Why Is Tapestry (TPR) Stock Down -15.29% Today?
Key Takeaways
- Direction and magnitude: TPR fell 15.29% in morning trading Thursday, last changing hands at $130.24, down $23.50 from Wednesday's close of $153.74.
- Primary catalyst: A fiscal fourth-quarter earnings beat was overshadowed by fiscal 2027 revenue guidance whose midpoint of $8.45 billion landed below analyst expectations.
- Secondary drivers: Continued sales declines at Kate Spade, tariff assumptions embedded in the outlook, and an elevated valuation after a strong run left little room for an in-line forecast.
- Positive details the market largely ignored: Coach revenue rose 15%, full-year revenue increased 14%, and the board approved a 16% dividend increase.
- Broader context: The sell-off was stock-specific and followed a 4.2% decline in the prior session.
- What traders are watching next: Analyst estimate revisions, Coach momentum versus Kate Spade stabilization, tariff and consumer-demand signals, and technical support levels.
Opening Summary
Tapestry, Inc. (TPR), the New York-based house of accessories and lifestyle brands behind Coach and Kate Spade New York, saw its shares plunge Thursday after a quarterly report that beat profit expectations but failed to satisfy investors looking for stronger forward guidance. The stock tumbled 15.29% to $130.24 as of 9:46 a.m. ET, compared with a prior-session close of $153.74. The decline followed the company's fiscal 2026 fourth-quarter release, which showed solid execution at Coach but renewed concerns about slowing growth, persistent Kate Spade weakness, and a valuation that had already priced in outperformance.
Earnings Results and Guidance
The company delivered fourth-quarter net sales of $1.88 billion, up 9% year over year, and adjusted earnings per share of $1.32, up 28% from the prior year and ahead of consensus forecasts. For the full fiscal year, revenue reached $8.0 billion, an increase of 14%, while adjusted EPS rose 38% to $7.05. Coach remained the clear growth engine, with fourth-quarter revenue up 15% and full-year revenue up 24%.
The problem was the outlook. Tapestry initiated fiscal 2027 revenue guidance of $8.4 billion to $8.5 billion, implying mid-single-digit growth and a midpoint of $8.45 billion, slightly below the roughly $8.47 billion analysts had modeled. EPS guidance of $7.80 to $7.90 was largely in line with expectations, and first-quarter EPS guidance of about $1.55 came in above consensus, but the revenue forecast signaled a meaningful deceleration from the double-digit growth of fiscal 2026. The earnings-driven move showed that investors were focused on the growth trajectory rather than the quarterly beat.
Kate Spade Remains the Weak Link
While Coach continued to gain share and expand its handbag average unit retail, Kate Spade remained a drag. Fourth-quarter Kate Spade revenue fell 7% year over year, and full-year brand revenue declined 10%, as the company pulled back on promotions and worked through a strategic reset. The contrast reinforced concerns about Tapestry's reliance on Coach for the majority of growth and profitability.
Tariff considerations also featured in the guidance. The company's fiscal 2027 plan embeds a mid-20% tariff rate on U.S. inventory receipts and assumes a neutral net tariff impact year over year. In the fourth quarter, tariff and duty effects partially offset operational margin gains, and the outlook's modest operating-margin expansion of about 50 basis points left investors questioning how much cost leverage is available if consumer demand softens.
Elevated Expectations and Valuation
The sharp market reaction reflected how much optimism was already embedded in the stock. TPR had rallied powerfully over the past year, reaching a 52-week high above $160 earlier in 2026, before entering Thursday's session with a modest pullback that included a 4.2% decline the prior day. With the shares trading at a rich valuation relative to their historical norm, an in-line-to-lighter revenue forecast and continued Kate Spade softness triggered profit-taking and a sell-the-news response.
Market Context and Trading Activity
The move was primarily company-specific, driven by the earnings release and guidance rather than a broad consumer-discretionary event. Trading was active as investors absorbed the report, and the stock traded just above its morning low of $130.17. The decline pushed shares decisively below the $140 and $150 levels and well off the 52-week high, underscoring the speed with which sentiment shifted following the outlook. The company also announced shareholder-friendly actions, including a 16% dividend increase to an annual rate of $1.85 per share and plans to repurchase approximately $1.35 billion in stock during fiscal 2027, but those steps were not enough to offset the growth concerns.
What Comes Next for TPR
Investors will now watch how analysts adjust full-year estimates and whether the stock can stabilize after the post-earnings reset. The company's fiscal 2027 first-quarter results are scheduled for November 5, 2026, and that update will offer an early read on Coach's momentum, Kate Spade's progress, and the impact of tariffs on margins. Key risks include a slowdown in consumer discretionary spending, potential trade-policy escalation, foreign-exchange swings, and execution at Kate Spade. The path of the stock will likely depend on whether management can sustain Coach's strength while improving the rest of the portfolio against a more uncertain macro backdrop.
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TPR's Stochastic Oscillator is sitting in oversold zone for 18 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
Following a +1.80% 3-day Advance, the price is estimated to grow further. Considering data from situations where TPR advanced for three days, in 231 of 314 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
TPR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on August 13, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TPR as a result. In 51 of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 61%.
The Moving Average Convergence Divergence Histogram (MACD) for TPR turned negative on August 13, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 37 similar instances when the indicator turned negative. In 23 of the 37 cases the stock turned lower in the days that followed. This puts the odds of success at 62%.
TPR moved below its 50-day moving average on August 13, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for TPR crossed bearishly below the 50-day moving average on August 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 13 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 72%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TPR declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 67%.
The Aroon Indicator for TPR entered a downward trend on September 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 11 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 31 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 65 (best 1 - 100 worst), indicating fairly steady price growth. TPR’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 88 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: TPR's P/B Ratio (33.333) is very high in comparison to the industry average of (6.568). P/E Ratio (15.938) is within average values for comparable stocks, (16.753). Projected Growth (PEG Ratio) (1.658) is also within normal values, averaging (0.911). Dividend Yield (0.014) settles around the average of (0.060) among similar stocks. TPR's P/S Ratio (3.043) is slightly higher than the industry average of (1.373).
The Tickeron PE Growth Rating for this company is 99 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a designer of luxury accessories and lifestyle brands
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