Tapestry FY26 Q4: Coach Up 15%, Kate Spade Down 7%, FY27 Revenue Guided to $8.4bn-$8.5bn

by Henry Nakamura · August 13, 2026

Earnings Reporter, Earnings Dispatch

Tapestry released fiscal 2026 fourth quarter and full year results at 6:45 a.m. ET on Thursday, ahead of an 8:00 a.m. ET call and well before the opening bell, closing out a year in which the Coach owner passed $8bn in annual revenue for the first time. The company also raised its dividend 16% and set out a fiscal 2027 outlook. Shares were quoted at $138.50 in pre-market trade at 8:29 a.m. ET, down 9.91%, according to StockAnalysis.com, against a regular-session close of $153.74 on Wednesday that was itself a 4.24% decline. The pre-market move has been volatile — StockStory logged a 7.6% drop to $141.97 shortly after the release, and headlined the fall as a reaction to guidance — but the US market has not opened and none of these are completed-session prices.

For the quarter ended June 27, Tapestry reported net sales of $1,876.6m, up 9% as reported and 8% in constant currency, according to the Business Wire release. On a pro forma basis excluding Stuart Weitzman, which the company divested on August 4, 2025, the same figure represents growth of 12% reported and 11% in constant currency. That pro forma framing matters: the headline 9% understates the underlying rate because the prior-year period still carried a brand that is no longer in the portfolio.

The brand split was the quarter's defining feature. Coach generated $1,641.5m in fourth quarter net sales, up 15% reported and 14% in constant currency. Kate Spade produced $235.1m, down 7% on both a reported and constant currency basis. Across the full year the divergence is starker still — Coach at $6,914.7m, up 24% reported and 23% in constant currency, against Kate Spade at $1,074.9m, down 10% reported and 11% in constant currency. Stuart Weitzman contributed $14.6m for the partial year before the sale closed.

The earnings line requires care. Fourth quarter GAAP diluted EPS was $1.68, against a loss of $2.49 a year earlier. Non-GAAP diluted EPS was $1.32, versus $1.04 in the prior-year quarter, growth of 28%. GAAP came in above non-GAAP — the reverse of the usual pattern — because the GAAP result included items management strips out of its adjusted figure, and those items were net positive this quarter. The reconciliation shows roughly $80m of net benefit to operating income, driven by $98.2m of recognised IEEPA tariff refunds, partly offset by $9.8m of distribution network optimisation costs tied to transitioning out of the company's Ohio fulfilment centre and $8.2m of organisational efficiency costs covering technology and severance. Together those items added $0.36 to GAAP diluted EPS, exactly bridging the $1.68 to $1.32 gap.

The same dynamic runs through the full year. Fiscal 2026 net sales were $8,004.2m, up 14% reported and 13% in constant currency, or $7,989.6m on a pro forma basis, up 18% and 17% respectively. Full year GAAP diluted EPS was $7.27 against $0.82 the prior year, while non-GAAP diluted EPS was $7.05 against $5.10, growth of 38%. The $0.22 gap between the GAAP and non-GAAP full year figures reflects the same excluded items, with the $98.3m of tariff refunds set against $29.0m of organisational efficiency costs, $10.9m of Stuart Weitzman divestiture costs and the $9.8m distribution charge.

Margins moved the right way on both measures. Fourth quarter GAAP gross margin was 83.3% against 76.3% a year earlier; on a non-GAAP basis it was 78.1%, an expansion of 180 basis points. Non-GAAP operating margin reached 19.3% in the quarter versus 16.8%, up 250 basis points. For the year, non-GAAP gross margin was 76.6%, up 120 basis points, and non-GAAP operating margin was 23.4%, up 340 basis points.

Measured against consensus, the quarter itself cleared the bar. StockStory put fourth quarter revenue of $1.88bn as in line with analyst expectations, with adjusted EPS of $1.32 beating an estimate of $1.28 by 3.4%, and adjusted EBITDA of $444.5m coming in 16.1% above a $382.8m estimate. Tapestry's fiscal 2027 outlook calls for revenue of $8.4bn to $8.5bn, described by the company as mid-single-digit growth on both a nominal and constant currency basis, with roughly 50 basis points of operating margin expansion and non-GAAP diluted EPS of $7.80 to $7.90, characterised as low-double-digit growth. StockStory put the EPS guidance midpoint at $7.85 and described it as in line with analyst estimates, and put the revenue midpoint at $8.45bn without publishing a comparison against consensus. For the first quarter of fiscal 2027 the company guided to high-single-digit revenue growth on both a nominal and constant currency basis and non-GAAP diluted EPS of about $1.55.

Chief executive Joanne Crevoiserat framed the year as an early delivery on prior commitments. "Our fourth quarter outperformance capped a year of strong growth, as we meaningfully exceeded expectations and achieved key financial commitments we established at our Investor Day two years ahead of plan," she said in the release. Continuing in the same statement, she said: "Our success is by design, demonstrating the power of our Amplify strategy. Through intentional choices, disciplined execution, and an unwavering focus on the consumer, we have built a stronger, more focused organization." Crevoiserat was the only executive quoted in the release, which carried no chief financial officer commentary, and neither the release nor its quoted commentary addressed Kate Spade's decline directly.

On capital returns, Tapestry said it returned about $1.7bn to shareholders in fiscal 2026 — $326m in dividends at an annual rate of $1.60 per share, plus $1.35bn of share repurchases covering roughly 11.5m shares at an average price of about $118. For fiscal 2027 the company expects a similar $1.7bn, comprising a 16% dividend increase to a quarterly rate of $0.4625 per share, or $1.85 annualised and payable September 21, 2026, alongside another $1.35bn of planned buybacks. Other fiscal 2027 assumptions include adjusted free cash flow of roughly $1.7bn, a tax rate near 18.5%, about 203m diluted shares and a 40 basis point currency tailwind to revenue growth.

The question the print leaves open is whether Kate Spade's decline is a deliberate reset that has further to run or a structural drag on a group otherwise carried by one brand. Tapestry's own full-year numbers show Coach expanding 24% while Kate Spade contracted 10%, and a fiscal 2027 revenue guide implying mid-single-digit group growth is consistent with continued softness at the smaller brand. Management's commentary on the earnings call, and any detail on Kate Spade's trajectory within the fiscal 2027 plan, is the next thing to watch.