Tapestry Reports 12% Sales Growth in Q1 2026 Driven by Coach
Tapestry, the parent company of popular fashion brands Coach and Kate Spade, announced a 12% year-on-year sales growth on a constant currency basis, reaching $1.7 billion in the first quarter of 2026, ending on 27 September 2025. The strong performance was mainly attributed to Coach, which continues to resonate well with Gen Z consumers.
Following the completion of the sale of Stuart Weitzman in August, Tapestry also reported its performance excluding the footwear brand. Without Stuart Weitzman, sales saw a 16% increase, totaling $1.69 billion.
The company’s gross profit rose by 15%, with gross margin improving from 75.3% to 76.3%. While the sale of Stuart Weitzman had a positive impact, it was somewhat offset by the negative effects of tariffs and currency fluctuations, according to Tapestry.
Tapestry has raised its full-year revenue outlook, now anticipating revenue to hit around $7.3 billion, up from its previous guidance of $7.2 billion. This forecast represents a 4 to 5% growth on a reported basis (excluding Stuart Weitzman, revenue is projected to increase by 7% to 8%).
CEO Joanne Crevoiserat expressed optimism about the company’s growth trajectory, stating, “Our first quarter marked a powerful start to our next chapter of growth. This outperformance positioned us to increase our outlook for the year, reinforcing that our advantages are structural and sustainable.”
Tapestry Introduces “Amplify” Strategy for Growth
In September, Tapestry unveiled its new growth strategy, Amplify, which aims to foster emotional connections with customers, drive fashion innovation and product excellence, deliver exceptional experiences for global expansion, and empower its workforce by cultivating a “customer-obsessed” internal culture.
During the quarter, Tapestry welcomed 2.2 million new customers, with Gen Z making up 35% of this influx. Crevoiserat highlighted that these new and younger customers exhibit higher average unit retail (AUR) and retention rates compared to the overall client base, indicating the brand’s expanding resonance and reach.
Coach Leads Sales Growth and Innovation
At Coach, sales surged by 21% to $1.43 billion, fueled by robust growth in leather goods and popular accessories like bag charms and straps, which allow customers to personalize their bags. AUR saw a mid-teens percentage increase. The brand also launched two new coffee shops at its US outlets, enhancing customer engagement and brand loyalty.
Coach allocated 11% of its budget to marketing in Q2, a 43% increase in dollar value year-on-year, which CEO Todd Kahn views as a strategic investment for future-proofing the brand. These initiatives aim to drive longer dwell times, boost commercial momentum, and deepen emotional connections with customers.
