Tapestry falls amid delayed Kate Spade profitability, reaffirmed annual forecasts

Tapestry

10/09/2025 16:38

**  Shares of Coach handbag maker Tapestry TPR.N down 2.4% at $102.70

** Co reaffirms fiscal 2026 outlook, expects Kate Spade brand to return to profitable topline growth and accelerate to mid-single-digit revenue growth in fiscal 2027

** Co doubling down on weaker-than-expected outlook and it not expecting Kate Spade brand to return to profitability until 2027 could be driving shares down, according to eMarketer analyst Rachel Wolff

** Co in August said it was trying to reset the brand for long term growth

** Morningstar analyst David Swartz says TPR is "very overvalued," adding that annual outlook was not expected to change as it was given recently

** Tapestry also announces new $3 billion share repurchase authorization, sees EPS growth of low double-digits in fiscal 2027 and fiscal 2028 and revenue growth of mid-single digits annually in same period

** Stock has risen ~57% YTD, including session moves

 (Reporting by Neil J Kanatt in Bengaluru)

 ((Neil.JKanatt@thomsonreuters.com;))