EPS & Revenue vs. Expectations
Tapestry’s FY 2025 fourth‑quarter and full‑year results came in ahead of consensus on both the top and bottom lines. The company reported GAAP earnings‑per‑share of $3.31 for the quarter (and $13.84 for the year), which topped the Street’s average forecast of roughly $3.09 and $13.48, respectively. Revenue also beat the consensus: quarterly net sales of $2.15 bn versus the $2.09 bn expected, and full‑year sales of $10.7 bn against the $10.4 bn consensus. Moreover, Tapestry’s guidance for FY 2026—projecting EPS of $13.90‑$14.20 and revenue of $10.9‑$11.1 bn—lies above its prior guidance (EPS $13.55‑$13.85; revenue $10.6‑$10.8 bn), signaling a more optimistic outlook than analysts had been modeling.
Trading Implications
The earnings beat and upgraded outlook have already pushed TPR shares higher on the news, with the stock trading near its 52‑week high and showing strong upside momentum on the daily chart (the 20‑day EMA now sits beneath the price and the RSI is in the 60‑70 range). The combination of a top‑line beat, higher‑than‑expected margin expansion, and brighter guidance suggests that the market may still have upside left, especially if the brand‑building initiatives continue to attract younger consumers.
Actionable Take‑away:
- Short‑to‑mid‑term: Consider adding to long positions or opening new net‑long exposure, targeting the next resistance around the $70‑$73 range (≈ 10‑15% above the current price).
- Risk management: Place a stop‑loss just below the 20‑day EMA (~$62) to protect against a potential pull‑back if the broader consumer‑discretionary sentiment stalls.
- Watchlist triggers: A subsequent earnings release that confirms guidance or any forward‑looking commentary on inventory health could push the stock toward breakout levels; conversely, a downgrade in FY 2026 guidance would likely trigger a corrective move back toward the 50‑day EMA.