Tapestry Shares Plunge 15% as Soft FY27 Guidance Overshadows Strong Q4 Beat

Tapestry reported fiscal fourth-quarter 2026 results that topped estimates across every major metric, yet shares fell roughly 15% on the day, making it the worst performer in the S&P 500, after the company issued a revenue outlook for fiscal 2027 that disappointed investors. Revenue for the quarter ended June 27 came in at $1.9 billion, above the $1.88 billion consensus and up 9% year-over-year. Adjusted EPS of $1.32 beat the $1.28 estimate by a wide margin and rose 28% from the prior year.

Non-GAAP operating income of $362 million surpassed the $340 million estimate by 6.5% and grew 25% year-over-year, while non-GAAP gross margin expanded 180 basis points to 78.1%. Despite those results, Tapestry guided fiscal 2027 revenue to a range of $8.4 billion to $8.5 billion, a figure the market viewed as softer than expected. Shares crossed below their 200-day moving average of $136.61, hitting a session low of $127.78, and had already dropped nearly 11% in pre-market trading before the open.

Unusual put option activity in TPR was flagged by market observers during the session. CEO Joanne Crevoiserat said the fourth quarter outperformance capped a year in which the company meaningfully exceeded expectations and met key financial commitments set at its Investor Day.