Tapestry added approximately 11 million new customers globally during fiscal 2026, including more than 2.5 million in the fourth quarter, as the owner of Coach and Kate Spade continues expanding its consumer base across generations and geographies.
Approximately 35% of the new customers acquired during the year were Gen Z consumers. Tapestry also reported increased engagement among its existing customer base, pointing to acquisition and retention as parallel contributors to its growth strategy.
The consumer growth accompanied a strong financial year. Fiscal 2026 net sales increased 14% to approximately $8.0 billion. On a pro forma basis excluding Stuart Weitzman from both periods, revenue increased 18% to approximately $7.99 billion and 17% on a constant-currency basis.
Coach was the primary driver of the expansion. Full-year Coach revenue increased 24% to approximately $6.91 billion, or 23% on a constant-currency basis. Q4 Coach sales increased 15% to $1.64 billion.
The growth at Coach was supported by both volume and pricing. Handbag average unit retail increased at a mid-teens percentage rate during both Q4 and the full year, while full-year leathergoods performance reflected a combination of higher average unit retail and higher unit sales.
Tapestry also posted broad geographic expansion. Fiscal 2026 Greater China revenue increased 38% to approximately $1.40 billion, Europe increased 29% to $525.4 million and North America increased 15% to approximately $5.03 billion.
Direct-to-consumer revenue grew 16% on a pro forma constant-currency basis for the full year. Digital revenue increased at a high-teens rate, while store revenue also grew at a mid-teens rate, giving Tapestry growth across both physical and digital channels.
The performance was not uniform across brands. Kate Spade revenue declined 10% during fiscal 2026 to approximately $1.07 billion and fell 7% during Q4, creating a significant contrast with Coach’s double-digit expansion.
Profitability nevertheless expanded strongly at the company level. Full-year non-GAAP operating income increased 33% to approximately $1.87 billion, while non-GAAP operating margin expanded 340 basis points to 23.4%. Non-GAAP diluted EPS increased 38% to $7.05.
Tapestry also returned approximately $1.7 billion to shareholders during fiscal 2026. The company spent $1.35 billion repurchasing approximately 11.5 million shares at an average price of about $118 and distributed another $326 million through dividends.
Management expects another approximately $1.7 billion of capital returns in fiscal 2027, including $1.35 billion of share repurchases. Tapestry’s board also approved a 16% dividend increase, raising the anticipated annual dividend rate to $1.85 per share.
For fiscal 2027, Tapestry expects mid-single-digit revenue growth, approximately 50 basis points of operating margin expansion and diluted EPS of $7.80 to $7.90, representing low-double-digit growth. Adjusted free cash flow is expected to approach $1.7 billion.
The consumer acquisition numbers give Tapestry a larger base from which to pursue those targets, particularly as Gen Z becomes a more meaningful part of Coach’s and Kate Spade’s long-term customer populations.
KEY QUOTES:
“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.”
“Through intentional choices, disciplined execution, and an unwavering focus on the consumer, we have built a stronger, more focused organization.”
Joanne Crevoiserat, Chief Executive Officer of Tapestry
