Key Takeaways for Tapestry Stock as of August 2026
- Q4 Beat Across the Board: Tapestry posted Q4 revenue of $1.88B, roughly in line with the Street’s $1.87B estimate, but Adjusted EPS of $1.32 topped forecasts by 3.41% and EBITDA margin hit 25.88%, beating the Street’s 20.45% call by 543bps.
- FY27 Guide: Tapestry guided FY27 revenue to $8.4B-$8.5B on mid-single-digit growth and EPS of $7.80-$7.90, low double-digit growth, against a mid-20s% tariff assumption on US imports.
- International Reacceleration: Coach’s constant currency revenue rose 14% in Q4, with Greater China surging 30% and Europe climbing 25%, both well ahead of the 10% gain in North America.
- Two Years Ahead: CEO Joanne Crevoiserat said Tapestry hit its 3-year Investor Day targets on revenue, margin and EPS two years early, the higher base FY27 guidance now builds from.
Tapestry stock’s Q4 EBITDA margin beat by more than 500 basis points while revenue barely cleared the Street line. See what is driving that gap on TIKR for free →
Tapestry Stock Rides Coach’s China Surge Past a Historic Investor Day Target
Tapestry (TPR) closed fiscal 2026 by beating its own long-term targets two years early, a fact that framed an August 13 earnings call thick with numbers. Fourth-quarter Adjusted EPS came in at $1.32, up 26.92% year over year and 3.41% ahead of the Street’s $1.28 estimate. Revenue reached $1,876.60 million, essentially matching the $1,872.34 million Street forecast, but the real surprise sat further down the P&L.
EBITDA hit $485.60 million against a Street estimate of $382.82 million, a beat of 26.85% that pushed the EBITDA margin to 25.88%, 543 basis points above expectations and 663 basis points above last year’s 19.25%. EBIT reached $362.00 million, up 25.43%, though the 19.29% EBIT margin slipped 310 basis points from Q3’s 22.39% as the sequential comparison caught up with the quarter’s promotional discipline.
That margin strength traces to geography. Coach’s constant currency revenue climbed 14%, with North America up 10%, Greater China up 30% and Europe up 25%. Gross margin reached 78.1%, up 180 basis points, as a 170bps operational gain and a 60bps lift from the Stuart Weitzman divestiture outran a 60bps tariff headwind.
CEO Joanne Crevoiserat framed the quarter as validation of a multiyear strategy on Tapestry’s Q4 earnings call: “We meaningfully exceeded expectations, achieving the 3-year revenue, operating margin and earnings per share commitments we established at our Investor Day 2 years ahead of plan.” Full-year revenue reached $8 billion, up 17% constant currency, operating margin expanded 340 basis points to over 23%, and EPS climbed 38% to $7.05.
Guidance for fiscal 2027 pulls growth back toward earth. Tapestry expects revenue of $8.4 billion to $8.5 billion, mid-single-digit growth, and EPS of $7.80 to $7.90, low double-digit growth, with Coach guided to high single-digit growth against a high single-digit decline at Kate Spade. CFO Scott Roe embedded a mid-20s percent tariff rate on US imports and called the net P&L effect roughly neutral versus last year.
Management backed that guide with cash. The board raised the dividend 16% to an annualized $1.85 per share and authorized another $1.35 billion in buybacks for fiscal 2027, on top of the $1.7 billion already returned in fiscal 2026 at an average price of $118. Net debt sits at $1.2 billion, a leverage ratio of 1.1 times EBITDA, more than a full turn below the company’s long-term ceiling.
Tapestry stock now carries a record quarter into a guide built on a much bigger base, with Kate Spade still the one brand pulling the other way.
Coach just grew 30% in China and 25% in Europe while Kate Spade slid into a planned decline. Compare both brands side by side on TIKR for free →
TIKR Prices Tapestry Stock at $186, Betting on Coach’s Global Reach
TIKR’s mid-case model values Tapestry stock at $186 by June 2031, implying 45% total return from the current price of $128, or 8% annualized over 4.9 years.
That return profile places Tapestry stock among names the market still prices for moderate, single-digit compounding rather than the double-digit earnings growth management just guided to for fiscal 2027.
The target rests on the same mechanics visible in the quarter. Coach’s international growth in China and Europe, paired with a gross margin that expanded 180 basis points even against tariff headwinds, gives the model room to keep pricing in margin durability. Buybacks running at $1.35 billion a year against a leverage ratio of 1.1 times further compress the share count backing that upside.
TIKR’s model puts Tapestry stock’s climb to $186 on a nearly five-year clock. Pull the full assumptions behind that target on TIKR for free →
Should You Invest in Tapestry, Inc.?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
