Tapestry, Inc. Reports 14% Revenue Growth to $2.50 Billion in Latest Quarter

Tapestry, Inc. reported significant financial growth in its latest quarterly results, with net sales reaching $2.50 billion for the three months ended December 27, 2025, a 14% increase from $2.20 billion in the same period last year. The company's gross profit also rose to $1.89 billion, reflecting a gross margin of 75.5%, up from 74.4% in the prior year. Operating income surged to $716.4 million, a 45.4% increase compared to $492.8 million in the previous year, while net income rose to $561.3 million, marking an 80.9% increase from $310.4 million.

The results indicate a strong performance across Tapestry's brands, particularly Coach, which saw net sales increase by 25.3% to $2.14 billion, driven by robust direct-to-consumer sales in North America, Greater China, and Europe. In contrast, Kate Spade experienced a decline in net sales, down 13.6% to $360 million, primarily due to decreased direct-to-consumer sales. The company attributed its overall growth to strategic pricing improvements and a favorable brand mix, despite facing challenges from higher tariffs.

In terms of operational developments, Tapestry completed the divestiture of its Stuart Weitzman business on August 4, 2025, for $105 million, which has since allowed the company to streamline its focus on the Coach and Kate Spade brands. The divestiture did not qualify as a strategic shift affecting the company's operations significantly. Additionally, Tapestry has initiated a $3 billion share repurchase program, with $900 million repurchased in the first half of fiscal 2026, reflecting the company's commitment to returning value to shareholders.

The company reported a total of 202.7 million shares outstanding as of December 27, 2025, down from 208.1 million shares at the end of the previous fiscal year. Tapestry's cash and cash equivalents stood at $1.05 billion, with total assets amounting to $6.53 billion. The company also reported a decrease in total liabilities to $5.98 billion, resulting in stockholders' equity of $551.2 million.

Looking ahead, Tapestry remains focused on its 2028 Amplify growth strategy, which emphasizes building emotional connections with consumers, fueling fashion innovation, and expanding its global presence, particularly in Greater China and Europe. The company is closely monitoring macroeconomic conditions, including currency fluctuations and geopolitical factors, which may impact its operations and financial performance in the future.