Tapestry, Inc. Reports 21.2% Revenue Growth to $1.92 Billion in Latest Quarter

Tapestry, Inc. reported significant financial growth in its latest quarterly results, with net sales reaching $1.92 billion for the three months ended March 28, 2026, a 21.2% increase from $1.58 billion in the same period last year. The company's gross profit also rose to $1.48 billion, reflecting a 22.4% increase year-over-year. Operating income surged to $427.5 million, up 68.5% from $253.7 million in the prior year, while net income increased by 69.1% to $343.8 million, resulting in a diluted earnings per share of $1.65, compared to $0.95 in the previous year.

The company’s performance was bolstered by a strong increase in direct-to-consumer (DTC) sales, particularly from its Coach brand, which saw a 31.5% rise in net sales to $1.70 billion. In contrast, Kate Spade experienced a decline in net sales of 10.3%, totaling $219.6 million. The overall growth was attributed to improved pricing strategies and a favorable brand mix, despite challenges posed by higher tariffs and fluctuating foreign exchange rates.

Tapestry's strategic developments included the completion of the divestiture of its Stuart Weitzman business, which was finalized on August 4, 2025, for $109.1 million. This divestiture allowed the company to streamline its operations and focus on its core brands, Coach and Kate Spade. The company also announced a new share repurchase program, authorizing up to $3 billion in stock buybacks, with $1.05 billion repurchased in the first nine months of fiscal 2026.

Operationally, Tapestry reported a decrease in employee headcount, with 202.3 million shares outstanding as of March 28, 2026, down from 208.1 million a year earlier. The company’s cash and cash equivalents stood at $1.05 billion, a slight decrease from $1.10 billion at the end of the previous fiscal year. The company also noted a significant improvement in cash flow from operations, which increased by $686.5 million compared to the same period last year.

Looking ahead, Tapestry remains cautiously optimistic about its growth trajectory, emphasizing its commitment to the 2028 Amplify growth strategy, which focuses on building emotional connections with consumers, fueling fashion innovation, and expanding its global presence. However, the company acknowledged ongoing challenges from macroeconomic conditions, including inflation and geopolitical uncertainties, which could impact future performance.