Tapestry Stock Surges on Strong Earnings and Upbeat Outlook
Shares of Tapestry, Inc. (NYSE: TPR), the parent company of iconic brands like Coach and Kate Spade New York, experienced a significant jump of 6.4% in afternoon trading today. This surge follows the release of robust second-quarter fiscal 2026 results that exceeded analyst expectations and a raised full-year outlook.
Record Revenue and Earnings Beat
Tapestry announced record quarterly revenue of $2.5 billion, representing a 14% increase compared to the same period last year. Earnings per share reached $2.69, comfortably surpassing the anticipated $2.19. This strong performance is a notable turnaround from six months prior, when the company experienced a 13.9% stock drop due to a significant miss in profitability.
Increased Investor Confidence: Buybacks and Future Projections
The positive results have fueled increased investor confidence. Tapestry has boosted its planned stock buybacks to approximately $1.2 billion, up from a previous forecast of $1.0 billion, signaling a commitment to returning capital to shareholders. The company also raised its financial outlook for the full fiscal year 2026, projecting improvements in revenue, operating margin, and earnings per share.
A Volatile Year, But a Positive Trend
While Tapestry’s shares have demonstrated volatility over the past year, with 12 instances of moves exceeding 5%, today’s jump suggests the market views this performance as particularly meaningful. Year-to-date, Tapestry is up 17.7%, and the stock has reached a new 52-week high of $151.95 per share. An investment of $1,000 in Tapestry five years ago would now be worth approximately $3,962.
From Past Struggles to Current Success
Just six months ago, Tapestry faced challenges. While revenue beat estimates at $1.72 billion (an 8.3% year-over-year increase), a steep GAAP loss of $2.49 per share disappointed investors. This loss stemmed from a significant contraction in operating margin, which fell to negative 33.9% from a positive 14.8% the previous year. Today’s results demonstrate a clear recovery and a return to profitability.
What Does This Mean for the Luxury Market?
Tapestry’s success highlights the resilience of the luxury goods sector, particularly with brands that can adapt to changing consumer preferences. The company’s focus on Coach and Kate Spade New York, combined with its digital expertise and financial strength, appears to be paying off. The strong performance in China and Europe also contributed to the positive results.
Pro Tip:
Keep a close eye on Tapestry’s operating margin. It’s a key indicator of the company’s financial health and ability to generate profits.
Frequently Asked Questions
Q: What is Tapestry’s stock ticker symbol?
A: TPR
Q: What brands does Tapestry own?
A: Coach and Kate Spade New York.
Q: What was Tapestry’s revenue for the second quarter of fiscal 2026?
A: $2.5 billion.
Q: What is Tapestry’s updated stock buyback plan?
A: Approximately $1.2 billion.
Q: How has Tapestry stock performed over the past year?
A: The stock has been somewhat volatile, but is up 17.7% year-to-date and has reached a new 52-week high.
Want to stay informed about the latest market trends? Subscribe to our newsletter for exclusive insights and analysis.
