The US fashion group Tapestry Inc. was able to exceed expectations in the second quarter of the 2025/26 financial year thanks to strong growth in its core brand Coach. In view of the recent strong development, the group of companies raised its forecasts on Thursday.
In the three months prior to December 27th, group sales reached $2.50 billion (2.12 billion euros). This corresponded to an increase of 14 percent compared to the same quarter of the previous year. On a pro forma basis – i.e. without the contributions from the shoe brand Stuart Weitzman, which was sold last summer – revenues even rose by 18 percent. This was due not least to above-average growth in China (+35 percent) and Europe (+27 percent).
Sales for the Coach label amounted to $2.14 billion. This exceeded the previous year’s level by 25 percent. The company explained that demand for handbags in particular has risen sharply recently. Revenue for the Kate Spade brand, however, fell by 14 percent to $360.0 million.
Net profit jumps by 81 percent
Thanks to a higher gross margin, the effects of the sale of Stuart Weitzman and consistent cost discipline, operating income increased by 45 percent to $716.4 million. Adjusted for special effects, it grew by 31 percent to $719.8 million. Net profit even jumped by almost 81 percent to 561.3 million US dollars (476.2 million euros).
In view of the surprisingly strong figures, CEO Joanne Crevoiserat referred to the effects of the current group strategy “Amplify”. This helped to deepen the relationship with customers, accelerate growth and achieve new record results, she explained in a statement.
The latest development also prompted management to significantly increase its annual forecasts. For 2025/26 it now expects sales to grow by around eleven percent to over 7.75 billion US dollars. The target for adjusted earnings per share, which had previously been between $5.45 and $5.60, was increased to between $6.40 and $6.45. That would mean growth of 25 percent compared to the previous year.
