Textile (TPR) Q1 2026 earnings

Chipotle and reward She attributed the weak sales to younger customers pulling out and packing lunches.

But Gen Z shoppers are still splurging on Coach handbags to bring to work — even if they’re skipping the bowls and burritos.

The parent company of the coach texture It raised its full-year forecast on Thursday, after beating Wall Street expectations for quarterly profit and revenue and posting double-digit sales gains in North America.

In an interview with CNBC, Tapestry CEO Joan Crevoisserat said the company’s sales in the quarter were fueled by attracting new customers, especially within Generation Z.

The company, which also includes Kate Spade, gained more than 2.2 million new customers globally in the first quarter of fiscal 2026, driven by growth in Gen Z consumers compared to the previous year. This generation, typically defined as roughly 13 to 29 years old, represents about 35% of new customers, the company said.

“Gen Z consumers, specifically, are very involved in fashion, and they spend a little more than their budget on fashion,” she said.

She added that these younger customers have a high retention rate, “perhaps dispelling the myth that these customers, Generation Z customers, are not loyal or loyal.”

Here’s what the company reported for its fiscal first quarter compared to what Wall Street expected, according to a survey of analysts conducted by LSEG:

• Earnings per share: $1.38 vs. $1.26 expected
• Revenue: $1.70 vs. $1.64 billion expected

Tapestry’s net income in the three-month period ended Sept. 27 rose to $274.8 million, or $1.28 per share, compared with $186.6 million, or 79 cents per share, in the same period last year.

It raised its full-year forecast for both sales and profits, saying it now expects revenue of about $7.3 billion for the year, which represents growth of 4% or 5% from the previous year, compared to its previous forecast of about $7.2 billion. For diluted earnings per share, it now expects a range of $5.45 to $5.60, higher than its previous guidance of $5.30 to $5.45.

Despite high expectations and better-than-expected quarterly results, Tapestry shares fell nearly 9% in pre-market trading.

With the power of Generation Z, Tapestry has challenged some other companies’ assessments of the health of younger shoppers.

Cava has seen declining demand among 25- to 34-year-old consumers as the fast-casual chain enters its current quarter, Chief Financial Officer Tricia Tolivar said in an interview with CNBC. She attributed this decline to higher youth unemployment, a greater likelihood of facing student loan payments that resumed in the spring, and tariffs that created “general consumer fog.”

Likewise, Chipotle CEO Scott Boatwright said the chain is seeing fewer visits to younger restaurants, especially those between the ages of 25 and 35.

Some holiday forecasts have also reflected an expected decline in spending by Gen Z. According to a holiday survey conducted by consultancy PwC, Gen Z is planning to cut back on average holiday spending among the generations surveyed compared to the same period last year – with respondents in that age group saying they plan to spend 23% less.

Deloitte found a similar trend, with Gen Z consumers saying in a separate survey it conducted that they plan to spend an average of 34% less this holiday season compared to last year. The weakness carried over to the next oldest generation, with Millennials — ages 29 to 44 in the survey — saying they expect to spend an average of 13% less this holiday season.

— CNBC’s Amelia Lucas contributed to this report