“At our investor day in September, we introduced our Amplify plan – a bold vision to bring Tapestry’s iconic brands to new generations of consumers and drive durable growth. Our first quarter outperformance marked a powerful start to this next chapter. Through focused execution of our strategies, we brought creativity and craftsmanship to our customers around the world, achieving revenue and earnings increases ahead of expectations”, commented Joanne Crevoiserat, Chief Executive Officer of Tapestry. 

First Quarter Results

In the first quarter of the 2026 financial year, which ended on the 27^th of September, the group generated 1.70 billion US dollars in net sales, a 13% increase (or 12% on a constant basis), as compared with the same period last year. Excluding Stuart Weitzman, net sales totalled 1.69 billion US dollars, reflecting growth of around 16%, both on a reported and constant basis.

The Coach brand fuelled growth for the group, achieving year-on-year net sales growth of 22% (or 21% on a constant basis) in the first quarter, reaching 1.43 billion US dollars. Meanwhile, Kate Spade underperformed, experiencing an 8% year-on-year net sales decrease (or a 9% decrease on a constant basis) to reach 260.2 million US dollars.

In the first quarter of this year, Tapestry’s gross margin was 76.3% on a GAAP basis and 76.6% on a non-GAAP basis. This is comparable to 75.3% on both a GAAP and non-GAAP basis in the same quarter last year. The non-GAAP gross margin increased by 120 basis points, primarily due to 170-basis points of operational improvements and a 70-basis point benefit from the divestiture of Stuart Weitzman, partially offset by 70-basis points of tariffs/duties and a 60-basis point adverse currency effect. 

The company reported a stronger operating performance this quarter. Non-GAAP operating income rose to 354 million US dollars, while the operating margin increased to 20.9%, up from 18.9% in the same period last year. GAAP operating income reached 328 million US dollars, as compared with 252 million US dollars in the same period last year. The margin increase included a benefit of 110 basis points from the divestiture of Stuart Weitzman.

This improvement was reflected in the bottom line. GAAP’s net income rose year-on-year from 187 million to 275 million US dollars, with earnings per diluted share increasing from 0.79 to 1.28 US dollars. On a non-GAAP basis, net income rose year-on-year to 297 million from 242 million US dollars and diluted earnings per share improved to 1.38 from 1.02 US dollars. These results were further supported by lower interest expenses and a reduced tax rate of 13.7%, down from 18.5% the previous year.

Full Year Outlook

Tapestry has raised its full year revenue and earnings outlook. 

It now expects revenue of around 7.3 billion US dollars, representing growth of 4% to 5% versus the previous year on a reported basis. Excluding Stuart Weitzman, pro forma revenue is expected to grow by 7% to 8. This exceeds the prior guidance that revenue would approach 7.2 billion US dollars and increase at a mid-single-digit rate on a pro forma basis.

The group also expects earnings per diluted share to be between 5.45 and 5.60 US dollars. This represents growth of between 7% and 10%, as compared to the previous year, and exceeds the previous guidance of between 5.30 and 5.45 US dollars.