Tapestry raises its outlook as Coach sales grow 16%
The handbag maker lifts its annual sales and adjusted-profit forecasts, while Kate Spade remains weaker.
Tapestry raised its fiscal 2027 revenue and adjusted-earnings forecasts after first-quarter sales grew 11% to $1.89 billion, led by its Coach brand.
Coach revenue increased 16% on a reported basis, while Kate Spade sales fell 10%. The difference matters: the stronger group result does not mean both brands are growing at the same pace.
The company now expects annual revenue of $8.5 billion to $8.6 billion, up from $8.4 billion to $8.5 billion. It raised its adjusted earnings-per-share outlook to $8.25 to $8.35 from $7.80 to $7.90.
The annual outlook is on a comparable 52-week basis and excludes the extra week in fiscal 2027. It also assumes no material worsening in inflation or consumer confidence, so it should not be read as an unconditional promise.
First-quarter GAAP diluted earnings were $1.76 per share, compared with non-GAAP earnings of $1.82. Keeping those measures separate avoids confusing the company's adjusted performance with its accounting result.
Tapestry also increased its planned fiscal-year share repurchases by $350 million to $1.7 billion. That is a capital-return plan, distinct from the sales growth at its brands.
The report shows strength in part of the consumer market even as technology stocks face a sharp selloff. It is evidence about this company's customers and brands, not a measure of all household spending.
