Tapestry Q4 2026: Coach Fuels a Beat and a 16% Dividend Raise

Tapestry closed fiscal 2026 by beating on both earnings and revenue, and it raised the quarterly dividend 16%, a concrete signal from management that the earnings trajectory is expected to hold.

The engine behind the quarter was Coach, whose revenue rose 15% year over year as mid-teens handbag price increases lifted average unit retail without meaningfully denting demand. Greater China revenue also grew on a reported basis, validating the brand's international momentum that analysts had been watching closely heading into the report.

Non-GAAP gross margin expanded 180 basis points to 78.1% while operating margin widened and marketing investment increased, reflecting cost discipline. Expanding margins alongside rising marketing spend suggest Coach's pricing power is absorbing the investment.

Kate Spade remains the soft spot, with revenue falling 7% in Q4. Management has not outlined a specific turnaround timeline for the brand, and its continued drag means Tapestry's consolidated results are doing more heavy lifting than the top-line beat alone implies.

Looking into fiscal 2027, Tapestry guided non-GAAP EPS of $7.80 to $7.90 with operating margin expansion of approximately 50 basis points, and it expects to keep returning capital through dividends and share repurchases. The outlook embeds a mid-20% tariff rate on U.S. inventory receipts, with management describing the net year-over-year tariff impact as neutral.