The Tamesis
Tapestry, the parent company of Coach and Kate Spade, said revenue rose 19% year over year to $1.9 billion on a constant currency basis in the third quarter of 2026, which ended March 28. This growth was once again attributed to the outstanding performance of Coach, a favorite among Generation Z.
According to estimates, the group’s sales in the third quarter increased by 23% year-on-year. Gross profit increased by 22%, and gross profit margin increased from 76.1% to 76.9%. Tapestry’s focus on customer acquisition, a core tenet of its Amplify strategy, appears to be paying off, with 2.4 million new customers acquired globally during the quarter, 35% of which were Gen Z. “Our strong third quarter performance reflects the compounding benefits of our Amplify strategy as we bring creativity, craftsmanship and value to more consumers around the world,” CEO Joanne Crevoiserat said in a statement released Thursday.
Coach revenue increased 29% in the third quarter to $1.7 billion, achieving strong growth globally – Greater China (up 58%), North America (up 27%) and Europe (up 27%) are all key regions for the brand. Footwear grew 20% in the quarter, led by Soho sneakers, while Coach’s hero bags, such as the Tabby, New York and Rowan, outperformed, according to the group. Coach announced that it is increasing its marketing spend by approximately 50% year over year as it “continues to pivot to top-of-funnel brand building to drive long-term demand and customer acquisition.”
Kate Spade revenue fell 11% to $219.6 million due to strategic reductions in retail promotions. The brand, which has seen declines over the past few quarters, is prioritizing customer experience through in-store and digital experiences, while relying on creator activations to “further increase awareness and brand relevance.”
By region, Greater China performed best, with sales rising 55% to $432.2 million, driven primarily by new customer acquisitions. Japan sales fell 10% to $123.9 million, “Other Asia” sales increased 16% to $116.3 million, again led by Australia and South Korea, while Europe grew 21%, driven by strong local spending. Thanks to Coach, sales in North America, the company’s largest market, grew 20% to $1.1 billion. Tapestry’s “Other” region, which primarily represents royalties from licensing partners and sales in the Middle East, declined 3% to $27.9 million, which may be attributed to ongoing conflict in the region.
Direct-to-consumer (DTC) revenue grew 23%, with digital up 25% and global physical up 20%.
Looking ahead, the company once again raised its full-year 2026 forecast to $7.95 billion. Excluding the impact of the sale of Stuart Weitzman, which is due to close in August 2025, revenue is expected to increase by 17% on a nominal basis. “With this advantage, we move confidently into the future and the tremendous opportunities ahead,” said Crevoiserat.
