Tapestry: four straight beats, insiders sell
Tapestry reported its fourth consecutive earnings beat in November with a 16.6% positive surprise, yet the stock gained just 3.8% in 2026 against the S&P's 10.9%. Within six days of the beat, five exe
Tapestry: Four Straight Beats, Still Trades at 14x
NEW YORK, November 14 —
Four consecutive earnings beats at Tapestry, Inc. (TPR), including a 16.6% positive surprise on November 5, have not moved the multiple: TPR has gained just 3.8% in calendar 2026 against the S&P's 10.9%. Within six days of that beat, five senior executives sold shares in open-market transactions at prices 17-19% below analyst consensus, with zero insider purchases recorded.
- Five executives sold $18.15M in open-market shares November 9-11; zero insider purchases recorded in the period.
- Analyst consensus targets $163.55 versus the current $132.41, implying 23.5% upside; stock trades at 14.4x forward earnings.
Luxury Margins in a Budget Frame
Tapestry sells Coach handbags, Kate Spade accessories, footwear, outerwear, watches, and fragrance through retail and outlet stores, e-commerce, and third-party platforms across North America, Greater China, and Asia. Trailing revenue of $8.19 billion grew 11.1% year-over-year, with gross margins of 77.1%. The beat streak runs four quarters, with positive surprise margins of 20.6%, 27.7%, 3.1%, and 16.6% in sequence, a pattern showing consistent over-delivery rather than a one-quarter fluke.
Five Sellers, No Buyers
The insider filings from the week after the November 5 beat point in one direction. CEO Joanne Crevoiserat sold 27,762 shares for approximately $3.68 million on November 11, per SEC filings; CFO and COO Scott Roe sold 54,644 shares for approximately $7.40 million on November 10, the largest single-executive sale in the period; and Coach CEO Todd Kahn sold 30,000 shares on November 9 for approximately $4.06 million. The five executives combined for $18.15 million in open-market sales, all at $132-$136 per share, with zero insider purchases recorded. Selling at 17-19% below analyst consensus does not prove skepticism; it does prove the insiders were not buyers at these prices.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| TPR | $26.0B | 14.4x | +30.1% |
| CPRI | $2.2B | 8.5x | -1.1% |
| PVH | $4.3B | 7.5x | +22.7% |
| RL | $22.8B | 18.3x | +19.2% |
| LKQ | $4.9B | 8.3x | -34.9% |
| ROST | $74.0B | 25.7x | +45.3% |
The Fifth Beat Is the Test
Whether TPR's beat streak closes the discount to the analyst consensus target of $163.55 depends partly on how the market accounts for $3.47 billion in net debt; the upside assumptions are worth running through a DCF model. Short interest at 8.6% of float signals persistent skepticism despite the four-quarter beat streak. The next earnings report is the checkpoint: a fifth consecutive beat sustaining 11.1% revenue growth would pressure the gap; a miss would reinforce what the insider selling implies. Run the free Tapestry, Inc. deep-dive →
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Frequently Asked Questions
What were Tapestry's Q1 FY2027 earnings results?
Tapestry reported Q1 FY2027 earnings per share of $1.82, beating consensus by 16.6%. This marks the company's fourth consecutive earnings beat. Trailing revenue of $8.19 billion grew 11.1% year-over-year, with gross margins of 77.1%.
Why did Tapestry executives sell shares after the earnings beat?
Five executives sold $18.15M in open-market shares November 9-11 at prices $132-$136 per share, which is 17-19% below analyst consensus targets of $163.55. Insider selling does not prove skepticism, but it shows management was not buyers at current prices.
What is Tapestry's forward valuation?
Tapestry trades at 14.4x forward earnings, putting it closer to mass retail than a business generating $1.368 billion in annual free cash flow with premium brand margins of 77.1%. Analyst consensus targets $163.55, implying 23.5% upside from current prices.
How much has Tapestry stock gained in 2026?
Tapestry gained 3.8% in calendar 2026, underperforming the S&P 500's 10.9%. Analyst consensus targets imply 23.5% upside, yet the stock has not responded to four consecutive earnings beats.
What was Tapestry's latest earnings beat margin?
Tapestry's most recent beat on November 5 featured a 16.6% positive surprise to consensus earnings. The surprise margins in the prior three quarters were 20.6%, 27.7%, and 3.1%, a consistent pattern of over-delivery across four quarters.
Tapestry has beaten earnings estimates in each of the last four quarters — generating $1.368 billion in free cash flow on 77.1% gross margins — yet the stock trades at 14.4x forward earnings and has gained just 3.8% in calendar 2026. Analyst consensus targets $163.55, a 23.5% premium to the current price, while five senior executives sold a combined $18.15 million in open-market shares in the week after the most recent beat.