Tapestry Q1 2026 Results Show Revenue Gain, Outlook Raised
Tapestry Q1 2026 results show Coach Gen Z demand lifted revenue; management raised FY26 guidance and boosted buybacks, but investor reaction was muted.
KEY TAKEAWAYS
- Revenue rose to $1.7 billion as Coach revenue climbed 22.0% to $1.4 billion on Gen Z handbag demand.
- The company added 2.2 million new customers with Gen Z making up 35.0% of additions.
- Management raised FY26 revenue to about $7.3 billion and boosted buybacks to $1.0 billion.
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Tapestry (TPR) reported stronger sales in its fiscal first quarter, driven by Coach’s Gen-Z handbag demand, prompting management to raise its FY26 guidance on Nov. 6, 2025. Investor response was muted amid elevated expectations.
Revenue Growth and Brand Performance
Tapestry’s fiscal Q1 2026 revenue reached $1.7 billion, a 13% increase from a year earlier for the quarter ended Sept. 27, 2025. Gross profit rose to $1.3 billion, with gross margin improving to 76.3% from 75.3% a year earlier.
Coach brand revenue totaled $1.43 billion, up 22% year over year, fueled by strong Gen Z demand for Coach handbags. The company added more than 2.2 million new customers globally in the quarter, with Gen Z accounting for 35% of those new customers.
Regionally, revenue climbed 39% in Europe, 20% in Greater China, and 18% in North America. Kate Spade generated $260.2 million in revenue for the quarter.
Outlook and Capital Returns
Tapestry raised its FY26 guidance, now expecting approximately $7.3 billion in revenue and adjusted earnings per share between $5.45 and $5.60. On a non-GAAP basis, operating margin improved 200 basis points year over year to 20.9%, while gross margin rose 120 basis points to 76.5%. The outlook excludes the impact of the Stuart Weitzman divestiture and reflects continued Coach strength and margin discipline.
The company plans $1.3 billion in shareholder returns for FY26, increasing buybacks to $1.0 billion. CEO Joanne Crevoiserat said, “Our first quarter outperformance marked a powerful start to this next chapter.”
Despite the stronger results and raised guidance, investor reaction was subdued due to high expectations and ongoing challenges resetting the Kate Spade brand. Management acknowledged work on Kate Spade but did not provide a timeline.
