Tapestry Hits Investor Day Targets Two Years Early, Plans $1.7B Shareholder Return
The Coach and Kate Spade parent reported fiscal 2026 revenue of $8.0 billion and announced a 16% dividend increase alongside aggressive share buyback plans.
Record Results Accelerate Strategic Timeline
Tapestry, Inc. reported fiscal 2026 fourth quarter and full year results that exceeded the financial commitments established at its Investor Day "two years ahead of plan," according to CEO Joanne Crevoiserat (8-K filing, 2026-08-13).
The company, which operates Coach and Kate Spade New York following the divestiture of Stuart Weitzman, achieved annual revenue of $8.0 billion, representing a 14% increase versus prior year or 17% on a pro forma constant currency basis. Fourth quarter revenue reached $1.9 billion, up 9% year-over-year (8-K filing, 2026-08-13).
Non-GAAP earnings per diluted share for the full year totaled $7.05, up 38% versus the prior year, while fourth quarter non-GAAP EPS of $1.32 increased 28% (8-K filing, 2026-08-13). Operating margin expanded to 23.4% for the full year on a non-GAAP basis, representing approximately 340 basis points of expansion (8-K filing, 2026-08-13).
Coach Brand Drives Growth
The Coach brand delivered "double-digit revenue growth in every quarter of FY26," with full year growth of 24% on a reported basis or 23% on a constant currency basis (8-K filing, 2026-08-13). The brand's handbag average unit retail increased at a "mid-teens percentage rate" in both the fourth quarter and full year (8-K filing, 2026-08-13).
Kate Spade revenue declined 10% for the full year on a pro forma basis, or 11% on a constant currency basis (8-K filing, 2026-08-13).
Geographically, Greater China revenue grew 38% on a reported basis for the full year, or 35% on a constant currency basis. North America revenue increased 15% for the full year on both a reported and constant currency basis (8-K filing, 2026-08-13).
Aggressive Capital Return Program
Tapestry returned $1.7 billion to shareholders in fiscal 2026 through $326 million in dividends and $1.35 billion in share repurchases, buying back approximately 11.5 million shares at an average price of approximately $118 (8-K filing, 2026-08-13).
The Board of Directors approved a 16% dividend increase, raising the quarterly dividend to $0.4625 per share for an anticipated annual rate of $1.85 per share. The quarterly dividend is payable September 21, 2026 to shareholders of record as of September 4, 2026 (8-K filing, 2026-08-13).
For fiscal 2027, the company expects to return approximately $1.7 billion to shareholders, including $1.35 billion in share repurchases under its existing authorization (8-K filing, 2026-08-13).
MarginX data shows recent insider activity including options exercises by executive Todd Kahn for 57,286 shares, with 37,729 shares withheld for tax purposes.
Balance Sheet and Outlook
The company ended the fiscal year with $1.15 billion in cash, cash equivalents and short-term investments against $2.38 billion in total borrowings, resulting in a leverage ratio of 1.1x based on gross debt to adjusted EBITDA (8-K filing, 2026-08-13).
Adjusted free cash flow for fiscal 2026 totaled $1.86 billion compared to $1.35 billion in the prior year (8-K filing, 2026-08-13).
Tapestry initiated fiscal 2027 guidance for "mid-single digit revenue growth, continued operating margin expansion, and low-double-digit EPS growth, consistent with long-term commitments" (8-K filing, 2026-08-13).
The company is scheduled to report first quarter fiscal 2027 results on November 5, 2026, according to MarginX data.
This article was generated by MarginX from the 8-K filing on 2026-08-13. It is not investment advice.