Tapestry (TPR) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $2.5 billion, up 14% year-over-year, with pro forma revenue growth of 18% led by a 25% gain at Coach and strong global sales momentum.

• Operating margin expanded by 620 basis points (GAAP) and 390 basis points (non-GAAP), with EPS up 34% non-GAAP and 94% GAAP year-over-year, surpassing expectations.

• Raised full-year outlook for revenue, margin, EPS, and free cash flow, citing sustainable advantages, strong brand momentum, and disciplined execution.

• Completed the sale of Stuart Weitzman in August 2025, focusing the portfolio on core brands and resulting in one-time charges in the prior year.

• Customer acquisition, especially among Gen Z, and increased marketing investments were key growth drivers.

Financial highlights

• Q2 FY26 net sales reached $2.50 billion, up 14% year-over-year; pro forma net sales (excluding Stuart Weitzman) up 18%.

• Gross profit was $1.89 billion with a gross margin of 75.5%, up 110 basis points year-over-year.

• Operating income was $716 million (GAAP) and $720 million (non-GAAP); operating margin expanded to 28.6% (GAAP) and 28.8% (non-GAAP).

• EPS was $2.68 (GAAP) and $2.69 (non-GAAP), up 34% non-GAAP and 94% GAAP year-over-year.

• Adjusted free cash flow for the quarter was $1.04 billion, up from $772 million a year ago; CapEx and cloud computing costs were $54 million.

Outlook and guidance

• Fiscal 2026 revenue expected to exceed $7.75 billion, up 15% pro forma and 11% reported year-over-year.

• Raised EPS guidance to $6.40–$6.45, representing over 25% growth year-over-year.

• Operating margin expansion of ~180 basis points and gross margin increase of ~20 basis points forecasted.

• Adjusted free cash flow for the year expected at $1.5 billion; CapEx and cloud computing costs projected at $200 million.

• Guidance assumes stable macroeconomic conditions and excludes one-time costs from the Stuart Weitzman sale.