Tapestry reported fiscal first quarter 2027 results that significantly exceeded consensus expectations, driven by outsized growth at the Coach brand and a sharp recovery in international markets. Following the outperformance, management raised its full-year guidance for revenue and earnings while increasing its planned share repurchases to $1.7 billion for the fiscal year.
Key Highlights
- Coach brand revenue reached $1.66 billion, a 16% increase year-over-year, significantly outperforming the low-teens growth anticipated by analysts.
- Non-GAAP gross margin expanded 220 basis points to 78.7%, primarily driven by operational improvements and a 70-basis point benefit from lower tariffs and duties.
- Greater China pro forma revenue surged 39% on a constant currency basis, showing notable resilience compared to broader luxury sector trends.
- The company increased its fiscal year 2027 capital return outlook to $2.0 billion, supported by an additional $350 million in planned share repurchases.