Tapestry (NYSE:TPR) Issues Earnings Results

Tapestry (NYSE:TPR) announced its quarterly 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 return on equity of 254.95% and a net margin of 19.09%.The company had revenue of $1.88 billion for the quarter, compared to the consensus estimate of $1.87 billion. During the same quarter last year, the company posted $1.04 earnings per share. The company’s revenue for the quarter was up 8.9% compared to the same quarter last year. 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 Performance

Shares of TPR traded up $0.72 during trading hours on Friday, reaching $129.11. 5,539,868 shares of the company traded hands, compared to its average volume of 2,484,372. The stock’s fifty day moving average is $146.48 and its 200 day moving average is $144.63. The stock has a market cap of $26.08 billion, a P/E ratio of 17.71, a price-to-earnings-growth ratio of 1.16 and a beta of 1.43. The company has a debt-to-equity ratio of 3.44, a quick ratio of 1.27 and a current ratio of 1.75. Tapestry has a 1-year low of $93.00 and a 1-year high of $164.80.

Tapestry Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 21st. Stockholders of record on Friday, September 4th will be issued a dividend of $0.4625 per share. This represents a $1.85 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Friday, September 4th. This is a positive change from Tapestry’s previous quarterly dividend of $0.40. Tapestry’s payout ratio is presently 51.28%.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on TPR shares. Barclays boosted their target price on shares of Tapestry from $182.00 to $185.00 and gave the stock an “overweight” rating in a research report on Friday. Evercore set a $175.00 price objective on Tapestry in a research note on Friday, May 8th. UBS Group boosted their price objective on Tapestry from $230.00 to $232.00 and gave the stock a “buy” rating in a research report on Friday. Wall Street Zen downgraded Tapestry from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 8th. Finally, Raymond James Financial reaffirmed an “outperform” rating and issued a $165.00 target price on shares of Tapestry in a report on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $175.12.

Insiders Place Their Bets

In related news, CEO Todd Kahn sold 19,557 shares of Tapestry stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $140.02, for a total transaction of $2,738,371.14. Following the sale, the chief executive officer directly owned 123,258 shares of the company’s stock, valued at $17,258,585.16. This trade represents a 13.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.32% of the stock is currently owned by company insiders.

Institutional Trading of Tapestry

Institutional investors have recently modified their holdings of the company. State Street Corp lifted its position in Tapestry by 3.8% in the fourth quarter. State Street Corp now owns 9,578,111 shares of the luxury accessories retailer’s stock worth $1,223,795,000 after purchasing an additional 348,334 shares during the period. Schroder Investment Management Group raised its stake in shares of Tapestry by 92.8% in the 4th quarter. Schroder Investment Management Group now owns 9,350,221 shares of the luxury accessories retailer’s stock valued at $1,194,678,000 after buying an additional 4,500,850 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of Tapestry by 21.4% in the 3rd quarter. AQR Capital Management LLC now owns 4,307,615 shares of the luxury accessories retailer’s stock valued at $487,708,000 after buying an additional 760,646 shares in the last quarter. Morgan Stanley lifted its holdings in shares of Tapestry by 8.9% during the 4th quarter. Morgan Stanley now owns 3,327,212 shares of the luxury accessories retailer’s stock worth $425,118,000 after acquiring an additional 270,973 shares during the period. Finally, Northern Trust Corp lifted its holdings 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 worth $325,034,000 after acquiring an additional 203,520 shares during the period. Institutional investors and hedge funds own 90.77% of the company’s stock.

Trending Headlines about Tapestry

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Tapestry reported fiscal fourth-quarter EPS of $1.32, above the $1.28 consensus estimate, while revenue of $1.88 billion also topped expectations. Revenue increased 8.9% year over year, and earnings rose from $1.04 per share in the prior-year quarter. Tapestry fiscal 2026 fourth-quarter and full-year results
• Positive Sentiment: Coach continued to drive growth, supported by younger shoppers, higher average unit retail prices, unit expansion and international growth. Management said the brand’s momentum could remain durable through fiscal 2027, although growth may become more measured in the second half. Coach growth durability
• Positive Sentiment: The company raised its quarterly dividend 15.6% to $0.4625 per share, payable September 21 to shareholders of record September 4. Tapestry also plans approximately $1.7 billion in shareholder returns, supporting the stock’s income and capital-return appeal. Fiscal 2027 outlook and shareholder returns
• Neutral Sentiment: Fiscal 2027 EPS guidance of $7.80 to $7.90 is broadly in line with the roughly $7.82 analyst consensus, suggesting continued profit growth but limited upside relative to expectations. Tapestry earnings estimate beat
• Negative Sentiment: Management projected fiscal 2027 revenue of $8.4 billion to $8.5 billion, slightly below the $8.5 billion consensus. Investors viewed the outlook as disappointing after the quarterly beat, particularly because Kate Spade’s recovery is taking longer and tariff pressure remains a risk. Tapestry forecasts weak annual sales

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.