Tapestry vs Darden

This page compares Tapestry and Darden to illuminate differences in business models, financial performance, and market context. It presents neutral, accessible analysis to help readers understand how each company operates, earns, and positions itself within its sector. Educational content, not financial advice.

This page compares Tapestry and Darden to illuminate differences in business models, financial performance, and market context. It presents neutral, accessible analysis to help readers understand how ...

Comparison Snapshot

Key Financial Metrics

TPR

Metric

DRI

$25.82B

Market Cap

$22.62B

-0.04%

Potential Profit

12.17%

Buy

Analyst Rating

Buy

Why It's Moving

Tapestry's Q1 Earnings Crush Forecasts but Shares Tumble on Investor Jitters

EPS hit $1.38, topping $1.26 forecast by 9.52%, with revenue at $1.7B exceeding $1.64B expectations, signaling robust global demand.
Adjusted operating margin expanded 200 basis points, acquired 2.2M new customers, highlighting brand strength amid luxury sector pressures.
Raised FY2026 outlook incorporating Q1 strength, yet shares dropped to $94.75, reflecting unease over potential headwinds like tariffs or Kate Spade turnaround risks.

Sentiment:

🌋Volatile

Tapestry's Q1 Earnings Crush Forecasts but Shares Tumble on Investor Jitters

EPS hit $1.38, topping $1.26 forecast by 9.52%, with revenue at $1.7B exceeding $1.64B expectations, signaling robust global demand.
Adjusted operating margin expanded 200 basis points, acquired 2.2M new customers, highlighting brand strength amid luxury sector pressures.
Raised FY2026 outlook incorporating Q1 strength, yet shares dropped to $94.75, reflecting unease over potential headwinds like tariffs or Kate Spade turnaround risks.

Sentiment:

🌋Volatile

Investment Analysis

Tapestry

TPR

Pros

Tapestry owns a diversified portfolio of iconic luxury brands including Coach, Kate Spade, and Stuart Weitzman, which enjoy strong brand recognition and craftsmanship appeal.
The company’s shares have significantly outperformed the broader market and luxury indices over the past year, reflecting robust momentum and investor interest.
Fiscal 2026 outlook was raised following Q1 fiscal 2026 results showing 13.1% year-over-year sales growth and a 35.3% rise in adjusted EPS, both exceeding expectations.

Considerations

Despite strong fiscal Q1 performance, shares dropped sharply due to investor concerns about the sustainability of growth amid macroeconomic uncertainty and struggles at Kate Spade.
Earnings dropped significantly by 77.55% year-over-year in 2025 despite revenue growth, indicating potential margin or cost pressure risks.
The stock exhibits higher volatility with a beta of 1.66, suggesting sensitivity to market swings which may increase investment risk.

Darden

DRI

Pros

Darden operates a diversified portfolio of well-known full-service restaurant brands across the US and Canada, including Olive Garden and LongHorn Steakhouse, providing revenue stability.
The company has a strong market capitalisation around $22 billion, reflecting its large scale and significant presence in the restaurant industry.
Recent stock price trends and trading data show steady investor demand, suggesting confidence in Darden’s operational model and earnings prospects.

Considerations

Darden's current ratio of 0.40 indicates relatively low short-term liquidity, which could constrain its ability to cover immediate liabilities efficiently.
The restaurant industry faces risks from economic cyclicality, rising input costs, and changing consumer preferences, which could impact margins and growth.
Limited recent growth catalysts are apparent compared to the luxury sector’s momentum, potentially leading to slower share price appreciation.

Related Market Insights

The Celebrity Effect: How Influencer Marketing Drives Retail Stock Success

Discover how influencer marketing drives retail stock success. Learn from American Eagle's Sydney Sweeney campaign & invest in companies leveraging celebrity endorsements.