Tapestry reports revenue growth driven by Coach brand performance
Tapestry reported a 12% increase in adjusted revenue for the first quarter of fiscal 2027, bolstered by a 16% sales growth at its Coach brand.
Tapestry, the parent company of Coach and Kate Spade, outperformed market expectations in its fiscal 2027 first-quarter earnings report. The firm added 2.6 million new consumers during the period, with Gen Z accounting for 35% of that growth. Overall adjusted revenue rose by 12% compared to the previous year.
The performance disparity between the company's two primary labels remains significant. While Coach saw a 16% increase in sales on a constant-currency basis, supported by higher average prices and increased volume, Kate Spade experienced a 10% decline in revenue.
Tapestry CEO Joanne Crevoiserat attributed the positive results to the company's 'Amplify' strategy, which focuses on targeted marketing partnerships and social media engagement. By collaborating with high-profile cultural figures and leveraging user-generated content on platforms like TikTok, the brand has successfully positioned its products to appeal to younger demographics.
Following these results, Tapestry has increased its full-year financial outlook. The company intends to maintain its momentum by continuing to leverage its data-driven approach to consumer insights and global supply chain scale.