Tapestry Stock Slides as Trading Volume Surges to 650 Million Ranking 161st in Liquidity Amid Stuart Weitzman Divestiture

On August 7, 2025, Tapestry (TPR) fell 3.27% to $108.48, with a trading volume of $650 million, up 42.08% from the previous day, ranking 161st in market liquidity. The stock’s performance follows a strategic shift to divest its Stuart Weitzman brand to Caleres for $108.7 million, allowing Tapestry to focus on its core Coach and Kate Spade brands. Analysts highlighted that this move aligns with broader efforts to streamline operations and enhance profitability.

Looking ahead, Tapestry is expected to report Q2 2025 earnings of $1.00 per share, up 8.7% year-over-year, with revenue projected at $1.68 billion, a 5.7% increase. The Zacks Earnings ESP model indicates a positive outlook, as the Most Accurate Estimate exceeds the consensus, suggesting a potential earnings beat. However, recent upgrades to price targets by firms like Morgan Stanley and Raymond James reflect optimism about Coach’s product lines and digital expansion, while risks such as economic sensitivity remain.

The sale of Stuart Weitzman has already influenced TPR’s liquidity profile. Trading volume surged 31.36% to $480 million on August 1, outperforming broader market indices. This liquidity concentration underscores the stock’s short-term volatility, with analysts noting that high-volume positions can amplify returns in dynamic markets. Tapestry’s earnings report on August 14 will be critical, as management’s guidance on operational efficiency and brand growth could shape investor sentiment.

The strategy of holding high-volume stocks overnight generated a 166.71% return from 2022 to 2025, outperforming benchmarks by 137.53%. This highlights the role of liquidity in driving short-term performance, particularly in sectors like luxury goods where market-moving events are frequent.