Tapestry Slides Nearly 11% as Soft FY27 Revenue Outlook Overshadows Strong Q4 Beat

Tapestry reported fiscal fourth-quarter revenue of $1.9 billion, up 9% year-over-year and above the roughly $1.88 billion consensus estimate, while adjusted EPS of $1.32 beat the $1.28 estimate by a wide margin, rising 28% from a year earlier. Non-GAAP operating income reached $362 million against a $340 million estimate, a 25% gain, and non-GAAP gross margin expanded 180 basis points to 78.1%. For the full fiscal year 2026, Tapestry delivered $8.0 billion in revenue, up 14%, with adjusted EPS of $7.05, up 38%, and operating margin of 23.4%, a 340 basis-point improvement.

Coach was the standout brand, growing 23% on a constant-currency basis for the year, while Kate Spade revenue fell 11%. Despite the broad beat, shares tumbled as much as 10.9% in premarket trading and ended the session as the worst performer in the S&P 500, with investors focusing on fiscal 2027 guidance that disappointed. Tapestry guided FY27 revenue to $8.4 billion to $8.5 billion, a midpoint of $8.45 billion that came in just below the analyst consensus of $8.47 billion, implying mid-single-digit growth.

EPS guidance of $7.80 to $7.90 was roughly in line with consensus. The board approved a 16% dividend increase to an annual rate of $1.85 per share. The market reaction reflected concern that Tapestry's growth trajectory, built heavily on Coach's momentum, may be moderating, with Kate Spade's continued weakness a lingering drag on the broader portfolio.