TPR earnings analysis
What we found in TPR's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Tapestry delivered a strong fiscal 2026 recovery, with revenue up 14.2% to $8.00 billion, operating margin rising to 23.9% and diluted EPS reaching $7.27. Coach supplied most of the momentum, while Kate Spade remains the key weakness with declining sales, lower adjusted margin and a small impairment cushion. Strong operating cash flow supported $1.55 billion of repurchases and a $326.1 million dividend, but tariff uncertainty and the fulfillment-network transition create execution risks. The fiscal 2027 outlook remains constructive, calling for $8.4-$8.5 billion of revenue and $7.80-$7.90 of non-GAAP EPS.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and operating profit rebounded sharply
- Fiscal 2026 net sales increased 14.2% to $8,004.2 million from $7,010.7 million in fiscal 2025 and $6,671.2 million in fiscal 2024. Operating income rose to $1,914.4 million from $415.0 million and $1,140.1 million, respectively.
- Coach drove growth and margin expansion
- Coach was the principal growth engine: revenue increased 23.5% to $6,914.7 million, while operating income increased 35.5% to $2,541.2 million. Coach operating margin expanded to 36.8% from 33.5%.
- Margins expanded materially
- Consolidated gross margin improved to 77.8% from 75.4%, while reported operating margin increased to 23.9% from 5.9%. Excluding comparability items, operating margin increased approximately 340 basis points to 23.4%.
- EPS growth reflects earnings recovery
- Diluted EPS increased to $7.27 from $0.82 in fiscal 2025 and $3.50 in fiscal 2024. Excluding items affecting comparability, diluted EPS rose to $7.05 from $5.10.
- Strong operating cash generation funded returns
- Net cash provided by operating activities increased to $1,978.5 million from $1,216.6 million. The company spent $166.0 million on property and equipment and reported $1,554.6 million of cash used for common-stock repurchases.
- Amplify provides a focused growth roadmap
- Amplify, the company’s 2028 strategy, targets Gen Z customer acquisition, handbag and leathergoods leadership, targeted footwear expansion, sustained North America growth and accelerated momentum in Greater China and Europe.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Tariffs remain a major margin risk
- Tariff policy remains a material earnings risk. The filing states that fiscal 2026 gross margin was negatively affected by approximately 130 basis points on an adjusted basis; the company paid approximately $117 million of IEEPA tariffs and recorded a probable refund receivable of $114.7 million. New Section 301 tariffs ranging from 10% to 12.5% became effective after the temporary Section 122 tariffs expired, and mitigation efforts may not be effective.
- Kate Spade turnaround and impairment risk
- Kate Spade’s operating performance deteriorated despite the absence of a new impairment charge. Revenue declined 10.2% to $1,074.9 million, adjusted gross margin fell 370 basis points to 63.0%, and adjusted operating loss was $27.2 million versus $91.3 million of operating income in fiscal 2025. The brand’s $381.9 million of goodwill and $699.1 million of indefinite-lived brand intangible assets exceeded carrying value by approximately 30%, but further deterioration in fiscal 2027 could trigger another impairment.
- Fulfillment-center transition adds execution risk
- The company is transitioning its 601,000-square-foot Ohio fulfillment center to a third-party facility in Pennsylvania, with completion expected in the first half of fiscal 2027. The filing identifies potential order-processing and delivery disruptions, increased costs and reliance on the new third-party operator during and after the transition.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $7.27
- Gross margin
- 77.8%
- Operating margin
- 23.9%
- Segment
- Coach: $6,914.7 million revenue; $2,541.2 million operating income
- Segment
- Kate Spade: $1,074.9 million revenue; $(10.0) million operating loss
- Segment
- Stuart Weitzman: $14.6 million revenue and $(1.0) million operating loss before its August 4, 2025 divestiture
What they said about what is next.
The 10-K does not provide numeric fiscal 2027 guidance; the quantitative outlook was provided in the August 13, 2026 earnings release/call. Fiscal 2027 outlook calls for $8.4-$8.5 billion of revenue, $7.80-$7.90 non-GAAP EPS and approximately 50 basis points of operating-margin expansion. The 53rd week is excluded from the outlook and is expected to add approximately 1 percentage point to annual revenue growth.
The filing reads better than the one before it.
What came before.
- 10-Q · May 7, 2026
- In its Q3 FY 2026 report, Tapestry, Inc. delivered strong results with revenues of $1.92 billion, up 21.2% year-over-year, and a diluted EPS of $1.65, a significant jump from $0.95 in Q3 FY 2025. The company increased…
- 10-Q · February 5, 2026
- Tapestry, Inc. reported strong Q2 fiscal 2026 results, marked by significant revenue growth and improved profitability. Revenue surged to $2.50 billion, up 14.0% year-over-year, while diluted EPS jumped to $2.68 from…
- 10-Q · November 6, 2025
- Tapestry, Inc. reported a strong performance for Q1 2026 with revenues of $1.70 billion, a 13.1% increase year-over-year, and a notable rise in diluted EPS to $1.28 from $0.79 the previous year. While the Coach segment…
- 10-K · August 14, 2025
- Tapestry, Inc. reported a significant decline in earnings for fiscal 2025, reflecting multiple challenges including increased expenses and impairment charges primarily related to the Kate Spade segment. The divestiture…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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