Tapestry Beats Q2 Estimates, Raises Guidance as Coach Adds 3.7M Gen Z Customers
Tapestry posted Q2 non-GAAP EPS of $2.69, a 20% beat, with revenue of $2.50 billion up 8% and operating margin at 28.8%, and raised full-year EPS guidance to $6.40–$6.45. Coach revenue rose 25% YoY to $2.14 billion via price hikes and volume growth, adding 3.7 million new customers, one-third from Gen Z.
1. Q2 Earnings Beat
Tapestry’s Q2 non-GAAP EPS reached $2.69, exceeding consensus by 20%, while revenue climbed 8% to $2.50 billion and operating margin improved to 28.8%.
2. Guidance Raise
The company increased full-year EPS guidance to $6.40–$6.45, reflecting confidence in continued margin expansion and revenue growth across its portfolio.
3. Coach Brand Momentum
Coach generated $2.14 billion in Q2 revenue, a 25% year-over-year increase driven by simultaneous price increases and higher sales volumes without resorting to discounts.
4. Demographic and Regional Growth
Tapestry added 3.7 million net new customers, one-third from Gen Z, and achieved double-digit constant-currency sales gains of 34% in Greater China, 22% in Europe and 17% in North America.