# Tapestry (TPR) Sector: Luxury handbags and accessories | Field | Value | |---|---| | Price | $133.34 | | Market cap | $26B | | Intrinsic value source | Analysts | | Data as of | 2026-11-12 | | Next earnings | 2027-02-04 (estimate) | Analysts: Bullish Picks: Research only Discount category: Far above intrinsic value ## In short Investors pay a premium for the fast growth of Coach, and only Coach growth with margin gains that survive tariffs and a weaker Kate Spade through fiscal 2027 can earn this price. ## Themes and gap - Themes: Weak consumer (weak-consumer), Tariffs and trade (trade-tariffs) - Gap type: Can close (closable) - Why: The Q2 fiscal 2027 report, expected in early February 2027, and the Q3 report show whether Coach growth and margin gains hold while Kate Spade shrinks. ## About Tapestry, Inc. (Tapestry) is a New York company with two brands, Coach and Kate Spade New York. It sells handbags, small leather goods, accessories and other products through its own stores and websites, wholesale customers and licensing. Net sales were $1,894 million in Q1 of fiscal 2027, which ended on September 26, 2026. Coach had sales of $1,661 million and Kate Spade had $233 million. North America had $1,110 million and Greater China had $385 million. Tapestry sold its Stuart Weitzman business on August 4, 2025. Joanne Crevoiserat is Chief Executive Officer. The fiscal year of Tapestry ends on the Saturday nearest June 30. The common stock trades on the NYSE in US dollars. Tapestry files 10-K and 10-Q reports. ## Thesis The price of Tapestry depends on whether Coach can keep growing quickly while the gains in margin hold against tariffs and a weak Kate Spade. In Q1 of fiscal 2027, pro forma revenue rose 12%, Coach rose 16% and Kate Spade fell 10%. Non-GAAP operating margin was 23.2%, which is 230 basis points more than a year before. Management raised its outlook for fiscal 2027 to earnings per share of $8.25 to $8.35. For the price to hold or rise, four things must be true. Coach must keep its growth, led by Greater China, Europe and handbags with higher prices. Gross margin must keep its gains while the tariff rate stays in the outlook. Kate Spade must stop losing sales or stay small in the total. Tapestry must keep buying back shares, with $1.7 billion planned for fiscal 2027. The Q2 report, expected in early February 2027, and the Q3 report in spring 2027 are the next tests. If Coach growth slows, or if tariffs rise, the price can fall. ## Checkpoints - Feb 4, 2027 (estimate): Q2 fiscal 2027 results. Status: Pending. Watch: Revenue growth of 5% to 6% in constant currency and earnings per share near $3.05, as guided, and this passes; a miss on either fails. - May 2027 (estimate): Q3 fiscal 2027 results. Status: Pending. Watch: Coach keeps double-digit growth and the outlook for fiscal 2027 stays at or above $8.25, and this passes; slower Coach growth or a cut to the outlook fails. ## Balance sheet - Cash: $782M - Debt: $2.6B - Net debt: $1.8B - Debt due within 12 months: $597M At September 26, 2026, Tapestry had cash and cash equivalents of $599 million and short-term investments of $183 million, which is $782 million in all. It had current debt of $597 million and long-term debt of $1,960 million, which is $2,557 million. Net debt was $1,775 million, and the leverage ratio of gross debt to adjusted EBITDA was 1.1 times. Inventory was $1.06 billion. Cash flow from operating activities was $197 million in Q1, and adjusted free cash flow was $56 million. Tapestry now plans to return about $2.0 billion to shareholders in fiscal 2027. As of 2026-09-26. Sources: - https://www.sec.gov/Archives/edgar/data/1116132/000114036126042034/ef20084882_ex99-1.htm - https://www.sec.gov/Archives/edgar/data/1116132/000111613226000031/tpr-20260926.htm ## Dividends - Dividend yield: 1.2% (last 12 months, at the current price) - Paid per share, last 12 months: $1.663 (4 payments) - Current annual rate: $1.852 ($0.463 x 4 a year) - Payout ratio: 22% of the earnings of the last fiscal year (the year ended 2026-06-27) - Latest ex-dividend date: 2026-09-04, $0.463 per share - Growth from 2020 to 2025: 34.7% a year - Growth from 2015 to 2025: 1.0% a year Dividends per share by year: 2016: $1.352, 2017: $1.352, 2018: $1.352, 2019: $1.352, 2020: $0.338, 2021: $0.50, 2022: $1.10, 2023: $1.30, 2024: $1.40, 2025: $1.50. Source: company filings and market data, read on 2026-11-13. ## Recent events - 2026-11-05: Tapestry reported Q1 fiscal 2027 results and raised its outlook. Net sales rose 11% to $1,894 million, and non-GAAP earnings per share rose 32% to $1.82. It repurchased 4.6 million shares for $600 million in the quarter and now plans $1.7 billion of repurchases in fiscal 2027. The board declared a quarterly dividend of $0.4625 per share, payable on December 21, 2026. - 2026-11-05: Tapestry said in its Form 10-Q that it collected substantially all of its refund for tariffs paid under the IEEPA, which the Supreme Court found invalid on February 20, 2026. The refund, with interest and related items, added $13 million to operating income in Q1 of fiscal 2027. - 2026-08-13: Tapestry reported fourth quarter results for fiscal 2026, which ended on June 27, 2026, and filed its Form 10-K. - 2026-07-24: The temporary 10% global tariff under Section 122 expired. On July 23, 2026, the US government announced new tariffs of 10% to 12.5% under Section 301 on most imports from certain countries, effective when the Section 122 tariffs expired. ## Latest news and filings - Last earnings: 2026-11-05 (8-K: https://www.sec.gov/Archives/edgar/data/1116132/000114036126042034/) - Next earnings: 2027-02-04 (expected; the company has not confirmed it) | Filed | Form | Headline | Period end | XBRL document | Link | | --- | --- | --- | --- | --- | --- | | 2026-11-05 | 10-Q | Quarterly report for the period ended Sep 26, 2026 | 2026-09-26 | tpr-20260926 | https://www.sec.gov/Archives/edgar/data/1116132/000111613226000031/tpr-20260926.htm | | 2026-11-05 | 8-K | Earnings release | | | https://www.sec.gov/Archives/edgar/data/1116132/000114036126042034/ | | 2026-08-13 | 10-K | Annual report for the period ended Jun 27, 2026 | 2026-06-27 | tpr-20260627 | https://www.sec.gov/Archives/edgar/data/1116132/000111613226000018/tpr-20260627.htm | | 2026-08-13 | 8-K | Earnings release | | | https://www.sec.gov/Archives/edgar/data/1116132/000114036126032624/ | | 2026-05-07 | 10-Q | Quarterly report for the period ended Mar 28, 2026 | 2026-03-28 | tpr-20260328 | https://www.sec.gov/Archives/edgar/data/1116132/000111613226000011/tpr-20260328.htm | | 2026-05-07 | 8-K | Earnings release | | | https://www.sec.gov/Archives/edgar/data/1116132/000114036126019428/ | | 2026-04-06 | 8-K | Change of directors or officers | | | https://www.sec.gov/Archives/edgar/data/1116132/000114036126013349/ef20069891_8k.htm | | 2026-02-05 | 10-Q | Quarterly report for the period ended Dec 27, 2025 | 2025-12-27 | tpr-20251227 | https://www.sec.gov/Archives/edgar/data/1116132/000111613226000005/tpr-20251227.htm | | 2026-02-05 | 8-K | Earnings release | | | https://www.sec.gov/Archives/edgar/data/1116132/000114036126003783/ | | 2025-11-14 | 8-K | Shareholder vote results | | | https://www.sec.gov/Archives/edgar/data/1116132/000114036125042320/ef20058940_8k.htm | Every filing on SEC EDGAR (CIK 1116132): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001116132&type=&dateb=&owner=include&count=40 ## Risks - High: Trade policy can raise costs. Most of the products that Tapestry sells in the US are imported from countries with tariffs. The 10-Q says that the outlook for future trade policy remains uncertain, and the guidance has a low-to-mid-20% tariff rate on US inventory receipts. - Medium: Kate Spade is shrinking. Its sales fell 10% in Q1 of fiscal 2027 to $233 million, while Coach grew 16%. - Medium: Growth depends on China. Greater China sales rose 43% to $385 million in Q1 of fiscal 2027, and the region is now a large part of the growth. - Medium: Consumer demand can weaken. Tapestry sells discretionary products, and its guidance assumes no material worsening of inflation or consumer confidence. - Low: The conflict in the Middle East can raise transport and energy costs. Tapestry has no directly operated stores there, and the region was less than 1% of net sales in fiscal 2026. ## Links - Page: https://picks.utilarium.app/company/TPR/ - History of changes: https://picks.utilarium.app/company/TPR/history/ - JSON with full history: https://picks.utilarium.app/data/company/TPR.json > Picks is a personal record of stock picks. It gives general opinions about stocks, including a "Top pick" label. They are not tailored to your needs, goals or risk tolerance. Kevin is not a registered adviser and relies on the general-advice exemption in Canadian securities law (NI 31-103 s.8.25). Do your own research, or ask a registered adviser. Kevin may hold any stock on this site. Prices, intrinsic values and ratings can be delayed or wrong; check the original source. Full disclaimer: /disclaimer/.