Tapestry, Inc. Q1 2027 Earnings Recap

Tapestry shares rose 7.1% after results beat expectations, with revenue up 12%, operating margin expanding 230 basis points and EPS increasing 32%. North America drove the upside, and the company raised its full-year outlook.

Key Takeaways

• First-quarter revenue reached $1.9 billion, up 12% on a pro forma basis; operating margin rose to over 23%, and EPS increased to $1.82.
• Coach revenue grew 16% in constant currency. Handbag average unit retail rose at a low double-digit rate, while units grew low single digits.
• Coach growth was broad geographically: Greater China rose 41%, Europe 27%, North America 7% and Japan 5%, all at constant currency.
• Tapestry added 2.6 million new customers, approximately 35% of whom were Gen Z; Coach accounted for over 2.1 million new consumers.
• Coach revenue below $200 declined as the brand intentionally deemphasized those price points; management said this was planned.