Tapestry (TPR) Q3 2026 earnings summary

Executive summary

• Achieved double-digit revenue, operating income, and EPS growth in Q3 FY26, with net sales up 21–23% year-over-year to $1.92 billion and EPS up 62–74%, surpassing expectations.

• Raised full-year FY26 outlook for revenue, margin, EPS, and cash flow, reflecting strong business momentum and sustainable advantages.

• Customer acquisition, especially among Gen Z, drove growth, with over 2.4 million new customers globally and higher retention rates for Gen Z.

• Completed the sale of Stuart Weitzman in August 2025; results now presented on a pro forma basis excluding this segment.

• Continued investment in marketing, immersive retail experiences, and new store concepts to drive brand desirability and customer engagement.

Financial highlights

• Q3 FY26 pro forma net sales reached $1.92B, up 21–23% year-over-year; gross margin improved by 80 bps to 76.9%.

• Operating income grew 55–68.5% to $427.5–$430M, with operating margin expanding by 490 bps to 22.3–22.4%.

• EPS rose to $1.65–$1.66, up 62–74% year-over-year.

• Free cash flow year-to-date totaled $1.4B; Q3 adjusted free cash flow was $228.5–$229M.

• Cash and cash equivalents at quarter-end were $1.05–$1.07 billion.

Outlook and guidance

• FY26 revenue outlook raised to approximately $7.95B, representing 14–16% growth year-over-year.

• Coach expected to deliver over 20% growth; Kate Spade to see a low double-digit decline.

• Operating margin projected at ~23%, expanding 300 bps year-over-year.

• EPS guidance raised to ~$6.95, up over 35% year-over-year.

• Adjusted free cash flow expected to approach $1.6B; CapEx and cloud computing costs around $200M.