New York, February 6, 2026, 10:12 EST — Regular session
- Tapestry shares climbed roughly 3% in morning trading, building on gains following the company’s boost to its annual targets
- Coach revenue surged 25% during the holiday quarter, while Kate Spade sales dropped 14%
- Tariff expenses and increased marketing outlays are under the spotlight again, as the March dividend record date approaches
Tapestry shares climbed 3% to $147.51 by 10:12 a.m. EST on Friday, as the post-earnings momentum carried the stock up to a session peak of $150.42.
The Coach and Kate Spade parent raised its full-year guidance Thursday, fueled by robust sales of Coach’s Tabby handbags that pushed results past holiday-quarter expectations. Tabby bags, ranging from $295 to $725, stood out while some competitors struggled to draw shoppers and foot traffic. 1
This shift is crucial as retailers juggle pricing amid tariffs, trying not to lose lower- and middle-income customers. Illia Kyslytskyi, portfolio manager at Arenas Capital, cautioned that companies “should be aware of a possible decline in the affordable luxury segment demand.” 2
Tapestry reported second-quarter net sales climbed 14% to $2.50 billion in a filing with the U.S. SEC. Non-GAAP diluted earnings per share hit $2.69. The company noted that tariffs and duties shaved about 190 basis points off its gross margin for the quarter (one basis point equals 0.01 percentage points).
Coach led the quarter, posting a 25% jump in sales to $2.14 billion. Meanwhile, Kate Spade sales dropped 14% to $360 million as the brand continued its reset. On the earnings call, Coach CEO Todd Kahn expressed he was “very confident in our growth momentum,” and Tapestry CFO Scott Roe called the business model “a really powerful machine.” 3
Management’s investor deck now puts adjusted EPS for fiscal 2026 between $6.40 and $6.45, with free cash flow expected “in the area of” $1.5 billion. They’re also targeting around $1.2 billion in share buybacks and an annual dividend of $1.60. The outlook factors in U.S. trade and tax policies as of February 1. 4
The quarterly report filed Thursday, covering the period ending December 27, 2025, offers investors a deeper dive into the figures driving the forecast upgrade. 5
The quarter also highlighted risks around costs and execution. Tapestry noted that shifts in tariffs — specifically dropping the “de minimis” exemption, which allowed some low-value shipments duty-free — cut about 190 basis points from gross margin. The company also flagged past impairment charges on Kate Spade and several challenges that could slow that brand’s comeback. 6
Traders are eyeing the shareholder-return schedule. Tapestry announced a quarterly cash dividend of $0.40 per share, set for payment on March 23 to shareholders of record by March 6. This near-term date tends to trigger positioning following a strong earnings report. 7
