Tapestry (NYSE:TPR) Releases Earnings Results

Tapestry (NYSE:TPR) issued its earnings results on Thursday. The luxury accessories retailer reported $2.69 earnings per share for the quarter, topping the consensus estimate of $2.20 by $0.49, FiscalAI reports. The company had revenue of $2.50 billion during the quarter, compared to the consensus estimate of $2.29 billion. Tapestry had a return on equity of 116.42% and a net margin of 3.77%.The company’s revenue was up 14.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $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 Trading Up 11.0%

Shares of Tapestry stock traded up $14.30 on Thursday, hitting $144.22. 4,452,076 shares of the company’s stock traded hands, compared to its average volume of 2,353,607. The company has a debt-to-equity ratio of 5.95, a current ratio of 1.52 and a quick ratio of 0.93. Tapestry has a one year low of $58.39 and a one year high of $145.42. The stock has a market capitalization of $29.51 billion, a PE ratio of 128.93, a price-to-earnings-growth ratio of 2.18 and a beta of 1.63. The firm’s 50-day moving average price is $125.90 and its two-hundred day moving average price is $114.39.

Tapestry News Roundup

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Tapestry beat Q2 estimates — reported $2.69 EPS vs. consensus ~$2.20 and revenue of $2.50B (+14% YoY) vs. ~$2.29B, signaling stronger holiday demand and margin leverage. Tapestry press release
• Positive Sentiment: Management raised FY26 guidance to $6.40–$6.45 EPS and higher revenue guidance (~$7.8B), well above prior consensus, giving investors clearer upside to estimates. Reuters: Tapestry lifts annual forecasts
• Positive Sentiment: Coach (notably the Tabby handbag) drove the outperformance and was called out as the growth engine for the quarter, helping offset softness elsewhere. This brand-level strength is the primary catalyst for the rally. SchaeffersResearch: Coach sales surge
• Positive Sentiment: Street reaction: firms boosted targets (e.g., Evercore ISI raised its price target to $150), supporting further upside from analysts’ upgrades. Evercore raises price target
• Neutral Sentiment: Full Q2 earnings call transcript and company slide deck are available for details on channel, regional and margin drivers for the quarter. Investors can use these to assess sustainability of the beat. Earnings call transcript
• Negative Sentiment: Kate Spade sales declined in the quarter — management noted the Coach strength offset declines at Kate Spade, which remains a watch item for growth consistency across the portfolio. WSJ: Coach sales surge; Kate Spade declines
• Negative Sentiment: Valuation and leverage: TPR’s forward P/E is elevated and the company has meaningful leverage on the balance sheet — investors should weigh growth vs. current valuation and margin sustainability when sizing positions.

Tapestry announced that its Board of Directors has approved a stock repurchase program on Thursday, November 6th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the luxury accessories retailer to buy up to 4.9% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In related news, CFO Scott A. Roe sold 18,794 shares of the firm’s stock in a transaction on Friday, November 21st. The shares were sold at an average price of $104.85, for a total value of $1,970,550.90. Following the completion of the transaction, the chief financial officer owned 148,149 shares of the company’s stock, valued at approximately $15,533,422.65. This trade represents a 11.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Todd Kahn sold 10,344 shares of Tapestry stock in a transaction that occurred on Monday, November 24th. The stock was sold at an average price of $107.00, for a total value of $1,106,808.00. Following the sale, the chief executive officer directly owned 131,815 shares of the company’s stock, valued at approximately $14,104,205. The trade was a 7.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 115,485 shares of company stock valued at $12,034,058 over the last ninety days. Insiders own 1.32% of the company’s stock.

Hedge Funds Weigh In On Tapestry

A number of hedge funds have recently modified their holdings of the business. Woodline Partners LP grew its position in shares of Tapestry by 25.0% in the 1st quarter. Woodline Partners LP now owns 17,490 shares of the luxury accessories retailer’s stock valued at $1,231,000 after buying an additional 3,495 shares during the last quarter. Acadian Asset Management LLC bought a new stake in Tapestry in the first quarter valued at approximately $493,000. Sivia Capital Partners LLC bought a new stake in Tapestry in the second quarter valued at approximately $602,000. Arrowstreet Capital Limited Partnership acquired a new stake in Tapestry during the 2nd quarter valued at approximately $6,307,000. Finally, Brown Advisory Inc. raised its holdings in Tapestry by 13.8% during the 2nd quarter. Brown Advisory Inc. now owns 3,630 shares of the luxury accessories retailer’s stock worth $319,000 after purchasing an additional 439 shares during the last quarter. Institutional investors and hedge funds own 90.77% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages recently weighed in on TPR. Telsey Advisory Group reaffirmed an “outperform” rating and set a $150.00 price objective on shares of Tapestry in a research report on Thursday. Morgan Stanley raised their target price on Tapestry from $124.00 to $126.00 and gave the stock an “overweight” rating in a research report on Friday, November 7th. Barclays increased their price objective on Tapestry from $154.00 to $155.00 and gave the stock an “overweight” rating in a research note on Monday, January 12th. BTIG Research assumed coverage on Tapestry in a report on Tuesday, October 14th. They issued a “buy” rating and a $140.00 target price on the stock. Finally, JPMorgan Chase & Co. increased their price target on shares of Tapestry from $147.00 to $148.00 and gave the stock an “overweight” rating in a research note on Monday, November 17th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $131.05.

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.