Tapestry — the guardian firm of Coach and Kate Spade — mentioned gross sales grew 12% year-on-year on a relentless forex foundation to $1.7 billion within the first quarter of 2026, ending 27 September 2025. The expansion was pushed by Coach, which continues to carry out nicely amongst Gen Z customers.
Tapestry accomplished the sale of Stuart Weitzman in August and subsequently additionally reported efficiency excluding the footwear model. With out Stuart Weitzman, gross sales grew 16% to $1.69 billion.
Gross revenue elevated 15% whereas gross margin elevated from 75.3% to 76.3%. The optimistic impression of the Stuart Weitzman sale was partially offset by the detrimental impression of tariffs and forex headwinds, the corporate mentioned.
The corporate elevated its full-year outlook. It now expects income to succeed in round $7.3 billion in comparison with its prior $7.2 billion steering, representing 4 to five% progress on a reported foundation (excluding Stuart Weitzman, income is predicted to rise 7% to eight%).
“Our first quarter marked a strong begin to our subsequent chapter of progress,” CEO Joanne Crevoiserat mentioned on the earnings name. “This outperformance positioned us to extend our outlook for the yr, reinforcing that our benefits are structural and sustainable.”
In September, Tapestry launched its new technique for progress, Amplify, which goals to construct emotional reference to prospects; gas trend innovation and product excellence; ship compelling experiences to drive world progress; and ignite the ability of its individuals, growing a “customer-obsessed” inside tradition.
Tapestry acquired 2.2 million new prospects this quarter, with Gen Z accounting for 35% of them. “Our new and youthful prospects are transacting at a better AUR and have a better retention fee than the steadiness of our shopper base. They’re additionally influencing all generations as we obtain progress and acquisition and retention amongst each Gen Z and non-Gen Z cohorts, a transparent sign of our rising model resonance and attain,” mentioned Crevoiserat.
At Coach, gross sales grew 21% to $1.43 billion, pushed by robust leather-based items acceleration along with bag charms and straps, which prospects are drawn to for the chance to customize their baggage, Crevoiserat famous. Common unit retail (AUR) elevated by a mid-teens proportion. This quarter, Coach launched two new espresso retailers in its US retailers, in Jersey Gardens in New Jersey, and Woodbury Frequent in New York. “These activations transcend advertising and marketing. They’re driving longer dwell instances, business momentum and deepening emotional connections with the model,” mentioned Crevoiserat. Coach allotted 11% of its finances to advertising and marketing in Q2, rising 43% in greenback worth year-on-year, which Coach CEO Todd Kahn mentioned he sees as a future-proofing funding.
