Tapestry Reports Strong Q3 Earnings, Raises Annual Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
0mins
Source: Benzinga
Tapestry Inc. shares fell 3.45% and hit a 20-day low amid broader market declines, with the Nasdaq-100 down 0.79% and the S&P 500 down 0.48%.
Despite the stock's decline, Tapestry reported strong third-quarter earnings, with revenue reaching $1.92 billion, exceeding expectations. The company raised its fiscal 2026 revenue forecast to approximately $7.95 billion, reflecting confidence in future growth driven by strong demand for its products, particularly among younger consumers. Analysts have noted a generally optimistic outlook, with many recommending to 'buy the dip' following the earnings report.
The strong earnings performance and raised guidance indicate Tapestry's resilience in a challenging market, suggesting potential for recovery as the company continues to attract new customers and enhance its brand appeal.
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Analyst Views on TPR
Wall Street analysts forecast TPR stock price to fall
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 145.390
Low
120.00
Averages
136.57
High
155.00
Current: 145.390
Low
120.00
Averages
136.57
High
155.00
About TPR
Tapestry, Inc. is a house of accessories and lifestyle brands. The Company's global house of brands include Coach and kate spade new york. Coach brand is a global fashion house of accessories and lifestyle collections. Kate Spade New York is a global lifestyle brand that designs things for the everyday, delivering seasonal collections of handbags, ready-to-wear, jewelry, footwear, gifts, home decor and more. Its products include women's handbags, women's accessories, men's and other products. Women's accessories include small leather goods which include mini and micro handbags, money pieces, wristlets, pouches and cosmetic cases. Men's includes bag collections, small leather goods, footwear, watches, sunglasses, and ready-to-wear items. Its products are sold to customers through its direct-to-consumer (DTC), wholesale and licensing businesses. Its DTC business includes retail and outlet stores, branded e-commerce sites as well as concession shop-in-shops.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Brand Performance Issues: The Athleta brand has seen quarterly sales decline for several consecutive quarters, while Old Navy's sales growth has slowed, indicating challenges in brand appeal for Gap, which exacerbates pressures during its turnaround process.
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- Luxury Market Pressure: Amid a potential recession, luxury brands like Tapestry may experience sales slowdowns, particularly with the underperformance of the Kate Spade brand, indicating the vulnerability of high-end consumer goods during economic downturns.
- Consumer Sentiment Impact: Deteriorating consumer sentiment could lead to a recession in 2026, significantly pressuring non-essential retailers like Best Buy and AutoNation, reflecting the profound influence of economic emotions on consumer behavior.
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- Reduced U.S. Dependence: While the U.S. is less dependent on Middle Eastern oil than in the 1970s, high oil prices could still indirectly affect the U.S. economy, as rising global oil prices may dampen consumer confidence and spending.
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- Luxury Sales Pressure: With an uncertain economic outlook, luxury brands like Tapestry may experience a slowdown in sales, particularly given poor performance in the Japanese market, which could foreshadow similar challenges in other markets as the geopolitical situation persists.
See More
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- Strong Performance in China: Tapestry's sales in China have increased at a double-digit rate over the past two years, despite a weak handbag market overall, suggesting that the company is successfully building brand loyalty among young consumers.
- Impressive Financial Results: In Q1, Tapestry reported a pro forma sales growth of 25%, with both gross and operating margins expanding, while its non-GAAP EPS of $1.66 exceeded the consensus estimate of $1.60 and was significantly higher than last year's $1.03.
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