors and hedge funds have recently made changes to their positions in TPR. Smartleaf Asset Management LLC grew its position in Tapestry by 2.0% during the 4th quarter. Smartleaf Asset Management LLC now owns 3,682 shares of the luxury accessories retailer’s stock worth $477,000 after acquiring an additional 73 shares during the last quarter. Rafferty Asset Management LLC lifted its position in Tapestry by 0.5% during the 4th quarter. Rafferty Asset Management LLC now owns 21,240 shares of the luxury accessories retailer’s stock worth $2,714,000 after buying an additional 108 shares in the last quarter. UMB Bank n.a. grew its holdings in Tapestry by 4.9% during the 4th quarter. UMB Bank n.a. now owns 2,665 shares of the luxury accessories retailer’s stock worth $341,000 after acquiring an additional 125 shares during the last quarter. 44 Wealth Management LLC increased its position in Tapestry by 0.8% in the 2nd quarter. 44 Wealth Management LLC now owns 19,018 shares of the luxury accessories retailer’s stock valued at $1,670,000 after acquiring an additional 142 shares in the last quarter. Finally, Coldstream Capital Management Inc. raised its stake in shares of Tapestry by 1.9% in the third quarter. Coldstream Capital Management Inc. now owns 7,652 shares of the luxury accessories retailer’s stock worth $866,000 after acquiring an additional 146 shares during the last quarter. 90.77% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the stock. Evercore set a $175.00 target price on shares of Tapestry in a report on Friday, May 8th. Raymond James Financial reissued an “outperform” rating and set a $165.00 price target on shares of Tapestry in a research report on Thursday, April 23rd. Morgan Stanley reaffirmed an “overweight” rating and issued a $164.00 price objective on shares of Tapestry in a research report on Monday, July 6th. Robert W. Baird boosted their price target on Tapestry from $160.00 to $165.00 and gave the stock an “outperform” rating in a research note on Wednesday, April 29th. Finally, Weiss Ratings cut shares of Tapestry from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday, May 20th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, Tapestry has a consensus rating of “Moderate Buy” and an average price target of $175.44.

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.