• Tapestry, Inc. recently reported past second-quarter 2026 results showing sales of US$2,502.4 million and net income of US$561.3 million, alongside affirming a quarterly dividend of US$0.40 per share and completing a US$661.6 million share repurchase program.
• The combination of higher earnings, ongoing cash returns through dividends, and reduced share count highlights management’s focus on shareholder returns and capital efficiency.
• With sharply higher earnings and an affirmed dividend, we’ll explore how this latest performance may reshape Tapestry’s broader investment narrative.

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Tapestry Investment Narrative Recap

To own Tapestry, you need to believe its core Coach franchise, growing younger customer base, and omnichannel investments can offset brand turnaround issues at Kate Spade and ongoing tariff pressure. The latest quarter’s higher earnings and cash returns support the near term catalyst of confidence in Coach-driven growth, but they do little to reduce the structural risks from tariffs, heavy store investment, and dependence on one flagship brand.

The most relevant update here is Tapestry’s completion of a US$661.6 million share repurchase program, which, alongside sharply higher earnings, amplifies the impact of any future profit swings on earnings per share. For investors focused on catalysts around profitability and capital returns, this tighter share base can magnify both the upside from sustained Coach momentum and the downside if tariff costs, Kate Spade’s challenges, or store underperformance persist.

Yet behind the strong headline numbers, there is a risk investors should be aware of if Coach’s “brand heat” fades and tariffs continue to bite...

Tapestry's narrative projects $7.8 billion revenue and $1.4 billion earnings by 2028. This requires 3.6% yearly revenue growth and about a $1.2 billion earnings increase from $183.2 million today.

Uncover how Tapestry's forecasts yield a $131.50 fair value, a 14% downside to its current price.

Exploring Other Perspectives

Before this earnings beat, the most optimistic analysts were already assuming Tapestry could reach about US$8.0 billion in revenue and US$1.5 billion in earnings, which is a far more upbeat view than consensus and sits in clear tension with concerns about Coach reliance and trade barriers; this latest quarter gives you fresh data to decide which story feels closer to reality.

Explore 3 other fair value estimates on Tapestry - why the stock might be worth 26% less than the current price!

Build Your Own Tapestry Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Tapestry research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.
• Our free Tapestry research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Tapestry's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.