Raises FY26 EPS guidance to $6.40-$6.45, up over 25%
Tapestry reported a record Q2 with 18% pro forma revenue growth and 34% EPS growth, beating expectations. Management raised full-year guidance significantly, framing FY2026 as a re-baseline for durable mid-single-digit revenue and double-digit EPS growth, with strong momentum at Coach offsetting a continued turnaround at Kate Spade. Coach revenue +25% in Q2, with strong double-digit growth across North America, Greater China, and Europe, gaining market share.
Buzzberg 분석Raises FY26 EPS guidance to $6.40-$6.45, up over 25%Tapestry reported a record Q2 with 18% pro forma revenue growth and 34% EPS growth, beating expectations. Management raised full-year guidance significantly, framing FY2026 as a re-baseline for durable mid-single-digit revenue and double-digit EPS growth, with strong momentum at Coach offsetting a continued turnaround at Kate Spade. Coach revenue +25% in Q2, with strong double-digit growth across North America, Greater China, and Europe, gaining market share.전체 분석 보기분석 접기
Tapestry reported a record Q2 with 18% pro forma revenue growth and 34% EPS growth, beating expectations. Management raised full-year guidance significantly, framing FY2026 as a re-baseline for durable mid-single-digit revenue and double-digit EPS growth, with strong momentum at Coach offsetting a continued turnaround at Kate Spade. Coach revenue +25% in Q2, with strong double-digit growth across North America, Greater China, and Europe, gaining market share.
Kate Spade revenue -14% in Q2, dragged by intentional promo pullback, but early KPI improvements in brand consideration and Gen Z acquisition.
Full-year EPS guide raised to $6.40-$6.45 (from $5.45-$5.60), revenue to over $7.75bn.
Full-year gross margin now guided to expand ~20bps, fully mitigating ~200bps tariff impact.
Revenue$2.5024B
reported
EPS$2.69
reported
Gross margin75.46%
reported
Op margin28.63%
reported
이번 분기에 달라진 점
01
Guidance
Raises FY26 EPS guidance to $6.40-$6.45, up over 25%
Guidance · revenue to $7.75B
02
Demand
Achieved 3.7 million new customers globally, driven by Gen Z
Management expressed strong confidence in the business, citing record results, raised guidance, and a sustainable growth model, while highlighting structural advantages and momentum.
03
Demand
Coach's growth broad-based, no single family over 10% of sales
Achieved 3.7 million new customers globally, driven by Gen Z. Management expressed strong confidence in the business, citing record results, raised guidance, and a sustainable growth model, while highlighting structural advantages and momentum.
Reported gross margin was 75.46%, reinforcing the quarter's better-than-guided profitability.
AI, 자본지출 및 수요 분석
AI
플랫폼 및 수익화
Management highlighted that they are already applying AI tools across product development, inventory management, pricing, and marketing, which drives both efficiency and growth. They noted that their data fabric and investment in AI are competitive advantages that speed up design and content creation while maintaining a human in the loop.
수요
수주 및 전환
Achieved 3.7 million new customers globally, driven by Gen Z. Management expressed strong confidence in the business, citing record results, raised guidance, and a sustainable growth model, while highlighting structural advantages and momentum.
자본지출
투자 및 생산능력
CapEx and cloud computing costs are expected to be around $200 million, with about 60% related to store openings, renovations, and relocations, and the balance to IT and digital investments. The company emphasized that their technology foundation is largely in place, so adopting AI is more of a change management opportunity than a significant investment challenge.
톤 · Upbeat
Management expressed strong confidence in the business, citing record results, raised guidance, and a sustainable growth model, while highlighting structural advantages and momentum.
공급망 알파
A1
Tapestry fully mitigates the ~200bps tariff headwind on FY2026 gross margin through AUR gains, supply chain actions, and Stuart Weitzman divestiture benefits, despite the majority of tariff impact hitting in Q3/Q4.
“we now anticipate gross margin to increase in the area of 20 basis points, a meaningful improvement from our prior outlook and completely mitigating the impact of tariffs.”
Coach's unit volumes in core leather goods are still ~20% below pre-pandemic levels globally and ~25% below in North America, implying significant runway for growth without relying on price increases.
“On units, we have significant runway. We are still below our pre-pandemic levels, 20% globally, and 25% in North America.”
Coach's growth is highly diversified, with no single product family accounting for more than 10% of sales, reducing risk of fashion-cycle concentration.
“Growth was led by our core leather goods assortment... with broad-based strength and no single family accounting for more than 10% of sales.”
Kate Spade's gross margin is being hit by a ~520bps tariff/duty headwind in Q2, far more than Coach's ~140bps, reflecting a weaker pricing position and harming turnaround economics.
“which included approximately 140 basis point impact on Coach's gross margin and a 520 basis point impact on Kate Spade's gross margin.”