Coach to drive Tapestry’s Q4 growth amid brand divergence

Tapestry Inc. (NYSE: TPR), the US luxury fashion group behind Coach, Kate Spade and Stuart Weitzman, is expected to post a +5.4% year-on-year increase in fourth-quarter revenue to $1.7 billion, according to Visible Alpha estimates. The lift comes as consumer demand shows tentative signs of recovery across North America and China—two of the company’s most critical markets.

Coach, which generates roughly 80% of Tapestry’s total revenue, is forecast to grow sales by +10.4% in the quarter to $1.4 billion and by +9% to 5 billion for the full year—marking a notable acceleration after muted gains of +0.8% in 2023 and +2.7% in 2024.

However, the group continues to face headwinds at its smaller brands. Sales at Kate Spade and Stuart Weitzman are projected to fall -12.4% and -12.9% respectively in the fourth quarter, extending a decline that began in 2023.

For fiscal 2025, analysts expect total net sales to grow +4.4% year-on-year to $7.0 billion, reversing a revenue decline in 2023 and stagnation in 2024. The rebound is attributed to stabilizing macroeconomic conditions and a strategic refocus on core brand strength.

Regionally, North America is projected to contribute $4.5 billion in sales, up +3.9% from a year earlier, while revenues in China are expected to rise +1.8% to $1.0 billion.

On August 4, the company announced the sale of Stuart Weitzman to Caleres (NYSE: CAL), in a move to streamline its portfolio and reallocate capital toward higher-performing assets.

Tapestry is due to report its fourth-quarter results on Thursday, August 14.

This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.