Tapestry beats Q2 revenue estimates, hikes FY forecast

Tapestry

05/02/2026 11:54

Overview

Accessories and lifestyle brand's fiscal Q2 revenue grew 14%, beating analyst expectations

Non-GAAP EPS for fiscal Q2 increased 34% yr/yr

Company on track to return $1.5 bln to shareholders in fiscal 2026

Outlook

Tapestry raises fiscal 2026 revenue outlook to over $7.75 bln, up from $7.3 bln

Company expects fiscal 2026 EPS of $6.40 to $6.45, exceeding previous $5.45 to $5.60

Tapestry forecasts fiscal 2026 adjusted free cash flow of $1.5 bln, up from $1.3 bln

Result Drivers

COACH BRAND GROWTH - Coach brand led revenue growth with a 25% increase, contributing significantly to overall performance

OPERATING MARGIN EXPANSION - Operating margin expanded by 620 basis points on a GAAP basis, driven by gross margin improvements and SG&A leverage

AMPLIFY STRATEGY - Amplify strategy enhanced consumer engagement and product innovation, contributing to record results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$2.50 bln
$2.32 bln (16 Analysts)
Q2 EPS
$2.68
Q2 Net Income
$561 mln
Q2 Operating Margin
28.60%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

Wall Street's median 12-month price target for Tapestry Inc is $140.00, about 7.8% above its February 4 closing price of $129.92

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw7v3ztsa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)