Tapestry — the parent company of Coach and Kate Spade — said that revenues increased 17% on a constant currency basis to $8 billion in fiscal 2026, beating expectations. The company attributed this growth to Gen-Z favorite Coach as well as a strong performance in China. For the fourth quarter, company revenues increased 11% year-on-year to $1.9 billion, beating analyst expectations.
Still, shares dropped 8.9% in pre-market trading after the company shared an outlook of mid-single-digit revenue growth between $8.4 billion and $8.5 billion for 2027.
“As we enter fiscal 2027, we see strength continuing, led by Coach, where our performance remains strong across new and existing customers and in our core leather goods category,” CEO Joanne Crevoiserat said on the call. “So the takeaway is that fiscal 2026 demonstrated the power of our strategy, and our Q1 and fiscal 2027 outlook reinforces our confidence in the durability of what we’ve built into the future.”
Tapestry highlighted its focus on customer acquisition during fiscal 2026, which brought in 11 million new customers — a shift carried by Gen Z — as part of its Amplify strategy. The company drew particular attention to the footwear, small leather goods and handbags categories.
By brand, Coach revenues grew 14% in Q4 to $1.6 billion, bookending a strong year for the 85-year-old brand, ushering in 2 million new consumers. For the full year, the figure was almost 9 million. Coach’s yearly revenues climbed 23% to $6.9 billion. The core leather goods assortment was a standout, with average unit retail (AUR) — the average selling price of an item in a period — rising into the mid-teens as units decreased by low double digits. This went hand in hand with a reduction in markdowns and a focus on brand equity.
“Coach is bringing new consumers into the category and growing the market,” said Crevoiserat in a pre-prepared statement. “Given the strength of the brand and our large addressable market, we continue to see a clear path to Coach becoming a $10 billion brand.”
Kate Spade revenues, however, dropped 11% in fiscal 2026 to $1.07 billion, with a 7% drop in Q4 to $235.1 million, as turnaround progress for the brand remains gradual. In Q4, the brand named Allison Badea as CMO and also announced the appointment of Jonathan Saunders as creative director, starting later this month.
By region, group revenues in North America were up 15% for the full year. Greater China was a standout, and climbed 35%. Japan decreased 7%, and “other Asia” grew 13%. In Europe, revenues grew 23%. The company’s “other” region — which primarily represents royalties earned from Tapestry’s licensing partners and sales in the Middle East — grew 7%.
Coach was the headline for 2026. “We’re consolidating the exceptional growth from last year, and compounding that, as we look forward into fiscal 2027,” Tapestry CFO and COO Scott Roe told investors. “The strong momentum in Coach continues, and we have a lot of confidence in our growth — not only in Coach overall, but in Coach North America, specifically.”
