Tapestry Raises Full-Year Outlook as Strong Gen Z Demand Drives Coach Sales Growth

Story Summary
Tapestry reported a robust fiscal 2026 third quarter, with net sales rising 25% year-over-year to $1.9 billion, fueled largely by the Coach brand. Coach sales surged 31% to $1.7 billion, bolstered by significant traction among Gen Z consumers and successful product launches like the Soho sneaker. CEO Joanne Crevoiserat highlighted the brand's potential to reach $10 billion in long-term revenue, particularly through footwear expansion. Conversely, the company’s Kate Spade segment struggled, with sales declining 10% to approximately $220 million. Despite the Kate Spade slump, Tapestry’s overall profitability improved, with net income climbing nearly 70% to $343.8 million and gross margins expanding 80 basis points to 76.9%, prompting the company to raise its full-year financial expectations.





