Tapestry, Inc. reported a significant increase in financial performance for the first quarter of fiscal 2026, ending September 27, 2025, with net sales reaching $1.70 billion, a 13.1% increase from $1.51 billion in the same period last year. The company's gross profit also rose to $1.30 billion, up 14.6% from $1.13 billion, resulting in a gross margin of 76.3%, compared to 75.3% in the prior year. Net income for the quarter was $274.8 million, a 47.2% increase from $186.6 million, translating to earnings per diluted share of $1.28, up from $0.79.
The company experienced notable changes compared to the previous fiscal period, particularly due to the divestiture of the Stuart Weitzman business, which was completed on August 4, 2025. This sale resulted in a pre-tax loss of $22.6 million, impacting the overall financial results. Tapestry's Coach brand saw a 22.1% increase in net sales, driven by strong direct-to-consumer (DTC) performance, while Kate Spade's sales decreased by 8.1%, attributed to lower store and e-commerce sales.
Operationally, Tapestry's total assets decreased to $6.36 billion from $6.58 billion, with cash and cash equivalents dropping to $719.5 million from $1.10 billion. The company repurchased $500 million of its common stock during the quarter, part of a broader $3 billion share repurchase program announced in September 2025. The total number of shares outstanding as of October 24, 2025, was 204.6 million.
Looking ahead, Tapestry's management expressed confidence in its 2028 Amplify growth strategy, which focuses on building emotional connections with consumers, fueling fashion innovation, and expanding globally, particularly in Greater China and Europe. However, the company acknowledged ongoing challenges from macroeconomic conditions, including currency fluctuations and higher tariffs, which have impacted gross margins. The effective tax rate for the quarter was 13.8%, down from 17.3% in the previous year, reflecting changes in the geographical mix of earnings and tax windfalls related to share-based compensation.
Overall, Tapestry, Inc. is positioned to navigate the current economic landscape while pursuing its strategic growth initiatives, although it remains vigilant regarding external market pressures that could affect future performance.
About TAPESTRY, INC.
Tapestry, Inc. is a global luxury accessories and lifestyle company owning iconic brands Coach, Kate Spade, and Stuart Weitzman. It designs, markets, and sells handbags, footwear, small leather goods, and accessories through direct-to-consumer channels, wholesale, and licensing. The company emphasizes innovation, sustainability, and inclusive culture, serving a worldwide customer base with a focus on omni-channel retail and digital platforms.
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