Key facts
- Tapestry beat first-quarter revenue estimates with sales of $1.89 billion, up 11.1% from a year earlier.
- Coach revenue rose 16% in the quarter while Kate Spade sales fell 10%, Tapestry reported.
- Tapestry expects to buy back $1.7 billion of shares in the fiscal year, up $350 million from prior guidance.
Tapestry raised its annual revenue and profit forecasts on November 5, 2026, betting on younger affluent shoppers buying Coach handbags during the holiday season even as the broader luxury sector deals with a spending slowdown.
The high-end handbag maker also beat first-quarter revenue estimates and saw sales accelerate in China, where revenue jumped 43%. Coach sales in North America drove the quarterly beat, executives told Reuters.
Quarterly revenue at Coach rose 16% on a reported basis, while Kate Spade sales fell 10% from a year ago.
Tapestry now expects to buy back shares worth $1.7 billion in the fiscal year, up $350 million from its prior guidance.
The company expects fiscal 2027 revenue of between $8.5 billion and $8.6 billion, compared with its prior range of $8.4 billion to $8.5 billion, and annual earnings per share of $8.25 to $8.35, compared with its previous forecast of $7.80 to $7.90.
Tapestry's quarterly sales rose 11.1% to $1.89 billion, compared with analysts' estimates of a 9.12% rise to $1.86 billion, according to data compiled by LSEG. Its adjusted profit of $1.82 per share topped estimates of $1.57.