Tapestry delivered strong fiscal 2026 results: Revenue reached a record $8 billion, up 17% on a constant-currency pro forma basis, while operating margin expanded to more than 23% and EPS rose 38% to $7.05. Coach led growth across regions and customer segments, with fourth-quarter revenue up 14% and particularly strong performance in Greater China and Europe. Kate Spade's turnaround remains in progress, with fiscal 2027 revenue expected to decline at a high-single-digit rate and the brand forecast to post a modest operating loss.
Tapestry issued a positive fiscal 2027 outlook calling for $8.4 billion-$8.5 billion in revenue, nearly 24% operating margin and EPS of $7.80-$7.90. The company also plans to return approximately $1.7 billion to shareholders and raised its annualized dividend by 16% to $1.85 per share. Gen Z Trends Make These 3 Stocks Worth Watching Tapestry (NYSE:TPR) said fiscal 2026 revenue rose 17% on a pro forma constant-currency basis to a record $8 billion, while operating margin expanded 340 basis points to more than 23% and earnings per share increased 38% to $7.05.
Chief Executive Officer Joanne Crevoiserat said the company reached the revenue, operating-margin and EPS commitments established at its investor day two years ahead of schedule. The company added 11 million new customers during the year, led by Gen Z consumers, according to Crevoiserat. She said growth included both average-unit-retail, or AUR, gains and unit growth in core leather goods, while results were broad-based across regions and channels. → Lumentum Just Delivered the AI Growth Investors Wanted MarketBeat Week in Review – 05/11 - 05/15 For the fourth quarter, Tapestry reported pro forma constant-currency revenue growth of 11%.
Operating income increased 25%, operating margin expanded 250 basis points, and EPS rose 28% to $1.32, exceeding the company's guidance despite a tax-related headwind of more than $0.05 per share, Chief Financial Officer and Chief Operating Officer Scott Roe said. Coach posted 14% constant-currency revenue growth in the fourth quarter, supported by customer acquisition and demand for core handbag lines. The brand added more than 2 million customers during the quarter and nearly 9 million during fiscal 2026. → Ryman Checks Into a $1.38B Hospitality Upgrade Tapestry Stock Drops After Strong Quarter and Raised Outlook Coach's North America revenue increased 10% in the fourth quarter, while Greater China revenue rose 30% and European revenue climbed 25%, Crevoiserat said.
In the quarter, handbag AUR increased at a mid-teens rate while unit volumes were roughly flat from a year earlier. The company attributed the unit performance to its deliberate reduction in promotional activity, as well as timing shifts in promotional events and strong third-quarter sell-through. Todd Kahn, CEO and Brand President of Coach, said the brand does not intend to pursue unit growth at the expense of margins or brand health.
He highlighted the company's "One Coach" strategy, which combines the retail and outlet approaches and offers collection merchandise at full price in outlet locations. Kahn said the strategy has supported higher AURs and customer acquisition. → Joby's Defense Pivot Accelerates With $500M Resonant Sciences Deal Coach's New York family of bags, including Brooklyn, Empire and Chelsea, as well as the Tabby and Teri lines, helped drive growth and Gen Z acquisition. Footwear revenue increased at a high-teens rate in the quarter, fueled by sneaker demand including the Soho and Margot families.
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