Why Tapestry (TPR) Stock Is Down Today

What Happened?

Shares of luxury fashion conglomerate Tapestry (NYSE:TPR) fell 12.7% in the morning session after the company reported third-quarter results that fell short of high investor expectations. The luxury fashion firm announced revenue of $1.70 billion and GAAP earnings of $1.28 per share, surpassing analyst forecasts. This performance was supported by a 21% year-on-year increase in constant currency revenue, a measure that excludes the impact of foreign exchange fluctuations. Based on the strong results, Tapestry raised its financial outlook for the full year, expecting revenue to reach about $7.3 billion. Despite the positive headline numbers and improved guidance, the stock's drop suggested investors may have been anticipating an even stronger performance and outlook from the company.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Tapestry? Access our full analysis report here.

What Is The Market Telling Us

Tapestry’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. But moves this big are rare even for Tapestry and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 27 days ago when the stock dropped 4.1% on the news that worries over worsening trade relations with China were triggered by critical comments from President Donald Trump. 

The President's comments, stating on social media that China has 'become very hostile,' injected significant volatility into the broader markets. This particularly affected the leisure industry, which is highly sensitive to economic sentiment and discretionary spending. Leisure stocks, which include companies in travel, entertainment, and hospitality, rely on consumers feeling confident enough to spend on non-essential goods and services. Trump targeted China's tightening controls on rare earth metals, which are vital components in many technology products from electric vehicles to defense systems. The president's tone and the suggestion of canceling a meeting with President Xi caused a rapid sell-off in the market. 

Earlier in the week, China announced new export controls on the critical minerals. Beijing's Commerce Ministry stated that foreign suppliers now need government approval to export products containing certain rare-earth materials. These materials are essential for producing high-tech goods, including computer chips, electric vehicles, and defense technology. Analysts viewed the move as a strategic assertion of China's dominance in the global rare earth supply chain, particularly amid ongoing trade tensions. The prospect of escalating tariffs raises concerns about economic headwinds, which could lead to a slowdown in consumer spending. If consumers tighten their budgets in response to economic uncertainty, discretionary purchases are often the first to be cut, directly impacting the revenues of companies in this sector.

Tapestry is up 48.6% since the beginning of the year, but at $97.56 per share, it is still trading 16.7% below its 52-week high of $117.14 from October 2025. Investors who bought $1,000 worth of Tapestry’s shares 5 years ago would now be looking at an investment worth $4,011.

While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.