Tapestry (NYSE:TPR) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Tapestry to “Hold” from “Buy,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $175.12.
• Tapestry beat quarterly expectations, reporting $1.32 in EPS and $1.88 billion in revenue, with revenue up 8.9% year over year. Coach continued to drive growth, while Kate Spade’s slower recovery and tariff pressure weighed on the outlook.
• Management forecast fiscal 2027 EPS of $7.80–$7.90 and revenue of $8.4–$8.5 billion, broadly matching earnings expectations but slightly trailing the revenue consensus; the company also raised its dividend by 15.6% and plans about $1.7 billion in shareholder returns.

Tapestry (NYSE:TPR - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Sunday.

Several other equities research analysts have also recently issued reports on the stock. Sanford C. Bernstein restated a "market perform" rating and set a $185.00 price objective (up from $180.00) on shares of Tapestry in a research report on Friday. Wells Fargo & Company cut their price target on shares of Tapestry from $165.00 to $160.00 and set an "overweight" rating for the company in a report on Thursday. Robert W. Baird lifted their price target on shares of Tapestry from $160.00 to $165.00 and gave the company an "outperform" rating in a research report on Wednesday, April 29th. Citigroup lifted their price target on shares of Tapestry from $165.00 to $170.00 and gave the company a "buy" rating in a research report on Wednesday, April 29th. Finally, Morgan Stanley lowered their price objective on Tapestry from $164.00 to $159.00 and set an "overweight" rating for the company in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $175.12.

Tapestry Stock Performance

NYSE TPR opened at $129.11 on Friday. The company has a debt-to-equity ratio of 3.44, a quick ratio of 1.27 and a current ratio of 1.75. The stock's fifty day moving average is $146.48 and its two-hundred day moving average is $144.63. The firm has a market capitalization of $26.08 billion, a P/E ratio of 17.71, a price-to-earnings-growth ratio of 1.16 and a beta of 1.43. Tapestry has a fifty-two week low of $93.00 and a fifty-two week high of $164.80.

Tapestry (NYSE:TPR - Get Free Report) last issued its earnings results on Thursday, August 13th. The luxury accessories retailer reported $1.32 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.28 by $0.04. Tapestry had a return on equity of 254.95% and a net margin of 19.09%.The business had revenue of $1.88 billion during the quarter, compared to the consensus estimate of $1.87 billion. During the same period last year, the company earned $1.04 EPS. The company's revenue for the quarter was up 8.9% on a year-over-year basis. Tapestry has set its FY 2027 guidance at 7.800-7.900 EPS. On average, research analysts anticipate that Tapestry will post 7.88 earnings per share for the current year.

Insiders Place Their Bets

In other Tapestry news, CEO Todd Kahn sold 19,557 shares of the business's stock in a transaction dated 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 in the company, 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 the SEC website. 1.32% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Cetera Trust Company N.A acquired a new stake in Tapestry during the 2nd quarter worth approximately $26,000. Acumen Wealth Advisors LLC purchased a new stake in shares of Tapestry during the fourth quarter worth $28,000. Triumph Capital Management purchased a new stake in shares of Tapestry during the third quarter worth $29,000. Keating Financial Advisory Services Inc. acquired a new stake in shares of Tapestry in the second quarter valued at $31,000. Finally, Virtus Advisers LLC acquired a new stake in shares of Tapestry in the second quarter valued at $32,000. Hedge funds and other institutional investors own 90.77% of the company's stock.

Tapestry News Roundup

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Tapestry reported fiscal fourth-quarter EPS of $1.32, above the $1.28 consensus estimate, while revenue of $1.88 billion also topped expectations. Revenue increased 8.9% year over year, and earnings rose from $1.04 per share in the prior-year quarter. Tapestry fiscal 2026 fourth-quarter and full-year results
• Positive Sentiment: Coach continued to drive growth, supported by younger shoppers, higher average unit retail prices, unit expansion and international growth. Management said the brand’s momentum could remain durable through fiscal 2027, although growth may become more measured in the second half. Coach growth durability
• Positive Sentiment: The company raised its quarterly dividend 15.6% to $0.4625 per share, payable September 21 to shareholders of record September 4. Tapestry also plans approximately $1.7 billion in shareholder returns, supporting the stock’s income and capital-return appeal. Fiscal 2027 outlook and shareholder returns
• Neutral Sentiment: Fiscal 2027 EPS guidance of $7.80 to $7.90 is broadly in line with the roughly $7.82 analyst consensus, suggesting continued profit growth but limited upside relative to expectations. Tapestry earnings estimate beat
• Negative Sentiment: Management projected fiscal 2027 revenue of $8.4 billion to $8.5 billion, slightly below the $8.5 billion consensus. Investors viewed the outlook as disappointing after the quarterly beat, particularly because Kate Spade’s recovery is taking longer and tariff pressure remains a risk. 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.

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