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what it is
Tapestry sells luxury handbags, shoes, and accessories through Coach, Kate Spade, and Stuart Weitzman.
how it gets paid
Last year Tapestry made $7.0B in revenue. Coach was the main engine at $5.6B, or 80% of sales.
why it's growing
Revenue grew 5.1% last year. Gross margin at 75.8% matters most because it shows this company still has pricing power in a consumer market that usually punishes hesitation.
what just happened
Revenue jumped to $4.2B, with EPS at $3.93 and gross margin at 75.8%.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
55/100 earnings predictability — expect surprises
25.2x trailing p/e — priced about right
1.2% dividend yield — cash in your pocket every quarter
44.0% return on capital — every dollar works hard here
xvary composite: 66/100 — average
What they do
Tapestry sells luxury handbags, shoes, and accessories through Coach, Kate Spade, and Stuart Weitzman.
Coach is the machine. It drove 79.9% of fiscal 2025 sales, or about $5.6 billion of Tapestry's $7.0 billion. Brand concentration → one label does most of the work → so what: when you walk into a Tapestry store, you're mostly paying for a name people already know and will keep buying.
How they make money
$7.0B
annual revenue · their business grew +5.1% last year
Coach
$5.6B
Kate Spade
$1.2B
Stuart Weitzman
$0.2B
The products that matter
flagship handbag and accessories brand
Coach
driving the fiscal 2026 raise
management lifted full-year sales guidance to about $7.3B because Coach is now expected to grow in the low double digits. that's the brand carrying the story right now.
core driver
fashion and accessories label
Kate Spade New York
part of a $7.0B portfolio
the exact revenue split is not shown on this page, which tells you something by itself: investors care far more about group earnings and Coach momentum than a clean brand breakout.
supporting brand
footwear, fragrance, eyewear, jewelry
licensed and adjacent categories
built inside $7.0B sales
these categories matter because a fashion house needs more than one item to support $7.0B in annual revenue. they diversify the basket, even if the current narrative is mostly handbags.
mix support
Key numbers
44.0%
return on capital
Return on capital → profit earned on money invested → so what: Tapestry turns capital into earnings at a rate most retailers would envy.
25.2x
trailing p/e
P/E → price versus last year's earnings → so what: you are not buying this cheap, you are buying it because the business is still working.
$1.0B
buyback plan
Buyback → company repurchases its own stock → so what: management raised fiscal 2026 buybacks by 25%, which supports per-share earnings.
16.8%
net margin
Net margin → profit kept from each sales dollar → so what: Tapestry keeps about 17 cents of every dollar after expenses.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 40 / 100
- long-term debt $2.4B (8% of capital)
- net profit margin 16.8% — keeps 17 cents of every dollar in revenue
- return on equity 34% — $0.34 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in TPR 3 years ago → it's now worth $35,110.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Revenue jumped to $4.2B, with EPS at $3.93 and gross margin at 75.8%.
The quarter was strong on both sales and profit. Revenue rose 68% vs. prior year, and management was upbeat enough to raise its fiscal 2026 outlook.
$4.2B
revenue
$3.93
eps
75.8%
gross margin
the number that mattered
Gross margin at 75.8% matters most because it shows this company still has pricing power in a consumer market that usually punishes hesitation.
-
management is a bit more upbeat about tapestry, inc.’s near-term prospects.
-
indeed, in early november, leadership raised its fiscal 2026 outlook for the fashion house behind the coach and kate spade brands. (year ends saturday closest to june 30th.) earnings are now seen landing somewhere between $5.45 and $5.60 a share, up 7%–10% from fiscal 2025’s $5.10 tally and nicely above the company’s previous $5.30–$5.45 target range and the 4%–7% bottom-line growth that it implied.full-year sales should now come in around $7.3 billion, some $100 million or so higher than previously anticipated.
-
the upward revision reflects a rosier outlook for the core coach label.specifically, global sales of coach-branded merchandise, including handbags and footwear, are now seen rising ‘‘low double digits’’ on a percentage basis, versus the company’s initial ‘‘high single-digit’’ call. divvying up net income among fewerthan-previously-anticipated shares should also give the headline earnings a nice incremental boost.
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to that end, the company recently increased its target allocation for share buybacks in fiscal 2026 to $1 billion, up 25% from $800 million previously.the company primarily sources its products from manufacturing partners in four countries—vietnam, cambodia, the philippines, and india. it is, thus, now facing significant duties on the goods that it imports (from those nations) for the u.s. market. to wit, leadership previously warned that the higher costs associated with cross-border sourcing could amount to $160 million in fiscal 2026 alone.
-
a better representation of tapestry’s potential may be on display in fiscal 2027.
source: company earnings report, 2026
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What could go wrong
the #1 risk is Coach cooling off after carrying the fiscal 2026 guidance raise.
high
Coach momentum slows
the upgraded outlook leans on Coach growing in the low double digits. if that slips, the whole $7.3B sales setup starts looking generous.
impact: the recent rerating was built on better brand execution, so a miss here would hit both earnings expectations and the multiple.
med
discretionary spending rolls over
this is still a $7.0B discretionary goods business. handbags and accessories are easier to postpone than groceries or utilities.
impact: weaker traffic usually shows up in promotions, and promotions are how a 15.9% net margin stops looking special.
med
the stock already priced in a lot
the share price moved from $35 to $131 inside the last 52 weeks. after that kind of run, merely good results do less work.
impact: even a clean quarter can disappoint if investors were paying for another guidance raise instead of a plain beat.
all $7.0B of revenue comes from consumer discretionary spending, and the current bull case leans hard on one brand doing more than its share of the work.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next report on may 14, 2026
you want to see whether the stronger fiscal 2026 outlook survives first contact with the next quarter.
trend
Coach growth versus the rest of the house
if Coach keeps outrunning the portfolio, the stock stays a momentum story. if not, investors start asking harder questions.
metric
net margin after a 22.4% quarter
last quarter was strong. the next test is whether profitability settles closer to that level or slips back toward the 15.9% full-year figure.
risk
how much help buybacks are giving EPS
repurchases are good support, but if per-share growth starts outrunning operating growth by too much, you will want to know why.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they still like the setup.
risk profile
average
stability score 3 — not a bunker stock, not chaos either. you own a normal amount of equity risk for a consumer brand name.
chart momentum
below average
technical score 4 — after a big move, the chart says near-term upside is less automatic than it looked a few months ago.
earnings predictability
55 / 100
that score sits near the middle. translation: results are good enough to trust, but not steady enough to stop paying attention.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 494 buyers vs. 407 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$93
$194
$129
current price
$144
target midpoint · +12% from current · 3-5yr high: $194
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