Tapestry lifts fiscal 2027 outlook as Coach revenue grows 16%

Tapestry has raised its fiscal 2027 revenue outlook to $8.5-8.6 billion (£6.33-6.40 billion), according to TheIndustry.fashion. First-quarter group revenue reached $1.9 billion (£1.41 billion), rising 11% on a reported basis and 12% pro forma, excluding the Stuart Weitzman business sold in August 2025.

Coach revenue increased 16% to $1.66 billion (£1.24 billion). The company reported growth in both average handbag selling prices and the number of handbags sold. Coach’s international sales increased 30%, compared with 7% in North America at constant currency. Across the group, Tapestry attracted 2.6 million new customers globally, approximately 35% of whom were Gen Z.

Kate Spade’s sales fell 10% to $233 million (£173.4 million). The brand recorded a GAAP operating loss of $20 million (£14.9 million), compared with a $6 million (£4.5 million) profit a year earlier. Its directly operated store count declined from 326 to 318 following eight international closures. Tapestry said it expects second-quarter constant-currency revenue growth of 5% to 6%.

Why it matters For fashion businesses and buyers, the results show contrasting performance within Tapestry’s portfolio: Coach grew through higher handbag prices and volumes, while Kate Spade’s sales and store footprint contracted. The group’s new-customer figures also highlight Gen Z’s contribution to customer acquisition.