Tapestry Beats Q1 Expectations and Lifts Full-Year Shareholder Payouts

what happened

Tapestry, the owner of Coach and Kate Spade New York, reported results for the first fiscal quarter of 2027, which ended September 26, 2026. Revenue reached $1.89 billion, up 11% on both a reported and constant-currency basis. Excluding Stuart Weitzman sales from the prior-year period, pro forma growth was 12%. According to TradingView, the company said its performance came in ahead of its own expectations.

Non-GAAP earnings per diluted share rose 32% to $1.82 from $1.38 a year earlier. Non-GAAP operating income climbed 24% to $439 million, with an operating margin of 23.2%. Coach revenue grew 16%, while Kate Spade fell 10%. Sales in Greater China jumped 43% in reported terms.

The company now expects to return about $2.0 billion to shareholders in fiscal 2027, up from earlier guidance. Its share repurchase plan was increased by $350 million to $1.7 billion. The board declared a quarterly dividend of $0.4625 per share.

why it matters

Two points stand out for the market: profit is growing faster than revenue, and larger buybacks and dividends add support for the shares. Strong sales in China and Europe suggest demand outside the United States is holding up, although weakness at Kate Spade remains visible. Investors will watch whether this pace can be sustained in the second half of the year.

market impact

Tapestry shares: strong quarter and bigger buyback support the stock

• ▲Tapestry shares pressure up — results above expectations and a larger share repurchase plan

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