Tapestry (NYSE:TPR) Releases Quarterly Earnings Results, Beats Expectations By $0.35 EPS

Key Points

• Tapestry beat quarterly expectations, reporting EPS of $1.66 versus the $1.31 consensus and revenue of $1.92 billion versus $1.79 billion expected. Revenue jumped 21.2% from a year ago.
• The company raised its fiscal 2026 outlook to about $7.95 billion in revenue, roughly $6.95 in EPS, and an operating margin near 23%. Management also said it plans to return about $1.6 billion to shareholders next year, mostly through buybacks.
• Coach remained the main growth driver, posting about 29% constant-currency revenue growth and attracting roughly 2 million new customers, while Kate Spade continued to lag with an 11% revenue decline. Tariffs and duties remain a headwind even as margins improved.

Tapestry (NYSE:TPR - Get Free Report) issued its quarterly earnings data on Thursday. The luxury accessories retailer reported $1.66 earnings per share for the quarter, topping the consensus estimate of $1.31 by $0.35, FiscalAI reports. The business had revenue of $1.92 billion during the quarter, compared to the consensus estimate of $1.79 billion. Tapestry had a net margin of 8.44% and a return on equity of 229.70%. The company's revenue was up 21.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.03 EPS. 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 Stock Performance

TPR traded up $2.91 during trading on Friday, hitting $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 debt-to-equity ratio of 3.48, a quick ratio of 1.10 and a current ratio of 1.84. The firm has a market capitalization of $27.01 billion, a P/E ratio of 42.77, a PEG ratio of 1.49 and a beta of 1.45. The company's 50-day moving average price is $146.44 and its 200 day moving average price is $132.25. Tapestry has a twelve month low of $76.29 and a twelve month high of $161.97.

Tapestry Dividend Announcement

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

Insider Buying and Selling

In other Tapestry news, Director Thomas Greco sold 14,245 shares of the business's stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $154.44, for a total value of $2,199,997.80. Following the transaction, the director directly owned 21,302 shares of the company's stock, valued at approximately $3,289,880.88. The trade was a 40.07% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Scott A. Roe sold 44,290 shares of the business's stock in a transaction on 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 completion of 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 ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 164,956 shares of company stock worth $25,297,262 in the last ninety days. Insiders own 1.32% of the company's stock.

Hedge Funds Weigh In On Tapestry

A number of institutional investors and hedge funds have recently made changes to their positions in TPR. Schroder Investment Management Group grew its stake in shares of Tapestry by 92.8% during the 4th quarter. Schroder Investment Management Group now owns 9,350,221 shares of the luxury accessories retailer's stock worth $1,194,678,000 after purchasing an additional 4,500,850 shares during the period. Wellington Management Group LLP grew its stake in shares of Tapestry by 632.3% during the 4th quarter. Wellington Management Group LLP now owns 2,366,502 shares of the luxury accessories retailer's stock worth $302,368,000 after purchasing an additional 2,043,353 shares during the period. State Street Corp grew its stake in shares of Tapestry by 19.3% during the 3rd quarter. State Street Corp now owns 9,229,777 shares of the luxury accessories retailer's stock worth $1,044,995,000 after purchasing an additional 1,494,193 shares during the period. Voloridge Investment Management LLC grew its stake in shares of Tapestry by 160.5% during the 3rd quarter. Voloridge Investment Management LLC now owns 1,886,518 shares of the luxury accessories retailer's stock worth $213,592,000 after purchasing an additional 1,162,442 shares during the period. Finally, Two Sigma Investments LP grew its stake in shares of Tapestry by 426.8% during the 3rd quarter. Two Sigma Investments LP now owns 1,122,520 shares of the luxury accessories retailer's stock worth $127,092,000 after purchasing an additional 909,433 shares during the period. 90.77% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on TPR shares. The Goldman Sachs Group set a $166.00 price objective on shares of Tapestry in a research report on Friday, February 6th. BNP Paribas Exane started coverage on shares of Tapestry in a research report on Friday, February 13th. They set an "outperform" rating and a $176.00 price objective for the company. TD Cowen restated a "buy" rating on shares of Tapestry in a research report on Tuesday, February 10th. Raymond James Financial restated an "outperform" rating and set a $165.00 price objective on shares of Tapestry in a research report on Thursday, April 23rd. Finally, Jefferies Financial Group downgraded shares of Tapestry from a "buy" rating to a "hold" rating and reduced their price objective for the stock from $142.00 to $138.00 in a research report on Wednesday, January 14th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $160.67.

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.

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