Tapestry, Inc. (NYSE:TPR) shares are trading higher on Friday after posting fourth-quarter adjusted earnings of $1.04 per share, beating the $1.02 consensus, with revenue of $1.72 billion, up 8% year-over-year. Coach saw strong handbag revenue growth with compelling innovation and broad-based traction across its leather goods offerings.

Telsey Advisory Group analyst Dana Telsey reiterated an Outperform rating on Tapestry stock, with a price forecast of $125. Tapestry expects fiscal 2026 revenue to reach $7.2 billion, reflecting low-single-digit growth from the previous year. The company anticipates a strong start to fiscal year 2026.

Tapestry is facing more tariff pressure than expected, with the early end of the de minimis exemption resulting in a $160 million profit hit, affecting margins. Mitigation efforts aim to aid gross margins by fiscal year 2027 to fiscal year 2028. Analysts project revenue for fiscal year 2026 to be $7.24 billion.

TPR shares are trading higher by 3.72% to $99.25. Analysts maintain an optimistic outlook on Tapestry’s performance, with expectations for Coach to outperform and Kate Spade to underperform earlier forecasts. The company’s higher dividend boosts confidence as it prepares for an upcoming Investor Day on September 10.

Read more at Yahoo Finance: Coach Parent Tapestry Navigates Tariff Pressures With Strong Core Business