Tapestry (NYSE:TPR) Posts Earnings Results, Beats Estimates By $0.26 EPS

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

NYSE TPR traded down $1.14 during trading hours on Friday, hitting $133.03. The company had a trading volume of 3,332,569 shares, compared to its average volume of 2,427,080. Tapestry has a 52 week low of $99.00 and a 52 week high of $164.80. The firm has a 50 day simple moving average of $117.41 and a 200 day simple moving average of $136.95. The company has a debt-to-equity ratio of 3.44, a quick ratio of 1.25 and a current ratio of 1.75. The firm has a market capitalization of $26.52 billion, a price-to-earnings ratio of 17.12, a PEG ratio of 1.53 and a beta of 1.44.

Tapestry Dividend Announcement

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

Tapestry News Summary

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

Insider Transactions at Tapestry

In other news, CEO Joanne C. Crevoiserat sold 27,761 shares of the stock in a transaction dated 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 sale, the chief executive officer directly owned 666,149 shares of the company’s stock, valued at approximately $88,244,758.03. This represents a 4.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through 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 that occurred on Wednesday, September 9th. The shares were sold at an average price of $115.38, for a total transaction of $670,357.80. Following the completion of the transaction, the insider owned 21,136 shares of the company’s stock, valued at $2,438,671.68. This trade represents a 21.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.28% of the stock is owned by insiders.

Analysts Set New Price Targets

Several equities research analysts have commented on TPR shares. Evercore dropped their price objective on shares of Tapestry from $175.00 to $160.00 and set an “outperform” rating on the stock in a report on Friday, August 14th. Raymond James Financial cut their target price on shares of Tapestry from $165.00 to $140.00 and set an “outperform” rating for the company in a research report on Friday, October 16th. BNP Paribas Exane lifted their target price on shares of Tapestry from $185.00 to $187.00 and gave the stock an “outperform” rating in a research note on Friday, August 14th. Zacks Research lowered shares of Tapestry from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, July 22nd. Finally, JPMorgan Chase & Co. upped their price target on shares of Tapestry from $205.00 to $211.00 and gave the company an “overweight” rating in a research note on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, Tapestry presently has an average rating of “Moderate Buy” and an average price target of $167.72.

About Tapestry