Tapestry Reports 14% Revenue Growth in Fiscal 2026 as Coach Sales Rise 24%

Aug 13, 2026 - 18:00

Tapestry, Inc., the U.S. fashion group behind Coach and Kate Spade New York, reported results for its fiscal fourth quarter and full year ended June 27, 2026. Full-year revenue increased 14% year over year to $8.00 billion, led by continued growth at Coach.

On a pro forma basis excluding Stuart Weitzman, annual revenue reached $7.99 billion, representing an increase of 18% as reported and 17% in constant currency. Gross margin and operating margin also expanded from the prior year, exceeding the company’s guidance.

Summary

Tapestry’s fiscal 2026 revenue increased 14% to $8.00 billion, led by 24% growth at Coach
The company acquired approximately 11 million new customers, around 35% of whom were Gen Z, while Kate Spade New York and Japan recorded revenue declines
For fiscal 2027, Tapestry forecasts revenue of $8.4 billion to $8.5 billion, operating margin expansion of about 50 basis points, and non-GAAP diluted EPS of $7.80 to $7.90

Coach Grows 24% While Kate Spade Records a Decline

Coach generated $6.91 billion in full-year revenue, up 24% as reported and 23% in constant currency. The brand delivered double-digit revenue growth in every quarter of fiscal 2026.

Growth was supported by the core leather goods category, particularly handbags. Coach’s handbag average unit retail increased at a mid-teens rate in both the fourth quarter and the full year, reinforcing the brand’s desirability and pricing power.

Kate Spade New York, meanwhile, reported annual revenue of $1.07 billion, down 10% as reported and 11% in constant currency. Fourth-quarter revenue declined 7% on both a reported and constant-currency basis.

Greater China and Europe Lead Regional Growth

Greater China generated $1.40 billion in full-year revenue, representing growth of 38% as reported and 35% in constant currency. Europe increased 29% to $525.4 million, or 23% in constant currency, while North America rose 15% to $5.03 billion.

Across the broader Asia-Pacific region, revenue grew 19% in constant currency during both the fourth quarter and full year. Japan, however, recorded a 10% reported decline in annual revenue to $465.7 million and a 7% decrease in constant currency.

Japan’s fourth-quarter revenue also declined 11% as reported and 4% in constant currency, contrasting with the stronger momentum recorded across several of Tapestry’s other Asian markets.

Tapestry Acquires Approximately 11 Million New Customers

Tapestry welcomed approximately 11 million new customers globally during fiscal 2026, including more than 2.5 million in the fourth quarter. Approximately 35% of those new customers were Gen Z.

Direct-to-consumer revenue increased 11% in the fourth quarter and 16% for the full year on a pro forma constant-currency basis. Digital revenue grew at a high-teens rate for the year, while store revenue increased at a mid-teens rate in both the fourth quarter and full year. Profitability also improved across all channels.

The company continues to advance its Amplify growth strategy, centered on building emotional connections with consumers, fueling fashion innovation and product excellence, delivering compelling experiences to support global growth, and maximizing the power of its people.

Joanne Crevoiserat, Chief Executive Officer of Tapestry, commented: “Our fourth quarter outperformance capped a year of strong growth, as we meaningfully exceeded expectations and achieved key financial commitments we established at our Investor Day two years ahead of plan.

Our success is by design, demonstrating the power of our Amplify strategy. Through intentional choices, disciplined execution, and an unwavering focus on the consumer, we have built a stronger, more focused organization. These strengths enable us to deliver creativity, value, and relevance at scale, deepening our connections with consumers globally. We are confident our advantages will continue to compound, driving durable growth and long-term shareholder value.”

Operating Income Rises 33% as EPS Exceeds Guidance

On a non-GAAP basis, full-year operating income increased 33% to $1.87 billion. Operating margin reached 23.4%, expanding approximately 340 basis points from the prior year. Non-GAAP gross margin rose 120 basis points to 76.6%.

GAAP diluted earnings per share increased to $7.27 from $0.82 in the previous year. Non-GAAP diluted EPS rose 38% to $7.05, exceeding the company’s guidance.

Cash flow from operating activities totaled $1.98 billion, while adjusted free cash flow reached $1.86 billion. At the end of the fiscal year, cash, cash equivalents, and short-term investments totaled $1.15 billion, while outstanding borrowings stood at $2.38 billion.

Fiscal 2027 Revenue Forecast at $8.4 Billion to $8.5 Billion

Tapestry returned $1.7 billion to shareholders through dividends and share repurchases during fiscal 2026. The company repurchased $1.35 billion of common stock, acquiring approximately 11.5 million shares at an average price of about $118 per share.

The board also approved a 16% dividend increase, bringing the anticipated annual dividend to $1.85 per share. Tapestry expects to return approximately $1.7 billion to shareholders again in fiscal 2027 through dividends and share repurchases.

For fiscal 2027, the company forecasts revenue of between $8.4 billion and $8.5 billion, representing mid-single-digit growth on both a reported and constant-currency basis. Operating margin is expected to expand by approximately 50 basis points, while non-GAAP diluted EPS is projected at between $7.80 and $7.90.

The outlook assumes a tariff rate in the mid-20% range on inventory entering the United States during fiscal 2027, with a neutral net year-over-year impact from tariffs. Maintaining Coach’s momentum while addressing continued weakness at Kate Spade New York and in Japan will remain key areas to watch in the coming fiscal year.

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