Tapestry reported record first‑quarter revenue of $1.70 billion, up 13% from the same period a year earlier, and earnings per share of $1.38, beating consensus of $1.26 by $0.12. The beat was driven by a 22% jump in Coach brand revenue to $1.43 billion, a 35% share of new customers from Gen Z, and disciplined cost management that kept operating expenses in line with revenue growth.
Operating margin expanded to 19.3% GAAP (20.9% non‑GAAP) from 16.7% (18.9%) a year earlier, a lift of 200 basis points. The improvement reflects a higher mix of high‑margin Coach sales, SG&A leverage, and the positive impact of the Stuart Weitzman divestiture, which removed a lower‑margin brand from the earnings calculation.
Management raised its full‑year revenue outlook to $7.30 billion and EPS guidance to $5.45–$5.60, up from $7.20 billion and $5.30–$5.45 a year earlier. The upgrade signals confidence that demand for Coach and the Amplify growth strategy will continue to accelerate, while the company remains focused on cost discipline and margin expansion.
Segment analysis shows Coach driving the majority of growth, while Kate Spade revenue fell 9% year‑over‑year. Tapestry added more than 2.2 million new customers globally, with Gen Z accounting for roughly 35% of that cohort, underscoring the brand’s appeal to younger consumers.
Despite the strong results, the market reacted negatively, with the stock falling 10–12% in pre‑market trading. Analysts cited concerns that the guidance, while higher, still reflects a cautious outlook amid broader market volatility and the company’s recent divestiture, which may have dampened investor enthusiasm.
CEO Joanne Crevoiserat described the quarter as a “powerful start to our next chapter of growth,” emphasizing the company’s structural advantages. CFO Scott Roe highlighted the plan to return $1.3 billion to shareholders in fiscal 2026 through dividends and share repurchases, reinforcing confidence in the company’s cash‑generating capacity.
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