Recently, Tapestry, Inc., the parent company of American accessible luxury leather goods brand Coach, delivered an impressive performance for the first quarter of fiscal year 2026, which ends on September 27, 2025: revenue reached USD 1.7 billion, up 13% year-on-year (12% growth at constant exchange rates).
Among the highlights was the Greater China region, which saw revenue surge 20% year-on-year to USD 270 million (up 19% at constant exchange rates), significantly exceeding market expectations.
According to the earnings call transcript reviewed by Luxe.CO following the release of Tapestry’s latest financial report, the management’s confidence in the Chinese market stems not only from this short-term rebound, but also from a deep understanding of market structure and an aggressive expansion strategy.
During the call, management repeatedly emphasized that Tapestry “outperformed the market,” a result they viewed as strong evidence of the Group’s “structural advantage.”
Scott Roe, the company’s Chief Financial Officer, stated, “In Greater China, digital sales were particularly strong. Our robust performance in China highlights that our strategic initiatives and investments are working, and our business is well-positioned for sustainable long-term growth.”
Given the stronger-than-expected results in the first quarter, Tapestry raised its full-year guidance. As for Greater China specifically, management maintained a cautiously optimistic outlook. Scott Roe noted, “We expect Greater China to deliver high single-digit growth in fiscal 2026 compared to last year.”
While this forecast is slightly below the actual 20% growth achieved in the first quarter, it remains a strong target in the current macroeconomic environment.
Speaking on brand-specific performance, Tapestry CEO Joanne Crevoiserat disclosed the impressive momentum of flagship brand Coach in China:
“Coach delivered an exceptional first quarter, with global revenue up 21% year-on-year and improved profitability. We drove double-digit revenue growth in our key markets — 26% in North America, 21% in China, and 39% in Europe.”
On the broader industry trend, a frequent topic of concern, Tapestry’s leadership offered a more optimistic view than many of their peers. They believe that, despite ongoing challenges, China’s handbag market has already begun to recover.
Joanne Crevoiserat commented, “What we’re seeing in the macro environment and more broadly in the marketplace is that the handbag category hit an inflection point last quarter. So, we see a more constructive backdrop forming, particularly in places like China, where we estimate the market also reached an inflection point, with overall category growth of 1%.“
As Coach CEO Todd Kahn said when addressing differences between global markets: “I always say, a great bag is a great bag — whether it’s in London, Shanghai, or New York.”
Building on the strong performance in the first quarter, Tapestry is showing great ambition regarding its future investment in China. When discussing future growth drivers, Todd Kahn revealed an aggressive store expansion plan, placing the Chinese market at the core of the brand’s international strategy.
“We’re seeing a lot of growth coming from international markets. Seventy percent of our future growth will come from international markets. We’re gaining inorganic growth, particularly in China, through initiatives like store openings. We plan to open nearly 100 stores over the next three years.“
“Keep in mind, for those of you building financial models, these will be smaller-format stores. But I love our strategy — it’s a departure from our historical norm, which is that we now have the right to win in places, communities, and locations where we’ve never competed before. It’s a global phenomenon.“
This strategy suggests that Tapestry is no longer limiting itself to traditional high-end shopping malls in China, but instead aims to penetrate a wider range of consumer environments through more flexible and smaller store formats.
｜Source: Earnings Call
｜Image Credit: Company website, brand official site
｜Editor: LeZhi
