Coach parent finishes milestone year with big number
Tapestry Inc. ended its fiscal year on a high note with double-digital top- and bottom-line growth in both the fourth quarter and full year, fueled by a strong performance from its Coach brand.
The company, whose portfolio also includes Kate Spade, reported that its annual net sales rose 17% to hit the $8 billion mark, driven by 23% growth at Coach. Net income totaled $1.52 billion Tapestry noted that Coach delivered double-digit revenue growth in every quarter of the year. (In September 2025, as part of its new three-year plan, Tapestry said it was aiming for Coach to be a $10 billion brand.)
Tapestry’s strong showing come as the company’s efforts to court new consumers continue to yield successful results. The company said it welcomed over 2.5 million new consumers in the fourth quarter and approximately 11.0 million in the full year, with approximately 35% of new customers being Gen Z.
At the same time, Tapestry said, its results showed increased engagement among existing customers, “reflecting broad consumer appeal and enduring customer relationships.”
Fourth Quarter
For its fourth quarter, ended June 27, Tapestry's net income totaled $347.8 million, compared to a loss of $517.1 million in the year-ago period. Adjusted earnings per share were $1.32 ahead of analysts estimates of $1.27 per share.
Net sales rose 8.9% to $1.88 billion. Coach net sales rose 15% to $1.64 billion.
Sales at Kate Spade fell 7% to $235.1 million. The company has been working to turn around the brand, and recently appointed Jonathan Saunders as executive creative director.
“We’re doing the work to reignite durable growth at Kate,” Tapestry CEO Joanne Crevoiserat told WWD. “The first phase of this work is around streamlining the business. And then we are solidifying the foundation, a healthier foundation to position the business to scale from a much healthier foundation.”
By region, North America revenue grew 7% in the fourth quarter (15% for the full year). Europe revenue grew 19% in the fourth quarter ( 23% for the full year).
Total APAC revenue grew 19% in both the fourth quarter and the full year. Within APAC, Greater China revenue grew 28% in the fourth quarter and 35% for the full year.
The company returned $1.7 billion to shareholders in fiscal 2026 through dividends and share repurchases.
[READ MORE: Tapestry obtains U.S. patent for enterprise AI tool]
“Our fourth quarter outperformance capped a year of strong growth, as we meaningfully exceeded expectations and achieved key financial commitments we established at our Investor Day two years ahead of plan,” Crevoiserat said in the earnings statement. “Through intentional choices, disciplined execution, and an unwavering focus on the consumer, we have built a stronger, more focused organization. These strengths enable us to deliver creativity, value, and relevance at scale, deepening our connections with consumers globally.”
For its current fiscal year, Tapestry is forecasting revenues of $8.4 billion to $8.5 billion for mid-single-digit growth, compared with analysts’ forecast of $8.47 billion. Earnings per share are forecast to range from $7.80 to $7.90 for a low-double-digit expansion.
As of June 27, Tapestry had 973 Coach stores and 326 Kate Spade stores (counts are for directly-operated locations).
