Tapestry Inc

Movado Group reported strong fiscal second-quarter results, with sales rising 4.9% to $169.8 million and diluted earnings per share increasing to $0.54 from $0.23. Adjusted operating income more than doubled to $15.1 million, driven by broad-based growth across U.S. and international markets, product launches, pricing actions, and lower promotions. Gross margin reached 59.4%, helped by $3.2 million in IEEPA duty refunds, but management expects second-half gross margin to be 55%–56% as those benefits fade. The company anticipates mid-single-digit sales growth for the remainder of fiscal 2027 and will no longer provide an annual outlook. Movado also plans to expand its partnership with Tapestry, launching Kate Spade watches next fiscal year.

Tapestry announced a 16% increase to its quarterly dividend. The new quarterly dividend of $0.4625 per share points to an anticipated annual rate of $1.85 per share. The company also reported the completion of a $1.1 billion share repurchase program. Tapestry reported full year 2026 net income of $1.5 billion, with basic earnings per share from continuing operations of $7.49.

Tapestry declared a quarterly dividend of $0.4625 per share, a 15.6% increase from the prior dividend of $0.4000. The dividend is payable September 21 to shareholders of record on September 4, with an ex-dividend date of September 4. The forward yield is 1.41%.

Higher-income Americans are becoming increasingly important to apparel and footwear sales as widening economic inequality produces sharp differences in shopping frequency, price sensitivity, and technology adoption, according to Bernstein analyst Aneesha Sherman. Consumers in the highest income quintile spend 3.4 times more on apparel than those in the lowest quintile, while the top 40% of earners generate roughly 60% of total spending in the category. The findings were based on a November 2025 survey of 3,750 U.S. consumers and demographic data covering thousands of retail locations. Affluent shoppers purchase clothing more frequently and across a broader range of companies, with consumers earning over $100,000 buying from an average of 22 of the 54 brands and retailers surveyed during 2025, compared with 15 among those earning less than $50,000. Nearly 90% of respondents earning above $100,000 said they would pay full price for an item they wanted, versus about 70% of consumers earning below $50,000. Inflation has reinforced the divide, as affluent households were more likely to spend additional money as prices increased, while lower-income consumers cut purchase volumes and allocated more of their budgets to food, housing, and other necessities. Technology could widen the gap further, with nearly three in four higher-income consumers using artificial intelligence services, compared with about half of lower-income shoppers. Bernstein rated On Holding Outperform with a $70 price target, Tapestry Outperform with a $180 target, and TJX Companies Outperform with a $175 target, citing their exposure to affluent customers.

Tapestry's fair value is estimated at $160.21, about 12% above the recent share price of $140.73, according to a Simply Wall St analysis. The valuation narrative is driven by expectations that ongoing investments in digital infrastructure, omnichannel capabilities, and data-driven customer engagement will enable margin expansion and direct-to-consumer growth. However, the outlook still depends on successful execution at Kate Spade following an $850 million impairment and on managing tariff headwinds that pressure profitability. A separate discounted cash flow model suggests a fair value of $148.97, indicating mild undervaluation of about 5.5%.

Tapestry, Inc. shares have broken through heavy resistance near the $145 level, signaling a strong technical breakout and renewed investor momentum. The New York-based luxury house, with a $28 billion market capitalization and brands including Coach, Kate Spade, and Stuart Weitzman, is benefiting from a high-margin leather goods business and expanding its Gen Z-focused loyalty app ecosystem. The company is also leveraging its AI platform, Mira, to enhance operational efficiency and scale its global footprint. Following a quarterly earnings beat and upward guidance revision, the stock has entered a bullish staircase formation with consistent higher highs and higher lows, and Barchart shows a 48% Buy overall technical opinion. Analysts see potential for at least 10% additional upside in the intermediate term if momentum continues.

Tapestry CEO Joanne Crevoiserat said the Coach brand's heritage, inspired by the leather of a baseball glove, has been key to reviving the business. Speaking at the 2026 Cannes Lions International Festival of Creativity, Crevoiserat explained that Coach's glove-tanned leather was inspired by a baseball glove, with the patina improving over time. She emphasized that being a genuine, crafted-to-last house of leather has built credibility over generations. The company aims to make this heritage relevant for modern consumers through self-expression, store experiences, and innovations like the AI gift concierge at Kate Spade.

Tapestry CEO Joanne Crevoiserat said that 25 million women in the markets the company serves will turn 18 each year for the next decade, calling it a tremendous opportunity for the Coach and Kate Spade owner. She noted that a Gen Z consumer gives the brand about 60 seconds upon entering a store to decide if it is for them. Tapestry's recent fiscal third quarter net sales rose 21% to $1.9 billion, driven by a 31% surge in Coach revenue to $1.7 billion, while adjusted earnings per share climbed 62% to $1.66. The company raised its full-year outlook and its stock is up 78% over the past year.

Tapestry, Inc. shares have surged 16.8% year-to-date, outperforming the S&P 500 Index's 9.2% gain over the same period. The luxury lifestyle company, which owns Coach, Kate Spade, and Stuart Weitzman, has a market capitalization of $30.1 billion and is currently trading 7.9% below its 52-week high of $161.97 reached on February 26. Over the past 52 weeks, Tapestry's stock has rallied 76.9%, far exceeding the S&P 500's 24% return, driven by strong fiscal third-quarter 2026 results that saw revenue rise 21% year-over-year to $1.9 billion and non-GAAP earnings per share jump 62% to $1.66. The company raised its full-year fiscal 2026 guidance, now expecting revenue of $7.95 billion and earnings per share of $6.95. Analysts hold a consensus Strong Buy rating on the stock with a mean price target of $166.21, implying an 11.4% upside from current levels.

Tapestry, Inc. raised its fiscal full-year 2026 guidance following an eleventh consecutive earnings beat in its fiscal third quarter. The company reported earnings of $1.66 per share, surpassing the Zacks Consensus Estimate of $1.31, while net sales jumped 21% to $1.92 billion. Gross margin improved to 76.9%, driven by operational gains and the sale of Stuart Weitzman, partially offset by tariff and duty impacts. Tapestry now expects full-year revenue of around $7.95 billion and earnings of approximately $6.95 per share, up from prior guidance of $6.40 to $6.45. The company also plans to return $1.6 billion to shareholders this year through dividends and a $1.3 billion buyback program.

Tapestry reported first-quarter revenues of $1.92 billion, up 21.2% year on year and beating analyst estimates by 7.6%, making it the standout performer among 15 tracked consumer discretionary apparel and accessories stocks. The group as a whole exceeded revenue consensus by 1.6% and issued in-line guidance for the next quarter, with share prices up an average 4.9% since reporting. Movado posted the best stock reaction, rising 25.4% after revenues of $142.4 million beat by 5.4%, while Under Armour was the weakest, with flat revenues of $1.17 billion and a 6.7% share decline following disappointing EPS guidance. Stitch Fix and G-III also beat estimates, with Stitch Fix reporting $340.3 million in revenue and G-III reporting $536 million, though G-III's revenue fell 8.2% year on year.

Zacks Investment Research highlights five retail stocks with strong online presence as retail sales continue to surge on robust demand. Retail sales rose 0.9% sequentially in May, the fourth straight monthly increase, driven by aggressive household spending on motor vehicles. The selected stocks are Casey's General Stores, Five Below, Starbucks, Tapestry, and The TJX Companies, all of which have seen positive earnings estimate revisions in the past 60 days and carry a Zacks Rank of 1 (Strong Buy) or 2 (Buy). Casey's General Stores has an expected earnings growth rate of 9.1% for the current year, while Five Below's expected growth rate is 30.4%. Starbucks' expected earnings growth rate for next year is 12.7%, Tapestry's expected growth rate for the current year is 36.3%, and The TJX Companies' expected growth rate for the current year is 9.3%.

Jefferies analysts suggest that strong wealth creation from the SpaceX IPO and surging Asian equity markets could lift demand for luxury brands. South Korea's Kospi Index has jumped 75% in the second quarter, the S&P 500 is up 15%, and Japan's Nikkei Index has risen 37%, while the SpaceX IPO has further buoyed sentiment among wealthy consumers. The firm highlights potential beneficiaries including LVMH, Moncler, Kering, Hermès, Chanel, Richemont, Prada Group, Burberry, Brunello Cucinelli, Ferragamo, Versace, Valentino, Tod's, Dolce & Gabbana, Armani, Ralph Lauren, Tapestry, Capri Holdings, On Holding, and Christian Louboutin. The Amundi Global Luxury UCITS ETF has gained 10% over the past six weeks.

Zacks Investment Research identified four stocks that passed its growth-at-a-reasonable-price screen: Tapestry, Vertiv, Celestica, and Cencora. The screen required a Zacks Rank of 1 or 2, five-year historical and projected EPS growth of 10% to 25%, return on equity above the industry average, and price-to-earnings and price-to-book ratios below the industry average. Tapestry raised its fiscal 2026 revenue outlook to roughly $7.95 billion and saw its consensus earnings estimate rise 7.8% to $6.95 per share over the past 60 days. Vertiv lifted its 2026 guidance to net sales of $13.5 to $14 billion and adjusted EPS of $6.30 to $6.40, with its consensus estimate up 5.6% to $6.36. Celestica raised its full-year 2026 outlook to $19.0 billion in revenue and $10.15 in adjusted EPS, and its consensus estimate climbed 13.6% to $10.16. Cencora revised its fiscal 2026 adjusted EPS guidance to $17.70 to $17.90, and its consensus estimate edged up 0.8% to $17.72.