Tapestry, the company behind Coach and Kate Spade, reported that its revenue rose 19% year-over-year on a constant currency basis, reaching $1.9 billion in the third quarter of 2026, which ended March 28. Once again, this growth was driven by strong performance from Coach, a favorite among Gen Z consumers.

On a pro forma basis, group sales grew 23% year-over-year in Q3. Gross profit increased by 22%, and gross margin improved from 76.1% to 76.9%. Tapestry’s focus on gaining new customers—a key part of its Amplify strategy—appears to be working. The company added 2.4 million new customers worldwide during the quarter, with 35% of them being Gen Z. “Our strong third-quarter results show the growing benefits of our Amplify strategy, as we bring creativity, craftsmanship, and value to more consumers around the world,” CEO Joanne Crevoiserat said in a statement released on Thursday.

Coach’s revenue jumped 29% to $1.7 billion in Q3, with strong growth across all major regions: Greater China (up 58%), North America (up 27%), and Europe (up 27%). Footwear sales grew 20% during the quarter, led by the Soho sneakers, while Coach’s popular handbags like the Tabby, New York, and Rowan performed especially well. The company also said it increased its marketing spending by about 50% year-over-year, with a “continued shift toward top-of-funnel brand-building to drive long-term demand and attract new customers.”

Kate Spade’s revenue fell 11% to $219.6 million, due to a deliberate reduction in retail promotions. The brand, which has seen declines in recent quarters, is now focusing on improving the customer experience both in stores and online, while using creator partnerships to “further drive visibility and brand relevance.”

By region, Greater China stood out with sales rising 55% to $432.2 million, mainly thanks to new customer acquisition. Sales in Japan dropped 10% to $123.9 million, while “other Asia” grew 16% to $116.3 million, led again by Australia and South Korea. Europe grew 21%, driven by strong local spending. Thanks to Coach, North America—the company’s largest market—saw a 20% increase to $1.1 billion. Tapestry’s “other” region, which mostly includes royalties from licensing partners and sales in the Middle East, saw a 3% decline to $27.9 million—likely due to ongoing conflict in the area.

Direct-to-consumer (DTC) revenue grew 23%, with strong digital growth of 25% and a 20% increase in global physical store sales.

Looking ahead, the company has once again raised its full-year 2026 outlook to $7.95 billion. Excluding the impact of the Stuart Weitzman sale, which was completed in August 2025, pro forma revenue is now expected to grow 17% on a nominal basis. “From this position of strength, we move confidently into the future with significant opportunity ahead,” Crevoiserat said.

Frequently Asked Questions
Here is a list of FAQs about Tapestrys thirdquarter revenue increase designed to cover different levels of knowledge

BeginnerLevel Questions

Q What is Tapestry
A Tapestry is the parent company that owns fashion brands like Coach Kate Spade and Stuart Weitzman

Q How much did Tapestrys revenue go up
A Their revenue increased by 19 compared to the same quarter last year

Q What drove this big increase in sales
A Two main things Coach brand had a very strong quarter and sales in China grew a lot

Q Is this just about handbags
A Largely yes Coach is famous for handbags and accessories and those are the biggest drivers of their sales

IntermediateLevel Questions

Q Why is Coach doing so well when other brands might be struggling
A Coach has successfully refreshed its brand image with new designs and focused on accessible luxury highquality items at a price point that feels attainable They also focused on fullprice sales rather than constant discounts

Q How important is the China market to Tapestrys growth
A Very important Growth in China was a major factor Chinese consumers are showing strong demand for Western luxury goods especially from established brands like Coach

Q Did Kate Spade or Stuart Weitzman also help with this growth
A The report highlights Coach as the primary driver Kate Spade and Stuart Weitzman likely contributed but the 19 jump was mainly fueled by Coachs performance and the China rebound

Q Does this mean Tapestry is raising prices
A Not necessarily The growth came from selling more items and selling more at full price not just from price hikes They focused on fullprice selling to improve profit margins

AdvancedLevel Questions

Q What does fullprice selling mean and why is it important for investors
A It means selling products at their original retail price instead of marking them down This is important because it protects the brands image and directly increases profit margins making the company more profitable even if sales volume stays the same