Q2 2026 Tapestry Inc Earnings Call Transcript
Key Points
- Tapestry Inc (TPR) reported a standout second quarter with pro forma revenue growth of 18%, expanded adjusted operating margin by 390 basis points, and earnings per share growth of 34% versus the prior year.
- The company acquired over 3.7 million new customers globally, driven by a strategic focus on Gen Z, enhancing repeat purchasing and lifetime value.
- Coach brand delivered exceptional performance with revenue increasing 25% and margins expanding, driven by strong customer acquisition and growth in core leather goods.
- Tapestry Inc (TPR) achieved double-digit gains in North America, Greater China, and Europe, significantly outpacing the industry and growing market share in each region.
- The company raised its full-year guidance, expecting revenue of over $7.75 billion, representing pro forma growth of approximately 15% on a nominal basis.
- Kate Spade's revenue declined 14% in the second quarter, reflecting deliberate actions to reset the brand through a pullback in promotional activity.
- Japan sales declined 6%, driven by an intentional pullback in promotions.
- The company faces a nearly 200 basis point headwind from incremental tariff and duties, impacting gross margin.
- Despite strong performance, Tapestry Inc (TPR) continues to embed a high single-digit decline in revenue for Kate Spade for the year.
- The company anticipates a modest profit loss for Kate Spade 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 the Global Head of Investor Relations, Christina Colone.
Good morning. Thank you for joining us. With me today to discuss our second-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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