Allspring Global Investments Holdings LLC dramatically cut its position in Tapestry during the third quarter, reducing its holdings by 85.5%. The firm sold 79,375 shares, leaving it with 13,475 shares valued at approximately $1.53 million at quarter end. This divestiture contrasts sharply with Vanguard Group’s modest 2.4% increase in its position to 25.9 million shares and Geode Capital’s 3.0% build-up to 5.5 million shares, underscoring divergent expectations among large investors about the luxury retailer’s near-term prospects.

In its latest quarterly report, Tapestry delivered earnings per share of $1.38, surpassing consensus estimates by $0.13, while revenues rose 13.1% year-over-year to $1.70 billion, beating the street by $70 million. Net margin improved to 3.77% and return on equity soared to 116.4%. Management set full-year 2026 EPS guidance between $5.45 and $5.60, above the $4.91 average analyst forecast, reflecting confidence in ongoing demand for Coach, Kate Spade and Stuart Weitzman products.

The board approved a $1 billion share buyback plan, authorizing repurchases of up to 4.9% of outstanding shares, signaling management’s view that the stock remains attractively valued. Concurrently, Tapestry paid a quarterly dividend of $0.40 per share, representing an annualized $1.60 payout and a dividend yield of 1.2%. With a payout ratio of 142.9%, the generous distribution underscores the company’s commitment to returning cash to shareholders despite a historically elevated reinvestment cycle.

During the past quarter, Tapestry’s CEO sold 29,000 shares and the CFO offloaded 18,794 shares, reducing their combined ownership by over 36,000 shares for proceeds totaling nearly $5 million. These dispositions—disclosed in Securities and Exchange Commission filings—bring insider holdings down to approximately 1.32% of total shares. While executives cited diversification motives, the scale of sales has drawn scrutiny from governance observers who monitor insider transactions for signals about management’s confidence in future share performance.