Overview

* Tapestry fiscal Q1 revenue grows 13% yr/yr, beating analyst expectations

* Adjusted EPS for fiscal Q1 beats consensus, rising 35% yr/yr

* Company plans to return $1.3 bln to shareholders in fiscal 2026

Outlook

* Tapestry raises fiscal year 2026 revenue outlook to $7.3 bln

* Company expects fiscal year 2026 EPS of $5.45 to $5.60

* Tapestry anticipates operating margin expansion of 50 basis points in fiscal year 2026

Result Drivers

* COACH BRAND GROWTH - Coach brand led revenue growth with a 22% increase, driven by strong handbag sales and innovation

* MARGIN EXPANSION - Operating margin expanded by 260 basis points due to gross margin increase and SG&A leverage

* AMPLIFY STRATEGY - Amplify Growth Strategy helped acquire over 2.2 mln new customers, with Gen Z making up 35% of new customers

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales Beat $1.70 $1.64

bln bln (15

Analysts

)

Q1 Beat $1.38 $1.26

ADJUSTED (16

EPS Analysts

)

Q1 EPS $1.28

Q1 Net $275 mln

Income

Q1 19.30%

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

* Wall Street's median 12-month price target for Tapestry Inc ( TPR ) is $126.00, about 13.2% above its November 5 closing price of $109.31

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)