Tapestry Stock Surges 5.28% Despite 136th-Ranked Trading Volume as Q4 Earnings Outperform and Coach Drives Growth

On August 15, 2025, Tapestry (TPR) rose 5.28% despite a 47.37% drop in trading volume to $680 million, ranking 136th in market activity. The stock’s performance followed strong fourth-quarter results, with adjusted earnings of $1.04 per share exceeding the $1.02 consensus, driven by $1.72 billion in revenue, up 8% year-over-year. Coach, a key brand under Tapestry, reported robust handbag revenue growth, supported by mid-teens average unit retail increases and low-double-digit annual gains. Analysts from Telsey Advisory Group reiterated an Outperform rating, citing strategic innovation and broad product traction, and raised 2026 revenue forecasts to $7.2 billion, reflecting low-single-digit growth expectations.

Tapestry faces ongoing tariff pressures, including an unexpected $160 million profit hit from the early termination of a de minimis exemption. This translates to a 60-cent EPS drag, with 70% of the impact unmitigated compared to prior periods. Management highlighted that mitigation efforts could offset these challenges by fiscal 2027, stabilizing gross margins. The company also announced a higher dividend, bolstering investor confidence ahead of its September 10 Investor Day, where updated strategies and long-term goals are expected to be unveiled.

Analyst sentiment remains mixed. While Telsey’s $125 price target and positive guidance suggest optimism, recent downgrades from Bank of America to a Neutral rating reflect valuation concerns. Institutional activity has been active, with firms like UBS and JPMorgan raising price targets, while others, such as BofA, cite near-term valuation ceilings. Tapestry’s shares have surged 66% year-to-date, though some analysts caution against overvaluation amid a weak luxury market backdrop.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day yielded a total profit of $2,550 from 2022 to the present. The maximum drawdown of -15.4% occurred on October 27, 2022, highlighting the strategy’s volatility despite a net positive return.