Tapestry (NYSE:TPR) Posts Earnings Results, Beats Estimates By $0.35 EPS

Tapestry (NYSE:TPR) posted its quarterly earnings results on Thursday. The luxury accessories retailer reported $1.66 earnings per share 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 business had revenue of $1.92 billion for the quarter, compared to analysts’ expectations of $1.79 billion. During the same period in the prior year, the company posted $1.03 EPS. The business’s revenue for the quarter 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%

NYSE:TPR traded up $2.91 on Friday, reaching $133.43. The stock had a trading volume of 4,316,187 shares, compared to its average volume of 1,973,301. The company has a market cap of $27.01 billion, a price-to-earnings ratio of 42.77, a P/E/G ratio of 1.49 and a beta of 1.45. The company has a debt-to-equity ratio of 3.48, a current ratio of 1.84 and a quick ratio of 1.10. The firm’s fifty day moving average is $146.44 and its two-hundred day moving average is $132.25. Tapestry has a 12-month low of $76.29 and a 12-month high of $161.97.

Tapestry Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 22nd. Shareholders of record on Friday, June 5th will be issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Friday, June 5th. Tapestry’s dividend payout ratio is 66.12%.

Analysts Set New Price Targets

Several research firms recently commented on TPR. UBS Group upgraded shares of Tapestry from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $142.00 to $187.00 in a research report on Friday. The Goldman Sachs Group set a $166.00 price objective on shares of Tapestry in a research report on Friday, February 6th. Wells Fargo & Company boosted their price objective on shares of Tapestry from $142.00 to $165.00 and gave the stock an “overweight” rating in a research report on Friday, February 6th. Jefferies Financial Group lowered shares of Tapestry from a “buy” rating to a “hold” rating and decreased their price objective for the stock from $142.00 to $138.00 in a research report on Wednesday, January 14th. Finally, Wall Street Zen upgraded shares of Tapestry from a “buy” rating to a “strong-buy” rating in a research report on Saturday. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, Tapestry currently has an average rating of “Moderate Buy” and an average target price of $160.67.

Insider Buying and Selling

In other news, CFO Scott A. Roe sold 44,290 shares of the stock in a transaction dated 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 directly owned 139,128 shares in the company, valued at $21,233,715.36. This represents a 24.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Thomas Greco sold 14,245 shares of the stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $154.44, for a total transaction of $2,199,997.80. Following the transaction, the director owned 21,302 shares in the company, valued at approximately $3,289,880.88. The trade was a 40.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 164,956 shares of company stock worth $25,297,262 in the last 90 days. 1.32% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Sivia Capital Partners LLC acquired a new stake in Tapestry during the 2nd quarter worth approximately $602,000. Wealth Watch Advisors INC grew its holdings in Tapestry by 76.4% in the 4th quarter. Wealth Watch Advisors INC now owns 838 shares of the luxury accessories retailer’s stock valued at $107,000 after buying an additional 363 shares in the last quarter. Atlas Capital Advisors Inc. bought a new position in Tapestry during the 4th quarter worth $69,000. Wilkerson Advisory Group LLC bought a new position in Tapestry during the 4th quarter worth $81,000. Finally, Wexford Capital LP acquired a new stake in shares of Tapestry during the third quarter worth $123,000. Hedge funds and other 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 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

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.