Tapestry (NYSE:TPR) Announces Earnings Results, Beats Estimates By $0.35 EPS

Tapestry (NYSE:TPR) released its quarterly earnings data on Thursday. The luxury accessories retailer reported $1.66 earnings per share for the quarter, beating analysts’ consensus estimates of $1.31 by $0.35, FiscalAI reports. Tapestry had a net margin of 8.44% and a return on equity of 229.70%. The business had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.79 billion. During the same period in the previous year, the business earned $1.03 EPS. Tapestry’s revenue was up 21.2% compared to the same quarter last year. Tapestry updated its FY 2026 guidance to 6.950-6.950 EPS.

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

• Tapestry raised its fiscal 2026 outlook, now guiding to approximately $7.95 billion in revenue, ~$6.95 EPS and an operating margin near 23%, reflecting pro forma constant-currency growth of about 16%.
• Coach drove the quarter’s outperformance with ~29% constant-currency revenue growth, ~2 million new customers (strong Gen Z recruitment), leather-goods unit volumes +20% and higher AURs, and management reiterated a long-term ambition for Coach as a $10 billion brand.
• Kate Spade lagged: Q3 revenue fell ~11% (sequential improvement but below expectations due partly to a strategic pullback in promotions); while margins exceeded plan, management still expects a low double-digit revenue decline for the brand this year.
• Margins showed strength (Q3 gross margin 76.9%, +80 bps with ~190 bps operational expansion), but management flagged meaningful tariff/duty headwinds (~180 bps in Q3) even as they expect FY gross-margin tailwinds from the Stuart Weitzman divestiture and AUR-driven operational improvement.
• Capital return is aggressive: $150M buybacks in Q3 and YTD ~$1.05B, a FY2026 plan to return ~$1.6 billion (?100% of expected adj. FCF) including ~$1.3B in repurchases, while leverage remains low (gross debt/EBITDA ~1.1x).

Tapestry Price Performance

Shares of NYSE TPR traded up $2.91 during mid-day trading on Friday, reaching $133.43. 4,316,187 shares of the company were exchanged, compared to its average volume of 1,973,301. Tapestry has a 52 week low of $76.29 and a 52 week high of $161.97. The company has a quick ratio of 1.10, a current ratio of 1.84 and a debt-to-equity ratio of 3.48. The stock has a market capitalization of $27.01 billion, a PE ratio of 42.77, a PEG ratio of 1.49 and a beta of 1.45. The company’s 50 day moving average price is $146.44 and its 200 day moving average price is $132.25.

Tapestry Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 22nd. Stockholders of record on Friday, June 5th will be issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, June 5th. Tapestry’s payout ratio is currently 66.12%.

Tapestry News Summary

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Tapestry beat fiscal third-quarter expectations, posting EPS of $1.66 on revenue of $1.92 billion, and also raised full-year guidance, which points to improving business momentum. Business Wire release
• Positive Sentiment: JPMorgan raised its price target on TPR to $200 from $190 and kept an overweight rating, signaling confidence in further upside from current levels. Benzinga report
• Positive Sentiment: BTIG reaffirmed a buy rating and set a $180 target, adding to the list of analysts turning more constructive after the earnings update. Benzinga report
• Neutral Sentiment: Tapestry announced a quarterly dividend of $0.40 per share, which supports shareholder returns but is not a major near-term catalyst. Earnings transcript
• Negative Sentiment: Despite the earnings beat, shares were pressured by concerns about tariffs and weaker performance at Kate Spade, suggesting investors are focusing on margin and brand-mix risks. Zacks article

Insider Activity at Tapestry

In other news, CEO Joanne C. Crevoiserat sold 48,795 shares of Tapestry stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $154.87, for a total transaction of $7,556,881.65. Following the completion of the sale, the chief executive officer directly owned 671,193 shares of the company’s stock, valued at approximately $103,947,659.91. The trade was a 6.78% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Anne Gates sold 6,498 shares of Tapestry stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $153.79, for a total transaction of $999,327.42. Following the sale, the director directly owned 22,698 shares of the company’s stock, valued at $3,490,725.42. This represents a 22.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 164,956 shares of company stock worth $25,297,262 in the last three months. 1.32% of the stock is owned by insiders.

Institutional Trading of Tapestry

Hedge funds have recently made changes to their positions in the stock. Sivia Capital Partners LLC purchased a new position in shares of Tapestry in the second quarter worth about $602,000. Wealth Watch Advisors INC increased its holdings in shares of Tapestry by 76.4% in the fourth quarter. Wealth Watch Advisors INC now owns 838 shares of the luxury accessories retailer’s stock worth $107,000 after buying an additional 363 shares during the period. Atlas Capital Advisors Inc. purchased a new position in shares of Tapestry in the fourth quarter worth about $69,000. Wilkerson Advisory Group LLC purchased a new position in shares of Tapestry in the fourth quarter worth about $81,000. Finally, Wexford Capital LP purchased a new position in shares of Tapestry in the third quarter worth about $123,000. 90.77% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several brokerages have commented on TPR. Jefferies Financial Group downgraded shares of Tapestry from a “buy” rating to a “hold” rating and cut their price target for the company from $142.00 to $138.00 in a report on Wednesday, January 14th. BNP Paribas Exane began coverage on shares of Tapestry in a report on Friday, February 13th. They issued an “outperform” rating and a $176.00 price target for the company. Argus set a $165.00 price target on shares of Tapestry in a report on Thursday, March 12th. Raymond James Financial reissued an “outperform” rating and issued a $165.00 price target on shares of Tapestry in a report on Thursday, April 23rd. Finally, UBS Group raised shares of Tapestry from a “neutral” rating to a “buy” rating and raised their price target for the company from $142.00 to $187.00 in a report on Friday. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $160.67.

Tapestry Company Profile

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.