Tapestry has closed fiscal 2026 with revenue of US$8 billion, up 17 per cent on a pro forma constant currency basis, and the region housing its Australian business grew 13 per cent across the year.
Australia sits within the group's other Asia reporting line alongside Malaysia, South Korea and Singapore. Tapestry has run Coach and Kate Spade directly in the local market since taking back control of the Coach business in Australia and New Zealand from distributor True Alliance in 2018.
Coach drove the result globally, lifting revenue 23 per cent to US$6.91 billion in constant currency terms for the year and 14 per cent in the fourth quarter to US$1.64 billion, on mid-teens growth in handbag average unit retail.
Kate Spade fell 7 per cent to US$1.107 billion as the brand streamlines operations, with fourth quarter revenue of US$235 million. In Australia the label has been extending through licensing rather than retail, launching sleepwear through Concept Brands in July with distribution across Myer and The Iconic.
Fourth quarter group revenue reached US$1.9 billion, up 9 per cent, with direct-to-consumer revenue up 11 per cent on a pro forma constant currency basis. Greater China rose 28 per cent in the quarter and Europe 19 per cent.
Chief executive Joanne Crevoiserat said the "fourth quarter outperformance capped a year of strong growth".
Fourth quarter non-GAAP gross margin expanded 180 basis points to 78.1 per cent and full year operating margin lifted 340 basis points to 23.4 per cent. Non-GAAP earnings per share hit $7.05, a 38 per cent increase.
Tapestry returned US$1.7 billion to shareholders through dividends and buybacks and raised the quarterly dividend 16 per cent, taking the annual rate to $1.85 a share. Around 11 million new customers joined the brands across the year, roughly 35 per cent of them Gen Z.
For fiscal 2027 the group is guiding to mid-single-digit revenue growth, operating margin expansion of around 50 basis points and non-GAAP EPS of $7.80 to $7.90. Kate Spade is expected to decline at a high single-digit rate with a modest operating loss.