Track market-moving stories before they get noisy

Signet Jewelers just posted its sixth straight earnings beat and sent its stock soaring, but the company held its full-year sales guidance flat, leaving investors to decide whether the profit story alone justifies chasing a stock already up big on…

Shares of Signet Jewelers (NYSE:SIG | SIG Price Prediction) are surging Wednesday morning after the specialty jewelry retailer raised its full-year profit outlook and posted a sixth consecutive earnings beat, even as it held top-line guidance steady. The market is paying up for Signet’s margin and earnings power today.

Signet Jewelers stock is up 14% to $94.50 in early Wednesday trading, on pace for its best single session in more than a year and a clear sign that investors are rewarding profit leverage over sales momentum. Meanwhile, Tapestry (NYSE:TPR) stock is unchanged at $117.58, a useful counterpoint that frames today’s action as company-specific.

The SPDR S&P Retail ETF (NYSEARCA:XRT) is down 0.4% to $85.38, weighed by weakness across a broadly equal-weighted retail basket that Signet’s outsized single-name move can’t rescue. At the same time, the Consumer Discretionary Select Sector SPDR ETF (NYSEARCA:XLY) is down 0.75% to $113.16, providing another cue that sector flows aren’t powering today’s action in Signet Jewelers stock.

Earnings Beat and Raised Profit Outlook Signet Jewelers reported second-quarter adjusted earnings per share of $2.19, well above the $1.74 consensus. Revenue of $1.53 billion arrived in line with estimates, and Signet Jewelers said same-store sales grew 2.2% with positive comparable performance across every fine jewelry brand, including Kay Jewelers, Zales, Jared and Blue Nile.

Notably, Signet Jewelers raised its full-year adjusted EPS guidance to a range of $10.45 to $12.15, up from a prior band of $9.20 to $11, and lifted adjusted operating income guidance to $535 million to $605 million. The company maintained full-year sales guidance at $6.7 billion to $6.9 billion, while narrowing the same-store sales outlook to flat to up 2.5% year over year (YoY).

Signet’s gross margin expanded 80 basis points to 39.4%, helped by $15 million in tariff refunds that ran $13 million above internal expectations. Signet Jewelers also announced a $125 million accelerated share repurchase and expanded its total buyback authorization by $385 million to $700 million, per its 8-K filing.

A Company-Specific Setup Tapestry, the parent of Coach and Kate Spade, sits flat after guiding fiscal 2027 revenue to $8.4 billion to $8.5 billion and adjusted EPS to $7.80 to $7.90. Tapestry stock was down 7% year to date (YTD) through Tuesday’s close, reflecting a market that treats its steady outlook as durable but unexciting rather than a fresh catalyst.

Jewelry-adjacent peers are quiet on the session, as well. Brilliant Earth (NASDAQ:BRLT) remains a small-cap comparable trading well off its highs, while Movado Group (NYSE:MOV) has been the standout watch-and-jewelry name of the year, with Movado Group stock up 71% year to date through Tuesday’s close.

CEO J.K. Symancyk said Signet Jewelers “delivered another quarter of comp sales growth with a positive comp performance in all fine jewelry brands,” adding that the results included “high single-digit unit growth at higher price points.” The comment underscores where the margin story is coming from, since higher-ticket jewelry carries better mix economics than lower-price fashion pieces.

What to Watch Now The raised profit range leans on a holiday season still ahead of Signet Jewelers, so fourth-quarter execution across Kay Jewelers, Zales, Jared and Blue Nile carries particular weight. Investors can watch for whether merchandise-margin gains hold as gold prices and tariff dynamics continue to shift into the back half of the fiscal year, and whether the expanded buyback converts into meaningful per-share leverage.

Today’s move caps a strong recent stretch for Signet Jewelers stock, which was up 14% year to date through Tuesday’s close, so paying up here chases performance. The bull case rests on margin durability, a renewed Bread Financial consumer credit agreement through December 2035 and buyback support, while the bear case flags the maintained sales outlook and the fact that a large single-session move often front-runs the holiday quarter it depends on.

Investors weighing their SIG stock exposure should calibrate their holdings carefully given today’s gap against a maintained top-line guide. Share positions should reflect that a fresh entry at these levels is a bet on execution that Signet Jewelers still has to prove.

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Bank of Nova Scotia bought a new position in shares of Tapestry, Inc. (NYSE:TPR – Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 106,171 shares of the luxury accessories retailer’s stock, valued at approximately $15,541,000. Bank of Nova Scotia owned approximately 0.05% of Tapestry as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also modified their holdings of the business. World Investment Advisors grew its position in shares of Tapestry by 3.6% during the 1st quarter. World Investment Advisors now owns 1,979 shares of the luxury accessories retailer’s stock worth $279,000 after purchasing an additional 69 shares in the last quarter. Horizon Bancorp Inc. IN raised its position in shares of Tapestry by 4.7% in the first quarter. Horizon Bancorp Inc. IN now owns 1,575 shares of the luxury accessories retailer’s stock valued at $222,000 after buying an additional 71 shares in the last quarter. Smartleaf Asset Management LLC boosted its stake in shares of Tapestry by 2.0% in the fourth quarter. Smartleaf Asset Management LLC now owns 3,682 shares of the luxury accessories retailer’s stock valued at $477,000 after buying an additional 73 shares during the period. Eastern Bank boosted its stake in shares of Tapestry by 24.4% in the second quarter. Eastern Bank now owns 392 shares of the luxury accessories retailer’s stock valued at $57,000 after buying an additional 77 shares during the period. Finally, NewEdge Wealth LLC grew its position in Tapestry by 2.7% during the first quarter. NewEdge Wealth LLC now owns 3,186 shares of the luxury accessories retailer’s stock worth $450,000 after buying an additional 85 shares in the last quarter. 90.77% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes TPR has been the subject of several analyst reports. Wall Street Zen cut Tapestry from a “buy” rating to a “hold” rating in a report on Sunday, August 16th. Sanford C. Bernstein reissued a “market perform” rating and set a $185.00 target price (up from $180.00) on shares of Tapestry in a report on Friday, August 14th. Telsey Advisory Group raised their price target on Tapestry from $160.00 to $175.00 and gave the stock an “outperform” rating in a research report on Thursday, August 6th. Citigroup boosted their price target on Tapestry from $165.00 to $170.00 and gave the company a “buy” rating in a research note on Wednesday, April 29th. Finally, BTIG Research cut their price objective on shares of Tapestry from $180.00 to $175.00 and set a “buy” rating for the company in a research report on Friday, August 14th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, Tapestry has an average rating of “Moderate Buy” and an average target price of $175.12.

Check Out Our Latest Research Report on TPR Insiders Place Their Bets In other Tapestry news, CEO Joanne C. Crevoiserat sold 27,761 shares of the business’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $132.47, for a total transaction of $3,677,499.67. Following the sale, the chief executive officer owned 666,149 shares of the company’s stock, valued at approximately $88,244,758.03. The trade was a 4.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.32% of the stock is owned by corporate insiders.

Tapestry Trading Up 1.5% Shares of TPR opened at $132.16 on Tuesday. The company has a debt-to-equity ratio of 3.44, a quick ratio of 1.25 and a current ratio of 1.75. Tapestry, Inc. has a 52-week low of $93.00 and a 52-week high of $164.80. The firm has a market cap of $26.35 billion, a price-to-earnings ratio of 18.13, a PEG ratio of 1.65 and a beta of 1.43. The business’s fifty day moving average is $144.75 and its 200-day moving average is $144.91.

Tapestry (NYSE:TPR – Get Free Report) last released its quarterly earnings data on Thursday, August 13th. The luxury accessories retailer reported $1.32 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.04. The business had revenue of $1.88 billion for the quarter, compared to analyst estimates of $1.87 billion. Tapestry had a return on equity of 254.95% and a net margin of 19.09%.Tapestry’s revenue was up 8.9% compared to the same quarter last year. During the same period last year, the firm posted $1.04 earnings per share. Tapestry has set its FY 2027 guidance at 7.800-7.900 EPS. Equities analysts anticipate that Tapestry, Inc. will post 7.94 EPS for the current fiscal year.

Tapestry Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Monday, September 21st. Shareholders of record on Friday, September 4th will be given a $0.4625 dividend. This is an increase from Tapestry’s previous quarterly dividend of $0.40. This represents a $1.85 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Friday, September 4th. Tapestry’s dividend payout ratio (DPR) is 21.95%.

Tapestry Company Profile (Free Report)

Tapestry, Inc is a New York City–based house of fashion brands that designs, produces and distributes a range of accessible luxury and lifestyle products. The company manages a portfolio led by Coach, along with Kate Spade New York and Stuart Weitzman, each offering distinct product lines that include handbags and leather goods, footwear, ready-to-wear apparel, accessories, small leather goods, jewelry and lifestyle items. Tapestry’s operations encompass product design, marketing, wholesale partnerships, retail store operations and digital commerce.

Historically, the Coach brand traces its roots to a leather workshop in New York dating to the mid-20th century.

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Key Takeaways TPR expects fiscal 2027 revenues of $8.4-$8.5 billion, with mid-single-digit growth.Tapestry targets about 50 basis points of operating-margin expansion despite tariff pressure.Coach's strength supports TPR, while Kate Spade is expected to post another modest operating loss. Tapestry, Inc. (TPR - Free Report) enters fiscal 2027 with a tougher earnings test after fourth-quarter adjusted earnings beat the Zacks Consensus Estimate and margins expanded sharply. Management still expects profit growth even as revenue growth moderates.

The question is whether operating gains can absorb higher marketing spending and changing tariff pressure. Coach remains the earnings engine, while Kate Spade limits the margin for execution errors.

Tapestry’s Fiscal 2027 Sales Growth Is Set to SlowTapestry expects fiscal 2027 revenues of $8.4-$8.5 billion, representing mid-single-digit growth on a nominal and constant-currency basis. That compares with fiscal 2026 pro forma constant-currency growth of 17%.

Coach revenues are projected to rise at a high-single-digit rate, while Kate Spade revenues are expected to decline at a high-single-digit rate. Ralph Lauren Corporation (RL - Free Report) provides a sector comparison, with first-quarter fiscal 2027 revenues up 14% reported and 13% in constant currency.

TPR Targets Another 50 Basis Points of Margin ExpansionManagement expects fiscal 2027 operating margin to expand about 50 basis points. The plan includes roughly 30 basis points of gross-margin improvement and 20 basis points of leverage from selling, general and administrative expenses.

That follows fourth-quarter fiscal 2026 adjusted operating-margin expansion of 250 basis points to 19.3%. For the full year, adjusted gross margin improved 120 basis points despite a 130-basis-point tariff and duty headwind.

Tapestry Expects Tariffs to Be Neutral for the YearThe fiscal 2027 outlook embeds a mid-20% tariff rate on U.S. inventory receipts and assumes mitigation will make the year-over-year profit impact roughly neutral. Tariffs are expected to provide a modest first-half benefit before becoming a second-half headwind.

Sourcing, product mix and operational offsets therefore matter to the margin target. Levi Strauss & Co. (LEVI - Free Report) faced similar pressure in its second quarter of 2026, when gross margin rose 10 basis points despite tariff and foreign-exchange headwinds.

TPR Sees Coach Offsetting More Kate Spade WeaknessCoach represented 86.4% of fiscal 2026 revenues, giving the brand substantial influence over consolidated results. Management expects Coach to maintain an operating margin of nearly 36% in fiscal 2027.

Kate Spade remains the counterweight. The brand posted a $27.2 million adjusted operating loss in fiscal 2026, and management expects another modest operating loss in fiscal 2027.

Tapestry’s EPS Outlook Still Calls for Double-Digit GrowthTapestry expects fiscal 2027 adjusted earnings of $7.80-$7.90 per share, representing low-double-digit growth. Adjusted free cash flow is projected to approach $1.7 billion as capital expenditures and cloud-computing costs rise to about $300 million.

First-quarter adjusted earnings are expected at about $1.55 per share, up by low teens. Gross margin is projected to expand roughly 120 basis points, but higher marketing spending is expected to keep operating margin in line with the prior-year quarter.

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TPR’s Style Scores Add Context to the OutlookThe fiscal 2027 setup combines a credible margin plan with execution risk. Tariff mitigation, elevated marketing and continued Kate Spade losses leave less room for shortfalls even with Coach providing strong profitability.

TPR currently carries a Zacks Rank #3 (Hold), which supports a measured stance rather than a clear near-term buy signal. A Zacks Rank #3 can still be appropriate for holding shares while investors monitor execution and estimate trends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock also has a Growth Score of A, Momentum Score of A and VGM Score of A, alongside a Value Score of C. The stronger Growth and Momentum Scores point to favorable characteristics in those styles, while the VGM Score reflects the combined weighted style picture and the Value Score is less supportive. Because the Style Scores complement the Zacks Rank, the combined picture argues for patience.

Key Takeaways Tapestry's DTC revenues climbed 11%, with store and digital channels both contributing to the gain.Greater China led geographic growth with a 28% revenue increase on a constant-currency basis.Tapestry expects fiscal 2027 revenues of $8.4-$8.5B, adjusted EPS of $7.80-$7.90 and margin expansion. Tapestry, Inc. (TPR - Free Report) is strengthening its consumer reach through a strong direct-to-consumer (DTC) platform spanning stores, outlets and digital channels. DTC represented approximately 87% of total net sales in fiscal 2026, underscoring its importance to the company’s business model. In the fourth quarter, DTC revenues increased 11% on a pro forma constant-currency basis, while digital revenues grew at a mid-single-digit rate and store revenues increased at a mid-teens rate, highlighting continued strength across Tapestry’s consumer-facing channels.

The company’s DTC performance was complemented by broad-based geographic momentum during the quarter. Pro forma revenues increased 11% on a constant-currency basis, while North America revenues grew 7%, Europe advanced 19% and total Asia-Pacific revenues increased 19%. Greater China was particularly strong, with revenues rising 28% on a constant-currency basis.

Tapestry is leveraging its direct consumer relationships to improve decision-making. Management highlighted data, decision intelligence and AI as differentiated strengths that enable the company to translate consumer insights into action at scale. This approach supports more informed decisions across the business and strengthens Tapestry’s connection with consumers.

The company is continuing to expand its digital reach across major markets. Tapestry operates e-commerce sites across North America, Greater China, Japan and Europe, while leveraging third-party digital platforms. Its global digital infrastructure provides additional avenues to reach consumers and complements its physical retail presence.

Management expects continued growth in fiscal 2027. Tapestry projects revenues to be in the range of $8.4-$8.5 billion, representing mid-single-digit growth, while adjusted EPS is expected to be $7.80-$7.90, reflecting low-double-digit growth. Operating margin is expected to expand by approximately 50 basis points, supporting the company’s outlook for continued profitable growth.

TPR’s Price Performance, Valuation & EstimatesShares of Tapestry have risen 35.5% over the past year, significantly outperforming the industry, which has remained unchanged during the period.

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From a valuation standpoint, TPR trades at a forward price-to-earnings ratio of 16.56X, above the industry’s average of 13.21X. It has a Value Score of A.

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The Zacks Consensus Estimate for Tapestry’s fiscal 2027 earnings implies year-over-year growth of 12.2%, whereas the same for fiscal 2028 indicates an uptick of 9.8%. Earnings estimates for fiscal 2027 and 2028 have been increased by 13 cents and decreased by 8 cents, respectively, over the past seven days.

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TPR’s Zacks Rank & Key PicksTapestry currently carries a Zacks Rank #3 (Hold).

FIGS, Inc. (FIGS - Free Report) is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.

Boot Barn Holdings, Inc. (BOOT - Free Report) is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.

Fossil Group, Inc. (FOSL - Free Report) is involved in designing, marketing and distributing consumer fashion accessories. It also carries a Zacks Rank #2.

The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings suggests growth of 96.7% from the year-ago actuals. FOSL delivered a trailing four-quarter average negative earnings surprise of 236.2%.

Tapestry (TPR - Free Report) came out with quarterly earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.26 per share. This compares to earnings of $1.04 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +4.76%. A quarter ago, it was expected that this maker of high-end shoes and handbags would post earnings of $1.31 per share when it actually produced earnings of $1.66, delivering a surprise of +26.72%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Tapestry, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $1.88 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.04%. This compares to year-ago revenues of $1.72 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Tapestry shares have added about 20.3% since the beginning of the year versus the S&P 500's gain of 13.2%.

What's Next for Tapestry?While Tapestry has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Tapestry was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.51 on $1.85 billion in revenues for the coming quarter and $7.78 on $8.55 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Apparel and Shoes is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, J.Jill (JILL - Free Report) , is yet to report results for the quarter ended July 2026.

This retailer of women's clothes, shoes and accessories is expected to post quarterly earnings of $0.59 per share in its upcoming report, which represents a year-over-year change of -27.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

J.Jill's revenues are expected to be $150.8 million, down 2.1% from the year-ago quarter.