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.
