Q1 2026 Tapestry Inc Earnings Call Transcript
Key Points
- Tapestry Inc (TPR) reported a 16% increase in pro forma revenue, a 200 basis point rise in adjusted operating margin, and a 35% growth in earnings per share, surpassing expectations.
- The company acquired over 2.2 million new customers globally, driven by Gen Z, enhancing lifetime value and competitive advantage.
- Coach brand achieved a 21% revenue increase with significant growth in North America (26%), China (21%), and Europe (39%), demonstrating strong global momentum.
- Tapestry Inc (TPR) raised its fiscal 2026 outlook, reflecting confidence in its strategic growth initiatives and structural advantages.
- The company is executing a successful direct-to-consumer model, driving double-digit gains in North America, China, and Europe, and achieving strong growth in both stores and online channels.
- Kate Spade's revenue trends showed a sequential improvement but were still down 9%, indicating ongoing challenges in the brand's turnaround efforts.
- The company faces a significant tariff and duty impact, which is expected to be a headwind of $170 million in the fiscal year.
- Tapestry Inc (TPR) anticipates a high single-digit decline in sales in Japan due to a challenging consumer backdrop.
- The company is experiencing pressure on gross margins due to tariffs, with a planned decline of approximately 50 basis points.
- Kate Spade is expected to continue facing a modest profit loss due to outsized tariff impacts and brand investments.
Good day, and welcome to this Tapestry conference call. Today's call is being recorded. (Operator Instructions)
At this time, for opening remarks and introductions, I would like to turn the call over to your -- the Global Head of Investor Relations, Christina Colone.
Good morning. Thank you for joining us. With me today to discuss our first quarter results as well as our strategies and outlook are Joanne Crevoiserat, Tapestry's Chief Executive Officer; and Scott Roe, Tapestry's Chief Financial Officer and Chief Operating Officer. Before we begin, we must point out that this conference call will involve certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act. This includes projections for our business in the current or future quarters or fiscal years.
Forward-looking statements are not guarantees, and our actual results may differ materially from those expressed or implied in the forward-looking statements. Please refer to our annual report on
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