Tapestry's Fiscal 2026 Performance Hits Targets Early Despite Stock Decline
Tapestry (NYSE: TPR), the parent company of Coach and Kate Spade, closed its fiscal year 2026 with strong results, including $8 billion in revenue—a 14% increase from the prior year—and GAAP diluted earnings per share of $7.27. The fourth-quarter report also showed a beat on both revenue ($1.88 billion) and adjusted EPS ($1.32), driven largely by Coach's international expansion, particularly in Europe (up 22%) and Greater China (up 33%). Despite these results, the stock remains below its summer high due to an initial sell-off following a conservative outlook that failed to exceed elevated expectations. The company’s turnaround is supported by three key pillars: reconnection with younger consumers through Coach's product strategy; robust shareholder returns via dividends and buybacks totaling $1.7 billion in fiscal 2026, with more planned for 2027; and a now-clean balance sheet after shedding debt from an abandoned acquisition. While Kate Spade continues to underperform and tariff pressures remain concerns, the long-term momentum of Coach is seen as central to Tapestry’s growth story. Analysts are divided on whether the stock's pullback reflects overcorrecting expectations or deeper skepticism about future performance. The company has guided for fiscal 2027 revenue between $8.4 billion and $8.5 billion, signaling mid-single-digit growth.
Tickers: $TPR
Topics: buybacks consumer_discretionary dividend_increase retail