Tapestry Raises Annual Forecasts on Coach Growth
The accessories company beat first-quarter estimates as Coach sales rose while Kate Spade sales fell.
Updated on Nov. 5, 2026 in Accessories
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Tapestry raised its annual revenue and profit forecasts after beating first-quarter revenue estimates, with quarterly sales rising 11.1% to $1.89 billion. Growth was led by Coach, while sales at Kate Spade fell 10% from a year earlier.
Why it matters
The results show that accessible luxury demand has held up for some brands even as global luxury faces pressure from Middle East conflict and China's tax crackdown. Strength at Coach contrasted with weakness at Kate Spade, highlighting uneven performance within the same company.
Coach revenue in China jumped 43%, while Tapestry now expects to buy back $1.7 billion in shares this fiscal year, up $350 million from prior guidance. The company did not disclose how much of the China growth is expected to carry into future quarters.
The players
Tapestry
Tapestry is a New York-based luxury accessories company that owns the Coach and Kate Spade brands.
Coach
Coach is an American luxury accessories brand owned by Tapestry, known for handbags and leather goods.
Kate Spade
Kate Spade is an American accessories brand that Tapestry acquired in 2017.
The details
Coach sales growth among Gen Z shoppers was driven by products such as bag charms and celebrity campaigns, and the quarterly beat was driven by Coach sales in North America. Tapestry, which acquired Kate Spade in 2017, expects fiscal 2027 revenue of $8.5 billion to $8.6 billion and annual earnings per share of $8.25 to $8.35.
Timeline
Tapestry raised its annual forecasts on November 5, 2026.
Tapestry's guidance covers fiscal 2027.
Tapestry acquired Kate Spade in 2017.
Market Landscape
Tapestry's divergence between Coach and Kate Spade, which it acquired in 2017, illustrates how a multi-brand accessories portfolio can depend heavily on one brand's momentum. Demand for accessible luxury has held up better than high-end luxury amid Middle East headwinds and China's tax crackdown.
Shoppers considering Coach products should expect no added promotions heading into the upcoming holiday season, according to the company's pricing strategy. Wealthier shoppers kept spending on accessible luxury even as lower-income consumers pulled back.
The takeaway
Brand performance within a single luxury portfolio can diverge sharply, so growth at one label does not guarantee strength across the group. Watching which brands sustain momentum through the holiday season will show whether accessible luxury demand is durable.
Further reading
For more on how handbag and accessory brands are performing, explore the Accessories section.
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