Constant-Currency Revenue Rises 12% as Diluted EPS Climbs 32% to $1.82
On November 5, 2026, New York-headquartered modern luxury accessories and lifestyle house Tapestry, Inc.—parent company of Coach, Kate Spade, and Stuart Weitzman—announced its operating and financial results for the first quarter of fiscal year 2027 ended late September 2026. The luxury holding group delivered pro forma constant-currency revenue growth of 12 percent year over year, reaching $1.9 billion. Operating margin expanded by 230 basis points to surpass 23 percent, while diluted earnings per share (EPS) surged 32 percent to $1.82, comfortably exceeding average consensus estimates published by Wall Street research analysts.
Brand execution was spearheaded by flagship brand Coach, which recorded a 16 percent constant-currency revenue expansion. The brand achieved low double-digit growth in handbag average unit retail (AUR) alongside positive unit volume gains, demonstrating sustained pricing power across premium leather goods categories. Customer acquisition metrics highlighted effective brand resonance among emerging demographics: Coach attracted more than 2.1 million new customers during the quarter across international digital and physical retail channels, with Generation Z consumers representing approximately 40 percent of total acquired purchasers.
Coach Brand Acquires 2.1 Million Customers with 39% Surge in Greater China
International retail channels contributed substantially to top-line acceleration. On a constant-currency pro forma basis, revenue expanded 39 percent across Greater China and 22 percent in Europe, reflecting robust retail foot traffic and tourist spending. Revenue advanced 23 percent in Other Asia, 4 percent in Japan, and 4 percent across North American retail channels. Management attributed international momentum to targeted omnichannel store network expansion and localized marketing collaborations that elevated product desirability among younger affluent consumers.
Capitalizing on operational momentum, Tapestry executive management raised its financial guidance for the complete fiscal year 2027. The company currently projects full-year revenue between $8.5 billion and $8.6 billion, operating margins above 24 percent, and diluted EPS between $8.25 and $8.35. Management committed to distributing approximately $2 billion to equity investors throughout fiscal 2027, comprising $1.7 billion in common share repurchases and an expected annual dividend rate of $1.85 per share, reaffirming corporate confidence in structural free cash flow durability.
Raising Full-Year Fiscal 2027 Revenue Outlook to $8.6B with $2B Shareholder Return
Chief Executive Officer Joanne Crevoiserat reiterated that Tapestry's direct-to-consumer digital channels and localized supply-chain responsiveness enable rapid product iteration aligned with global fashion trends. The enterprise's focus on digital engagement and customer relationship management has expanded retention across core brand followings, supporting sustainable gross margin expansion even amidst broader retail macro volatility.