TPR US S&P 500Russell 1000 Earnings call
Tapestry, Inc. (TPR) · Q2 2026 results and valuation
Share price: $133.34 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q4 2026 · published 13 Aug 2026 and 7 May 2026
Net income up 1.2% on the previous quarter. Management sounded very upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+1.2%
Net income vs Q1 2026
Outlook given
Net income 347.8M vs 343.8M
Revenue −2.3%
2 · How management spoke
Very upbeat
More upbeat than 92% of company calls
Answers to analysts: very upbeat, in line with the script.
Last call it was different: the answers were less upbeat than the script.
3 · What stood out
Guidance
Full-year revenue guidance is $8.4 billion to $8.5 billion, representing mid-single-digit growth on a nominal and constant currency basis.
Valuation
Is Tapestry, Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-06-27), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 6.3% growth a year (3-year revenue growth), the model's fair value is $157.85 a share — the stock trades 16% below it. Today's price assumes 4.1% growth a year.
Current price
$133.34
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+4.1% for 10 yrs
Fair value / share
$157.85
Buy below
$118.39
Price vs fair value
Undervalued 16%
Price vs buy-below price
Overvalued 13%
Read between the lines
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Guidance
Returning $1.85 per share in dividends and repurchasing roughly $1.35 billion in shares while investing for growth reflects business strength.
Source quote
“Our ability to return significant capital to shareholders while continuing to invest for growth reflects the strength of our business... ...rate of $1.85 per share, and we expect to repurchase approximately $1.35 billion of shares, underscoring our confidence in the future. And now, before turning to the details of our balance sheet and cash flows, I'd like to reiterate our capital allocation priorities, which are unchanged.”
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Figure
Revenue grew 17% on a pro forma constant currency basis to $8 billion, while the operating margin expanded by 340 basis points.
Source quote
“We achieved revenue of $8 billion, growing 17% on a pro forma constant currency basis, expanded operating margin by 340 basis...”
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Fading
North American sales rose 20% and European revenue grew 21% over the prior year, driven by growth in Coach and new customer acquisition among Gen Z.
Source quote
“By region, North American sales rose 20% compared to the prior year, fueled by a 27% increase at Coach with growth... These results reflect strong global momentum. In Europe, revenue grew 21% above last year, driven by strength in our direct business, which was fueled by strong new customer acquisition, particularly among Gen Z.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Coach delivered another strong quarter with constant currency revenue growth of 14% and increasing profitability.”
“North America sales rose 7% compared to the prior year, driven by a 10% increase at Coach, where we continue to drive healthy growth at expanding gross margins.”
“The New York family, including Brooklyn, Empire and Chelsea, along with the Tabby and Teri families, drove strong Gen Z acquisition and reinforced Coach's leadership in its core category with...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-27)
| Metric | Q2 2026period end 2026-06-27 | Q1 2026period end 2026-03-28 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.88B | 1.92B | −2.3% | 1.72B | +8.9% |
| Gross profit | 1.56B | 1.48B | +5.9% | 1.32B | +18.9% |
| Operating income | 442.3M | 427.5M | +3.5% | -583.5M | Turned profit |
| Net income | 347.8M | 343.8M | +1.2% | -517.3M | Turned profit |
| EPS | 1.69 | 1.65 | +2.4% | -2.30 | Turned profit |
| P/E today 16.1 | 20.1 | 42.3 | −22.2 | 106.2 | −86.1 |
Topics
Most discussed now
- Scott will continue with Tapestry's financial results, capital allocation priorities and its outlook going forward.
- These efforts continue to compound, extending Tapestry's competitive advantage while driving durable growth and long-term shareholder value.
- From this stronger foundation, Tapestry enters fiscal 2027 confident in its ability to deliver mid-single-digit annual revenue growth…
- New Timing of things like production and whatnot can be a little bit different on a quarter-by-quarter basis.
- In a world where consumer expectations, technology and competitive dynamics continue to evolve, the combination of Tapestry's direct…
Faded since Q1 2026
- Dropped Those are not material to it at this point in time, but Tapestry is seeing some modest cost pressure there.
- Fading This continues to be a key driver of Tapestry's growth as engaging consumers earlier supports higher repeat purchasing and lifetime...
- Fading In Q3, Tapestry's revenue, operating income, earnings and free cash flow outperformed its expectations, each growing double digits versus…
- Fading On top of Tapestry sees 1 to 2 points from new door expansions in its LRP.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Regulation FD disclosure; Other events · SEC 8-K