Tapestry (NYSE:TPR) Announces Earnings Results, Beats Estimates By $0.04 EPS

Tapestry (NYSE:TPR) released its earnings results on Thursday. The luxury accessories retailer reported $1.32 EPS for the quarter, beating the consensus estimate of $1.28 by $0.04, FiscalAI reports. Tapestry had a net margin of 8.44% and a return on equity of 229.70%. The firm had revenue of $1.88 billion for the quarter, compared to analysts’ expectations of $1.87 billion. During the same quarter last year, the company earned $1.04 EPS. Tapestry’s quarterly revenue was up 8.9% on a year-over-year basis. Tapestry updated its FY 2027 guidance to 7.800-7.900 EPS.

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

• Positive Sentiment: Tapestry reported a strong fiscal 2026, with revenue up 17% on a pro forma constant-currency basis to $8 billion, operating margin expanding 340 basis points to over 23%, and EPS rising 38% to $7.05—achieving its Investor Day targets two years ahead of schedule.
• Positive Sentiment: Coach remained the primary growth engine, with fourth-quarter revenue up 14% in constant currency and strength across North America, Greater China, and Europe. Management highlighted continued customer acquisition, higher handbag AURs, footwear momentum, and a long-term path toward a $10 billion brand.
• Negative Sentiment: Kate Spade’s top-line recovery remained slower than planned; although customer acquisition and handbag initiatives showed progress, fiscal 2027 guidance calls for a high-single-digit revenue decline and a modest operating loss as the company continues investing in brand desirability.
• Positive Sentiment: Management guided fiscal 2027 revenue to $8.4–$8.5 billion, operating margin near 24%, and EPS of $7.80–$7.90, representing mid-single-digit sales growth and low-double-digit EPS growth. Tapestry also plans to return approximately $1.7 billion to shareholders, including a 16% dividend increase and about $1.35 billion in share repurchases.
• Neutral Sentiment: Tariffs and macro uncertainty remain key risks, with the company assuming a mid-20% tariff rate on U.S. imports; mitigation actions are expected to make the fiscal-year P&L impact roughly neutral, though quarterly profitability may be uneven. Capital spending will rise to about $300 million, primarily for Coach store openings, renovations, and technology investments.

Tapestry Stock Down 15.2%

NYSE TPR traded down $23.29 during trading on Thursday, reaching $130.45. 6,322,119 shares of the company’s stock were exchanged, compared to its average volume of 2,387,896. The company’s fifty day simple moving average is $146.94 and its 200-day simple moving average is $144.75. The company has a current ratio of 1.84, a quick ratio of 1.27 and a debt-to-equity ratio of 3.48. The firm has a market capitalization of $26.36 billion, a PE ratio of 41.71, a P/E/G ratio of 1.46 and a beta of 1.43. Tapestry has a fifty-two week low of $92.62 and a fifty-two week high of $164.80.

Insider Activity at Tapestry

In other Tapestry news, CEO Todd Kahn sold 19,557 shares of the business’s stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $140.02, for a total value of $2,738,371.14. Following the transaction, the chief executive officer owned 123,258 shares in the company, valued at $17,258,585.16. The trade was a 13.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 1.32% of the stock is currently owned by corporate insiders.

Institutional Trading of Tapestry

Large investors have recently made changes to their positions in the stock. Acumen Wealth Advisors LLC bought a new position in Tapestry in the 4th quarter worth $28,000. Towarzystwo Funduszy Inwestycyjnych PZU SA acquired a new position in shares of Tapestry during the fourth quarter valued at about $32,000. Triumph Capital Management bought a new stake in shares of Tapestry in the third quarter valued at about $29,000. DV Equities LLC acquired a new stake in Tapestry during the fourth quarter worth about $37,000. Finally, HM Payson & Co. raised its holdings in Tapestry by 125.8% in the 4th quarter. HM Payson & Co. now owns 289 shares of the luxury accessories retailer’s stock valued at $37,000 after acquiring an additional 161 shares in the last quarter. Institutional investors own 90.77% of the company’s stock.

Key Headlines Impacting Tapestry

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Tapestry reported fiscal fourth-quarter adjusted EPS of $1.32, exceeding the $1.26-$1.28 analyst range, while revenue reached $1.88 billion versus approximately $1.87 billion expected. Earnings increased from $1.04 a year earlier, and revenue grew 8.9% year over year. Tapestry Fiscal 2026 Results
• Positive Sentiment: Coach remained the primary growth engine, helping drive margin expansion and stronger cash generation despite tariff pressures. The company also announced a 16% dividend increase and plans to return approximately $1.7 billion to shareholders through dividends and share repurchases. Tapestry Q4 Earnings and Dividend Raise
• Neutral Sentiment: Management forecast fiscal 2027 EPS of $7.80-$7.90, broadly consistent with the $7.82 consensus estimate. The company expects revenue of $8.4-$8.5 billion, with the upper end roughly matching analyst expectations. Tapestry Fiscal 2027 Forecast
• Negative Sentiment: The outlook was viewed as soft because it implies limited sales growth, particularly as Kate Spade’s recovery is taking longer than expected. Investors appear concerned that Coach’s momentum may not fully offset weakness at the company’s other major brand. Reuters Tapestry Outlook Report
• Negative Sentiment: The earnings beat and shareholder-return plans failed to overcome concerns about the fiscal 2027 revenue outlook, resulting in heavy selling as the market reassessed Tapestry’s growth trajectory and valuation. Why Tapestry Shares Were Falling

Analysts Set New Price Targets

TPR has been the topic of several recent analyst reports. Barclays boosted their target price on Tapestry from $179.00 to $182.00 and gave the stock an “overweight” rating in a report on Thursday, July 16th. Zacks Research lowered Tapestry from a “strong-buy” rating to a “hold” rating in a report on Wednesday, July 22nd. Weiss Ratings lowered Tapestry from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, May 20th. BTIG Research reissued a “buy” rating and issued a $180.00 price target on shares of Tapestry in a report on Wednesday, June 10th. Finally, Evercore set a $175.00 price objective on shares of Tapestry in a research note on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $175.44.

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.