The company reported Q1 net sales of US$1.7 billion, up 13% year-on-year (12% in constant currency), or US$1.69 billion on a pro forma basis excluding Stuart Weitzman, representing 16% growth. GAAP diluted EPS rose 61% to US$1.28, while non-GAAP diluted EPS increased 35% to US$1.38, reflecting higher gross margins.
Coach led the performance with first-quarter revenue of US$1.42 billion, a 22% increase on a reported basis (21% in constant currency). Kate Spade posted sales of US$260.2 million, down 8% year-on-year (9% in constant currency). Pro forma net sales excluding Stuart Weitzman reached US$1.69 billion, up 16% versus the prior-year quarter.
Regionally, North America delivered pro forma sales of US$1.06 billion, up 18%, while Greater China grew 20% to US$269.1 million. Japan declined 7% to US$108.5 million (down 10% in constant currency), Other Asia rose 4% to US$90.5 million, Europe surged 39% to US$125.2 million, and Other increased 4% to US$27.9 million.
On a GAAP basis, gross margin expanded to 76.3%, with non-GAAP gross margin at 76.5%, and operating margin rose to 19.3% (20.9% on a non-GAAP basis).
Backed by strong cash generation and a solid balance sheet, Tapestry plans to return approximately US$1.3 billion to shareholders in fiscal 2026 through dividends and share repurchases, and now expects full-year revenue of around US$7.3 billion (4–5% growth, or 7–8% on a pro forma basis) and non-GAAP EPS of US$5.45–US$5.6, implying 7–10% year-on-year earnings growth.
