New York, February 5, 2026, 11:03 EST — Regular session
Tapestry Inc shares climbed 3.8% to $134.87 in early Thursday trading, following an upbeat holiday quarter report and an increased full-year forecast from the Coach owner. The stock had surged nearly 9% at one point during the session.
The company reported net sales for the quarter ending Dec. 27 surged 14% to $2.50 billion, with adjusted earnings hitting $2.69 per share. Coach revenue jumped 25%, while Kate Spade sales dropped 14%. Tapestry boosted its fiscal 2026 guidance, now expecting revenue above $7.75 billion and adjusted EPS between $6.40 and $6.45. It also increased planned shareholder returns to around $1.5 billion, including approximately $1.2 billion in buybacks. The outlook factors in overcoming a tariff-and-duty headwind of nearly 200 basis points (one basis point equals 0.01%).
Wealthy Gen Z shoppers are driving demand for Coach’s Tabby handbags, which range from $295 to $725, helping the brand maintain higher pricing while competitors like Michael Kors falter, Reuters reported. Tapestry CEO Joanne Crevoiserat attributed the momentum to a 40% boost in marketing spend and said the company sees “the opportunity for Coach to be a $10 billion brand.” Guggenheim’s Simeon Siegel praised Coach’s rare feat of raising both prices and sales volumes. Morningstar’s David Swartz added that tariffs “don’t seem to be a problem” for Tapestry as it restructures Kate Spade and navigates changes like the end of the U.S. “de minimis” duty-free parcel exemption. (Reuters)
During the earnings call, CFO Scott Roe remarked, “We found a new gear of growth.” Coach CEO Todd Kahn added that the brand consistently focuses on value. Executives answered questions about tariff mitigation and the company’s use of AI throughout its operations. (Investing)
On Thursday, an SEC filing revealed that Tapestry provided the results release and pointed to an investor presentation available on its website.
The setup isn’t straightforward. Coach has been shouldering the print, which leaves little margin for error if U.S. demand slackens, discounts return, or handbag rivals step up their game.
Investors are keeping an eye on whether the Kate Spade reset begins to reflect in clearer trends, and if the tariff calculations remain steady amid potential changes in trade rules. The stock’s swift drop from the day’s peak highlights just how quickly sentiment can flip, even after a strong beat.
Tapestry is set to release its fiscal 2026 third-quarter results on May 7. (Businesswire)
