Tapestry (NYSE:TPR) Shares Gap Up After Better-Than-Expected Earnings

Shares of Tapestry, Inc. (NYSE:TPR) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $125.31, but opened at $140.00. Tapestry shares last traded at $136.0650, with a volume of 909,363 shares trading hands.

The luxury accessories retailer reported $1.82 earnings per share for the quarter, beating analysts’ consensus estimates of $1.56 by $0.26. The firm had revenue of $1.89 billion for the quarter, compared to analyst estimates of $1.85 billion. Tapestry had a net margin of 19.09% and a return on equity of 254.95%. The company’s quarterly revenue was up 11.1% on a year-over-year basis. During the same quarter last year, the business posted $1.38 earnings per share.

Tapestry Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 21st. Stockholders of record on Friday, September 4th were paid a $0.4625 dividend. This represents a $1.85 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date was Friday, September 4th. This is a positive change from Tapestry’s previous quarterly dividend of $0.40. Tapestry’s dividend payout ratio is currently 25.38%.

Tapestry News Summary

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Fiscal Q1 adjusted EPS was $1.82, beating the $1.56 consensus estimate and rising from $1.38 a year earlier. Revenue increased 11.1% year over year to $1.89 billion, also ahead of expectations. Earnings report
• Positive Sentiment: Management raised its fiscal 2027 full-year outlook, citing revenue, margin and earnings growth ahead of expectations and strength across regions. Higher guidance signals confidence that momentum can continue. Company results and outlook
• Positive Sentiment: Reports attribute Coach’s strength to younger shoppers, including Gen Z, embracing its bags. That demand supports the company’s growth outlook. Reuters article
• Positive Sentiment: Tapestry also declared a dividend, adding a shareholder-return element to the upbeat results and guidance. Dividend and outlook update

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on TPR. BTIG Research reduced their price objective on Tapestry from $180.00 to $175.00 and set a “buy” rating on the stock in a research report on Friday, August 14th. Robert W. Baird dropped their target price on Tapestry from $165.00 to $150.00 and set an “outperform” rating for the company in a research report on Tuesday, October 27th. Barclays lifted their price target on Tapestry from $182.00 to $185.00 and gave the company an “overweight” rating in a research note on Friday, August 14th. Zacks Research cut Tapestry from a “strong-buy” rating to a “hold” rating in a report on Wednesday, July 22nd. Finally, Daiwa Securities Group raised Tapestry from a “hold” rating to a “strong-buy” rating in a research note on Monday, August 17th. Three investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Tapestry currently has an average rating of “Moderate Buy” and a consensus target price of $170.00.

Insider Activity at Tapestry

In other news, CEO Joanne C. Crevoiserat sold 27,761 shares of the stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $132.47, for a total transaction of $3,677,499.67. Following the completion of the transaction, the chief executive officer directly owned 666,149 shares of the company’s stock, valued at $88,244,758.03. This represents a 4.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Denise Kulikowsky sold 5,810 shares of the firm’s stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $115.38, for a total value of $670,357.80. Following the completion of the sale, the insider directly owned 21,136 shares of the company’s stock, valued at $2,438,671.68. This represents a 21.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 1.28% of the company’s stock.

Institutional Trading of Tapestry

A number of large investors have recently modified their holdings of TPR. BlackRock Inc. purchased a new position in Tapestry in the 2nd quarter worth approximately $2,610,995,000. Bank of America Corp DE bought a new position in Tapestry in the second quarter valued at $771,309,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Tapestry by 53.8% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,169,602 shares of the luxury accessories retailer’s stock valued at $317,586,000 after purchasing an additional 758,915 shares in the last quarter. Amundi raised its position in Tapestry by 96.0% during the first quarter. Amundi now owns 1,769,905 shares of the luxury accessories retailer’s stock valued at $249,751,000 after purchasing an additional 866,969 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in Tapestry during the second quarter worth about $175,291,000. Institutional investors own 90.77% of the company’s stock.

Tapestry Stock Performance

The company has a 50 day simple moving average of $117.13 and a 200-day simple moving average of $136.92. The company has a debt-to-equity ratio of 3.44, a current ratio of 1.75 and a quick ratio of 1.25. The stock has a market cap of $26.59 billion, a P/E ratio of 18.36, a price-to-earnings-growth ratio of 1.53 and a beta of 1.44.

Tapestry Company Profile

Tapestry, Inc is a global house of modern luxury accessories and lifestyle brands. The company’s portfolio includes Coach, known for handbags, leather goods, footwear, apparel and accessories; Kate Spade New York, which offers handbags, accessories, apparel, footwear, home products and related lifestyle merchandise; and Stuart Weitzman, a designer and manufacturer of women’s footwear.

Tapestry sells its products through company-operated stores, outlet locations, e-commerce websites, wholesale partners and select distributors.