Tapestry shares gain more than 4% after strong revenue growth and operating income jump

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Tapestry surges 4.08% today on strong results

Highlights

Tapestry delivered record annual revenue of $8 billion in fiscal 2026, showing 14% to 17% year-on-year growth with strong Coach brand performance.
Operating income tripled to $1.91 billion, operating margin surpassed 23%, and shareholder returns totaled $1.7 billion with a 16% dividend increase.
Shares of Tapestry trade below key moving averages with weak momentum, oversold technical readings, and a projected five-day range of $116.9 to $151.66.

Operating income surge and asset sales drive revenue records

Tapestry reported record revenue of $8 billion for fiscal year 2026, reflecting a 14–17% year-on-year rise supported by strong gains at its Coach brand. Operating income more than tripled to $1.91 billion after the divestiture of Stuart Weitzman, and the operating margin expanded to over 23%. The company closed 64 stores and opened 72 new locations for Coach and Kate Spade, increasing its overall retail footprint. Shareholder returns reached $1.7 billion through dividends and share repurchases, with the dividend rising 16% to $1.85 per share.

Anton Kharitonov, expert at Traders Union, sees limited sustainability behind the jump in Tapestry's share price. He points out that despite record operating income and revenue growth, technicals look persistently weak. Momentum indicators and moving averages signal continued downside. Kharitonov highlights that $135.2 acts as immediate resistance, while support lies at $129.46. The analyst believes the bearish setup and oversold conditions demand caution. "Despite upbeat headlines, the market’s technical position suggests further downside risk for TPR at this stage."

Viktoras Karapetjanc, expert at Traders Union, notes Tapestry's impressive year with double-digit revenue growth and an expanding retail footprint. He believes the company’s ability to deliver record results amid restructuring demonstrates long-term operational strength. Karapetjanc considers shareholder returns and margin improvements to show that the bullish structure remains intact. The analyst expects further growth as demand for the Coach brand drives market opportunities. "I see the underlying momentum in fundamentals setting up TPR for a renewed upside move in the medium term."

Sholanke Dele, market strategist, views the latest price rally as vulnerable. He points out that sentiment remains cautious despite upbeat news, with selling pressure persisting. Dele notes that volatility is elevated but momentum is lacking. "Unless broader confidence shifts, I expect TPR to face headwinds and downside retests in the near term."

Persistent bearish momentum with pockets of intraday volatility

TPR is trading below its 20-day, 50-day, and 200-day moving averages ($149.08, $146.11, and $136.83), signaling persistent downside pressure across multiple timeframes. Immediate resistance is at $135.2, with support at $129.46. The overall trend remains bearish despite a longer-term bullish alignment between the 50-day and 200-day averages. Momentum indicators are weak, with both MACD and ADX giving neutral signals. Oversold conditions are confirmed by an RSI of 31.72, Stochastic RSI, and CCI, while negative Bull/Bear Power at -15.79 and a strong sell signal from the Awesome Oscillator reflect continued selling pressure. Intraday price strength is visible near the session high with volatility at 4.43%, in contrast to the negative momentum readings.

Earlier, analysts noted that Tapestry and its Coach brand were benefiting from a shift toward more formal, office-ready apparel and effective long-term brand repositioning. With TPR's technical setup showing persistent downside risk despite record financial results, traders should closely watch the $129.46 support level for signs of a renewed downturn.

Source of Data: TPR Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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