Tapestry (NYSE:TPR) Shares Gap Up After Better-Than-Expected Earnings

Tapestry, Inc. (NYSE:TPR)’s share price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $125.31, but opened at $140.00. Tapestry shares last traded at $136.0650, with a volume of 909,363 shares.

The luxury accessories retailer reported $1.82 earnings per share for the quarter, beating analysts’ consensus estimates of $1.56 by $0.26. The business had revenue of $1.89 billion during the quarter, compared to analyst estimates of $1.85 billion. Tapestry had a return on equity of 254.95% and a net margin of 19.09%. Tapestry’s revenue for the quarter was up 11.1% on a year-over-year basis. During the same quarter last year, the company posted $1.38 EPS.

Tapestry Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, September 21st. Shareholders of record on Friday, September 4th were paid a dividend of $0.4625 per share. This is an increase from Tapestry’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend was Friday, September 4th. This represents a $1.85 dividend on an annualized basis and a dividend yield of 1.4%. Tapestry’s dividend payout ratio (DPR) is 25.38%.

Tapestry News Summary

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Fiscal Q1 adjusted EPS was $1.82, beating the $1.56 consensus estimate and rising from $1.38 a year earlier. Revenue increased 11.1% year over year to $1.89 billion, also ahead of expectations. Earnings report
• Positive Sentiment: Management raised its fiscal 2027 full-year outlook, citing revenue, margin and earnings growth ahead of expectations and strength across regions. Higher guidance signals confidence that momentum can continue. Company results and outlook
• Positive Sentiment: Reports attribute Coach’s strength to younger shoppers, including Gen Z, embracing its bags. That demand supports the company’s growth outlook. Reuters article
• Positive Sentiment: Tapestry also declared a dividend, adding a shareholder-return element to the upbeat results and guidance. Dividend and outlook update

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the company. Sanford C. Bernstein reiterated a “market perform” rating and set a $185.00 price target (up from $180.00) on shares of Tapestry in a report on Friday, August 14th. Wells Fargo & Company lowered their price objective on Tapestry from $160.00 to $150.00 and set an “overweight” rating on the stock in a report on Thursday, October 29th. BTIG Research lowered their price target on Tapestry from $180.00 to $175.00 and set a “buy” rating on the stock in a report on Friday, August 14th. Daiwa Securities Group upgraded shares of Tapestry from a “hold” rating to a “strong-buy” rating in a research note on Monday, August 17th. Finally, Weiss Ratings upgraded shares of Tapestry from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, October 16th. Three analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $170.00.

Insider Buying and Selling at Tapestry

In related news, insider Denise Kulikowsky sold 5,810 shares of the company’s stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $115.38, for a total transaction of $670,357.80. Following the transaction, the insider owned 21,136 shares in the company, valued at $2,438,671.68. This represents a 21.56% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Joanne C. Crevoiserat sold 27,761 shares of the stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $132.47, for a total transaction of $3,677,499.67. Following the sale, the chief executive officer directly owned 666,149 shares in the company, valued at approximately $88,244,758.03. This represents a 4.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.28% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Tapestry

A number of large investors have recently modified their holdings of TPR. Cetera Trust Company N.A acquired a new position in Tapestry during the second quarter valued at approximately $26,000. Keating Financial Advisory Services Inc. acquired a new position in shares of Tapestry during the 2nd quarter worth $31,000. Virtus Advisers LLC bought a new stake in shares of Tapestry during the 2nd quarter worth $32,000. GK Wealth Management LLC bought a new stake in shares of Tapestry during the 3rd quarter worth $28,000. Finally, Signature Equity Partners LLC boosted its stake in Tapestry by 1,516.7% in the third quarter. Signature Equity Partners LLC now owns 291 shares of the luxury accessories retailer’s stock valued at $34,000 after buying an additional 273 shares in the last quarter. 90.77% of the stock is currently owned by institutional investors and hedge funds.

Tapestry Stock Up 6.4%

The firm has a 50 day moving average of $117.13 and a two-hundred day moving average of $136.92. The firm has a market capitalization of $26.59 billion, a price-to-earnings ratio of 18.36, a price-to-earnings-growth ratio of 1.53 and a beta of 1.44. The company has a quick ratio of 1.25, a current ratio of 1.75 and a debt-to-equity ratio of 3.44.

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.