Tapestry (NYSE:TPR) Releases Earnings Results, Beats Estimates By $0.49 EPS

Tapestry (NYSE:TPR) announced its quarterly earnings data on Thursday. The luxury accessories retailer reported $2.69 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.20 by $0.49, FiscalAI reports. Tapestry had a return on equity of 116.42% and a net margin of 3.77%.The business had revenue of $2.50 billion for the quarter, compared to analysts’ expectations of $2.29 billion. During the same period in the previous year, the business posted $2.00 EPS. The firm’s quarterly revenue was up 14.0% compared to the same quarter last year. Tapestry updated its FY 2026 guidance to 6.400-6.450 EPS.

Here are the key takeaways from Tapestry’s conference call:

• Strong Q2 outperformance — pro forma revenue growth of 18%, adjusted operating margin expanded ~390 bps, EPS of $2.69 (+34%), and management raised full‑year guidance to revenue > $7.75B and EPS $6.40–$6.45.
• Coach is the primary growth engine — brand revenue +25%, 2.9 million new customers (Gen Z‑led), leather goods drove mid‑teens AUR and unit growth, and broad regional strength (NA +27%, Greater China +37%, Europe +26%).
• Kate Spade remains in reset — revenue down 14% as the company pulled back promotions and invested in a turnaround; early KPI improvements (brand consideration, Gen Z acquisition) were noted but the brand is still expected to finish the year down and modestly loss‑making.
• Margins resilient despite tariffs — gross margin expanded to 75.5% (up 110 bps) from operational improvements and AUR gains, and management now expects full‑year gross margin to rise ~20 bps, offsetting tariff headwinds.
• Heavy shareholder returns and healthy balance sheet — plan to return ~ $1.5B (100% of expected adjusted FCF) via $1.2B buybacks and a $1.60 annual dividend, with net debt and leverage well below long‑term targets (gross debt/EBITDA ~1.2x).

Tapestry Price Performance

NYSE:TPR traded up $14.30 during trading hours on Thursday, hitting $144.22. 4,452,076 shares of the stock traded hands, compared to its average volume of 2,353,607. The stock has a 50 day moving average price of $125.90 and a 200 day moving average price of $114.39. Tapestry has a 1 year low of $58.39 and a 1 year high of $145.42. The company has a market cap of $29.51 billion, a price-to-earnings ratio of 128.93, a price-to-earnings-growth ratio of 2.18 and a beta of 1.63. The company has a quick ratio of 0.93, a current ratio of 1.52 and a debt-to-equity ratio of 5.95.

Key Tapestry News

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Tapestry beat Q2 estimates — reported $2.69 EPS vs. consensus ~$2.20 and revenue of $2.50B (+14% YoY) vs. ~$2.29B, signaling stronger holiday demand and margin leverage. Tapestry press release
• Positive Sentiment: Management raised FY26 guidance to $6.40–$6.45 EPS and higher revenue guidance (~$7.8B), well above prior consensus, giving investors clearer upside to estimates. Reuters: Tapestry lifts annual forecasts
• Positive Sentiment: Coach (notably the Tabby handbag) drove the outperformance and was called out as the growth engine for the quarter, helping offset softness elsewhere. This brand-level strength is the primary catalyst for the rally. SchaeffersResearch: Coach sales surge
• Positive Sentiment: Street reaction: firms boosted targets (e.g., Evercore ISI raised its price target to $150), supporting further upside from analysts’ upgrades. Evercore raises price target
• Neutral Sentiment: Full Q2 earnings call transcript and company slide deck are available for details on channel, regional and margin drivers for the quarter. Investors can use these to assess sustainability of the beat. Earnings call transcript
• Negative Sentiment: Kate Spade sales declined in the quarter — management noted the Coach strength offset declines at Kate Spade, which remains a watch item for growth consistency across the portfolio. WSJ: Coach sales surge; Kate Spade declines
• Negative Sentiment: Valuation and leverage: TPR’s forward P/E is elevated and the company has meaningful leverage on the balance sheet — investors should weigh growth vs. current valuation and margin sustainability when sizing positions.

Insider Transactions at Tapestry

In related news, CFO Scott A. Roe sold 18,794 shares of the company’s stock in a transaction on Friday, November 21st. The shares were sold at an average price of $104.85, for a total transaction of $1,970,550.90. Following the sale, the chief financial officer owned 148,149 shares of the company’s stock, valued at $15,533,422.65. This represents a 11.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider David E. Howard sold 25,029 shares of the stock in a transaction on Tuesday, November 18th. The shares were sold at an average price of $102.50, for a total transaction of $2,565,472.50. Following the transaction, the insider owned 55,354 shares of the company’s stock, valued at $5,673,785. This trade represents a 31.14% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 115,485 shares of company stock valued at $12,034,058 in the last 90 days. Company insiders own 1.32% of the company’s stock.

Institutional Investors Weigh In On Tapestry

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. State Street Corp increased 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 valued at $1,044,995,000 after acquiring an additional 1,494,193 shares in the last quarter. AQR Capital Management LLC grew its position 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 worth $487,708,000 after purchasing an additional 760,646 shares during the period. Northern Trust Corp raised its stake in shares of Tapestry by 7.6% during the 3rd quarter. Northern Trust Corp now owns 2,870,821 shares of the luxury accessories retailer’s stock valued at $325,034,000 after buying an additional 203,520 shares during the last quarter. Voloridge Investment Management LLC raised 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 valued at $213,592,000 after buying an additional 1,162,442 shares during the last quarter. Finally, Amundi lifted its holdings in shares of Tapestry by 69.6% in the 3rd quarter. Amundi now owns 1,726,876 shares of the luxury accessories retailer’s stock valued at $199,437,000 after buying an additional 708,492 shares during the period. 90.77% of the stock is currently owned by hedge funds and other institutional investors.

Tapestry declared that its Board of Directors has authorized a stock buyback program on Thursday, November 6th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the luxury accessories retailer to reacquire up to 4.9% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on TPR. Citigroup raised their price objective on shares of Tapestry from $124.00 to $152.00 and gave the company a “buy” rating in a research report on Tuesday, January 20th. JPMorgan Chase & Co. increased their target price on Tapestry from $147.00 to $148.00 and gave the company an “overweight” rating in a research note on Monday, November 17th. Wall Street Zen lowered Tapestry from a “strong-buy” rating to a “buy” rating in a research note on Saturday, December 6th. BTIG Research initiated coverage on Tapestry in a report on Tuesday, October 14th. They issued a “buy” rating and a $140.00 price objective for the company. Finally, Evercore ISI increased their price objective on Tapestry from $129.00 to $150.00 and gave the company an “outperform” rating in a research report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $131.05.

About Tapestry

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.