Tapestry Exceeded Expectations and Expanded Share Buyback Program

American fashion group Tapestry, which owns the brands Coach, Kate Spade, and Stuart Weitzman, exceeded Wall Street expectations in the fourth quarter and presented an optimistic forecast for fiscal year 2027.

The company announced adjusted earnings per share (EPS) of $1.32, surpassing analysts' expectations of $1.28. Quarterly revenue grew 8.9% and reached $1.88 billion, which met market expectations.

Tapestry stated that it plans to repurchase its own shares worth $1.35 billion in the current fiscal year.

Coach remained the company's primary growth driver. According to management, reduced discounting, marketing targeted at younger consumers, and the success of popular collections such as Tabby and Belted Ergo have further strengthened the brand's position. In contrast, Kate Spade continues to face weak sales challenges.

By region, sales in North America grew 7% in constant currency, in China 28%, and in Europe 19%.

According to Chief Financial Officer Scott Roe, the North American consumer continues to maintain stable demand, which is one of the company's key advantages.

For fiscal year 2027, Tapestry expects EPS of $7.80–$7.90, which is above analysts' forecasts. For the first quarter, the company forecasts high single-digit revenue growth and approximately $1.55 EPS, which also exceeds market expectations.

The company's overall gross profit margin increased to 78.1%, supported by price increases implemented in recent quarters. The annual revenue forecast is $8.4–$8.5 billion, which falls slightly short of analysts' consensus.