By Sabrina Escobar

Tapestry had a jolly holiday quarter. Coach's parent company blew past consensus estimates and raised guidance for the full year.

Tapestry posted adjusted fiscal second-quarter earnings of $2.69 a share on $2.5 billion in revenue. Analysts polled by FactSet were projecting earnings of $2.22 a share on $2.32 billion in revenue.

Total revenue for the quarter ended Dec. 27 rose 14% from the year-ago quarter, driven by a 25% sales increase at Coach and slightly offset by a 14% sales decline at Kate Spade, which is still in the early stages of a multiyear recovery plan.

"The consumer is resonating with the price value that we're delivering, they like the innovation that we're putting out there and that's being rewarded," said Scott Roe, Tapestry's chief financial and operating officer, on a call with Barron's.

Tapestry raised its guidance for the current fiscal year. It now sees revenue coming in above $7.75 billion, representing about 11% growth from the prior year. Earnings per diluted share will range from $6.40 to $6.45. The company's prior forecasts called for revenue in the area of $7.3 billion and for earnings per share to range from $5.45 to $5.60.

Shares of Tapestry were up 4.4% in premarket trading Thursday.

The company also boosted its share buyback plans. It now expects to buy back about $1.2 billion in common stock in fiscal 2026, up from past projections for $1 billion.

"We're known for operational discipline, we're good operators, we've been responsible, but now we're accelerating on the top line," Roe said. "So when you marry those two things together and you've got a durable top line growth coupled with operational excellence, then you really have a profit-cash machine."

He points to the company's gross margins, which rose 1.1 basis points in the quarter to 75.5%, helping drive the earnings beat. The margin improvement reflects Tapestry's ability to fully mitigate tariff impacts, Roe said, such as finding efficiencies across supply chains.

Write to Sabrina Escobar at sabrina.escobar@barrons.com

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February 05, 2026 07:10 ET (12:10 GMT)

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