Tapestry Inc (NYSE:TPR) reported stronger-than-expected results for the fiscal third quarter, with earnings and revenue both coming in ahead of Wall Street forecasts, and also raised its full year outlook.
For the quarter, the luxury fashion brand holding company posted adjusted earnings of $1.66 per share, exceeding analyst expectations of $1.31.
Revenue totaled $1.92 billion, above the roughly $1.78 billion consensus estimate.
The company said it remains on track to return approximately $1.6 billion to shareholders in fiscal 2026, reflecting increased expectations compared with prior guidance, supported by strong cash flow generation and a solid balance sheet.
Alongside the results, Tapestry raised its full-year fiscal 2026 outlook, citing stronger-than-expected third-quarter performance and improved expectations for the fourth quarter.
The updated guidance anticipates revenue of approximately $7.95 billion, representing growth of about 14% year over year on a reported basis and 13% in constant currency. Excluding Stuart Weitzman, pro forma revenue is expected to rise about 17% reported and 16% in constant currency.
The company now expects an operating margin of approximately 23%, an expansion of about 300 basis points year over year, above its prior forecast.
“Our third quarter outperformance reflects the compounding benefits of our Amplify strategy, as we bring creativity, craftsmanship, and value to more consumers around the world,” Tapestry CEO Joanne Crevoiserat said.
“We are raising our outlook for the fiscal year, underscoring the power of Tapestry and our commitment to driving durable growth and long-term shareholder value.”
Despite the stronger-than-expected results and raised outlook, shares are down nearly 11% at about $133. The decline was attributed to a “sell the news” reaction following the stock’s significant run-up to an all-time high earlier in the year.