By Nicholas G. Miller

Tapestry reported higher first-quarter sales and profit and raised its full-year outlook as its Coach brand continues to attract Gen Z customers.

The company declared a quarterly dividend of 40 cents a share. It also said it now expects to buy back $1 billion in shares in fiscal 2026, up from its previous forecast of $800 million.

The luxury apparel company that owns Coach and Kate Spade posted first-quarter net income of $274.8 million, or $1.28 a share, up from $186.6 million, or 79 cents a share, the year prior.

Adjusted earnings were $1.38 a share. Analysts expected $1.26, according to FactSet.

Net sales rose 13% to $1.7 billion, beating Wall Street's expectation of $1.64 billion. Top-line gains were fueled by the company's Coach brand, which saw revenue surge 22% to $1.43 billion. That more than offset an 8% net sales decline for Kate Spade.

Coach has had considerable success attracting younger customers. Tapestry acquired 2.2 million new customers globally in the first quarter, 35% of which were Gen Z customers.

The company boosted its fiscal 2026 earnings guidance to $5.45 to $5.60 a share, up from its previous outlook of $5.30 to $5.45 a share. It also increased its fiscal year revenue guidance to $7.3 billion, up from its previous forecast of $7.2 billion.

Analysts see sales of $7.24 billion and adjusted earnings of $5.50 a share.

The company said its tariffs would have a negative impact on its operating margins of 230 basis points for fiscal 2026.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

November 06, 2025 07:16 ET (12:16 GMT)

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