Tapestry (NYSE:TPR) Issues Earnings Results

Tapestry (NYSE:TPR) released its quarterly earnings data on Thursday. The luxury accessories retailer reported $1.32 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.28 by $0.04, FiscalAI reports. The firm had revenue of $1.88 billion for the quarter, compared to analysts’ expectations of $1.87 billion. Tapestry had a net margin of 8.44% and a return on equity of 229.70%. The company’s revenue for the quarter was up 8.9% compared to the same quarter last year. During the same quarter in the previous 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 Stock Up 0.3%

Shares of NYSE:TPR traded up $0.33 during trading on Friday, hitting $128.72. The stock had a trading volume of 2,338,434 shares, compared to its average volume of 2,401,818. The company has a market capitalization of $26.01 billion, a PE ratio of 41.29, a PEG ratio of 1.39 and a beta of 1.43. The company has a quick ratio of 1.27, a current ratio of 1.84 and a debt-to-equity ratio of 3.48. The firm’s fifty day moving average is $146.70 and its 200 day moving average is $144.74. Tapestry has a 12 month low of $93.00 and a 12 month high of $164.80.

Tapestry Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 21st. Stockholders of record on Friday, September 4th will be given a $0.4625 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $1.85 annualized dividend and a dividend yield of 1.4%. This is an increase from Tapestry’s previous quarterly dividend of $0.40. Tapestry’s dividend payout ratio is currently 51.28%.

Analyst Ratings Changes

Several research firms recently issued reports on TPR. Robert W. Baird raised their target price on Tapestry from $160.00 to $165.00 and gave the stock an “outperform” rating in a research note on Wednesday, April 29th. UBS Group reaffirmed a “buy” rating and set a $232.00 price target on shares of Tapestry in a research report on Friday. BTIG Research dropped their price objective on Tapestry from $180.00 to $175.00 and set a “buy” rating for the company in a report on Friday. Morgan Stanley set a $159.00 price objective on Tapestry in a research report on Friday. Finally, Citigroup boosted their target price on Tapestry from $165.00 to $170.00 and gave the company a “buy” rating in a research note on Wednesday, April 29th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $175.12.

Insider Buying and Selling at Tapestry

In related news, CEO Todd Kahn sold 19,557 shares of the company’s stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $140.02, for a total value of $2,738,371.14. Following the sale, the chief executive officer directly owned 123,258 shares of the company’s stock, valued at $17,258,585.16. This represents a 13.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.32% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

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

Trending Headlines about Tapestry

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Fiscal fourth-quarter EPS was $1.32, above the $1.28 consensus estimate, while revenue increased 8.9% year over year to $1.88 billion, slightly exceeding expectations. Coach led the performance, supported by customer growth, higher average unit retail and international expansion. Tapestry Fiscal 2026 Results
• Positive Sentiment: Management expects Coach growth to remain durable in fiscal 2027 through pricing, unit expansion and international gains, although growth is expected to moderate in the second half. Coach Growth Durability
• Positive Sentiment: Tapestry raised its quarterly dividend to $0.4625 per share from $0.40, a 15.6% increase, and is targeting approximately $1.7 billion in shareholder returns, supporting the capital-return story.
• Neutral Sentiment: Fiscal 2027 EPS guidance of $7.80-$7.90 is broadly in line with the roughly $7.82 analyst consensus. The company expects revenue of $8.4-$8.5 billion, with the high end matching consensus but the midpoint implying more limited growth.
• Negative Sentiment: The stock sold off because the overall revenue outlook was viewed as soft and Kate Spade’s recovery is taking longer than expected. Tariff pressure and a more measured second-half cadence also temper the otherwise strong Coach-led results. Tapestry Forecasts Weak Annual Sales

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.