Abstract
Tapestry Inc. will report fiscal second-quarter 2026 results on February 05, 2026 Pre-Market; this preview consolidates consensus forecasts and recent institutional commentary to frame expectations across revenue, margins, net profit, and adjusted EPS.
Market Forecast
For the current quarter, forecasts indicate Tapestry Inc. revenue of $2.30 billion, up 8.99% year over year, with EBIT projected at $0.60 billion and EPS at $2.21, suggesting continued operating leverage; the company’s gross profit margin is expected to remain elevated, while net profit or margin is projected to reflect solid year-over-year expansion in line with the EPS trajectory. The company’s core leather goods and accessories business is expected to sustain momentum driven by resilient demand in North America and steady growth in international markets. The most promising segment appears to be the Coach brand, which anchors revenue at $1.43 billion last quarter and continues to benefit from disciplined brand elevation and product refresh, supported by mid-single-digit revenue growth year over year.
Last Quarter Review
In the previous fiscal quarter, Tapestry Inc. delivered revenue of $1.70 billion, a gross profit margin of 76.29%, GAAP net profit attributable to the parent company of $0.28 billion, a net profit margin of 16.12%, and adjusted EPS of $1.38, with year-over-year growth of 35.29%. A key highlight was the strong quarter-on-quarter rebound in net profit, up 153.14%, reflecting expense discipline and revenue mix improvement. Main business momentum was concentrated in the Coach brand at $1.43 billion, complemented by Kate Spade at $0.26 billion and Stuart Weitzman at $0.01 billion, with Coach exhibiting the most stable trend year over year.
Current Quarter Outlook (with major analytical insights)
Main Business: Leather Goods and Accessories Across Coach, Kate Spade, and Stuart Weitzman
Tapestry Inc.’s main business comprises leather goods, handbags, small accessories, and footwear under the Coach, Kate Spade, and Stuart Weitzman banners. The company’s recent performance has demonstrated elevated gross margins at 76.29%, underscoring effective sourcing, tight inventory management, and pricing discipline. For the current quarter, the forecasted revenue of $2.30 billion and EPS of $2.21 imply sustained demand for full-price selling and controlled promotional activity, which is important in preserving brand equity while attracting value-conscious consumers. Operationally, management efforts to streamline the supply chain and optimize store productivity have supported EBIT expansion toward $0.60 billion, highlighting improved conversion both online and in brick-and-mortar settings. Heading into February 05, 2026, investors will watch for signals that the gross profit margin can remain at elevated levels despite currency fluctuations and mixed geographic trends.
Most Promising Business: Coach Brand Anchoring Growth Trajectory
The Coach brand generated $1.43 billion in revenue last quarter, anchoring the company’s financial performance and demonstrating durable traction across core handbag and accessories franchises. Coach’s product cadence and brand elevation initiatives have allowed the company to maintain price integrity while refreshing assortments, an approach that supports the mid- to high-teens EBIT margin profile. The current-quarter forecast implies Coach will continue to lead growth, leveraging international demand and direct-to-consumer channels that enhance profitability and data-driven merchandising. The balance between signature styles and newness has helped sustain sell-through and limit markdowns, a trend that may continue if consumer sentiment stabilizes through the holiday-to-new-year period. With inventory positioned to meet demand, Coach’s contribution should be a key driver of the projected 8.99% revenue increase.
Key Stock Price Drivers This Quarter: Margin Durability, Promotional Cadence, and Brand Mix
The primary swing factor for Tapestry Inc. this quarter is margin durability, with the previous quarter’s 76.29% gross profit margin setting a high bar that must be sustained against potential discounting in a competitive landscape. Promotional cadence remains another critical variable; while the company has balanced value with brand protection, any broad-based markdowns could compress margins and dampen EPS. Brand mix will also matter, as incremental strength at Coach relative to Kate Spade and Stuart Weitzman supports aggregate profitability due to higher average unit retails and more favorable cost structures. Foreign exchange and uneven consumer demand by region could introduce variability, though diversified channels, including growing digital penetration, provide a buffer. The company’s ability to navigate these factors while delivering forecast EPS of $2.21 will likely guide investor reaction in the Pre-Market release on February 05, 2026.
Analyst Opinions
Institutional sentiment skews cautiously positive, with the majority of recent commentary highlighting stable demand in core categories and improved margin execution, supported by disciplined inventory and promotional strategies. Analysts point to Coach’s brand strength and a constructive setup for operating income as reasons for optimism, while noting watch-points around Kate Spade’s momentum and potential promotional pressure in footwear. The consensus case expects Tapestry Inc. to meet or slightly exceed revenue and EPS forecasts, citing the last quarter’s outperformance versus estimates—revenue of $1.70 billion versus a $1.64 billion estimate and EPS of $1.38 versus a $1.26 estimate—as evidence of strengthening execution. Well-followed sell-side voices emphasize that the $0.60 billion EBIT projection and EPS of $2.21 reflect measured operating leverage and cost control; these views are reinforced by observations that brand elevation at Coach is resonating, omnichannel improvements are expanding conversion, and the overall portfolio is positioned for modest growth despite mixed macro signals. Overall, the prevailing institutional stance anticipates a constructive Pre-Market print on February 05, 2026, with attention centered on whether gross margin resilience and net margin expansion can be maintained while sustaining top-line growth of $2.30 billion.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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