Key Stats for Tapestry Stock
- 1-Day Price Change for Tapestry stock: -16%
- Current Share Price: $96
- 52-Week High: $114
- TPR Stock Price Target: $113
What Happened?
Tapestry (TPR) stock plunged nearly 16% on Thursday despite the Coach and Kate Spade parent company reporting fourth-quarter earnings and revenue that topped Wall Street expectations.
It posted adjusted earnings per share of $1.04, beating the $1.02 consensus, while revenue of $1.72 billion exceeded analyst expectations of $1.68 billion.
However, investors focused on Tapestry’s disappointing fiscal 2026 guidance, which was lower than expected due to tariff headwinds.
Tapestry expects full-year earnings of $5.30 to $5.45 per share, falling short of the $5.49 analyst consensus.
The company projects costs from higher duties and tariffs will total $160 million for the coming fiscal year, representing approximately 230 basis points of margin headwind.
CFO Scott Roe highlighted that the earlier-than-expected ending of de minimis exemptions, which previously allowed items worth $800 or less to enter the U.S. duty-free, was a “meaningful factor” contributing to the profit pressures beyond previously anticipated tariff impacts.
See analysts’ growth forecasts and price targets for Tapestry stock (It’s free!) >>>
What the Market Is Telling Us About Tapestry Stock
The market’s harsh reaction to TPR stock reflects concerns that Tapestry’s strong operational momentum may be overshadowed by external tariff pressures that are largely beyond the company’s control.
Despite the guidance disappointment, underlying business trends remain robust, with management noting that sales have actually accelerated into the first quarter of fiscal 2026.
Coach brand continues to drive exceptional performance, with 13% constant currency growth in the fourth quarter and strong customer acquisition of over one million new customers in North America, of which nearly 70% were Gen Z and millennials.
Its ability to grow revenue at strong margins while acquiring younger customers demonstrates the health of its core business model.
However, investors appear focused on the immediate profit impact of tariffs, which disproportionately affects Tapestry given its U.S. business exposure.
Tapestry’s management expressed confidence in its ability to mitigate these impacts over time through supply chain optimization and operational efficiencies.
However, the near-term margin pressure represents a headwind that investors are clearly concerned about, especially after the stock’s impressive 172% year-to-date gain.
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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!