Tapestry, the New York-based owner of Coach and Kate Spade, has raised its full-year outlook after reporting first-quarter results ahead of expectations. The company reported on November 5, 2026, that revenue for the quarter ended September 26 rose 11% to $1.89 billion, driven by a 16% increase in sales at Coach, according to FashionUnited.
The new guidance
Tapestry now expects fiscal 2027 revenue of $8.5 billion to $8.6 billion, up from its previous range of $8.4 billion to $8.5 billion. It raised its diluted earnings-per-share forecast to $8.25 to $8.35, from $7.80 to $7.90 previously, and now expects operating margin to expand by about 100 basis points, double its earlier estimate of about 50 basis points. The company also plans to return $2 billion to shareholders during the year, including $1.7 billion in share buybacks.
For the second quarter, which includes the holiday season, Tapestry guided to revenue growth of about 5% to 6% at constant currency and adjusted earnings per share of about $3.05.
Chief executive Joanne Crevoiserat described the quarter as a strong start to the year. She said the company’s Amplify strategy continues to bring new consumers to its brands, and that the higher outlook reflects confidence in the durability of its growth, as reported by FashionUnited.
First-quarter results
Net income rose to $360 million from $275 million a year earlier. Diluted earnings per share rose 38% to $1.76, or 32% to $1.82 on a non-GAAP basis. Gross margin improved to 78.6% from 76.3%, and operating income rose 29% to $424 million. Excluding Stuart Weitzman, which Tapestry has since sold, revenue growth was 12%.
Coach leads the growth
Coach revenue rose to $1.66 billion from $1.43 billion. Sales grew 7% in North America and 30% internationally. Handbag average unit retail, the average price at which items sold, rose by a low-double-digit percentage, while unit sales rose by a low-single-digit percentage.
Coach added 2.6 million new customers in the quarter, about 35% of them from Generation Z, according to FashionUnited. The brand’s appeal to younger shoppers has been widely reported in recent years, including by Fast Company.
Results by region
Greater China was the strongest region, with revenue up 43% on a reported basis to $385 million. Europe grew 20% to $151 million, and Other Asia rose 26% to $114 million. North America grew 4% on a pro forma basis to $1.11 billion. Japan was the only region to decline on a reported basis, down 5% to $103 million, though it grew 4% at constant currency.
Kate Spade declines
Kate Spade revenue fell 10% to $233 million from $260 million. The brand reported a GAAP operating loss of $20 million, compared with a $6 million profit a year earlier, and a non-GAAP operating loss of $6 million. Of $15 million in distribution network charges recorded in the quarter, $14 million related to Kate Spade. The brand closed eight stores and opened none, ending the quarter with 318 directly operated stores.
Tapestry’s full results are available in its filing with the US Securities and Exchange Commission.
Sources: FashionUnited; Tapestry SEC filing; TheIndustry.fashion; Fast Company.
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