Tapestry (NYSE:TPR) Releases Earnings Results, Beats Expectations By $0.13 EPS

Tapestry (NYSE:TPR) released its earnings results on Thursday. The luxury accessories retailer reported $1.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.25 by $0.13, Zacks reports. The company had revenue of $1.70 billion during the quarter, compared to analyst estimates of $1.63 billion. Tapestry had a return on equity of 68.02% and a net margin of 2.61%.The company’s revenue for the quarter was up 13.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.84 earnings per share. Tapestry updated its FY 2026 guidance to 5.450-5.600 EPS.

Tapestry Stock Down 9.5%

NYSE TPR traded down $10.43 during trading on Thursday, hitting $98.88. 8,136,031 shares of the company traded hands, compared to its average volume of 4,512,777. Tapestry has a 12 month low of $49.84 and a 12 month high of $118.56. The business has a fifty day simple moving average of $110.91 and a 200 day simple moving average of $96.89. The company has a current ratio of 1.87, a quick ratio of 1.31 and a debt-to-equity ratio of 2.77. The company has a market capitalization of $20.47 billion, a P/E ratio of 156.95, a PEG ratio of 2.72 and a beta of 1.71.

Tapestry Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 22nd. Stockholders of record on Friday, December 5th will be issued a dividend of $0.40 per share. The ex-dividend date is Friday, December 5th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.6%. Tapestry’s dividend payout ratio (DPR) is currently 253.97%.

Insider Buying and Selling

In related news, VP Manesh Dadlani sold 7,882 shares of the firm’s stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $99.05, for a total value of $780,712.10. Following the transaction, the vice president directly owned 21,098 shares of the company’s stock, valued at approximately $2,089,756.90. This trade represents a 27.20% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Alan Ka Ming Lau sold 11,320 shares of Tapestry stock in a transaction that occurred on Thursday, September 11th. The shares were sold at an average price of $106.19, for a total transaction of $1,202,070.80. Following the completion of the transaction, the director directly owned 8,153 shares in the company, valued at approximately $865,767.07. This represents a 58.13% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.32% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of TPR. 44 Wealth Management LLC increased its stake in shares of Tapestry by 0.8% in the second quarter. 44 Wealth Management LLC now owns 19,018 shares of the luxury accessories retailer’s stock worth $1,670,000 after purchasing an additional 142 shares during the period. Optimist Retirement Group LLC increased its stake in shares of Tapestry by 11.9% in the second quarter. Optimist Retirement Group LLC now owns 3,901 shares of the luxury accessories retailer’s stock worth $343,000 after purchasing an additional 416 shares during the period. Brown Advisory Inc. increased its position in Tapestry by 13.8% in the 2nd quarter. Brown Advisory Inc. now owns 3,630 shares of the luxury accessories retailer’s stock worth $319,000 after buying an additional 439 shares during the period. MUFG Securities EMEA plc bought a new position in Tapestry in the 2nd quarter worth approximately $54,000. Finally, Vident Advisory LLC increased its position in Tapestry by 5.4% in the 2nd quarter. Vident Advisory LLC now owns 27,549 shares of the luxury accessories retailer’s stock worth $2,419,000 after buying an additional 1,414 shares during the period. Institutional investors own 90.77% of the company’s stock.

Tapestry declared that its board has authorized a stock buyback plan on Thursday, November 6th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the luxury accessories retailer to repurchase up to 4.9% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board of directors believes its shares are undervalued.

Analyst Ratings Changes

Several equities research analysts recently issued reports on TPR shares. Wells Fargo & Company increased their price objective on Tapestry from $120.00 to $135.00 and gave the stock an “overweight” rating in a research note on Monday, October 27th. Weiss Ratings reissued a “hold (c)” rating on shares of Tapestry in a research report on Wednesday, October 8th. Cowen reissued a “buy” rating on shares of Tapestry in a research report on Thursday, August 7th. Evercore ISI increased their target price on shares of Tapestry from $125.00 to $129.00 and gave the stock an “outperform” rating in a research report on Monday. Finally, Morgan Stanley reiterated an “overweight” rating on shares of Tapestry in a research report on Thursday, September 11th. Eighteen equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, Tapestry currently has an average rating of “Moderate Buy” and an average target price of $115.80.

About Tapestry

Tapestry, Inc provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women’s handbags; and women’s accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms.