The US fashion group Tapestry Inc. has successfully started the 2025/26 financial year. The parent company of the brands Coach and Kate Spade was able to exceed expectations with its results for the first quarter published on Thursday. Accordingly, quarterly sales rose by 13 percent to 1.70 billion US dollars (1.56 billion euros). Reported net profit grew by 47 percent to 274.8 million US dollars (238.1 million euros).
CEO Joanne Crevoiserat attributed the success to the consistent implementation of the new strategy called “Amplify”. This aims to generate sustainable growth by addressing new generations of consumers. The focus on new customers was very successful: over 2.2 million new customers were acquired worldwide. Gen Z consumers made up around 35 percent. “Our above-average performance in the first quarter marks a strong start to this next chapter. It confirms that our advantages are structural and sustainable,” said Crevoiserat.
Coach’s sales increase by 22 percent
The growth engine was the Coach brand, whose sales rose by 22 percent in the most recent quarter and reached $1.4 billion. This was due, among other things, to strong increases in sales of handbags and a significant increase in the average retail price. Kate Spade’s revenue, however, fell by eight percent to $260.2 million.
The growth spread across the most important markets. Currency-adjusted increases on a pro forma basis – i.e. excluding contributions from the Stuart Weitzman shoe brand, which was sold in the summer – were 18 percent in North America, 32 percent in Europe and 19 percent in Greater China. The company also reported strong performance in its own retail business, which achieved pro forma currency-neutral sales growth of 16 percent.
The group is raising its annual forecasts
Given the strong momentum, Tapestry raised its forecasts for the full 2025/26 financial year. The company now expects sales of around $7.3 billion. Diluted earnings per share are expected to be between $5.45 and $5.60, which would represent growth of seven to ten percent.
In addition, Tapestry announced that it would distribute approximately $1.3 billion to shareholders through dividends and share buybacks in the current fiscal year. The Board of Directors declared a quarterly cash dividend of 40 cents per common share. In addition, the planned share buyback program was increased to around one billion US dollars.
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