Tapestry (NYSE:TPR) Shares Gap Down – Time to Sell?

Shares of Tapestry, Inc. (NYSE:TPR) gapped down prior to trading on Thursday . The stock had previously closed at $153.74, but opened at $132.70. Tapestry shares last traded at $129.8250, with a volume of 2,090,104 shares trading hands.

Key Headlines Impacting Tapestry

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Tapestry reported fiscal fourth-quarter EPS of $1.32, above the $1.28 consensus estimate, while revenue of $1.88 billion also topped expectations. Revenue increased 8.9% year over year, and earnings rose from $1.04 per share in the prior-year quarter. Tapestry fiscal 2026 fourth-quarter and full-year results
• Positive Sentiment: Coach continued to drive growth, supported by younger shoppers, higher average unit retail prices, unit expansion and international growth. Management said the brand’s momentum could remain durable through fiscal 2027, although growth may become more measured in the second half. Coach growth durability
• Positive Sentiment: The company raised its quarterly dividend 15.6% to $0.4625 per share, payable September 21 to shareholders of record September 4. Tapestry also plans approximately $1.7 billion in shareholder returns, supporting the stock’s income and capital-return appeal. Fiscal 2027 outlook and shareholder returns
• Neutral Sentiment: Fiscal 2027 EPS guidance of $7.80 to $7.90 is broadly in line with the roughly $7.82 analyst consensus, suggesting continued profit growth but limited upside relative to expectations. Tapestry earnings estimate beat
• Negative Sentiment: Management projected fiscal 2027 revenue of $8.4 billion to $8.5 billion, slightly below the $8.5 billion consensus. Investors viewed the outlook as disappointing after the quarterly beat, particularly because Kate Spade’s recovery is taking longer and tariff pressure remains a risk. Tapestry forecasts weak annual sales

Analyst Ratings Changes

Several research firms have recently commented on TPR. Telsey Advisory Group upped their price target on Tapestry from $160.00 to $175.00 and gave the stock an “outperform” rating in a research note on Thursday, August 6th. JPMorgan Chase & Co. lifted their price objective on shares of Tapestry from $205.00 to $211.00 and gave the company an “overweight” rating in a research report on Tuesday, August 4th. Morgan Stanley dropped their price objective on shares of Tapestry from $164.00 to $159.00 and set an “overweight” rating on the stock in a research note on Friday. Zacks Research downgraded shares of Tapestry from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, July 22nd. Finally, Raymond James Financial restated an “outperform” rating and issued a $165.00 target price on shares of Tapestry in a research note on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $175.12.

Tapestry Trading Up 0.6%

The firm has a market cap of $26.08 billion, a price-to-earnings ratio of 17.71, a PEG ratio of 1.16 and a beta of 1.43. The business has a fifty day moving average of $146.48 and a two-hundred day moving average of $144.63. The company has a debt-to-equity ratio of 3.44, a quick ratio of 1.27 and a current ratio of 1.75.

Tapestry (NYSE:TPR) last issued its quarterly earnings data on Thursday, August 13th. The luxury accessories retailer reported $1.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.28 by $0.04. The firm had revenue of $1.88 billion during the quarter, compared to analysts’ expectations of $1.87 billion. Tapestry had a return on equity of 254.95% and a net margin of 19.09%.Tapestry’s revenue was up 8.9% on a year-over-year basis. During the same period in the previous year, the firm posted $1.04 earnings per share. Tapestry has set its FY 2027 guidance at 7.800-7.900 EPS. As a group, equities analysts expect that Tapestry, Inc. will post 7.83 earnings per share for the current fiscal year.

Tapestry Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 21st. Investors of record on Friday, September 4th will be given a $0.4625 dividend. The ex-dividend date is Friday, September 4th. This represents a $1.85 annualized dividend and a dividend yield of 1.4%. This is a boost from Tapestry’s previous quarterly dividend of $0.40. Tapestry’s payout ratio is presently 51.28%.

Insider Buying and Selling

In related news, CEO Todd Kahn sold 19,557 shares of the stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $140.02, for a total value of $2,738,371.14. Following the sale, the chief executive officer directly owned 123,258 shares of the company’s stock, valued at approximately $17,258,585.16. This represents a 13.69% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 1.32% of the company’s stock.

Institutional Trading of Tapestry

Several institutional investors and hedge funds have recently modified their holdings of TPR. Eurizon Capital SGR S.p.A. acquired a new stake in shares of Tapestry during the fourth quarter valued at $8,109,000. Norges Bank acquired a new position in Tapestry in the 4th quarter valued at about $345,349,000. Keystone Investors PTE Ltd. raised its stake in Tapestry by 17.4% in the 4th quarter. Keystone Investors PTE Ltd. now owns 62,622 shares of the luxury accessories retailer’s stock valued at $8,001,000 after purchasing an additional 9,303 shares during the last quarter. SEB Asset Management AB purchased a new position in Tapestry in the 1st quarter valued at about $59,525,000. Finally, North Dakota State Investment Board purchased a new position in Tapestry in the 4th quarter valued at about $2,417,000. Hedge funds and other institutional investors own 90.77% of the company’s stock.

About Tapestry

Tapestry, Inc is a New York City–based house of fashion brands that designs, produces and distributes a range of accessible luxury and lifestyle products. The company manages a portfolio led by Coach, along with Kate Spade New York and Stuart Weitzman, each offering distinct product lines that include handbags and leather goods, footwear, ready-to-wear apparel, accessories, small leather goods, jewelry and lifestyle items. Tapestry’s operations encompass product design, marketing, wholesale partnerships, retail store operations and digital commerce.

Historically, the Coach brand traces its roots to a leather workshop in New York dating to the mid-20th century.