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Tapestry reports progress on DTC shift, updates full-year outlook
The company expects capital expenditures to step up to about $300 million to support its 'expressive luxury' store concept through fiscal 2030.
Tapestry said it achieved three-year Investor Day commitments two years ahead of plan, citing a deliberate shift toward a direct-to-consumer-led operating model, according to a Yahoo Finance summary of the company’s Q4 2026 earnings call.
The company reported it welcomed 11 million new customers across its brands, with Gen Z-led transacting tied to higher average unit retails and stronger retention. Management also described execution of its 'One Coach' strategy, leveraging proprietary AI and data fabric technology, and it said it prioritized brand health over volume by reducing promotional days, driving mid-teens handbag AUR growth for Coach.
For the outlook, Tapestry said full-year guidance assumes mid-single-digit annual revenue growth and low double-digit EPS growth, with capital expenditures expected to rise to approximately $300 million to support the 'expressive luxury' store concept targeting 80% of global traffic by fiscal 2030. The company also forecast a net neutral P&L impact from tariffs for the full year, though it expects timing to create a modest benefit in the first half and a headwind in the second half.
Tapestry additionally said it plans to return $1.7 billion to shareholders through a 16% dividend increase and $1.35 billion in projected share repurchases. It noted that the divestiture of Stuart Weitzman contributed a favorable 60 basis point impact to gross margins in the fourth quarter, and inventory ended the year 4% below the prior year due to a shift in receipt timing into fiscal 2027.