Key Highlights

  • Revenue rose 11% to $1.9 billion on a reported basis and 12% on a pro forma basis.
  • Coach Revenue grew 16% compared with the prior year.
  • Non-GAAP diluted EPS increased 32% to $1.82, and GAAP diluted EPS rose 38% to $1.76.
  • The fiscal 2027 Capital return outlook was increased to $2.0 billion.

Tapestry (NYSE:TPR), the owner of the Coach and Kate Spade New York brands, reported first-quarter fiscal 2027 results for the period ended September 26, 2026. The company said results exceeded its guidance for revenue, gross margin, operating Margin and earnings per share, and it raised its fiscal 2027 revenue, Operating Margin and earnings outlook. Coach was the largest contributor to the quarter's growth, and the company also expanded its share repurchase program.

The difference between reported growth of 11% and pro forma growth of 12% suggests that changes in the company's portfolio reduced the reported figure slightly. Using the pro forma measure for comparisons gives a better sense of the underlying business, since the prior-year base is adjusted to match the current structure.

Revenue Growth Led by Coach

Revenue for the quarter reached $1.9 billion, an increase of 11% on a reported basis and 12% on a pro forma basis. The pro forma figure adjusts the prior-year base for the company's portfolio changes, which allows a like-for-like comparison of the two periods.

Coach revenue grew 16% compared with the prior year, and the release attributes the expansion of the company's overall revenue primarily to that brand. Because Coach represents the larger portion of Tapestry's business, its performance has a direct bearing on the company's consolidated sales, although the release does not provide the Kate Spade revenue figure in its highlights.

A gross margin gain of 230 basis points is a significant move in the apparel and accessories industry, where cost of goods and promotional activity typically weigh on margins. The release does not explain each driver of the gain, so its sources must be inferred from the company's commentary on pricing and product mix.

Gross Margin and Operating Performance

Tapestry expanded its gross margin by 230 basis points on a GAAP basis and by 220 basis points on a non-GAAP basis. Gross margin measures the share of revenue remaining after the cost of goods sold, so a higher figure indicates that the company retained more of each sales dollar in the quarter.

The company said its operating margin also improved, and the release says results exceeded the company's own guidance. Readers comparing the margin gains with revenue growth can see that profitability improved faster than sales, which is consistent with the company's cost and pricing measures.

Earnings Per Share and Shareholder Returns

GAAP diluted Earnings Per Share were $1.76, up 38% from the prior year. Non-GAAP diluted EPS was $1.82, an increase of 32%. The gap between the two growth rates reflects the adjustments the company applies to its non-GAAP measure, and the release provides a reconciliation for readers who want to trace each item.

Tapestry returned approximately $700 million to shareholders in the quarter through dividends and share repurchases. The company increased its fiscal 2027 capital return outlook to $2.0 billion, citing incremental share repurchases. The release does not separate the Dividend and buyback components of the quarterly total.

The release includes both the revenue and operating margin changes in a single update, which suggests that the company expects the margin improvement from the first quarter to carry into the remaining periods. The release does not specify the magnitude of the revised ranges in the highlights section.

Raised Fiscal 2027 Outlook

The company raised its fiscal 2027 revenue, operating margin and earnings outlook. The revision follows the first-quarter results and reflects management's updated view of the year. The release presents the new ranges in its outlook tables, which allow readers to compare them with the prior guidance.

The increase in the capital return outlook to $2.0 billion is the most distinct element of the update that is not directly tied to operating performance. Investors will watch whether the company completes the larger buyback program at the pace implied by the revised figure.

Investors will look to the next Quarterly Report to see whether Coach's 16% growth and the company's margin gains persist. The release's raised full-year revenue and operating margin outlook provides the benchmark against which subsequent results can be compared.

Outlook

Tapestry's first-quarter report shows revenue growth of 11%, a 230-basis-point gross margin gain, earnings per share growth above 30% and a larger capital return plan. The company's ability to sustain Coach's growth rate and its margin trajectory will shape the fiscal 2027 results reported in the coming quarters.