Tapestry (NYSE:TPR) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Tapestry reported a quarterly EPS of $1.04, exceeding analysts' expectations by $0.02, with total revenue reaching $1.72 billion, compared to estimates of $1.67 billion.
• The company declared a quarterly dividend of $0.40, up from $0.35, resulting in an annualized yield of 1.6%.
• Hedge funds have increased their positions in Tapestry, with institutional investors now owning 90.77% of the company's stock.

Tapestry (NYSE:TPR - Get Free Report) posted its quarterly earnings data on Thursday. The luxury accessories retailer reported $1.04 EPS for the quarter, beating analysts' consensus estimates of $1.02 by $0.02, Zacks reports. Tapestry had a net margin of 12.50% and a return on equity of 51.84%. The company had revenue of $1.72 billion during the quarter, compared to the consensus estimate of $1.67 billion. During the same quarter in the prior year, the company posted $0.92 EPS. The company's quarterly revenue was up 8.3% compared to the same quarter last year. Tapestry updated its FY 2026 guidance to 5.300-5.450 EPS.

Tapestry Price Performance

Shares of Tapestry stock traded up $5.21 during trading hours on Friday, reaching $100.90. The company's stock had a trading volume of 6,808,345 shares, compared to its average volume of 4,972,418. The firm has a 50 day moving average price of $96.44 and a 200-day moving average price of $82.49. Tapestry has a one year low of $39.10 and a one year high of $114.05. The company has a debt-to-equity ratio of 1.59, a current ratio of 1.76 and a quick ratio of 1.22. The stock has a market cap of $20.96 billion, a P/E ratio of 26.55, a P/E/G ratio of 2.28 and a beta of 1.51.

Tapestry Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 22nd. Shareholders of record on Friday, September 5th will be issued a $0.40 dividend. The ex-dividend date is Friday, September 5th. This represents a $1.60 dividend on an annualized basis and a yield of 1.6%. This is an increase from Tapestry's previous quarterly dividend of $0.35. Tapestry's payout ratio is presently 36.84%.

Institutional Investors Weigh In On Tapestry

Hedge funds have recently modified their holdings of the business. Voya Financial Advisors Inc. acquired a new position in Tapestry during the second quarter worth about $203,000. Tenzing Global Management LLC grew its holdings in Tapestry by 6.7% during the 2nd quarter. Tenzing Global Management LLC now owns 80,000 shares of the luxury accessories retailer's stock worth $7,025,000 after acquiring an additional 5,000 shares in the last quarter. Rafferty Asset Management LLC boosted its holdings in shares of Tapestry by 22.1% in the 2nd quarter. Rafferty Asset Management LLC now owns 18,329 shares of the luxury accessories retailer's stock valued at $1,609,000 after buying an additional 3,313 shares in the last quarter. Scopus Asset Management L.P. boosted its holdings in shares of Tapestry by 45.0% in the 2nd quarter. Scopus Asset Management L.P. now owns 1,238,040 shares of the luxury accessories retailer's stock valued at $108,712,000 after buying an additional 384,040 shares in the last quarter. Finally, Man Group plc boosted its stake in Tapestry by 41.2% during the 2nd quarter. Man Group plc now owns 87,719 shares of the luxury accessories retailer's stock worth $7,703,000 after purchasing an additional 25,607 shares during the period. Hedge funds and other institutional investors own 90.77% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the company. Argus raised their price objective on Tapestry from $78.00 to $92.00 and gave the stock a "buy" rating in a research note on Tuesday, June 17th. JPMorgan Chase & Co. raised their price objective on Tapestry from $104.00 to $145.00 and gave the stock an "overweight" rating in a research report on Monday, July 28th. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $112.00 price target on shares of Tapestry in a research note on Friday. Evercore ISI cut their price objective on Tapestry from $130.00 to $125.00 and set an "outperform" rating on the stock in a research note on Friday. Finally, Wall Street Zen lowered Tapestry from a "strong-buy" rating to a "buy" rating in a report on Friday, July 18th. Four analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the stock. Based on data from MarketBeat.com, Tapestry has an average rating of "Moderate Buy" and an average price target of $105.47.

Tapestry Company Profile

Tapestry, Inc provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women's handbags; and women's accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms.

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