Aug 13, 2026 earnings call — Coach-led growth and FY27 guidance
Tapestry reported fiscal revenue of $8 billion and guided fiscal 2027 revenue of $8.4 billion to $8.5 billion.
Revenue $1.9B (est $1.9B) · EPS $1.32 (est $1.28) · Next-quarter revenue outlook $8.4B–$8.5B
Key quotes
"Coach delivered another strong quarter with constant currency revenue growth of 14% and increasing profitability."
"Tapestry is committed to embracing AI to enhance the magic of our people and our brands."
"In fiscal '26, we returned $1.7 billion to shareholders."
Analyst Q&A 8
Outlook and durability of growth
Q (Matthew Boss · JPMorgan): How should we think about the setup for fiscal '27, current Coach demand versus Q1 low-teens guide, and why confident growth will be durable later in the year?
A: Management said they are confident in durable growth based on capabilities built over recent years: stronger brands, more direct relationships, data and AI, improved profitability and cash to invest. They expect Coach momentum to continue and turned to Scott for detail on cadence and guidance. The full-year guide is prudent and does not require keeping Q1 Coach growth at the same level for the rest of the year.
"For fiscal '27, we expect mid-single-digit revenue growth, continued operating margin expansion and low double-digit EPS growth." — Scott Roe (CFO)
Units versus AUR growth mix
Q (Alexandra Straton · Morgan Stanley): After strong AUR growth, what are you assuming for units versus AUR in guidance, and what drove flat units in Q4?
A: Management said Q4 mix was by design: much of the growth came from AUR while units were in line, helped by fewer promotion days and One Coach placement of collection product into outlets. They expect both AUR and unit growth in fiscal '27, and the guidance assumes both will contribute going forward.
"Throughout the year ahead, we'll see AUR gains across the globe, and you'll also see unit gains." — Todd Kahn (CEO)
North America normalization at Coach
Q (Irwin Boruchow · Wells Fargo): How are you thinking about normalization of domestic Coach growth, the Q4 10% North America result and headwinds from timing shifts, and what North America growth underpins Q1 low-teens global Coach guide?
A: They said Coach in North America is strong and intentional: Q3 had exceptional sell-through and Q4 reduced promotion days by design, so results matched expectations. The guide embeds comping the exceptional growth — a roughly 30% 2-year stack for North America is in the math — and they expect continued confident momentum in Coach North America.
"If you look at the 2-year stack for North America Coach in both Q4, Q1 and the full year guide, it's about 30%, right?" — Scott Roe (CFO)
Gross margin bridge and cadence
Q (Michael Binetti · Evercore): Should we assume a 30% 2-year stack in North America into the year and clarify the gross margin bridge given growth from high-margin categories and China?
A: Management said gross margin will be lumpy through the year but the guidance implies about 30 bps of gross margin expansion for the year. Structural drivers (brand strength, AUR, AUC, higher international margins) remain intact, and tariffs provide a net benefit in the first half with a partial push in the second half.
"I think the important thing to take away here is we are growing gross margin about 30 bps for the year." — Scott Roe (CFO)
International growth in China and Europe
Q (Robert Drbul · BTIG): Can you expand on what you're seeing in Europe and China and how you plan to drive those businesses in fiscal '27 and beyond?
A: They said international is a growing contributor. In China they achieved over 30% growth on the year driven by new customer acquisition and low brand awareness, giving room to penetrate further, especially with younger consumers. In Europe they are still early, with double-digit growth in recent years and many countries to expand into, using local storytelling, new stores and marketing investment to accelerate growth.
"In China, as an example, we delivered over 30% growth on the year." — Joanne Crevoiserat (CEO)
Product plans and franchises
Q (Jay Sole · UBS): What product ideas and franchises (like Brooklyn) give you confidence Coach momentum can continue?
A: Management pointed to clarity across purpose, customers, product, marketing and culture as the basis for product strength. They highlighted large, evolving platforms such as Tabby and the New York family (including Brooklyn and Chelsea) and said these multichannel platforms are driving strong full-price sales and provide runway for further growth.
"We are building on diverse yet very clear platforms of product." — Todd Kahn (CEO)
Customer acquisition, advertising, and Coach guidance
Q (Adrienne Yih-Tennant · Barclays): Can you discuss white space in pricing and entry-level positioning for Gen Z, competitors, implied advertising percent of sales for FY'27, and clarify whether Coach North America mid-single-digit is Q1 or full year?
A: Management emphasized customer acquisition as the growth engine and a repeatable playbook of insight-to-action, noting 11 million new customers last year joining at higher-than-average AUR and strong retention. They said demand creation spend was about 12% of sales and roughly $1 billion in advertising; Coach is expected to grow mid-single digits in Q1 and full year, and North America 2-year comps are about 30% in the guide. Todd added they target the $200 to $500 space and are investing in store fleet and brand storytelling.
"So you think about where we were 5 years ago versus today in terms of demand creation, that's a big number because, to Todd's point, while there's no barriers to entry, there are barriers to scale, and those barriers are getting higher." — Scott Roe (CFO)
Marketing efficiency and store growth plans
Q (Mark Altschwager · Baird): Did marketing deleverage timing or efficiencies drive the Q4 result, and how should we model CapEx, net door growth and regional mix for Coach in fiscal '27?
A: They said some marketing timing effects exist but overall they remain committed to investing in demand creation and brand awareness; 12% of sales was spent on marketing in 2026 and the flywheel remains intact. For store growth, they expect 40 to 50 net new Coach doors globally, with about 75% of new doors international and 25% domestic, and they are elevating the fleet with an expressive luxury design and Play concepts.
"So the flywheel is intact, and we will continue to invest in marketing." — Scott Roe (CFO)