Key Highlights

  • Shares fell 16.03% in pre-market trading to $128.96, down from a prior close of $153.57
  • Fiscal fourth quarter adjusted EPS of $1.32 beat the $1.28 estimate, with Revenue of $1.89 billion in line with expectations
  • Fiscal 2027 revenue guidance of $8.4 billion to $8.5 billion came in slightly below the $8.46 billion to $8.51 billion expected range
  • Coach Brand revenue grew 15% in constant currency, while Kate Spade declined against a difficult comparison
  • 52-week range stands at $92.62 to $164.80, with a market Capitalization of $31.038 billion

Shares Slide on Muted Guidance Despite a Beat-and-Raise Quarter

Tapestry (NYSE:TPR) shares were trading at $128.96 in pre-market activity on August 13, 2026, down 16.03% from the prior close of $153.57. The decline follows fiscal fourth quarter 2026 results in which adjusted Earnings Per Share of $1.32 beat the $1.28 estimate and revenue of $1.89 billion came in line with expectations, but muted fiscal 2027 revenue guidance and persistent weakness at Kate Spade overshadowed the headline beat.

Coach delivered a strong quarter with 14% constant-currency revenue growth, mid-single-digit AUR growth, and double-digit expansion in Greater China, up 30%, and Europe, up 25%, reinforcing its path toward becoming a $10 billion brand, while welcoming 11 million new customers led by Generation Z. Kate Spade showed gradual progress with 2 million new customers for the year and continued Investment in creative leadership, but revenue declined against a difficult comparison, dragging on the overall guidance.

What Tapestry Does

Tapestry is a New York based house of accessible luxury accessories and lifestyle brands, operating globally through its Coach, Kate Spade, and Stuart Weitzman segments. Founded in 1941 and rebranded as Tapestry in 2017, the company designs and sells premium handbags, small leather goods, footwear, ready-to-wear apparel, jewelry, watches, eyewear, and fragrances across the United States, Japan, Greater China, and other international markets.

Fiscal 2027 Outlook Weighs on Shares

For fiscal 2027, Tapestry guided revenue of $8.4 billion to $8.5 billion, mid-single-digit growth, slightly below the $8.46 billion to $8.51 billion range analysts had expected, and adjusted EPS guidance of $5.30 to $5.35, in line with the double-digit growth analysts were seeking, roughly flat to slightly down from fiscal 2026's $5.55. The company plans to invest more in growth, including capital expenditures and cloud costs of approximately $300 million, up 17% from the prior year, mostly internationally, and continue AI and data capability investments, while maintaining disciplined capital allocation, with a 16% Dividend increase to $1.85 annualized and $1.35 billion in planned share repurchases for fiscal 2027.

What It Means for Investors

Tapestry's steep pre-market decline reflects investor disappointment with muted fiscal 2027 guidance and ongoing Kate Spade weakness, even as the company delivered an earnings beat and continued to show strong momentum at its flagship Coach brand. With Coach on pace toward its $10 billion ambition and Kate Spade still working through a turnaround, the divergence between the two brands will likely remain the central storyline for the stock in the coming year.