The parent company of Coach and Kate Spade, Tapestry, has reported a strong full-year performance, with net sales increasing by 14 per cent to $8bn on a constant currency basis.
Tapestry’s gross profit totaled $6.23bn compared to $5.29bn in the year before, driven by the successful execution of its Amplify business growth strategy.
The company’s operating profit went up by 33 per cent year-on-year to $1.87bn, which was driven by broad-based growth across key regions.
During the year the business had a strong performance in customer acquisition, with over 2.5m new consumers in the fourth quarter and 11m in FY26.
Additionally, Tapestry achieved growth in the core leathergoods offerings, which was led by strong handbag revenue growth at Coach.
The company experienced a fourth-quarter net sales increase of 9 per cent to $1.9bn compared to the same time last year.
This was led by a standout performance within the Coach brand with a 14 per cent revenue increase on a constant currency basis.
During the fourth quarter, the company’s operating income reached $442m compared to the previous year’s operating loss of $583m.
Moving forward, the company forecasted an annual revenue of between $8.4bn and $8.5bn, which reflects a mid-single-digit growth on a constant currency basis compared to the year prior.
Joanne Crevoiserat, CEO of Tapestry said: “Our fourth quarter outperformance capped a year of strong growth, as we meaningfully exceeded expectations and achieved key financial commitments we established at our Investor Day two years ahead of plan.
“Our success is by design, demonstrating the power of our Amplify strategy. Through intentional choices, disciplined execution, and an unwavering focus on the consumer, we have built a stronger, more focused organization.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
