Tapestry Surprises With Q3 Beat, Annual Forecast Bump: Retail Mood Neutral

Tapestry (TPR) reported better-than-expected results for its fiscal third quarter and raised its forecast for the whole year, in a rare positive performance by a retailer amid pressures from U.S. trade tariffs.

The luxury accessories firm, known for brands such as Coach, Kate Spade New York, and Stuart Weitzman, said that its business advanced considerably in Europe and North America and gained from a push to sell directly to consumers.

It outlined the strong performance of its handbags and wallets brand Coach, whose sales grew 13%, and 15% in constant currency, in the last quarter.

"Our third-quarter outperformance reinforces our position of strength" and shows "our connections with consumers around the world," CEO Joanne Crevoiserat said.

The company's report is an outlier, as most retail businesses flag weak demand and cost pressures from U.S. trade policies.

Morgan Stanley upgraded Tapestry (TPR) to 'Overweight' from 'Equal-weight' and called it a "scarce positive revision story" in the current retail landscape.

Tapestry shares have risen nearly 5% since Thursday, when the results were published, extending a rally over the past few weeks. The company's shares have bounced about 30% from their 2025 low of $60.6 in April.

Tapestry now expects fiscal 2025 revenue growth of 4% versus its prior outlook for a roughly 3% increase. It expects adjusted EPS of about $5, compared with its previous range of $4.85 to $4.90.

For Q3, revenue rose to $1.58 billion, higher than the $1.53 billion analyst estimate from FactSet. Adjusted profit rose to $1.03 per share, handily beating the $0.88 estimate.

On Stocktwits, retail sentiment for the company was in the 'neutral' territory, unchanged from the previous week.

Tapestry stock is up nearly 20% year to date.

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