Tapestry Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.06%.
Did TPR Beat Earnings? Q2 2026 Results
Tapestry delivered a blowout fiscal second quarter for 2026, posting non-GAAP EPS of $2.69 against a consensus estimate of $2.29 — a beat of more than 20% — while revenue of $2.50 billion topped expectations by 7.68% and grew 14% year-over-year. The standout driver was an electrifying performance at Coach, where revenue surged 25% to $2.14 billion on the back of mid-teens gains in both handbag average unit retail and units sold, more than offsetting continued softness at Kate Spade, which saw revenue fall 14% to $360 million. Profitability expanded sharply alongside top-line growth, with non-GAAP operating margin reaching 28.8%, up 390 basis points versus the prior year, and non-GAAP EPS rising 34% year-over-year. The results were strong enough to prompt a sweeping upgrade to full-year guidance, with Tapestry now targeting revenue above $7.75 billion, non-GAAP EPS of $6.40 to $6.45 — representing over 25% growth — and adjusted free cash flow of approximately $1.50 billion, reflecting management's confidence that Coach's momentum is durable heading into the back half of the fiscal year.
- Coach brand revenue surged 25%, led by strong handbag revenue gains with mid-teens percentage increases in both AUR and units
- Acquired over 3.7 million new customers globally, with Gen Z representing approximately one-third of new customers
- Gross margin expanded 110 basis points driven by approximately 250 basis points of operational improvements
- Direct-to-consumer revenue increased 17% on a pro forma basis, led by ~20% digital growth and mid-teens brick and mortar growth
- SG&A leverage contributed to 390 basis points of non-GAAP operating margin expansion
- Broad-based regional growth led by Greater China (+34% constant currency), Europe (+22% constant currency), and North America (+17% constant currency)
“Our second quarter outperformance reflects the compounding impact of our Amplify strategy, driving deeper consumer engagement, accelerated growth, and record results. This holiday season, our talented teams brought creativity, craftsmanship, and value to consumers around the world, building new and lasting connections that fuel enduring brand desire and demand. As we move forward, we do so with momentum and confidence. By harnessing our proven strategies and structural advantages, we are raising our outlook for the fiscal year, reinforcing our commitment to driving durable growth and long-term value creation.”
Tapestry CEO, on the earnings call
Forward Guidance & Outlook
Tapestry raised its fiscal 2026 non-GAAP outlook: Revenue now expected over $7.75 billion (~11% reported growth, ~15% pro forma nominal growth, ~14% pro forma constant currency), up from prior guidance of ~$7.3 billion. Operating margin expansion of ~180 basis points vs. prior year (up from ~50 bps prior guidance), expected to more than offset ~200 bps tariff/duty headwind. EPS guidance raised to $6.40-$6.45 (over 25% growth), up from $5.45-$5.60. Adjusted free cash flow now expected at ~$1.5 billion (up from $1.3 billion). Net interest expense ~$65 million, tax rate ~17% (down from ~18%), weighted average diluted shares ~211 million. Outlook embeds U.S. trade and tax policies as of February 1, 2026, including OECD Pillar Two, and assumes no material worsening of inflation or consumer confidence.
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Figures from SEC filings and company reports. Not investment advice.