Tapestry Raises 2027 Forecasts on Strong Coach Demand
Tapestry increased its annual revenue and profit forecasts after Coach handbags saw strong growth among affluent Gen Z shoppers and a revenue surge in China.
Tapestry raised its annual revenue and profit forecasts for fiscal 2027 on Thursday, projecting revenue between $8.5 billion and $8.6 billion and annual earnings per share of $8.25 to $8.35. The company reported first-quarter revenue of $1.89 billion, an 11.1% increase that exceeded analyst estimates.
Tapestry attributed the growth to strong demand for Coach handbags, particularly among affluent Gen Z shoppers. Coach quarterly sales rose 16%, and the company saw a 43% revenue jump in China. In contrast, the Kate Spade brand experienced a 10% decline in quarterly sales.
CEO Todd Kahn noted compelling growth across various age and economic cohorts. He stated that the company will not become more promotional because the product and value proposition remain compelling at current price points. As part of its financial strategy, Tapestry increased its share buyback target to $1.7 billion for the fiscal year. This performance contrasts with other luxury conglomerates, such as LVMH and Kering, which are currently facing sluggish demand and geopolitical headwinds.
