Tapestry — the parent company of Coach and Kate Spade — said sales grew 12% year-on-year on a constant currency basis to $1.7 billion in the first quarter of 2026, ending 27 September 2025. The growth was driven by Coach, which continues to perform well among Gen Z consumers.
Tapestry completed the sale of Stuart Weitzman in August and therefore also reported performance excluding the footwear brand. Without Stuart Weitzman, sales grew 16% to $1.69 billion.
Gross profit increased 15% while gross margin increased from 75.3% to 76.3%. The positive impact of the Stuart Weitzman sale was partially offset by the negative impact of tariffs and currency headwinds, the company said.
The company increased its full-year outlook. It now expects revenue to reach around $7.3 billion compared to its prior $7.2 billion guidance, representing 4 to 5% growth on a reported basis (excluding Stuart Weitzman, revenue is expected to rise 7% to 8%).
“Our first quarter marked a powerful start to our next chapter of growth,” CEO Joanne Crevoiserat said on the earnings call. “This outperformance positioned us to increase our outlook for the year, reinforcing that our advantages are structural and sustainable.”
In September, Tapestry introduced its new strategy for growth, Amplify, which aims to build emotional connection with customers; fuel fashion innovation and product excellence; deliver compelling experiences to drive global growth; and ignite the power of its people, developing a “customer-obsessed” internal culture.
Tapestry acquired 2.2 million new customers this quarter, with Gen Z accounting for 35% of them. “Our new and younger customers are transacting at a higher AUR and have a higher retention rate than the balance of our client base. They are also influencing all generations as we achieve growth and acquisition and retention among both Gen Z and non-Gen Z cohorts, a clear signal of our growing brand resonance and reach,” said Crevoiserat.
At Coach, sales grew 21% to $1.43 billion, driven by strong leather goods acceleration in addition to bag charms and straps, which customers are drawn to for the opportunity to customise their bags, Crevoiserat noted. Average unit retail (AUR) increased by a mid-teens percentage. This quarter, Coach introduced two new coffee shops in its US outlets, in Jersey Gardens in New Jersey, and Woodbury Common in New York. “These activations go beyond marketing. They’re driving longer dwell times, commercial momentum and deepening emotional connections with the brand,” said Crevoiserat. Coach allocated 11% of its budget to marketing in Q2, increasing 43% in dollar value year-on-year, which Coach CEO Todd Kahn said he sees as a future-proofing investment.
Kate Spade’s sales declined 9% to $260 million as Tapestry continues with its turnaround. “We continue to back our turnaround efforts with disciplined investments, taking the strategic steps necessary to strengthen the brand’s foundation for long-term growth,” said Crevoiserat, noting that its fall campaign featuring Ice Spice and Charli D’Amelio has improved brand relevance among Gen Z.
By region, Europe outperformed, with sales growing 32% driven by Coach and strong new customer acquisition among Gen Z, leading to increased local consumer spending. North America, Tapestry’s largest market, saw sales grow 18%. Sales in Greater China grew 19%, driven by digital channels. Sales in Japan declined 10% on a tough consumer backdrop, while sales in the Other Asia market grew 3%.
Direct-to-consumer (DTC) sales increased 16%, with mid-teens growth in both digital and bricks-and-mortar stores. Tapestry credited a blend of creativity and data analytics for its DTC success. “Our direct-to-consumer business model enables us to connect with consumers wherever they choose, to engage with our brand while gathering real-time insights that underpin data-driven decisions. This is key to how we scale with focus and impact,” said Crevoiserat.
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