Tapestry Revenues Rise 19% in Q3, Boosted By Coach and China

Reported by Vogue.

Coach is carrying the bag — literally. Tapestry, the conglomerate behind Coach and Kate Spade, posted a 19% year-on-year revenue jump to $1.9 billion in Q3 2026, according to Vogue. The headline number is impressive. The story behind it is even more telling.

Coach alone pulled in $1.7 billion — up 29% — with Greater China surging 58%, North America and Europe each climbing 27%. The brand's hero bags (the Tabby, the New York, the Rowan) outperformed across the board, footwear grew 20% led by the Soho sneaker, and Coach quietly increased its marketing budget by roughly 50%, shifting hard toward brand-building over short-term conversion plays. That long game is working. Tapestry acquired 2.4 million new customers globally this quarter, with 35% of them Gen Z — the demographic luxury houses have been chasing for years, often badly.

One Brand Soaring, One Recalibrating

Kate Spade tells a different story. Revenue dropped 11% to $219.6 million, a deliberate consequence of pulling back on promotional pricing — the kind of discount dependency that erodes brand equity over time. The strategy is defensible, but it's a slow rebuild, and Kate Spade has now posted declines for several consecutive quarters. The brand is leaning into in-store experience and creator activations to claw back cultural relevance. Whether that's enough remains an open question.

Geographically, Greater China was the standout — up 55% to $432.2 million, almost entirely new-customer driven. Europe grew 21% on the back of strong local spending. Japan slipped 10%, and Tapestry's Middle East business quietly contracted 3%, a figure the company attributed, with minimal elaboration, to ongoing regional conflict. North America, still the company's largest market, rose 20% to $1.1 billion. Direct-to-consumer channels grew 23%, with digital up 25% — a signal that Tapestry's infrastructure investments are compounding in the right direction.

CEO Joanne Crevoiserat framed the quarter as proof of concept for the company's Amplify strategy — "creativity, craftsmanship, and value to more consumers around the world" — and raised full-year guidance to $7.95 billion, with pro forma revenue growth now projected at 17% on a nominal basis, excluding the completed sale of Stuart Weitzman. When a single brand can drag an entire portfolio to record highs, that's not luck — it's positioning.

Coach didn't just have a good quarter; it proved that Gen Z loyalty, aggressive brand-building, and a strong product story can rewrite the rules for what American luxury looks like in 2026.

Read the original at Vogue.