Tapestry Reports Strong Q2 Earnings, Raises Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy TPR?
Source: Benzinga
Tapestry Inc. shares rose 5.25% and reached a 52-week high following the release of its Q2 earnings report.
The company reported Q2 revenue of $2.5 billion, a 14% increase year-over-year, surpassing market expectations of $2.32 billion. Additionally, earnings per share reached $2.69, exceeding forecasts of $2.22. Tapestry raised its adjusted earnings per share guidance to between $6.40 and $6.45, and increased its sales forecast from $7.3 billion to $7.75 billion, demonstrating confidence in future performance.
This strong performance reflects Tapestry's successful strategies in cost control and sales growth, particularly among younger consumers, and positions the company favorably for continued growth in the competitive retail landscape.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TPR?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TPR
Wall Street analysts forecast TPR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TPR is 136.57 USD with a low forecast of 120.00 USD and a high forecast of 155.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 143.190
Low
120.00
Averages
136.57
High
155.00
Current: 143.190
Low
120.00
Averages
136.57
High
155.00
About TPR
Tapestry, Inc. is a house of accessories and lifestyle brands. The Company's global house of brands include Coach and kate spade new york. Coach brand is a global fashion house of accessories and lifestyle collections. Kate Spade New York is a global lifestyle brand that designs things for the everyday, delivering seasonal collections of handbags, ready-to-wear, jewelry, footwear, gifts, home decor and more. Its products include women's handbags, women's accessories, men's and other products. Women's accessories include small leather goods which include mini and micro handbags, money pieces, wristlets, pouches and cosmetic cases. Men's includes bag collections, small leather goods, footwear, watches, sunglasses, and ready-to-wear items. Its products are sold to customers through its direct-to-consumer (DTC), wholesale and licensing businesses. Its DTC business includes retail and outlet stores, branded e-commerce sites as well as concession shop-in-shops.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Tapestry's Q2 Performance Boosts FY26 Outlook Amid Strong Coach Sales
- Significant Sales Growth: Tapestry (TPR) exceeded Q2 EPS expectations, raising its FY26 outlook to $6.40-$6.45, reflecting strong brand performance with an 80% year-over-year increase.
- Strong Coach Brand Performance: Coach saw a 25% sales increase in Q2, contributing 14% to Tapestry's total sales, while attracting 2.9 million new customers, highlighting its popularity among Gen Z.
- Massive Market Potential: CEO Joanne Crevoiserat noted that Tapestry targets nearly 2 billion consumers, with 275 million at market entry, currently holding less than 1% market share, indicating substantial growth opportunities ahead.
- Growth Risks and Challenges: Despite Tapestry's recent success, analysts caution that tariffs and brand dilution may hinder future double-digit growth, particularly affecting Kate Spade, and emphasize the need to monitor risks from changing fashion cycles.
See More
Top Performing Large-Cap Stocks Last Week
- Lumentum Earnings Beat: Lumentum Holdings Inc. surged 36.02% this week after reporting second-quarter results that exceeded expectations and providing third-quarter guidance above analyst estimates, thereby boosting investor confidence and significantly driving up the stock price.
- Transportation Stocks Rally: Saia, Inc. jumped 23.07% this week, benefiting from declining oil prices, which led to a strong performance across the transportation sector, indicating optimistic market expectations for transportation demand that could enhance future earnings.
- Westlake Stock Increase: Westlake Corporation saw a 19.27% rise in its stock price this week, reflecting positive market sentiment regarding its business outlook, particularly in the context of declining raw material costs that may improve profitability.
- Market Recovery: The strong performance of these stocks indicates a growing investor confidence in economic recovery, especially amid falling oil prices, which could further drive growth in related industries.
See More
2016 Nostalgia Sparks Retail Revival Potential
- Social Media Surge: Since January 1, user-generated '2016' playlists on Spotify have surged by 790%, indicating a strong nostalgic sentiment among young consumers that could drive sales for brands associated with that era.
- Return to Brick-and-Mortar: Young consumers are rediscovering the joy of in-store shopping, reflecting a longing for the carefree atmosphere of 2016, which may lead to improved performance for retailers.
- Brand Opportunities: Brands like Abercrombie & Fitch could leverage this nostalgia wave to reshape their image, particularly if they successfully distance themselves from past controversies, potentially attracting more young consumers.
- Market Outlook: Retail trends typically last about 18 months, and this nostalgia cycle is expected to persist through the midterm elections this year, possibly extending into next year, providing long-term market opportunities for related brands.
See More
Gen Z's Nostalgia for 2016 and Its Impact on Retail
- Nostalgia Trend Emergence: Gen Z's nostalgia for 2016 has rapidly spread across social media, with Spotify user-generated '2016' playlists soaring by 790% since January 1, indicating a strong yearning for the cultural elements of that time, potentially driving a revival for related brands.
- Return to Brick-and-Mortar: Young consumers are rediscovering the appeal of in-store shopping after years dominated by e-commerce, reflecting a longing for the carefree and familiar comfort of 2016, which could stimulate a retail resurgence.
- Brand Opportunities Arise: Brands like Abercrombie & Fitch and Levi Strauss, which held significant cultural relevance in 2016, may leverage this nostalgia wave to regain market traction, especially as consumers show renewed interest in classic styles.
- Market Strategy Adjustments: As nostalgia rises, brands must adjust their market strategies to align with Gen Z's desire for authenticity and less intentionality, with successful brands likely to harness this emotional connection to reshape their cultural relevance.
See More
US Stocks Plunge as Tech Sector Leads Decline
- Tech Sector Decline: Qualcomm's (QCOM) forecast of weaker-than-expected Q2 revenue led to an over 8% drop in its stock, triggering a sell-off across the tech sector, with the Nasdaq 100 index hitting a 2.5-month low, indicating waning investor confidence in technology stocks.
- Weak Labor Market Signals: Challenger's report revealed a staggering 117.8% year-over-year increase in job cuts for January, totaling 108,435, the highest for January since 2009, while initial jobless claims rose by 22,000 to 231,000, highlighting vulnerabilities in the US labor market that could hinder economic recovery.
- Bitcoin Plunge: Bitcoin (^BTCUSD) plummeted over 12% to a 1.25-year low, reflecting deepening negative momentum in the cryptocurrency market, with approximately $2 billion flowing out of Bitcoin ETFs in the past month, signaling a decline in investor confidence.
- Earnings Season Impact: Despite 150 S&P 500 companies set to report earnings this week, market focus on economic data intensifies, with S&P 500 earnings expected to grow by 8.4% in Q4, yet overall market sentiment remains suppressed by recent economic weakness.
See More
Stocks Shift to Negative Territory for the Year
- Market Performance: The S&P 500 index declined for the third consecutive day, dropping by 1.2%.
- Year-to-Date Status: This decline has pushed the index into negative territory for the year.
See More
Tapestry's Q2 Performance Boosts FY26 Outlook Amid Strong Coach Sales
- Significant Sales Growth: Tapestry (TPR) exceeded Q2 EPS expectations, raising its FY26 outlook to $6.40-$6.45, reflecting strong brand performance with an 80% year-over-year increase.
- Strong Coach Brand Performance: Coach saw a 25% sales increase in Q2, contributing 14% to Tapestry's total sales, while attracting 2.9 million new customers, highlighting its popularity among Gen Z.
- Massive Market Potential: CEO Joanne Crevoiserat noted that Tapestry targets nearly 2 billion consumers, with 275 million at market entry, currently holding less than 1% market share, indicating substantial growth opportunities ahead.
- Growth Risks and Challenges: Despite Tapestry's recent success, analysts caution that tariffs and brand dilution may hinder future double-digit growth, particularly affecting Kate Spade, and emphasize the need to monitor risks from changing fashion cycles.
See More
Top Performing Large-Cap Stocks Last Week
- Lumentum Earnings Beat: Lumentum Holdings Inc. surged 36.02% this week after reporting second-quarter results that exceeded expectations and providing third-quarter guidance above analyst estimates, thereby boosting investor confidence and significantly driving up the stock price.
- Transportation Stocks Rally: Saia, Inc. jumped 23.07% this week, benefiting from declining oil prices, which led to a strong performance across the transportation sector, indicating optimistic market expectations for transportation demand that could enhance future earnings.
- Westlake Stock Increase: Westlake Corporation saw a 19.27% rise in its stock price this week, reflecting positive market sentiment regarding its business outlook, particularly in the context of declining raw material costs that may improve profitability.
- Market Recovery: The strong performance of these stocks indicates a growing investor confidence in economic recovery, especially amid falling oil prices, which could further drive growth in related industries.
See More
2016 Nostalgia Sparks Retail Revival Potential
- Social Media Surge: Since January 1, user-generated '2016' playlists on Spotify have surged by 790%, indicating a strong nostalgic sentiment among young consumers that could drive sales for brands associated with that era.
- Return to Brick-and-Mortar: Young consumers are rediscovering the joy of in-store shopping, reflecting a longing for the carefree atmosphere of 2016, which may lead to improved performance for retailers.
- Brand Opportunities: Brands like Abercrombie & Fitch could leverage this nostalgia wave to reshape their image, particularly if they successfully distance themselves from past controversies, potentially attracting more young consumers.
- Market Outlook: Retail trends typically last about 18 months, and this nostalgia cycle is expected to persist through the midterm elections this year, possibly extending into next year, providing long-term market opportunities for related brands.
See More
Gen Z's Nostalgia for 2016 and Its Impact on Retail
- Nostalgia Trend Emergence: Gen Z's nostalgia for 2016 has rapidly spread across social media, with Spotify user-generated '2016' playlists soaring by 790% since January 1, indicating a strong yearning for the cultural elements of that time, potentially driving a revival for related brands.
- Return to Brick-and-Mortar: Young consumers are rediscovering the appeal of in-store shopping after years dominated by e-commerce, reflecting a longing for the carefree and familiar comfort of 2016, which could stimulate a retail resurgence.
- Brand Opportunities Arise: Brands like Abercrombie & Fitch and Levi Strauss, which held significant cultural relevance in 2016, may leverage this nostalgia wave to regain market traction, especially as consumers show renewed interest in classic styles.
- Market Strategy Adjustments: As nostalgia rises, brands must adjust their market strategies to align with Gen Z's desire for authenticity and less intentionality, with successful brands likely to harness this emotional connection to reshape their cultural relevance.
See More
US Stocks Plunge as Tech Sector Leads Decline
- Tech Sector Decline: Qualcomm's (QCOM) forecast of weaker-than-expected Q2 revenue led to an over 8% drop in its stock, triggering a sell-off across the tech sector, with the Nasdaq 100 index hitting a 2.5-month low, indicating waning investor confidence in technology stocks.
- Weak Labor Market Signals: Challenger's report revealed a staggering 117.8% year-over-year increase in job cuts for January, totaling 108,435, the highest for January since 2009, while initial jobless claims rose by 22,000 to 231,000, highlighting vulnerabilities in the US labor market that could hinder economic recovery.
- Bitcoin Plunge: Bitcoin (^BTCUSD) plummeted over 12% to a 1.25-year low, reflecting deepening negative momentum in the cryptocurrency market, with approximately $2 billion flowing out of Bitcoin ETFs in the past month, signaling a decline in investor confidence.
- Earnings Season Impact: Despite 150 S&P 500 companies set to report earnings this week, market focus on economic data intensifies, with S&P 500 earnings expected to grow by 8.4% in Q4, yet overall market sentiment remains suppressed by recent economic weakness.
See More
Stocks Shift to Negative Territory for the Year
- Market Performance: The S&P 500 index declined for the third consecutive day, dropping by 1.2%.
- Year-to-Date Status: This decline has pushed the index into negative territory for the year.
See More
