Tapestry (NYSE:TPR) Announces Quarterly Earnings Results

Key Points

• Tapestry reported quarterly EPS of $1.82, beating the $1.56 consensus, while revenue rose 11.1% year over year to $1.89 billion and exceeded estimates. It raised its fiscal 2027 outlook to $8.5–$8.6 billion in revenue and $8.25–$8.35 in EPS.
• Coach led growth, with constant-currency revenue up 16%, including gains in Greater China and North America. Kate Spade revenue fell 10%, and Tapestry expects a high-single-digit decline for the brand in fiscal 2027.
• Tapestry plans to return about $2 billion to shareholders in fiscal 2027, including $1.7 billion in share repurchases; it also declared a quarterly dividend of $0.4625 per share.

Tapestry (NYSE:TPR - Get Free Report) posted its quarterly earnings data on Thursday. The luxury accessories retailer reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.56 by $0.26, FiscalAI reports. Tapestry had a return on equity of 254.95% and a net margin of 19.09%. The business had revenue of $1.89 billion for the quarter, compared to analysts' expectations of $1.85 billion. During the same period in the previous year, the firm posted $1.38 EPS. The business's revenue was up 11.1% on a year-over-year basis.

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

• Tapestry reported a strong first quarter, with pro forma revenue up 12% to $1.9 billion, operating margin expanding 230 basis points to more than 23%, and EPS rising 32% to $1.82. The company raised its fiscal 2027 outlook to $8.5–$8.6 billion in revenue and $8.25–$8.35 in EPS.
• Coach continued to drive growth, with constant-currency revenue up 16% and gains across regions, including 41% in Greater China and 7% in North America. Management cited customer acquisition, strength in core handbags, and disciplined pricing as key drivers, while highlighting further opportunity in footwear and international markets.
• Kate Spade revenue declined 10%, and Tapestry expects a high-single-digit decline for the brand in fiscal 2027, with a modest operating loss. Gross margin expanded 190 basis points, but management said the turnaround will depend on sharper product and marketing execution and renewed customer acquisition.
• Tapestry expects to return approximately $2 billion to shareholders in fiscal 2027, including $1.7 billion in share repurchases and an annual dividend of $1.85 per share. Management said strong cash flow supports these returns while allowing continued investment in the brands and business.

Tapestry Stock Down 0.9%

Tapestry stock traded down $1.14 during mid-day trading on Friday, reaching $133.03. The stock had a trading volume of 3,332,569 shares, compared to its average volume of 2,427,080. The company has a market capitalization of $26.52 billion, a price-to-earnings ratio of 17.12, a PEG ratio of 1.53 and a beta of 1.44. The company has a 50-day moving average price of $117.41 and a two-hundred day moving average price of $136.95. Tapestry has a one year low of $99.00 and a one year high of $164.80. The company has a debt-to-equity ratio of 3.44, a current ratio of 1.75 and a quick ratio of 1.25.

Tapestry Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, December 21st. Stockholders of record on Friday, December 4th will be given a $0.4625 dividend. This represents a $1.85 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Friday, December 4th. Tapestry's payout ratio is currently 25.38%.

Insider Transactions at Tapestry

In other Tapestry news, CEO Joanne Crevoiserat sold 27,761 shares of Tapestry stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $132.47, for a total value of $3,677,499.67. Following the completion of the transaction, the chief executive officer directly owned 666,149 shares of the company's stock, valued at approximately $88,244,758.03. The trade was a 4.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Denise Kulikowsky sold 5,810 shares of the company's stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $115.38, for a total transaction of $670,357.80. Following the completion of the transaction, the insider owned 21,136 shares in the company, valued at approximately $2,438,671.68. This represents a 21.56% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.28% of the stock is currently owned by company insiders.

More Tapestry News

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Tapestry reported adjusted EPS of $1.82, above the $1.56 consensus, and revenue of $1.89 billion, topping the $1.85 billion estimate and rising 11.1% year over year. Strong Coach demand, international growth, and improved margins helped drive the beat. Article: TPR Q1 Earnings Beat Estimate on Coach Gains, FY27 Outlook Raised
• Positive Sentiment: The company raised its fiscal 2027 outlook after a stronger-than-expected start to the year. Reports also highlighted Coach’s appeal among younger shoppers and management’s view that U.S. consumers remain resilient heading into the holiday season. Article: Tapestry lifts annual forecasts as young shoppers snap up Coach bags
• Positive Sentiment: Barclays raised its price target to $195 from $185 and maintained an Overweight rating; Wells Fargo raised its target to $155 from $150, also keeping an Overweight rating. These moves signal continued analyst confidence following the results. Barclays rating information Wells Fargo rating information
• Neutral Sentiment: Tapestry declared a quarterly dividend of $0.4625 per share, payable December 21 to shareholders of record December 4. The annualized dividend is $1.85 per share, a yield of about 1.4%. Article: Tapestry reports fiscal 2027 first-quarter results and raises outlook

Analyst Ratings Changes

Several research firms recently weighed in on TPR. TD Cowen initiated coverage on Tapestry in a research report on Friday, October 30th. They set a "strong-buy" rating on the stock. JPMorgan Chase & Co. raised their price objective on Tapestry from $205.00 to $211.00 and gave the company an "overweight" rating in a research report on Tuesday, August 4th. Telsey Advisory Group boosted their target price on shares of Tapestry from $160.00 to $175.00 and gave the company an "outperform" rating in a report on Thursday, August 6th. BNP Paribas Exane upped their target price on shares of Tapestry from $185.00 to $187.00 and gave the stock an "outperform" rating in a research report on Friday, August 14th. Finally, Evercore decreased their price target on shares of Tapestry from $175.00 to $160.00 and set an "outperform" rating for the company in a research note on Friday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, Tapestry currently has an average rating of "Moderate Buy" and an average price target of $167.72.

Tapestry Company Profile

Tapestry, Inc is a global house of modern luxury accessories and lifestyle brands. The company's portfolio includes Coach, known for handbags, leather goods, footwear, apparel and accessories; Kate Spade New York, which offers handbags, accessories, apparel, footwear, home products and related lifestyle merchandise; and Stuart Weitzman, a designer and manufacturer of women's footwear.

Tapestry sells its products through company-operated stores, outlet locations, e-commerce websites, wholesale partners and select distributors.

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