Tapestry, Inc. (NYSE:TPR) stock tumbled despite beating Q4 forecasts with adjusted earnings of $1.04 per share on revenue of $1.72 billion, up 8% YoY. Coach brand saw strong revenue growth from handbags, driven by innovative leather goods offerings.

Coach brand led Tapestry’s revenue growth with a 14% gain, while Kate Spade revenues fell 13%. Gross profit rose to $1.32 billion, and the firm approved a 14% dividend increase to 40 cents per share.

CEO Joanne Crevoiserat highlighted achieving over $5 in adjusted earnings per share and returning $3 billion to shareholders. Tapestry expects fiscal 2026 revenue near $7.2 billion, forecasting low-single-digit growth and a mid-single-digit rise excluding Stuart Weitzman divestiture.

Operating margin is expected to improve by over 250 basis points, but may be offset by a 230-basis-point drag from tariffs and policy changes, aiming to mitigate these costs over time. Adjusted EPS guided at $5.30-$5.45, despite over 60 cents in negative tariff effects.

TPR shares are trading lower by 12.36% premarket at $99.50. Tapestry forecasts net interest expense of $65 million, an 18% effective tax rate, and adjusted free cash flow near $1.3 billion for FY26.

Read more at Yahoo Finance: Coach Parent Warns Of Tariff Pressure Despite Strong Performance