Tapestry delivered a strong third quarter, with results that exceeded Wall Street’s expectations and a significant positive market reaction. Management attributed this outperformance to broad-based revenue growth across both North America and international regions, particularly Greater China and Europe. CEO Joanne Crevoiserat highlighted that the company welcomed 2.6 million new customers, with Gen Z representing about 35%. The Coach brand stood out, benefiting from higher average unit retail prices and increased unit sales in its core leather goods category. The company’s focus on product innovation and disciplined promotional activity also supported margin expansion.
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Tapestry (TPR) Q3 CY2026 highlights:
- Revenue $1.89 billion vs S&P analyst consensus of $1.85 billion (12.1% year-on-year growth, 2.6% beat)
- Adjusted EPS $1.82 vs S&P analyst consensus of $1.56 (16.4% beat)
- Adjusted EBITDA $479 million vs analyst estimates of $428.5 million (25.3% margin, 11.8% beat)
- Revenue guidance The company lifted its revenue guidance for the full year to $8.55 billion at the midpoint from $8.45 billion, a 1.2% increase
- Adjusted EPS guidance Management raised its full-year adjusted EPS guidance to $8.30 at the midpoint, a 5.7% increase
- Operating margin 22.4%, up from 19.4% in the same quarter last year
- Locations 1,301 at quarter end, up from 1,292 in the same quarter last year
- Constant currency revenue rose 11% year on year (12% in the same quarter last year)
- Market capitalization $26.1 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from Tapestry’s Q3 earnings call
- Ike Boruchow (Wells Fargo) asked about confidence in sustaining mid-single-digit North American growth despite difficult comparisons. CEO Joanne Crevoiserat and Coach CEO Todd Kahn emphasized broad-based consumer resilience and multiple growth levers, including focus on core price bands and innovation.
- Matthew Boss (JPMorgan) inquired about the drivers of global customer acquisition and regional differences. CEO Crevoiserat stressed the importance of value proposition and local execution, while CFO Scott Roe discussed gross margin drivers like pricing power and supply chain efficiency.
- Bob Drbul (BTIG) sought detail on Greater China growth and Coach’s footwear strategy. CEO Crevoiserat noted ongoing customer acquisition and low market penetration in China, and Coach CEO Kahn highlighted footwear’s role in acquiring new, often younger, customers.
- Laurent Vasilescu (BNP Paribas) questioned the expansion of the expressive luxury store concept and its impact on capital spending. Coach CEO Kahn and CFO Roe explained the capex allocation and positive early returns from store renovations.
- Aneesha Sherman (Bernstein) asked about Coach’s focus on the $200-$500 price range and risks from European competitors. Coach CEO Kahn stated the sweet spot would remain, with continued innovation and clear differentiation from European luxury brands.
Catalysts in upcoming quarters
In the coming quarters, the StockStory team will be watching (1) continued momentum in international markets, particularly Greater China and Europe, (2) the pace and impact of store renovations under the expressive luxury concept, and (3) progress on customer acquisition, especially among Gen Z. Ongoing discipline in promotional activity and the rollout of new product families will also be critical markers of execution.
Tapestry currently trades at $133.28, up from $125.26 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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