Companies

Tapestry raises full-year outlook

May 14, 2026 United States

The US-based accessible luxury group has reported strong third-quarter results, marked by a strong performance at Coach. As a result, the group raised its full-year outlook

“Our third quarter outperformance reflects the compounding benefits of our Amplify strategy, as we bring creativity, craftsmanship, and value to more consumers around the world. With disciplined execution and the consumer at the center of everything we do, we are translating insights into action at scale, fueling meaningful growth, expanding margins, and enduring brand desire”, commented Joanne Crevoiserat, Chief Executive Officer of Tapestry.

Third-Quarter Results

In the third quarter of the 2026 fiscal year, which ended on the 28^th of March, Tapestry reported a revenue of 1.9 billion US dollars, reflecting an increase of 21% (or 19% on a constant currency basis) compared to the same period of the last financial year.

Excluding Stuart Weitzman, the company recorded a year-on-year revenue growth of 25% (or 23% on a constant currency basis), mainly led by the performance of the Coach brand.

During this period, the Coach brand generated a revenue of 1.7 billion US dollars, a 31% increase (or a 29% increase on a constant currency basis), while the Kate Spade brand generated a revenue of 219.6 million US dollars, a 10% decrease (or an 11% decrease on a constant currency basis) compared to the third quarter of the 2025 fiscal year.

Thanks to operational improvements and the divestiture of Stuart Weitzman, the company’s gross margin increased from 76.1% in the third quarter of the previous year to 76.9%. However, this was partly offset by tariff-related costs.

Tapestry’s operating margin also strengthened in the third quarter, rising to 22.4% on an adjusted basis, up from 17.5% in the same period last year. This was achieved despite increased marketing investment, as SG&A expenses declined relative to sales.

In the third quarter of the 2026 fiscal year, the company’s net income increased to 344 million US dollars, or 1.65 US dollars per diluted share, up from 203 million US dollars, or 0.95 US dollars per share, in the same period the prior year. On an adjusted basis, net income increased from 220 million dollars to 346 million dollars.

Full-Year Outlook

Tapestry has raised its outlook for the 2026 financial year, forecasting a revenue of approximately 7.95 billion dollars. This exceeds its previous guidance of over 7.75 billion dollars, representing year-on-year growth of around 14%.

The full-year operating margin is expected to reach around 23%, which is an increase of around 300 basis points compared to the previous forecast of an increase of approximately 180 basis points. Meanwhile, earnings per diluted share are projected to be around 6.95 dollars, surpassing the company’s previous forecast of between 6.40 and 6.45 dollars.

Image Credits: lesfacons.com

United States Coach Companies Kate Spade Luxury Quarter Results Results Tapestry