Tapestry (NYSE:TPR) Shares Gap Down - Here's Why

Key Points

• Shares gapped down — Tapestry opened at $135.36 after a $148.83 close and was trading down roughly 12.5% intraday, a move the market attributes largely to sell‑the‑news profit‑taking after a big pre‑earnings run.
• Operational beat and upgraded outlook — Tapestry reported Q3 adj. EPS of $1.66 (vs. roughly $1.3 expected) and $1.92B revenue, raised full‑year guidance, cited strong Coach performance and signaled margin expansion plus about $1.6B of planned shareholder returns.
• Offsetting risks include kate spade sales weakness, notable insider selling over the past 90 days, and a valuation/expectations gap (consensus price target ~ $153.89) that could pressure the stock despite generally positive analyst sentiment.

Tapestry, Inc. (NYSE:TPR - Get Free Report)'s share price gapped down prior to trading on Thursday . The stock had previously closed at $148.83, but opened at $135.36. Tapestry shares last traded at $134.5230, with a volume of 998,977 shares.

Tapestry News Roundup

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Tapestry posted a Q3 beat (adj. EPS $1.66 vs. est. ~$1.3) and raised its full‑year outlook — topline, margins and EPS guidance were lifted, supporting the firm’s earnings trajectory. Tapestry, Inc. Reports Fiscal 2026 Third Quarter Results and Raises Full Year Outlook
• Positive Sentiment: Coach brand strength drove the quarter and management signaled continued operating‑margin expansion and ~ $1.6B planned shareholder returns, which are supportive fundamentals for investors. Tapestry Lifts FY Outlook Amid Coach Boom
• Neutral Sentiment: Broader market action (strong tech-led rally and softer-than-expected jobless claims) is boosting risk appetite generally, which can amplify knee‑jerk moves in individual names like TPR. Jobless Claims Increased Less Than Expected
• Neutral Sentiment: Analyst sentiment remains generally positive with several buy/overweight ratings and a median price target around $160, leaving upside for some investors but also setting expectations. Tapestry (TPR) slides 10.2% despite earnings beat as investors appear to take profits after a big run
• Negative Sentiment: “Sell‑the‑news” profit‑taking: after a large pre‑earnings run, some investors cashed gains despite the beat — this appears to be the primary driver of today’s drop. Tapestry (TPR) slides 10.2% despite earnings beat as investors appear to take profits after a big run
• Negative Sentiment: Mixed brand performance: kate spade reported year‑over‑year sales weakness, which raises questions about breadth of the recovery across Tapestry’s portfolio. Tapestry beats Q3 earnings expectations and raises full-year guidance
• Negative Sentiment: Significant insider selling reported over the past six months could amplify downside sentiment and pressure the stock during short-term pullbacks. Tapestry (TPR) slides 10.2% despite earnings beat as investors appear to take profits after a big run

Analyst Upgrades and Downgrades

TPR has been the topic of several recent analyst reports. BNP Paribas Exane initiated coverage on Tapestry in a research report on Friday, February 13th. They set an "outperform" rating and a $176.00 price objective on the stock. BTIG Research boosted their target price on Tapestry from $175.00 to $180.00 and gave the stock a "buy" rating in a research report on Friday, April 24th. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $170.00 price target on shares of Tapestry in a report on Friday, February 6th. Wall Street Zen lowered shares of Tapestry from a "strong-buy" rating to a "buy" rating in a research note on Saturday, April 11th. Finally, Barclays set a $179.00 price objective on shares of Tapestry and gave the company an "overweight" rating in a research report on Friday, February 6th. Two analysts have 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.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $153.89.

Tapestry Trading Down 12.5%

The firm has a market capitalization of $26.36 billion, a P/E ratio of 53.79, a P/E/G ratio of 1.69 and a beta of 1.45. The company has a current ratio of 1.63, a quick ratio of 1.10 and a debt-to-equity ratio of 4.32. The stock has a 50 day simple moving average of $146.93 and a 200-day simple moving average of $132.15.

Tapestry (NYSE:TPR - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The luxury accessories retailer reported $1.66 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.26 by $0.40. The company had revenue of $1.92 billion for the quarter, compared to the consensus estimate of $1.79 billion. Tapestry had a net margin of 6.95% and a return on equity of 157.98%. The firm's revenue was up 21.2% compared to the same quarter last year. During the same quarter last year, the firm posted $1.03 earnings per share. Tapestry has set its FY 2026 guidance at 6.950-6.950 EPS. On average, equities research analysts forecast that Tapestry, Inc. will post 6.46 EPS for the current fiscal year.

Insider Buying and Selling at Tapestry

In related news, CEO Todd Kahn sold 39,815 shares of Tapestry stock in a transaction on Monday, February 9th. The stock was sold at an average price of $151.34, for a total transaction of $6,025,602.10. Following the transaction, the chief executive officer directly owned 120,578 shares in the company, valued at approximately $18,248,274.52. The trade was a 24.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Thomas Greco sold 14,245 shares of the company's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $154.44, for a total value of $2,199,997.80. Following the completion of the sale, the director 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 SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 164,956 shares of company stock worth $25,297,262. Insiders own 1.32% of the company's stock.

Institutional Trading of Tapestry

A number of hedge funds and other institutional investors have recently modified their holdings of TPR. State Street Corp increased its stake in Tapestry by 3.8% in 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 in the last quarter. Schroder Investment Management Group boosted its stake in shares of Tapestry by 92.8% in 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 period. Geode Capital Management LLC raised its stake in Tapestry by 3.6% during the 4th quarter. Geode Capital Management LLC now owns 5,912,917 shares of the luxury accessories retailer's stock valued at $753,482,000 after purchasing an additional 203,764 shares during the period. AQR Capital Management LLC grew its holdings in Tapestry by 21.4% during the 3rd quarter. AQR Capital Management LLC now owns 4,307,615 shares of the luxury accessories retailer's stock valued at $487,708,000 after buying an additional 760,646 shares in the last quarter. Finally, Morgan Stanley grew its holdings in Tapestry by 8.9% during the 4th quarter. Morgan Stanley now owns 3,327,212 shares of the luxury accessories retailer's stock valued at $425,118,000 after buying an additional 270,973 shares in the last quarter. 90.77% of the stock is owned by hedge funds and other institutional investors.

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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