The Tamesis
In the second quarter of 2026, which ended on December 27, Tapestry revenue increased 14% year over year to $2.5 billion. The growth was driven by strong growth at Coach, which has performed well in recent quarters.
On a pro forma basis (excluding the impact of Stuart Weitzman’s business), Tapestry’s group sales increased 18% in the second quarter. Gross profit increased by 16%, and gross profit margin increased from 74.4% to 75.5%. The company raised its full-year 2026 outlook, projecting revenue to exceed $7.75 billion and expecting nominal growth of 15% (previous guidance was for growth of 7% to 8% to $7.3 billion).
“We’ve long been known for strong operating discipline, but what you saw in the second quarter results and the outlook for the year is new growth momentum,” Chief Financial Officer and Chief Operating Officer Scott Roe said on the earnings call. “When you add growth on top of that operating discipline, what you have is a really powerful machine.”
Coach performed well, with second-quarter sales reaching $2.14 billion, a year-on-year increase of 25%. “I’m very confident in our growth momentum in North America and around the world,” said Coach CEO Todd Kahn. “I understand there are concerns about our ability to [deliver] Achieved double-digit growth this quarter [on top of last year’s results]but we not only [match a tough prior-year comparison]we did it the right and sustainable way – with lower promotional expenses, huge margins and a 40% increase in marketing expenses. The CEO added that he is particularly confident in the brand’s ability to continue to appeal to Gen Z and Gen Alpha consumers.
Kate Spade’s second-quarter sales fell 14% to $360 million, in part due to a deliberate reduction in promotions. “We have made incremental investments to advance our ongoing transformation and remain focused on strengthening the brand’s foundation for long-term growth,” Tapestry CEO Joanne Crevoiserat said on the call. Kate Spade’s top priority is to generate excitement for the brand by engaging with Generation Z. The brand has also reduced handbag styles by 40% to focus on a more focused and consistent product range.
North America is its largest market, with sales rising 17% to $1.71 billion, driven by North Star Coach. Sales in Greater China increased 34% to $343.1 million, driven by digital sales, while sales in Japan fell 6% to $128.3 million. In “Rest of Asia,” sales rose 12% to $125.8 million, driven by Australia and South Korea. Sales in Tapestry’s “Other” region, which primarily represents royalties from licensing partners and sales in the Middle East, increased 23% to $30.7 million.
The company sees growth opportunities in Europe, particularly with Coach. In the second quarter, sales increased 22% to $159.1 million, driven by new customer acquisitions. “Given our market positioning and low penetration, we see significant opportunity for further growth in this large and attractive market,” Roy said. “When we talk about Europe, really, we’re in England and elsewhere, so the opportunity to expand in France will be the next big driver for us.”
Crevoiserat praised the group’s employees for exceeding expectations. “Our outperformance reflects the strength of Tapestry, which is the result of a thoughtful strategy and disciplined execution over time that drives our growth and positions us for the future,” Crevoiserat concluded. “With strong fundamentals and momentum, we move forward with confidence and we are focused on delivering sustainable growth and long-term shareholder value.”
