Tapestry Q1 revenue beats estimates as customer base expands to Gen Z

Tapestry

06/11/2025 11:57

Overview

Tapestry fiscal Q1 revenue grows 13% yr/yr, beating analyst expectations

Adjusted EPS for fiscal Q1 beats consensus, rising 35% yr/yr

Company plans to return $1.3 bln to shareholders in fiscal 2026

Outlook

Tapestry raises fiscal year 2026 revenue outlook to $7.3 bln

Company expects fiscal year 2026 EPS of $5.45 to $5.60

Tapestry anticipates operating margin expansion of 50 basis points in fiscal year 2026

Result Drivers

COACH BRAND GROWTH - Coach brand led revenue growth with a 22% increase, driven by strong handbag sales and innovation

MARGIN EXPANSION - Operating margin expanded by 260 basis points due to gross margin increase and SG&A leverage

AMPLIFY STRATEGY - Amplify Growth Strategy helped acquire over 2.2 mln new customers, with Gen Z making up 35% of new customers

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$1.70 bln
$1.64 bln (15 Analysts)
Q1 ADJUSTED EPS
Beat
$1.38
$1.26 (16 Analysts)
Q1 EPS
$1.28
Q1 Net Income
$275 mln
Q1 Operating Margin
19.30%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

Wall Street's median 12-month price target for Tapestry Inc is $126.00, about 13.2% above its November 5 closing price of $109.31

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw1PSHsRa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)