Coach owner Tapestry delivers growth as Gen Z engagement boosts global customer base
Tapestry, the owner of Coach and Kate Spade, reported a 14% increase in revenue to $2.5 billion for the second quarter ending 27 December 2025, highlighting progress on its Amplify growth strategy.
During the quarter, Tapestry added over 3.7 million new customers globally, with approximately one-third coming from Gen Z. The company also saw increased demand from existing customers, reflecting broad-based traction across its business.
Growth was particularly strong in Tapestry’s core leathergoods segment, led by handbag sales at Coach.
Tapestry attributed this performance to "compelling innovation across the assortment and diversified drivers of growth". Overall, Coach brand sales rose 25% in the quarter.
The company saw a 17% increase in total direct-to-consumer revenue, driven by digital growth of around 20% and mid-teens percentage growth in global brick-and-mortar sales.
It also noted improved profitability across channels, achieved by combining "the creativity and consumer-led mindset of our teams with disciplined execution and data-driven insights".
Reflecting this momentum, Tapestry has raised its FY26 revenue outlook to more than $7.75 billion, representing roughly 11% growth versus the prior year. This exceeds prior guidance of approximately $7.3 billion and 7-8% growth.
Joanne Crevoiserat, Chief Executive Officer of Tapestry, said: "Our second quarter outperformance reflects the compounding impact of our Amplify strategy, driving deeper consumer engagement, accelerated growth, and record results.
"This holiday season, our talented teams brought creativity, craftsmanship, and value to consumers around the world, building new and lasting connections that fuel enduring brand desire and demand.
"As we move forward, we do so with momentum and confidence. By harnessing our proven strategies and structural advantages, we are raising our outlook for the fiscal year, reinforcing our commitment to driving durable growth and long-term value creation."
