Tapestry

TPR Q3 2026 Earnings

Reported May 7, 2026 at 6:45 AM ET · SEC Source

Q3 26 EPS

$1.66

BEAT +27.77%

Est. $1.30

Q3 26 Revenue

$1.92B

BEAT +7.59%

Est. $1.79B

vs S&P Since Q3 26

-0.5%

TRAILING MARKET

TPR -0.2% vs S&P +0.2%

Market Reaction

Did TPR Beat Earnings? Q3 2026 Results

Tapestry delivered a blowout fiscal third quarter, posting non-GAAP EPS of $1.66 against a consensus estimate of $1.28, a 29.69% beat that extended the company's streak of exceeding analyst expectations to four consecutive quarters. Revenue of $1.92 … Read more Tapestry delivered a blowout fiscal third quarter, posting non-GAAP EPS of $1.66 against a consensus estimate of $1.28, a 29.69% beat that extended the company's streak of exceeding analyst expectations to four consecutive quarters. Revenue of $1.92 billion rose 21.2% year over year, powered almost entirely by the Coach brand, which generated $1.70 billion in sales, a 31% reported increase fueled by handbag unit growth exceeding 20% and low-double-digit average unit retail gains. Gross margin expanded to 76.9% and non-GAAP operating margin widened 490 basis points to 22.4%, even as tariff and duty headwinds consumed roughly 180 basis points of gross margin. Geographic breadth was notable, with pro forma constant currency growth of 55% in Greater China and 20% in North America. Tapestry raised its full-year fiscal 2026 outlook meaningfully, guiding revenue to approximately $7.95 billion and non-GAAP EPS to approximately $6.95, representing over 35% earnings growth, with adjusted free cash flow expected to approach $1.60 billion.

Key Takeaways

  • Coach brand handbag revenue gains with units up more than 20% and AUR increasing at a low-double-digit rate
  • Acquired over 2.4 million new customers globally, with Gen Z representing over 35% of new customers
  • Gross margin expansion of 80 basis points driven by 190 basis points of operational improvements
  • Non-GAAP SG&A leveraged by 410 basis points even as marketing investment increased 160 basis points
  • Total direct-to-consumer revenue increased 23% on a pro forma constant currency basis
  • Digital growth of approximately 25% and over 20% growth in global brick and mortar sales
  • Greater China pro forma constant currency growth of 55%

TPR Forward Guidance & Outlook

Tapestry raised its fiscal year 2026 non-GAAP outlook: revenue expected at approximately $7.95 billion (up from over $7.75 billion), representing ~14% reported growth and ~13% constant currency growth; pro forma revenue growth of ~17% reported and ~16% constant currency. Operating margin expected at approximately 23%, representing ~300 basis points of expansion (up from ~180 bps prior guidance), more than offsetting ~120 basis points of tariff/duty headwinds. Non-GAAP EPS guided to approximately $6.95 (up from $6.40-$6.45), representing over 35% growth. Net interest expense expected at ~$60 million (from ~$65 million). Tax rate ~17.5%. Weighted average diluted shares ~210 million. Adjusted free cash flow approaching $1.6 billion (from ~$1.5 billion). Outlook embeds U.S. trade policies as of May 1, 2026 and assumes no material worsening of inflation or consumer confidence.

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TPR YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings

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TPR Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q3 26
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TPR Revenue by Geography

With YoY comparisons, source: SEC Filings

Q3 25 Q3 26

“Our third quarter outperformance reflects the compounding benefits of our Amplify strategy, as we bring creativity, craftsmanship, and value to more consumers around the world. With disciplined execution and the consumer at the center of everything we do, we are translating insights into action at scale, fueling meaningful growth, expanding margins, and enduring brand desire. From this position of strength, we move confidently into the future with significant opportunity ahead. We are raising our outlook for the fiscal year, underscoring the power of Tapestry and our commitment to driving durable growth and long-term shareholder value.”

— Joanne Crevoiserat, Q3 2026 Earnings Press Release