Tapestry (NYSE:TPR) Shares Gap Down – Should You Sell?

Tapestry, Inc. (NYSE:TPR) shares gapped down prior to trading on Thursday . The stock had previously closed at $153.74, but opened at $132.70. Tapestry shares last traded at $129.8250, with a volume of 2,090,104 shares.

Key Headlines Impacting Tapestry

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Tapestry reported fiscal fourth-quarter adjusted earnings of $1.32 per share on revenue of $1.88 billion, exceeding analyst estimates of $1.28 and $1.87 billion, respectively. Revenue increased 8.9% year over year, while earnings rose from $1.04 per share. Tapestry: Fiscal Q4 Earnings Snapshot
• Positive Sentiment: Coach remained the primary growth engine, supported by strong consumer demand, helping drive margin expansion and stronger cash generation despite tariff pressures. Tapestry Q4 Earnings Beat on Coach Growth and Margin Expansion
• Positive Sentiment: Management guided to fiscal 2027 earnings per share of $7.80–$7.90, broadly in line with consensus, and plans approximately $1.7 billion in shareholder returns, including a reported 16% dividend increase. Tapestry Forecasts Fiscal 2027 EPS and Shareholder Returns
• Neutral Sentiment: The company expects fiscal 2027 revenue of approximately $8.4 billion–$8.5 billion, with the midpoint slightly below analysts’ expectations. The earnings forecast implies continued profitability but limited near-term sales acceleration.
• Negative Sentiment: Kate Spade’s recovery is taking longer than expected, raising concerns about brand momentum and the company’s ability to diversify growth beyond Coach. Analysts and investors treated the outlook as weak, triggering a broad selloff despite the quarterly beat. Tapestry Forecasts Annual Profit as Kate Spade Struggles

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the stock. Evercore set a $175.00 target price on shares of Tapestry in a report on Friday, May 8th. Robert W. Baird raised their price target on shares of Tapestry from $160.00 to $165.00 and gave the stock an “outperform” rating in a report on Wednesday, April 29th. Morgan Stanley reiterated an “overweight” rating and issued a $164.00 price objective on shares of Tapestry in a report on Monday, July 6th. UBS Group increased their price objective on Tapestry from $187.00 to $230.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Finally, Citigroup raised their target price on Tapestry from $165.00 to $170.00 and gave the stock a “buy” rating in a research note on Wednesday, April 29th. 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 MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $175.44.

Tapestry Trading Down 15.1%

The business’s 50-day simple moving average is $146.94 and its two-hundred day simple moving average is $144.75. The firm has a market capitalization of $26.37 billion, a price-to-earnings ratio of 41.84, a PEG ratio of 1.46 and a beta of 1.43. The company has a quick ratio of 1.27, a current ratio of 1.84 and a debt-to-equity ratio of 3.48.

Tapestry (NYSE:TPR) last issued its quarterly earnings data on Thursday, August 13th. The luxury accessories retailer reported $1.32 EPS for the quarter, topping the consensus estimate of $1.28 by $0.04. The firm had revenue of $1.88 billion for the quarter, compared to analyst estimates of $1.87 billion. Tapestry had a net margin of 8.44% and a return on equity of 229.70%. The business’s revenue for the quarter was up 8.9% compared to the same quarter last year. During the same period in the prior year, the business posted $1.04 EPS. Tapestry has set its FY 2027 guidance at 7.800-7.900 EPS. Equities analysts forecast that Tapestry, Inc. will post 6.98 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO Todd Kahn sold 19,557 shares of the firm’s stock in a transaction on 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 completion of the transaction, the chief executive officer directly owned 123,258 shares in the company, 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 SEC, which is available at the SEC website. 1.32% of the stock is owned by company insiders.

Hedge Funds Weigh In On Tapestry

Several hedge funds have recently bought and sold shares of the company. Acumen Wealth Advisors LLC purchased a new stake in Tapestry during the fourth quarter worth about $28,000. Triumph Capital Management acquired a new position in shares of Tapestry in the third quarter valued at approximately $29,000. Steph & Co. grew its holdings in shares of Tapestry by 128.7% in the fourth quarter. Steph & Co. now owns 231 shares of the luxury accessories retailer’s stock valued at $30,000 after purchasing an additional 130 shares in the last quarter. Flagship Harbor Advisors LLC purchased a new stake in Tapestry during the 4th quarter worth approximately $31,000. Finally, Keating Financial Advisory Services Inc. acquired a new stake in Tapestry during the 2nd quarter worth approximately $31,000. Institutional investors and hedge funds own 90.77% of the company’s stock.

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.