Coach 品牌势能全面爆发，中国市场强势领跑，上调全年指引

Investment Rating - The industry investment rating is upgraded to "Buy" [1] Core Insights - Coach drives high-quality growth and margin expansion, with a significant upward revision of the FY2026 full-year performance guidance [3] - The company reported FY26Q2 revenue of $2.5 billion, a 14% year-on-year increase, with ProForma revenue growth reaching 18% after excluding the impact of the divested Stuart Weitzman brand [4] - The gross margin improved by 1.1 percentage points to 75.5%, driven by enhanced pricing power and a favorable brand mix [4] - Operating margin increased significantly by 3.90 percentage points to 28.8%, with EPS reaching $2.69, a 34% year-on-year growth [4] - Coach brand revenue surged by 25% to $2.14 billion, with an operating margin of 39.5%, showcasing strong brand premium capability [4] - The company successfully captured a younger customer base, adding 3.7 million new global users in FY26Q2, with the Coach brand contributing 2.9 million [4] - The company expects full-year revenue to exceed $7.75 billion, representing an approximate 11% year-on-year growth, with an EPS guidance range of $6.40 to $6.45, indicating a growth rate exceeding 25% [4] Summary by Sections - Revenue Growth: Coach's revenue growth accelerated from 21% in Q1 to 25% in Q2, with significant contributions from the Greater China region, which saw a 34% ProForma growth [4] - Brand Performance: Coach's strong performance contrasts with Kate Spade, which experienced a 14% revenue decline and a reduction in operating margin to 4.6% due to inventory reduction and promotional strategies [4] - Market Strategy: The company's strategy of integrating data insights with creative design has led to the successful launch of iconic products like Tabby, enhancing both sales and pricing while reducing promotions [4] - Shareholder Returns: The company announced an increase in shareholder returns for FY2026 from $1.3 billion to $1.5 billion, including approximately $300 million in dividends and $1.2 billion in stock buybacks, reflecting management's confidence in future growth [4]