Tapestry Shares Dip 0.49% as Volume Plummets 40.8% to 394th in Market Activity Amid Earnings Woes and Dividend Gambit

On August 21, 2025, Tapestry (TPR) closed with a 0.49% decline, trading at a volume of $0.22 billion—a 40.8% drop from the prior day, ranking it 394th in market activity. The selloff followed the company’s fourth-quarter and full-year 2025 earnings report, which revealed a net loss of $517.1 million for the quarter and $183.2 million annually, despite quarterly revenue rising to $1.72 billion and full-year sales reaching $7.01 billion. A 14% dividend increase approved by the board amid the earnings slump highlighted the company’s balancing act between maintaining shareholder returns and addressing structural challenges, particularly at its underperforming Kate Spade brand.

The results underscored mixed signals for investors. While international markets, notably Greater China, contributed to stronger-than-expected revenue, the impairment charges at Kate Spade signaled ongoing brand-specific risks. Analysts noted that the dividend hike, despite a quarterly loss, reflects strategic efforts to stabilize investor confidence as Tapestry navigates a turnaround in profitability. However, the underperformance of key brands remains a critical risk, with forecasts projecting $7.8 billion in revenue and $1.4 billion in earnings by 2028 contingent on successful brand revitalization.

Community-derived fair value estimates for TPR ranged between $113.63 and $121.58 as of August 2025, reflecting divergent views on growth potential. The disparity highlights the market’s sensitivity to Tapestry’s ability to leverage international momentum while addressing domestic brand challenges. Meanwhile, the company’s focus on digital investments and market expansion remains central to its long-term narrative, though execution risks persist.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 generated a 1-day return of 1.98% and a total return of 7.61% over 365 days. The approach yielded a Sharpe ratio of 0.94, indicating favorable risk-adjusted returns, but faced a maximum drawdown of -29.16%, underscoring its vulnerability during market downturns.