Tapestry Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did TPR Beat Earnings? Q1 2026 Results
Tapestry kicked off fiscal 2026 with a record first quarter, posting non-GAAP EPS of $1.38 — a 9.45% beat against the $1.26 consensus — as revenue of $1.70 billion topped estimates by 4.09% and climbed 13.1% year-over-year. The driving force behind the outperformance was unmistakably Coach, which generated $1.43 billion in revenue, a 22% reported increase fueled by a mid-teens rise in handbag average unit retail and broad customer acquisition momentum, including over 2.2 million new customers globally with Gen Z comprising roughly 35% of that cohort. Non-GAAP operating margin expanded 200 basis points to 20.9% despite a 70 basis point tariff headwind, reflecting strong gross margin discipline and SG&A leverage that more than absorbed external pressures. Management responded to the quarter's strength by raising its full-year revenue outlook to approximately $7.30 billion and lifting non-GAAP EPS guidance to $5.45–$5.60, while expanding its share repurchase target to roughly $1.00 billion — underscoring confidence that the brand's underlying momentum remains durable heading into the balance of the fiscal year.
- Coach brand revenue growth of 22% (21% constant currency) led by mid-teens handbag AUR increase
- Acquired over 2.2 million new customers globally with Gen Z representing approximately 35% of new customers
- Non-GAAP gross margin expansion of 120 basis points driven by 170 bps of operational improvements
- Strong direct-to-consumer revenue growth of 16% pro forma constant currency with mid-teens growth in both digital and brick-and-mortar
- Pro forma constant currency growth in Europe (+32%), Greater China (+19%), and North America (+18%)
- SG&A leverage with non-GAAP SG&A ratio declining from 56.4% to 55.6%
“At our investor day in September, we introduced our Amplify plan – a bold vision to bring Tapestry's iconic brands to new generations of consumers and drive durable growth. Our first quarter outperformance marked a powerful start to this next chapter. Through focused execution of our strategies, we brought creativity and craftsmanship to our customers around the world, achieving revenue and earnings increases ahead of expectations. From this position of strength, we are raising our full year outlook, reinforcing that our advantages are structural and sustainable. We remain confident in our bright future, with a proven track record and an unwavering commitment to deliver compounding growth and long-term shareholder value.”
Tapestry CEO, on the earnings call
Forward Guidance & Outlook
Tapestry raised its FY2026 non-GAAP outlook: revenue expected in the area of $7.3 billion (4-5% reported growth; pro forma ex-Stuart Weitzman growth of 7-8%), up from prior guidance approaching $7.2 billion. Non-GAAP operating margin expected to expand approximately 50 basis points versus prior year, reflecting ~280 bps of underlying expansion offset by ~230 bps of tariff/duty headwinds. Non-GAAP EPS guided to $5.45-$5.60 (7-10% growth), raised from prior $5.30-$5.45. Adjusted free cash flow expected at $1.3 billion. Net interest expense approximately $65 million. Tax rate approximately 18%. Weighted average diluted share count approximately 212 million. Share repurchases increased to approximately $1.0 billion from $800 million. Outlook embeds U.S. trade/tax policies as of November 1, 2025 and assumes no material worsening of inflationary pressures or consumer confidence.
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Figures from SEC filings and company reports. Not investment advice.