Tapestry (NYSE:TPR) Announces Earnings Results

Key Points

• Tapestry beat quarterly expectations: Adjusted EPS was $1.32 versus the $1.28 consensus, while revenue reached $1.88 billion, up 8.9% year over year.
• Fiscal 2027 outlook remains solid but modest: The company guided to $8.4–$8.5 billion in revenue and EPS of $7.80–$7.90, alongside plans to return approximately $1.7 billion to shareholders through a 16% dividend increase and share repurchases.
• Investors focused on slower growth at Kate Spade: Coach continued to drive performance, but concerns over Kate Spade’s recovery and the relatively limited sales-growth outlook contributed to a sharp decline in Tapestry shares.

Tapestry (NYSE:TPR - Get Free Report) issued its earnings results on Thursday. The luxury accessories retailer reported $1.32 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.04, FiscalAI reports. The business had revenue of $1.88 billion for the quarter, compared to the consensus estimate of $1.87 billion. Tapestry had a net margin of 8.44% and a return on equity of 229.70%. The business's quarterly revenue was up 8.9% compared to the same quarter last year. During the same quarter in the previous year, the firm 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 Performance

Shares of TPR stock traded down $23.29 on Thursday, hitting $130.45. 6,322,119 shares of the stock traded hands, compared to its average volume of 2,387,896. The company's fifty day moving average is $146.94 and its 200 day moving average is $144.75. Tapestry has a 1-year low of $92.62 and a 1-year high of $164.80. The company has a market capitalization of $26.36 billion, a PE ratio of 41.71, a PEG ratio of 1.46 and a beta of 1.43. The company has a debt-to-equity ratio of 3.48, a current ratio of 1.84 and a quick ratio of 1.27.

Insiders Place Their Bets

In other Tapestry news, CEO Todd Kahn sold 19,557 shares of the 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 sale, the chief executive officer directly owned 123,258 shares of the company's stock, valued at approximately $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 the SEC website. 1.32% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Tapestry

Several institutional investors and hedge funds have recently bought and sold shares of TPR. State Street Corp grew its stake in Tapestry by 3.8% during the 4th quarter. State Street Corp now owns 9,578,111 shares of the luxury accessories retailer's stock worth $1,223,795,000 after buying an additional 348,334 shares during the last quarter. Schroder Investment Management Group grew its position in shares of Tapestry by 92.8% during the fourth quarter. Schroder Investment Management Group now owns 9,350,221 shares of the luxury accessories retailer's stock worth $1,194,678,000 after acquiring an additional 4,500,850 shares during the last quarter. AQR Capital Management LLC increased its holdings in shares of Tapestry by 21.4% in the 3rd quarter. AQR Capital Management LLC now owns 4,307,615 shares of the luxury accessories retailer's stock worth $487,708,000 after acquiring an additional 760,646 shares during the period. Morgan Stanley lifted its position in Tapestry by 8.9% in the 4th quarter. Morgan Stanley now owns 3,327,212 shares of the luxury accessories retailer's stock valued at $425,118,000 after purchasing an additional 270,973 shares during the last quarter. Finally, Northern Trust Corp grew its position in Tapestry by 7.6% in the 3rd quarter. Northern Trust Corp now owns 2,870,821 shares of the luxury accessories retailer's stock worth $325,034,000 after purchasing an additional 203,520 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 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

Analyst Ratings Changes

A number of brokerages have recently issued reports on TPR. Barclays increased their target price on Tapestry from $179.00 to $182.00 and gave the stock an "overweight" rating in a research note on Thursday, July 16th. Morgan Stanley reaffirmed an "overweight" rating and set a $164.00 price objective on shares of Tapestry in a report on Monday, July 6th. Zacks Research cut Tapestry from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, July 22nd. Citigroup raised their target price on Tapestry from $165.00 to $170.00 and gave the company a "buy" rating in a report on Wednesday, April 29th. Finally, Wall Street Zen lowered shares of Tapestry from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 8th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, Tapestry currently has an average rating of "Moderate Buy" and a consensus target price of $175.44.

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.

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