Tapestry — the parent company of Coach and Kate Spade — said that revenues increased 19% year-on-year, on a constant currency basis, to $1.9 billion in the third quarter of 2026, ended March 28. The growth was once again attributed to a stellar performance from Gen Z favorite Coach.
On a pro forma basis, group sales grew 23% year-on-year in Q3. Gross profit increased 22%, while gross margin increased from 76.1% to 76.9%. Tapestry’s focus on customer acquisition, which is a core tenet of its Amplify strategy, seems to be paying off, with 2.4 million new customers acquired globally during the quarter and 35% of which were Gen Z. “Our third-quarter outperformance reflects the compounding benefits of our Amplify strategy, as we bring creativity, craftsmanship, and value to more consumers around the world,” CEO Joanne Crevoiserat said in a statement released on Thursday.
Coach revenues were up 29% to $1.7 billion in Q3, delivering strong growth globally — Greater China (up 58%), North America (up 27%), and Europe (up 27%) were all key regions for the brand. Footwear grew 20% in the quarter, led by the Soho sneakers, while Coach’s hero handbags, such as the Tabby, the New York, and the Rowan, outperformed, according to the group. Coach announced it had increased its marketing spend by approximately 50% year-on-year, with a “continued shift toward top-funnel brand-building to drive long-term demand and customer acquisition”.
Kate Spade revenues declined 11% to $219.6 million, due to a strategic pullback in promotions at retail. The brand, which has seen declines in the past few quarters, is prioritizing customer experience through both in-store and digital experiences, while leaning on creator activations to “further drive visibility and brand relevance”.
By region, Greater China was a standout, with sales rising 55% to $432.2 million, mainly driven by new customer acquisition. Sales in Japan declined 10% to $123.9 million, “other Asia” rose 16% to $116.3 million, once again led by Australia and South Korea, while Europe grew 21%, driven by strong local spend. Thanks to Coach, the company’s largest market, North America, saw an 20% uplift to $1.1 billion. Tapestry’s “other” region, which primarily represents royalties from licensing partners and sales in the Middle East, saw a sales decline of 3% to $27.9 million — likely credited to the ongoing conflict in the region.
Direct-to-consumer (DTC) revenues increased 23%, with strong digital growth of 25%, and 20% growth in global bricks-and-mortar.
Looking ahead, the company has once again raised its outlook for the 2026 full year to $7.95 billion. Excluding the impact of the Stuart Weitzman sale, which was completed in August 2025, pro forma revenue is now expected to grow 17% on a nominal basis. “From this position of strength, we move confidently into the future with significant opportunity ahead,” Crevoiserat said.
