Tapestry (TPR) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 FY26 with pro forma revenue up 23% at constant currency, operating margin up 490 bps, and EPS up 62% year-over-year, all exceeding expectations.

• Raised full-year FY26 outlook for revenue, margin, EPS, and cash flow, citing strong global demand, Gen Z acquisition, and robust Coach performance.

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

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

• Double-digit gains in North America, Greater China, and Europe, with market share growth in each region.

Financial highlights

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

• Operating income grew 55% to $430 million, with operating margin expanding by 490 bps to 22.4%.

• Q3 EPS was $1.66 (non-GAAP) and $1.65 (GAAP), up 62% and 74% year-over-year, respectively.

• Adjusted free cash flow for Q3 was $229 million, up from $118 million in the prior year quarter.

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

Outlook and guidance

• Fiscal year 2026 revenue expected at $7.95 billion, up 16% in constant currency.

• Operating margin forecasted at 23%, up 300 bps year-over-year.

• EPS guidance raised to $6.95, representing over 35% growth year-over-year.

• Adjusted free cash flow expected to approach $1.6 billion.

• CapEx and cloud computing costs projected at $200 million, with 60% for store investments.