Companies

Tapestry raises full-year outlook on strong first-quarter results

Nov 8, 2026 United States

The parent company of Coach and Kate Spade reported a strong first quarter performance, prompting it to raise its outlook for full-year revenue, margins and earnings

“Our first quarter marked a powerful start to the year, with revenue, margin, and earnings growth ahead of expectations and strength around the world. Our Amplify strategy continues to bring new consumers to our brands through our distinctive combination of creativity, craftsmanship, and value”, commented Joanne Crevoiserat, Chief Executive Officer (CEO).

First-Quarter Results

In the first quarter of the 2027 financial year, Tapestry recorded net sales of 1.89 billion euros, an 11% increase on both a reported and constant currency basis compared to the same period last year. Excluding Stuart Weitzman, pro forma net sales increased by 12% on both a reported and constant currency basis.

Coach brand generated pro forma net sales of 1.66 billion US dollars in the first quarter of financial year 2027, up by 18% on both a reported and constant currency basis from the same period in financial year 2026. Meanwhile, Kate Spade’s net sales totalled 233 million US dollars, down by 10% on both a reported and constant currency basis.

In the first quarter of this financial year, Tapestry’s gross profit on a non-GAAP basis was 1.49 billion euros, representing a 220-basis-point increase compared with the same period last year. This improvement was mainly driven by operational efficiencies (+130 basis points), favourable tariff and duty impacts (+70 basis points), and foreign exchange benefits (+20 basis points).

Tapestry recorded a GAAP operating income of 424 million US dollars in the first quarter, up from 328 million US dollars in the same quarter last year. On a non-GAAP basis, operating income increased by 24% to 439 million US dollars, while the operating margin expanded by around 230 basis points year-on-year to 23.2%.

In the three months ending on the 26^th of September, the company’s GAAP diluted earnings per share rose by 38% to 1.76 million US dollars, compared to the same period a year ago. Non-GAAP diluted earnings per share rose by 32% year-on-year to 1.82 US dollars.

Full-Year Outlook

“Building on this outperformance, we are raising our full year outlook, reflecting our confidence in the durability of our growth”, the CEO highlighted.

For the full fiscal year, Tapestry expects revenue to reach between 8.5 and 8.6 billion US dollars, representing growth of between 6% and 7% on a constant-currency basis. Foreign exchange is expected to provide an additional benefit of 30 basis points. This exceeds its previous guidance of 8.4 to 8.5 billion US dollars.

The company also anticipates an expansion of the operating margin by around 100 basis points, which is double its previous forecast of 50 basis points. Diluted earnings per share are projected to reach between 8.25 and 8.35 US dollars, which represents year-on-year growth of 17 to 18%, up from the previous guidance of 7.80 to 7.90 US dollars.

Image Credits: glamcheck.com

United States Coach Companies Kate Spade Quarter Results Results Tapestry