Investing
Tapestry (TPR) Stock Jumps on Q1 Beat and Raised Outlook
Tapestry stock rose 9.9% after first-quarter sales grew 11% to $1.89 billion and the Coach owner raised its full-year revenue and earnings outlook.
Tapestry (NYSE: TPR) shares were up 9.9% in early trading on November 5, 2026, after the owner of Coach and Kate Spade New York reported fiscal first-quarter results ahead of its own forecasts. Net sales rose 11% to $1,894 million, and the company raised its full-year outlook.
What Tapestry reported
| Metric | This period | A year earlier | Change |
|---|---|---|---|
| Net sales | $1,894M | $1,705M | +11% |
| Gross margin | 78.6% | 76.3% | +230 bps |
| Operating margin | 22.4% | 19.3% | +310 bps |
| Diluted EPS | $1.76 | $1.28 | +38% |
| Adjusted diluted EPS | $1.82 | $1.38 | +32% |
EPS is earnings per share. A basis point (bp) is one hundredth of a percentage point. Adjusted EPS strips out items the company treats as one-offs, here $0.06 per share of distribution network charges. Coach sales grew 16% to $1,661 million, while Kate Spade fell 10% to $233 million. By region, Greater China jumped 43%.
Tapestry raised its fiscal 2027 guidance, meaning its own forecast. Revenue is now expected at $8.5 billion to $8.6 billion, up from $8.4 billion to $8.5 billion. Adjusted EPS guidance rose to $8.25 to $8.35 from $7.80 to $7.90, and expected operating margin expansion doubled to about 100 bps. Planned share buybacks rose by $350 million to $1.7 billion, lifting total expected returns to shareholders to $2.0 billion.
Why the stock rose 9.9%
The gain was roughly three and a half times the size of a typical day's swing for the stock. Two details stand out. First, Tapestry beat its own guidance on revenue, gross margin, operating margin and EPS. Second, it lifted its full-year EPS range by $0.45 at both ends, a larger increase than the beat on the quarter alone, while also committing more cash to buybacks.
What to watch next
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Second-quarter results, scheduled for Thursday, February 4, 2027.
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Whether Q2 lands near guidance of about $3.05 EPS and 5% to 6% constant-currency revenue growth.
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Whether Kate Spade's 10% sales decline narrows.
FAQ
How much dividend does Tapestry pay?
The board declared a quarterly dividend of $0.4625 per share, payable December 21, 2026 to shareholders of record on December 4, 2026. Tapestry expects $1.85 per share for fiscal 2027.
What brands does Tapestry own?
Tapestry now consists of Coach and Kate Spade New York. Its pro forma growth figure of 12% strips out prior-year sales of the Stuart Weitzman business so the two years compare like for like.
Sources
This article is for information only and is not investment advice.