The Investor
13 Aug 2026, 14:39
Tapestry (TPR) Falls 15.6% Despite Strong Q4 as FY2027 Outlook Disappoints
Tapestry (NYSE: TPR) shares are down 15.6% after the luxury fashion company reported strong fiscal fourth-quarter results but issued a more moderate growth outlook for fiscal 2027.
Fourth-quarter revenue rose 9% year over year to $1.88 billion, while pro forma sales excluding Stuart Weitzman increased 12%. Non-GAAP EPS climbed 28% to $1.32, and non-GAAP operating margin expanded 250 basis points to 19.3%.
Coach remained the company's main growth engine, with Q4 revenue rising 15%, including particularly strong growth in Greater China. However, Kate Spade remained a weak spot, with quarterly revenue falling 7%.
Why Is TPR Stock Down?
The selloff appears primarily tied to expectations for slower growth ahead. Tapestry forecasts fiscal 2027 revenue of $8.4 billion to $8.5 billion, representing only mid-single-digit growth, while EPS is expected at $7.80 to $7.90, representing low-double-digit growth. For Q1, the company expects high-single-digit revenue growth and EPS of approximately $1.55.
The sharp reaction suggests investors had priced in stronger momentum following Coach's exceptional fiscal 2026 performance. With Coach growth likely normalizing and Kate Spade still contracting, the FY2027 outlook appears to have fallen short of elevated market expectations despite another strong quarter.
Tapestry (NYSE: TPR) shares are down 15.6% after the luxury fashion company reported strong fiscal fourth-quarter results but issued a more moderate growth outlook for fiscal 2027.
Fourth-quarter revenue rose 9% year over year to $1.88 billion, while pro forma sales excluding Stuart Weitzman increased 12%. Non-GAAP EPS climbed 28% to $1.32, and non-GAAP operating margin expanded 250 basis points to 19.3%.
Coach remained the company's main growth engine, with Q4 revenue rising 15%, including particularly strong growth in Greater China. However, Kate Spade remained a weak spot, with quarterly revenue falling 7%.
Why Is TPR Stock Down?
The selloff appears primarily tied to expectations for slower growth ahead. Tapestry forecasts fiscal 2027 revenue of $8.4 billion to $8.5 billion, representing only mid-single-digit growth, while EPS is expected at $7.80 to $7.90, representing low-double-digit growth. For Q1, the company expects high-single-digit revenue growth and EPS of approximately $1.55.
The sharp reaction suggests investors had priced in stronger momentum following Coach's exceptional fiscal 2026 performance. With Coach growth likely normalizing and Kate Spade still contracting, the FY2027 outlook appears to have fallen short of elevated market expectations despite another strong quarter.
