Tapestry (NYSE:TPR – Get Free Report) released its earnings results on Thursday. The luxury accessories retailer reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.56 by $0.26, FiscalAI reports. Tapestry had a return on equity of 254.95% and a net margin of 19.09%. The company had revenue of $1.89 billion for the quarter, compared to the consensus estimate of $1.85 billion. During the same period in the previous year, the business earned $1.38 earnings per share. Tapestry’s quarterly revenue was up 11.1% compared to the same quarter last year.
Here are the key takeaways from Tapestry’s conference call:
- Tapestry reported a strong first quarter, with pro forma revenue up 12% to $1.9 billion, operating margin expanding 230 basis points to more than 23%, and EPS rising 32% to $1.82. The company raised its fiscal 2027 outlook to $8.5–$8.6 billion in revenue and $8.25–$8.35 in EPS.
- Coach continued to drive growth, with constant-currency revenue up 16% and gains across regions, including 41% in Greater China and 7% in North America. Management cited customer acquisition, strength in core handbags, and disciplined pricing as key drivers, while highlighting further opportunity in footwear and international markets.
- Kate Spade revenue declined 10%, and Tapestry expects a high-single-digit decline for the brand in fiscal 2027, with a modest operating loss. Gross margin expanded 190 basis points, but management said the turnaround will depend on sharper product and marketing execution and renewed customer acquisition.
- Tapestry expects to return approximately $2 billion to shareholders in fiscal 2027, including $1.7 billion in share repurchases and an annual dividend of $1.85 per share. Management said strong cash flow supports these returns while allowing continued investment in the brands and business.
Tapestry Price Performance
TPR traded down $1.14 during trading on Friday, hitting $133.03. 3,332,569 shares of the company traded hands, compared to its average volume of 2,427,080. The company has a current ratio of 1.75, a quick ratio of 1.25 and a debt-to-equity ratio of 3.44. The company has a market cap of $26.52 billion, a PE ratio of 17.12, a P/E/G ratio of 1.53 and a beta of 1.44. The stock’s 50-day simple moving average is $117.41 and its two-hundred day simple moving average is $136.95. Tapestry has a 1 year low of $99.00 and a 1 year high of $164.80.
Tapestry Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Monday, December 21st. Investors of record on Friday, December 4th will be paid a dividend of $0.4625 per share. This represents a $1.85 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, December 4th. Tapestry’s dividend payout ratio (DPR) is presently 25.38%.
Key Stories Impacting Tapestry
Here are the key news stories impacting Tapestry this week:
- Positive Sentiment: Tapestry reported adjusted EPS of $1.82, above the $1.56 consensus, and revenue of $1.89 billion, topping the $1.85 billion estimate and rising 11.1% year over year. Strong Coach demand, international growth, and improved margins helped drive the beat. Article: TPR Q1 Earnings Beat Estimate on Coach Gains, FY27 Outlook Raised
- Positive Sentiment: The company raised its fiscal 2027 outlook after a stronger-than-expected start to the year. Reports also highlighted Coach’s appeal among younger shoppers and management’s view that U.S. consumers remain resilient heading into the holiday season. Article: Tapestry lifts annual forecasts as young shoppers snap up Coach bags
- Positive Sentiment: Barclays raised its price target to $195 from $185 and maintained an Overweight rating; Wells Fargo raised its target to $155 from $150, also keeping an Overweight rating. These moves signal continued analyst confidence following the results. Barclays rating information Wells Fargo rating information
- Neutral Sentiment: Tapestry declared a quarterly dividend of $0.4625 per share, payable December 21 to shareholders of record December 4. The annualized dividend is $1.85 per share, a yield of about 1.4%. Article: Tapestry reports fiscal 2027 first-quarter results and raises outlook
Analyst Ratings Changes
Several research analysts have recently commented on TPR shares. Raymond James Financial decreased their price objective on Tapestry from $165.00 to $140.00 and set an “outperform” rating on the stock in a research note on Friday, October 16th. Robert W. Baird reduced their target price on shares of Tapestry from $165.00 to $150.00 and set an “outperform” rating for the company in a report on Tuesday, October 27th. Jefferies Financial Group reduced their target price on shares of Tapestry from $144.00 to $125.00 and set a “hold” rating for the company in a report on Wednesday, October 21st. Evercore decreased their target price on shares of Tapestry from $175.00 to $160.00 and set an “outperform” rating on the stock in a research note on Friday, August 14th. Finally, BTIG Research lowered their price target on shares of Tapestry from $180.00 to $175.00 and set a “buy” rating on the stock in a report on Friday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, Tapestry presently has a consensus rating of “Moderate Buy” and a consensus price target of $167.72.
Check Out Our Latest Research Report on TPR
Insider Buying and Selling at Tapestry
In other Tapestry news, insider Denise Kulikowsky sold 5,810 shares of the business’s stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $115.38, for a total value of $670,357.80. Following the sale, the insider owned 21,136 shares in the company, valued at $2,438,671.68. The trade was a 21.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Joanne Crevoiserat sold 27,761 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $132.47, for a total transaction of $3,677,499.67. Following the transaction, the chief executive officer directly owned 666,149 shares of the company’s stock, valued at $88,244,758.03. This trade represents a 4.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.28% of the stock is owned by insiders.
About Tapestry
Tapestry, Inc is a global house of modern luxury accessories and lifestyle brands. The company’s portfolio includes Coach, known for handbags, leather goods, footwear, apparel and accessories; Kate Spade New York, which offers handbags, accessories, apparel, footwear, home products and related lifestyle merchandise; and Stuart Weitzman, a designer and manufacturer of women’s footwear.
Tapestry sells its products through company-operated stores, outlet locations, e-commerce websites, wholesale partners and select distributors.
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