Tapestry, Inc. reported a 21% year-over-year revenue increase for its Coach brand in the first quarter of fiscal 2026, achieving a total revenue boost driven by strong global demand. Notable growth was observed in North America (26%), China (21%), and Europe (39%), while the brand added 1.7 million customers globally, primarily from younger demographics.
Coach’s average unit retail for handbags rose in the mid-teens, and overall handbag unit sales increased despite reduced promotions. Marketing investments surged to approximately 11% of sales, enhancing brand engagement. Tapestry anticipates low double-digit revenue growth for Coach throughout fiscal 2026, with stable operating margins amid tariff challenges.
In the last six months, Tapestry shares increased by 47.8%, outpacing the industry’s growth of 18.6%. The company’s forward price-to-earnings ratio is currently 21.97X, compared to the industry’s average of 18.27X.
