The New York-based company raised its revenue outlook to about $7.3 billion, up from a projection for about $7.2 billion in the prior quarter. Tapestry also lifted its forecast for diluted earnings per share to as much as $5.60, ahead of analysts expectations compiled by Bloomberg.
Tapestry, powered by its Coach brand, is growing despite consumer concerns about high prices. The brand’s pricing — more expensive than many retailers but cheaper than luxury — is capturing a devoted young consumer. The company added more than two million new customers in the most recent quarter, about a third of them from Gen Z, which is made up of teens and young adults.
“We’re seeing an active consumer all across the world,” said chief executive officer Joanne Crevoiserat in an interview with Bloomberg News. “We’re acquiring a new younger consumer to our brand, and that’s making a difference,” she added.
Revenue for the quarter ended Sept. 27, as well as sales for Coach, were ahead of what analysts estimated. Tapestry sales grew 16 percent for the period.
Kate Spade, which has lagged the company’s overall performance in recent quarters, reported sales that exceeded expectations. Tapestry is working to reset the brand.
Tapestry expects a return to profitable growth at Kate Spade in fiscal 2027, with sequential improvement in the back half of the year that ends in June, Crevoiserat said.
Tapestry sold the Stuart Weitzman brand earlier this year.
The company has been hurt by US president Donald Trump’s tariff policy, as well as the end of the “de minimis” exemption for duties on small-value packages, but executives have said that impact should lessen over time.
Tapestry shares have gained 67 percent this year as of the close on Wednesday, far surpassing the 16 percent gain of the S&P 500 index.
By Lily Meier
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Tariffs are set to cost the company about $160 million in fiscal 2026.
