TPR · Tapestry, Inc.

Tapestry delivered a standout fiscal third quarter, with revenue surging 21% to $1.92 billion, driven by exceptional performance at the Coach brand, which saw a 31% revenue increase (29% in constant currency). The company's Amplify strategy continues to gain traction, evidenced by strong customer acquisition (over 2.4 million new customers, with Gen Z representing over 35%) and robust handbag sales. Gross margin expanded 80 basis points to 76.9%, benefiting from operational improvements and the Stuart Weitzman divestiture, partially offset by tariff headwinds. Operating margin improved dramatically, up 630 basis points GAAP and 490 basis points non-GAAP, reflecting both gross margin expansion and SG&A leverage. Non-GAAP SG&A leveraged 410 basis points despite increased marketing investment. GAAP EPS rose 74% to $1.65, while non-GAAP EPS increased 62% to $1.66, both exceeding expectations. Management raised full-year fiscal 2026 guidance: revenue now expected around $7.95 billion (up from over $7.75 billion), operating margin of approximately 23% (up from ~180 bps expansion), and EPS of approximately $6.95 (up from $6.40-$6.45). The company also increased its shareholder return program to $1.6 billion, including $1.3 billion in share repurchases. CEO Joanne Crevoiserat attributed the outperformance to the compounding benefits of the Amplify strategy, emphasizing disciplined execution and consumer-centric innovation. The strong balance sheet and cash flow generation underpin the raised outlook and capital return plans.