10-K · August 13, 2026
Tapestry delivered a strong fiscal 2026 recovery, with revenue up 14.2% to $8.00 billion, operating margin rising to 23.9% and diluted EPS reaching $7.27. Coach supplied most of the momentum, while Kate Spade remains…
Earnings analysis · 10-Q
TPR earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
Tapestry delivered strong first-quarter execution, with revenue up 11.1% to $1.894 billion, diluted EPS up 38.0% to $1.76, and operating margin expanding 310 basis points to 22.4%. Coach drove growth, while Kate Spade…
Read full summary
Tapestry delivered strong first-quarter execution, with revenue up 11.1% to $1.894 billion, diluted EPS up 38.0% to $1.76, and operating margin expanding 310 basis points to 22.4%. Coach drove growth, while Kate Spade weakened materially and moved to a $20 million operating loss. Operating cash flow improved to $197 million, but inventory and receivables consumed $328 million of cash, cash fell to $599 million, and debt and tariff-policy exposure remain important risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.76
What stood out
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Revenue and EPS grew strongly
Revenue increased 11.1% year over year to $1.894 billion from $1.705 billion, while diluted EPS rose 38.0% to $1.76 from $1.28. Revenue exceeded the provided consensus estimate of $1.846 billion by approximately $48 million.
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Material margin expansion
Gross margin expanded to 78.6% from 76.3%, a 230-basis-point increase, while operating margin rose to 22.4% from 19.3%, a 310-basis-point increase. Management attributed the improvement primarily to net pricing, favorable tariff impacts and brand mix.
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Coach delivered broad-based growth
Coach was the primary growth engine: revenue increased $231 million, or 16.1%, to $1.661 billion, and operating income increased 21.0% to $590 million. DTC sales rose $144 million and wholesale sales rose $84 million.
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Operating cash flow improved
Operating cash flow increased $84 million to $197 million from $113 million, supported by higher net income of $85 million and $110 million of cash from other assets, primarily tariff and tax refunds.
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Tariff refunds supported results
The company collected substantially all remaining IEEPA tariff refunds and recorded a $13 million operating-income benefit in the quarter, including $9 million from tariffs previously included in inventory and $4 million of related interest.
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Capital return remained substantial
Cash and cash equivalents declined $376 million to $599 million from June 27, 2026, while short-term investments were $183 million. The company repurchased $600 million of common stock and retained $1.289 billion of authorization.
What to watch
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Kate Spade profitability deteriorated
Kate Spade revenue declined 10.4% to $233 million, and the brand posted a $20 million operating loss versus $6 million of operating income in the prior-year quarter. Its operating margin fell to (8.7)% from 2.1%, driven by lower sales and SG&A deleverage.
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Working capital consumed more cash
The company used $222 million of cash for inventory versus $161 million in the prior-year quarter, while accounts receivable used $106 million versus $46 million. The increases reflect higher Coach inventory purchases and wholesale sales, increasing working-capital intensity.
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Debt and buybacks reduced liquidity
Current debt was $597 million and long-term debt was $1.960 billion at September 26, 2026, while cash declined to $599 million. The company had $200 million of commercial-paper borrowings outstanding and used $526 million in financing activities, including $603 million for share repurchases.
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Tariff policy remains uncertain
The tariff outlook remains uncertain: new Section 301 rates of 10% to 12.5% apply to most imports from certain countries, and the company previously paid approximately $117 million in IEEPA tariffs. Although the quarter benefited by $13 million from refunds and related items, future trade-policy costs remain a headwind.
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Fulfillment transition execution risk
The distribution-network transition generated $15 million of pre-tax charges, primarily for moving from the Ohio fulfillment center to a third-party Pennsylvania facility. Execution issues could create additional costs or service disruption.
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Kate Spade impairment sensitivity
Kate Spade's fiscal 2026 valuation cushion was approximately 30% above carrying value at the impairment-testing date. Management stated that declining fiscal 2027 profitability could trigger an interim or annual impairment test.
Management's outlook
The 10-Q does not provide explicit fiscal 2027 revenue or EPS guidance; management states that fiscal 2027 capital expenditures and cloud-computing costs are expected to be approximately $300 million and that liquidity is sufficient for at least the next twelve months. The separate November 5, 2026 earnings release provided the company's annual revenue and EPS outlook.
Earlier filings 4
10-Q · May 7, 2026
In its Q3 FY 2026 report, Tapestry, Inc. delivered strong results with revenues of $1.92 billion, up 21.2% year-over-year, and a diluted EPS of $1.65, a significant jump from $0.95 in Q3 FY 2025. The company increased…
10-Q · February 5, 2026
Tapestry, Inc. reported strong Q2 fiscal 2026 results, marked by significant revenue growth and improved profitability. Revenue surged to $2.50 billion, up 14.0% year-over-year, while diluted EPS jumped to $2.68 from…
10-Q · November 6, 2025
Tapestry, Inc. reported a strong performance for Q1 2026 with revenues of $1.70 billion, a 13.1% increase year-over-year, and a notable rise in diluted EPS to $1.28 from $0.79 the previous year. While the Coach segment…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.