Tapestry (NYSE:TPR) Shares Gap Down - Time to Sell?

Key Points

• Tapestry shares plunged 15.1%, opening at $132.70 after closing at $153.74, despite the company beating fiscal fourth-quarter earnings and revenue estimates.
• Coach remained the main growth driver, with quarterly revenue up 8.9% year over year and adjusted EPS of $1.32; management also forecast fiscal 2027 EPS of $7.80–$7.90 and plans roughly $1.7 billion in shareholder returns.
• Investors reacted negatively to the outlook because Kate Spade’s recovery is lagging and projected fiscal 2027 revenue of $8.4–$8.5 billion is slightly below expectations. Analysts still maintain a “Moderate Buy” consensus with an average price target of $175.44.

Tapestry, Inc. (NYSE:TPR - Get Free Report)'s stock price gapped down prior to trading on Thursday . The stock had previously closed at $153.74, but opened at $132.70. Tapestry shares last traded at $129.8250, with a volume of 2,090,104 shares.

Trending Headlines about Tapestry

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Tapestry reported fiscal fourth-quarter adjusted earnings of $1.32 per share on revenue of $1.88 billion, exceeding analyst estimates of $1.28 and $1.87 billion, respectively. Revenue increased 8.9% year over year, while earnings rose from $1.04 per share. Tapestry: Fiscal Q4 Earnings Snapshot
• Positive Sentiment: Coach remained the primary growth engine, supported by strong consumer demand, helping drive margin expansion and stronger cash generation despite tariff pressures. Tapestry Q4 Earnings Beat on Coach Growth and Margin Expansion
• Positive Sentiment: Management guided to fiscal 2027 earnings per share of $7.80–$7.90, broadly in line with consensus, and plans approximately $1.7 billion in shareholder returns, including a reported 16% dividend increase. Tapestry Forecasts Fiscal 2027 EPS and Shareholder Returns
• Neutral Sentiment: The company expects fiscal 2027 revenue of approximately $8.4 billion–$8.5 billion, with the midpoint slightly below analysts’ expectations. The earnings forecast implies continued profitability but limited near-term sales acceleration.
• Negative Sentiment: Kate Spade’s recovery is taking longer than expected, raising concerns about brand momentum and the company’s ability to diversify growth beyond Coach. Analysts and investors treated the outlook as weak, triggering a broad selloff despite the quarterly beat. Tapestry Forecasts Annual Profit as Kate Spade Struggles

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on TPR. Robert W. Baird increased their price target on Tapestry from $160.00 to $165.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 29th. Evercore set a $175.00 price objective on shares of Tapestry in a research report on Friday, May 8th. Zacks Research downgraded Tapestry from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, July 22nd. Telsey Advisory Group raised their price objective on shares of Tapestry from $160.00 to $175.00 and gave the stock an "outperform" rating in a research note on Thursday, August 6th. Finally, Sanford C. Bernstein reissued an "outperform" rating and set a $180.00 target price on shares of Tapestry in a research note on Tuesday, June 2nd. One investment 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 company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $175.44.

Tapestry Stock Down 15.1%

The stock has a market capitalization of $26.37 billion, a PE ratio of 41.84, a PEG ratio of 1.46 and a beta of 1.43. The company has a debt-to-equity ratio of 3.48, a quick ratio of 1.27 and a current ratio of 1.84. The business has a 50 day moving average of $146.94 and a two-hundred day moving average of $144.75.

Tapestry (NYSE:TPR - Get Free Report) last posted its quarterly earnings data on Thursday, August 13th. The luxury accessories retailer reported $1.32 EPS for the quarter, topping the consensus estimate of $1.28 by $0.04. The firm had revenue of $1.88 billion during the quarter, compared to analyst estimates of $1.87 billion. Tapestry had a net margin of 8.44% and a return on equity of 229.70%. Tapestry's revenue was up 8.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.04 EPS. Tapestry has set its FY 2027 guidance at 7.800-7.900 EPS. Analysts predict that Tapestry, Inc. will post 6.98 EPS for the current year.

Insider Activity at Tapestry

In related news, CEO Todd Kahn sold 19,557 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $140.02, for a total value of $2,738,371.14. Following the completion of the transaction, the chief executive officer directly owned 123,258 shares of the company's stock, valued at $17,258,585.16. This trade represents a 13.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.32% of the stock is owned by insiders.

Institutional Trading of Tapestry

Several large investors have recently added to or reduced their stakes in TPR. BlackRock Inc. acquired a new stake in Tapestry during the 2nd quarter worth about $2,610,995,000. Schroder Investment Management Group grew its stake in Tapestry by 92.8% in the 4th quarter. Schroder Investment Management Group now owns 9,350,221 shares of the luxury accessories retailer's stock valued at $1,194,678,000 after acquiring an additional 4,500,850 shares during the period. Norges Bank purchased a new stake in shares of Tapestry during the fourth quarter worth about $345,349,000. Wellington Management Group LLP raised its holdings in shares of Tapestry by 632.3% during the fourth quarter. Wellington Management Group LLP now owns 2,366,502 shares of the luxury accessories retailer's stock valued at $302,368,000 after acquiring an additional 2,043,353 shares during the last quarter. Finally, State Street Corp grew its holdings in shares of Tapestry by 19.3% during the third quarter. State Street Corp now owns 9,229,777 shares of the luxury accessories retailer's stock worth $1,044,995,000 after buying an additional 1,494,193 shares in the last quarter. Hedge funds and other institutional investors own 90.77% of the company's stock.

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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