Tapestry Shares Drop 15% Despite Beating Earnings Metrics

Shares of Tapestry Inc. fell approximately 15% on August 13, 2026, following a financial report that beat several earnings metrics but failed to excite investors. The company reported $1.9 billion in net sales for the most recent quarter, with its Coach brand contributing $1.6 billion and maintaining double-digit growth.

To reward shareholders, the company approved a 16% dividend increase and a $1.35 billion stock buyback program. However, the stock price declined because the full-year revenue forecast aligned only with existing estimates. Analysts observed that the company's earnings per share growth depends heavily on the buyback program rather than organic revenue expansion.

CEO Joanne Colvin Corvzar has implemented cost discipline and a strategic shift toward affordable luxury to attract Gen Z consumers. While the Coach brand remains a primary driver of success, the company continues to face questions regarding whether the same growth strategies can be successfully applied to the Kate Spade brand.