The news: Tapestry reached its three-year revenue target two years ahead of schedule, the company said, largely on the strength of Coach’s performance.

Fiscal 2026 (ended June 27, 2026) revenues rose 14% YoY to $8.0 billion, with a 24% increase in Coach revenues offset by Kate Spade’s 10% decline. The company added roughly 11 million customers in the fiscal year, around one-third (35%) being Gen Z.

Coach's fiscal Q4 revenues rose 15% YoY to $1.64 billion, compared with a 7% decline for Kate Spade.

What this means: While Tapestry is confident about Coach’s trajectory, Kate Spade is proving harder to turn around. Efforts to increase brand desirability have so far been poorly received, with top-line performance falling short of internal expectations and little improvement in brand awareness.

The company is taking steps to shore up the brand—including bringing on experienced designer Jonathan Saunders as creative director and hiring a new CMO—but softer-than-expected guidance for the fiscal year indicates that Tapestry expects recovery to proceed slowly. Full-year sales are expected to reach $8.4 billion to $8.5 billion, versus analysts’ forecast for $8.47 billion.

Implications for retail: Tapestry has hit on a winning strategy for Coach—engage Gen Z with marketing and activations, use customer insights to inform product development, and invest in omnichannel experiences to give shoppers more reason to visit stores. But its struggles with Kate Spade show that what works for one brand is not always transferrable to another.

Rather than trying to replicate Coach’s success, Tapestry—and other companies with multiple brands in their portfolios—should focus on what makes each brand unique. That will enable each label to carve out their own niche and attract shoppers without the risk of cannibalizing from one another or coming across as a copycat.

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