Tapestry (NYSE:TPR) Announces Quarterly Earnings Results

Tapestry (NYSE:TPR) issued its earnings results on Thursday. The luxury accessories retailer reported $1.82 earnings per share for the quarter, beating analysts’ consensus estimates of $1.56 by $0.26, FiscalAI reports. The company had revenue of $1.89 billion for the quarter, compared to the consensus estimate of $1.85 billion. Tapestry had a return on equity of 254.95% and a net margin of 19.09%. The firm’s quarterly revenue was up 11.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.38 EPS.

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

• Tapestry reported a strong first quarter, with pro forma revenue up 12% to $1.9 billion, operating margin expanding 230 basis points to more than 23%, and EPS rising 32% to $1.82. The company raised its fiscal 2027 outlook to $8.5–$8.6 billion in revenue and $8.25–$8.35 in EPS.
• Coach continued to drive growth, with constant-currency revenue up 16% and gains across regions, including 41% in Greater China and 7% in North America. Management cited customer acquisition, strength in core handbags, and disciplined pricing as key drivers, while highlighting further opportunity in footwear and international markets.
• Kate Spade revenue declined 10%, and Tapestry expects a high-single-digit decline for the brand in fiscal 2027, with a modest operating loss. Gross margin expanded 190 basis points, but management said the turnaround will depend on sharper product and marketing execution and renewed customer acquisition.
• Tapestry expects to return approximately $2 billion to shareholders in fiscal 2027, including $1.7 billion in share repurchases and an annual dividend of $1.85 per share. Management said strong cash flow supports these returns while allowing continued investment in the brands and business.

Tapestry Stock Performance

Shares of Tapestry stock traded down $1.14 during trading on Friday, reaching $133.03. The company’s stock had a trading volume of 3,332,569 shares, compared to its average volume of 2,427,080. The business’s fifty day moving average price is $117.41 and its 200-day moving average price is $136.95. Tapestry has a one year low of $99.00 and a one year high of $164.80. The firm has a market cap of $26.52 billion, a price-to-earnings ratio of 17.12, a price-to-earnings-growth ratio of 1.53 and a beta of 1.44. The company has a debt-to-equity ratio of 3.44, a quick ratio of 1.25 and a current ratio of 1.75.

Tapestry Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 21st. Stockholders of record on Friday, December 4th will be paid a $0.4625 dividend. The ex-dividend date is Friday, December 4th. This represents a $1.85 dividend on an annualized basis and a dividend yield of 1.4%. Tapestry’s payout ratio is presently 25.38%.

Insider Buying and Selling

In other news, insider Denise Kulikowsky sold 5,810 shares of the company’s stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $115.38, for a total transaction of $670,357.80. Following the completion of the transaction, the insider directly owned 21,136 shares in the company, valued at $2,438,671.68. The trade was a 21.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, 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 value of $3,677,499.67. Following the completion of the sale, 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 ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.28% of the company’s stock.

Analyst Ratings Changes

Several analysts recently issued reports on the company. Raymond James Financial cut their price objective on Tapestry from $165.00 to $140.00 and set an “outperform” rating for the company in a report on Friday, October 16th. BTIG Research dropped their price target on shares of Tapestry from $180.00 to $175.00 and set a “buy” rating on the stock in a research note on Friday, August 14th. Robert W. Baird cut their price target on shares of Tapestry from $165.00 to $150.00 and set an “outperform” rating on the stock in a report on Tuesday, October 27th. Zacks Research lowered shares of Tapestry from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, July 22nd. Finally, Sanford C. Bernstein reiterated a “market perform” rating and issued a $185.00 price objective (up from $180.00) on shares of Tapestry in a report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, Tapestry presently has a consensus rating of “Moderate Buy” and an average price target of $167.72.

Tapestry News Roundup

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Tapestry reported adjusted EPS of $1.82, above the $1.56 consensus, and revenue of $1.89 billion, topping the $1.85 billion estimate and rising 11.1% year over year. Strong Coach demand, international growth, and improved margins helped drive the beat. Article: TPR Q1 Earnings Beat Estimate on Coach Gains, FY27 Outlook Raised
• Positive Sentiment: The company raised its fiscal 2027 outlook after a stronger-than-expected start to the year. Reports also highlighted Coach’s appeal among younger shoppers and management’s view that U.S. consumers remain resilient heading into the holiday season. Article: Tapestry lifts annual forecasts as young shoppers snap up Coach bags
• Positive Sentiment: Barclays raised its price target to $195 from $185 and maintained an Overweight rating; Wells Fargo raised its target to $155 from $150, also keeping an Overweight rating. These moves signal continued analyst confidence following the results. Barclays rating information Wells Fargo rating information
• Neutral Sentiment: Tapestry declared a quarterly dividend of $0.4625 per share, payable December 21 to shareholders of record December 4. The annualized dividend is $1.85 per share, a yield of about 1.4%. Article: Tapestry reports fiscal 2027 first-quarter results and raises outlook

About Tapestry