Tapestry (NYSE:TPR) Posts Earnings Results

Tapestry (NYSE:TPR) posted its quarterly earnings data on Thursday. The luxury accessories retailer reported $2.69 EPS for the quarter, topping the consensus estimate of $2.20 by $0.49, FiscalAI reports. The business had revenue of $2.50 billion during the quarter, compared to the consensus estimate of $2.29 billion. Tapestry had a net margin of 3.77% and a return on equity of 116.42%. The business’s revenue for the quarter was up 14.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.00 earnings per share. Tapestry updated its FY 2026 guidance to 6.400-6.450 EPS.

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

• Strong Q2 outperformance — pro forma revenue growth of 18%, adjusted operating margin expanded ~390 bps, EPS of $2.69 (+34%), and management raised full‑year guidance to revenue > $7.75B and EPS $6.40–$6.45.
• Coach is the primary growth engine — brand revenue +25%, 2.9 million new customers (Gen Z‑led), leather goods drove mid‑teens AUR and unit growth, and broad regional strength (NA +27%, Greater China +37%, Europe +26%).
• Kate Spade remains in reset — revenue down 14% as the company pulled back promotions and invested in a turnaround; early KPI improvements (brand consideration, Gen Z acquisition) were noted but the brand is still expected to finish the year down and modestly loss‑making.
• Margins resilient despite tariffs — gross margin expanded to 75.5% (up 110 bps) from operational improvements and AUR gains, and management now expects full‑year gross margin to rise ~20 bps, offsetting tariff headwinds.
• Heavy shareholder returns and healthy balance sheet — plan to return ~ $1.5B (100% of expected adjusted FCF) via $1.2B buybacks and a $1.60 annual dividend, with net debt and leverage well below long‑term targets (gross debt/EBITDA ~1.2x).

Tapestry Price Performance

Shares of TPR traded up $6.78 during mid-day trading on Friday, hitting $149.97. 584,812 shares of the company were exchanged, compared to its average volume of 2,368,230. The stock has a market cap of $30.69 billion, a price-to-earnings ratio of 133.65, a price-to-earnings-growth ratio of 2.23 and a beta of 1.63. Tapestry has a 1-year low of $58.39 and a 1-year high of $150.71. The company has a 50 day moving average of $126.55 and a 200-day moving average of $114.59. The company has a debt-to-equity ratio of 5.95, a quick ratio of 0.93 and a current ratio of 1.52.

Tapestry Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, March 23rd. Investors of record on Friday, March 6th will be issued a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Friday, March 6th. Tapestry’s payout ratio is presently 142.86%.

Tapestry announced that its board has approved a share repurchase program on Thursday, November 6th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the luxury accessories retailer to reacquire up to 4.9% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

Analysts Set New Price Targets

TPR has been the topic of several research analyst reports. Morgan Stanley boosted their price target on Tapestry from $124.00 to $126.00 and gave the company an “overweight” rating in a research note on Friday, November 7th. Sanford C. Bernstein reiterated an “outperform” rating on shares of Tapestry in a research note on Friday. Jefferies Financial Group cut shares of Tapestry from a “buy” rating to a “hold” rating and reduced their target price for the stock from $142.00 to $138.00 in a report on Wednesday, January 14th. Telsey Advisory Group boosted their target price on shares of Tapestry to $150.00 and gave the company an “outperform” rating in a research report on Thursday. Finally, UBS Group increased their price target on Tapestry from $105.00 to $123.00 and gave the stock a “neutral” rating in a research report on Thursday, January 8th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, Tapestry presently has a consensus rating of “Moderate Buy” and a consensus price target of $134.95.

Insider Activity at Tapestry

In other Tapestry news, CEO Joanne C. Crevoiserat sold 31,735 shares of the firm’s stock in a transaction on Friday, November 21st. The stock was sold at an average price of $105.31, for a total value of $3,342,012.85. Following the transaction, the chief executive officer owned 667,233 shares in the company, valued at approximately $70,266,307.23. This trade represents a 4.54% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Denise Kulikowsky sold 583 shares of the business’s stock in a transaction on Thursday, December 4th. The stock was sold at an average price of $115.17, for a total value of $67,144.11. Following the transaction, the insider directly owned 19,285 shares in the company, valued at $2,221,053.45. This trade represents a 2.93% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 115,485 shares of company stock worth $12,034,058 in the last quarter. Corporate insiders own 1.32% of the company’s stock.

Hedge Funds Weigh In On Tapestry

A number of institutional investors have recently bought and sold shares of TPR. State Street Corp grew its stake in shares of Tapestry by 19.3% in the 3rd quarter. State Street Corp now owns 9,229,777 shares of the luxury accessories retailer’s stock valued at $1,044,995,000 after buying an additional 1,494,193 shares during the period. AQR Capital Management LLC increased its stake in Tapestry by 21.4% during the third quarter. AQR Capital Management LLC now owns 4,307,615 shares of the luxury accessories retailer’s stock worth $487,708,000 after acquiring an additional 760,646 shares during the last quarter. Northern Trust Corp grew its position in Tapestry by 7.6% in the 3rd quarter. Northern Trust Corp now owns 2,870,821 shares of the luxury accessories retailer’s stock valued at $325,034,000 after acquiring an additional 203,520 shares in the last quarter. Voloridge Investment Management LLC lifted its position in shares of Tapestry by 160.5% during the third quarter. Voloridge Investment Management LLC now owns 1,886,518 shares of the luxury accessories retailer’s stock worth $213,592,000 after purchasing an additional 1,162,442 shares in the last quarter. Finally, Amundi boosted its stake in shares of Tapestry by 69.6% in the third quarter. Amundi now owns 1,726,876 shares of the luxury accessories retailer’s stock valued at $199,437,000 after purchasing an additional 708,492 shares during the period. 90.77% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Tapestry

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Tapestry reported fiscal Q2 results that beat revenue and EPS expectations (Q2 revenue $2.5B, EPS $2.69) and raised FY2026 guidance to $6.40–$6.45 EPS, signaling stronger-than-expected momentum. Tapestry, Inc. Reports Fiscal 2026 Second Quarter Results and Raises Full Year Outlook
• Positive Sentiment: Strong Coach sales, led by Tabby handbags, were cited as the main driver of the blowout holiday quarter and the reason management lifted annual forecasts. Tapestry lifts annual forecasts as Tabby handbag craze fuels blowout holiday quarter
• Positive Sentiment: Analysts responded: Telsey Advisory Group and Evercore ISI raised their ratings/price targets (Telsey to “Outperform” / $150; Evercore lift to $150), reinforcing buy-side sentiment. Tapestry (NYSE:TPR) Given “Outperform” Rating at Telsey Advisory Group
• Positive Sentiment: Tapestry hit all‑time/record highs intraday after the results and guidance upgrade, reflecting investor enthusiasm about brand execution and margin/cash‑flow upside. Tapestry (TPR) Hits All-Time High on Strong Earnings, Outlook
• Neutral Sentiment: Tapestry released the earnings call transcript and slides — useful for investors wanting detail on comps, regional trends, and margin assumptions but no new surprises beyond the beat and raised guide. Tapestry (TPR) Q2 2026 Earnings Call Transcript
• Positive Sentiment: Tapestry declared a $0.40 quarterly dividend (record Mar 6, pay Mar 23), providing a modest income element (yield ~1.1%) that can support investor demand. Dividend Announcement / MarketBeat
• Negative Sentiment: Management noted that Coach’s strength offset weakness at other brands (Kate Spade declines were highlighted), which underscores brand concentration risk if Coach momentum slows. Tapestry Boosts Outlook as Coach Sales Surge

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.