Tapestry Inc
Q4 2026 Earnings
Q4 GAAP EPS of $1.68 includes net benefit of $0.36 from IEEPA tariff refunds of $98.3M, partially offset by distribution network optimization costs of $9.8M and organizational efficiency costs of $8.2M
Market Reaction
Did TPR Beat Earnings? Q4 2026 Results
Tapestry delivered a convincing beat across the board in fiscal Q4 2026, with the accessible luxury company posting adjusted EPS of $1.32 against a consensus estimate of $1.28, a 3.41% beat, while revenue of $1.88 billion edged ahead of the $1.87 billion forecast and grew 8.9% year over year. The headline driver was Coach, which surged 15% in reported revenue for the quarter fueled by mid-teens handbag price increases, more than offsetting continued softness at Kate Spade, where revenue fell 7%. Non-GAAP gross margin expanded 180 basis points to 78.1% and operating margin widened 250 basis points to 19.3%, reflecting strong cost discipline even as marketing investment increased. Analysts had been closely watching Coach's international momentum heading into the print, and Greater China's 28% constant currency growth in the quarter validated that thesis. GAAP EPS of $1.68 included a $0.36 benefit from IEEPA tariff refunds, partially offset by restructuring items. Looking ahead, management guided fiscal 2027 non-GAAP EPS of $7.80 to $7.90 on revenue of $8.40 billion to $8.50 billion, with operating margin expansion of approximately 50 basis points.
- Coach brand revenue grew 15% in Q4 (+14% constant currency) and 24% for the full year (+23% constant currency)
- Coach handbag AUR increased at a mid-teens percentage rate in both Q4 and FY26
- Leathergoods outperformance driven by combination of AUR and unit growth
- Welcomed over 2.5 million new consumers in Q4 and approximately 11.0 million in FY26, with approximately 35% Gen Z
- Non-GAAP gross margin expanded 180 bps in Q4 to 78.1% driven by 170 bps of operational improvements
- Non-GAAP operating margin expanded 250 bps in Q4 to 19.3% and 340 bps in FY26 to 23.4%
- Direct-to-Consumer revenue increased 11% in Q4 and 16% for the full year on a pro forma constant currency basis
- Greater China revenue grew 28% constant currency in Q4 and 35% for the full year
- Marketing investment increased 130 bps in Q4 and 140 bps for the full year
“Our fourth quarter outperformance capped a year of strong growth, as we meaningfully exceeded expectations and achieved key financial commitments we established at our Investor Day two years ahead of plan.”
Tapestry CEO, on the earnings call
Forward Guidance & Outlook
Tapestry initiated its Fiscal 2027 outlook on a non-GAAP and comparable 52-week basis: Revenue of $8.4 billion to $8.5 billion (mid-single-digit growth on nominal and constant currency basis), operating margin expansion of approximately 50 basis points, net interest expense of approximately $55 million, tax rate of approximately 18.5%, weighted average diluted share count of approximately 203 million, EPS of $7.80 to $7.90 (low-double-digit growth), and adjusted free cash flow approaching $1.7 billion including CapEx and cloud computing costs of $300 million. The outlook excludes the impact of a 53rd week in FY27 (expected to add an additional percentage point to annual revenue growth with neutral operating margin impact), embeds a mid-20% tariff rate on U.S. inventory receipts resulting in neutral net YoY tariff impact, and assumes no material worsening of inflationary pressures or consumer confidence. For Q1 FY27, the company expects high-single-digit revenue growth and EPS of approximately $1.55 (low-teens growth). The company expects to return approximately $1.7 billion to shareholders in FY27 through dividends and $1.35 billion in share repurchases.
TPR YoY Financials
TPR Revenue by Segment
TPR Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.