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Tapestry (TPR)
NYSE:TPR
Earnings Data
Report Date
May 07, 2026Before Open (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
1.28Last Year’s EPS
1.03Same Quarter Last Year
Moderate Buy
Based on 15 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive: management reported a record quarter with robust top- and bottom-line growth, material margin expansion, aggressive customer acquisition (notably Gen Z), raised full-year guidance, and increased shareholder returns. Key risks include a still-challenged Kate Spade (near-term revenue declines and margin pressure from tariffs), tariff-related gross margin headwinds and regional softness in Japan. On balance, the highlights (record growth, margin expansion, raised guidance, strong cash generation and buyback program) materially outweigh the lowlights.Company Guidance
Record Quarterly Financial Performance
Q2 pro forma revenue grew 18% year-over-year; adjusted EPS was $2.69, up 34% versus prior year; adjusted operating margin expanded by 390 basis points. Management called this a record quarter and raised full-year guidance.
Coach Outperformance Driving Top Line
Coach revenue rose 25% in the quarter and management expects high‑teens percentage growth for Coach for fiscal 2026; Coach delivered double-digit growth across North America (+27%), Greater China (+37%), and Europe (+26%).
Gross Margin Strength and Operational Improvement
Q2 gross margin was 75.5%, +110 basis points versus prior year, driven by ~250 basis points of operational expansion plus a 50 basis point benefit from Stuart Weitzman divestiture; company raised full‑year gross margin outlook to ~+20 basis points, saying operational actions and AUR improvements will offset tariff headwinds.
Customer Acquisition and Gen Z Momentum
Tapestry acquired over 3.7 million new customers in the quarter (2.9 million for Coach), with management highlighting strong Gen Z recruitment as a driver of future repeat purchases and lifetime value.
Direct-to-Consumer and Channel Performance
Direct-to-consumer sales increased 17% year-over-year; digital grew ~20% and global brick-and-mortar mid-teens, with all channels at improving profitability.
Raised Full-Year Guidance and Cash Return Plans
Company raised fiscal 2026 revenue guide to over $7.75 billion (pro forma, ~15% nominal / 14% constant currency) and EPS to $6.40–$6.45 (>$6.40, >25% growth). Management expects to return ~100% of adjusted free cash flow (~$1.5B) to shareholders via dividends and buybacks, increasing buybacks to $1.2B for the year.
Strong Cash Generation and Balance Sheet Metrics
Q2 adjusted free cash flow was an inflow of $1.0 billion; cash & investments ~ $1.1 billion, total borrowings $2.4 billion, net debt ~$1.3 billion; gross debt / adjusted EBITDA leverage ~1.2x (well below long-term target).
Strategic Investments and Brand Building
Marketing spend increased ~40% year-over-year with a shift to top-of-funnel brand-building (marketing ~11% of sales current, guided toward ~12%), new product innovation (e.g., Tabby, New York family, Terry), regional collaborations (Coach x Clot) and immersive retail concepts contributing to outperformance.
TPR Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TPR Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 05, 2026 | $129.92 | $143.19 | +10.21% |
Nov 06, 2025 | $108.93 | $98.47 | -9.61% |
Aug 14, 2025 | $112.71 | $95.00 | -15.71% |
May 08, 2025 | $73.88 | $76.64 | +3.73% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Tapestry (TPR) report earnings?
Tapestry (TPR) is schdueled to report earning on May 07, 2026, Before Open (Confirmed).
What is Tapestry (TPR) earnings time?
Tapestry (TPR) earnings time is at May 07, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TPR EPS forecast?
TPR EPS forecast for the fiscal quarter 2026 (Q3) is 1.28.
