Tapestry (TPR) reported net income of $360 million in fiscal Q1 2027, ended September 26, 2026, compared with $275 million in the same period a year earlier. Diluted earnings per share (EPS) were $1.76, up 38%. Adjusted EPS (non-GAAP, which excludes items the company considers non-recurring) was $1.82, up 32%.
Revenue totaled $1.9 billion ($1,894 million), up 11% from $1.7 billion a year earlier. On a pro forma basis (excluding Stuart Weitzman, sold in August 2025), growth was 12%. The Coach brand grew 16% to $1.7 billion, and Kate Spade declined 10% to $233 million. Greater China rose 43%.
Operating income was $424 million, with a margin of 22.4%. Adjusted operating income was $439 million, up 24%, with a margin of 23.2%. Gross margin was 78.6%, up 230 basis points. Operating cash flow was $197 million, and adjusted free cash flow was $56 million, compared with $103 million a year earlier. Total debt was $2.56 billion, and cash was $782 million.
The company returned about $700 million to shareholders in the quarter, including $600 million in share repurchases (buyback) of about 4.6 million shares, at an average cost of $130. The board declared a quarterly dividend of $0.4625 per share, payable on December 21, 2026 to shareholders of record on December 4, 2026. The projected shareholder return for 2027 rose to about $2.0 billion, with $1.7 billion in buybacks, $350 million above the previous target.
Tapestry raised its fiscal 2027 guidance: revenue of $8.5 billion to $8.6 billion (previously $8.4 billion to $8.5 billion) and adjusted EPS of $8.25 to $8.35 (previously $7.80 to $7.90). For fiscal Q2, it projects adjusted EPS of about $3.05. The next earnings report is scheduled for February 4, 2027.
