Tapestry Posts Upbeat Quarter, Boosts Outlook as Institutional Stakes Shift
Tapestry surpassed quarterly financial expectations, raised its fiscal 2027 guidance, and maintained its quarterly dividend, while institutional investors and company executives adjusted their equity holdings.
Institutional investors have recently adjusted their positions in luxury goods group Tapestry, Inc. Jefferies Financial Group Inc. cut its holding by 87.8% during the third quarter, offloading 614,023 shares to leave 85,041 shares valued at $9,783,000. Filings also showed third-quarter portfolio reductions by Candriam S.C.A., which decreased its stake by 53.8% to 85,527 shares, and Pictet Asset Management Holding SA, which trimmed its position by 11.1% to 755,036 shares. Overall, institutional investors own 90.77% of the firm's stock.
Executive transactions also appeared in regulatory filings. On Monday, November 9th, CEO Todd Kahn sold 30,000 shares at an average price of $135.28, leaving him with 92,368 direct shares. Insider David Howard also parted with 11,188 shares on the same date at an average price of $133.68. These moves follow earlier sales by corporate executives, including CEO Joanne C. Crevoiserat selling 27,761 shares on Wednesday, August 19th under a Rule 10b5-1 plan, and insider Denise Kulikowsky divesting 5,810 shares on Wednesday, September 9th.
The equity updates follow strong operational numbers reported on Thursday, November 5th for the first quarter of fiscal 2027. Tapestry generated adjusted earnings of $1.82 per share, beating consensus analyst forecasts of $1.56 per share. Revenue rose 11.1% from the previous year to $1.89 billion, coming in ahead of analyst expectations of $1.85 billion. Growth was propelled by the Coach line, which generated $1.66 billion in revenue, up 16% year over year, while Kate Spade revenues fell 10% to $233 million.
International markets contributed substantially to the quarterly gain, with revenues in Greater China jumping 39% on a pro forma constant-currency basis, while Europe climbed 22% and Other Asia advanced 23%. Supported by these figures, management lifted full-year fiscal 2027 revenue guidance to between $8.5 billion and $8.6 billion and adjusted earnings estimates to a range of $8.25 to $8.35 per share.
Shareholder distributions continue alongside the updated outlook. The board declared a quarterly dividend of $0.4625 per share, scheduled to be paid on Monday, December 21st to shareholders of record as of Friday, December 4th. Tapestry returned around $700 million to investors in the quarter, including $600 million in share repurchases, and raised its fiscal 2027 buyback target to $1.7 billion.