Tapestry quarterly sales rise 8.9% as Coach demand offsets Kate Spade weakness

Sales at Tapestry Inc advanced 8.9% in the latest quarter, helped by strong demand for Coach's newer handbag styles such as Tabby and Belted Ergo shoulder bags. The parent company of Coach and Kate Spade also beat Wall Street profit expectations, driven by affluent and younger shoppers.

Revenue in North America, the company's largest market, rose 7% on a constant-currency basis, while China jumped 28% and Europe climbed 19% compared with a year earlier.

Tapestry said it expects to repurchase $1.35 billion of stock in the current fiscal year. For the year ending June 2027, the New York-based company forecast earnings per share of $7.80 to $7.90, with the midpoint above analysts' average estimate of $7.84.

The muted annual revenue outlook reflects persistent weakness at Kate Spade, Tapestry's other major brand. The company has pared back promotions and shifted marketing toward younger shoppers to help Coach gain market share.

Finance chief Scott Roe said the North American consumer remains resilient and constructive. For the current quarter, Tapestry expects revenue growth in the high single digits and profit of about $1.55 per share, both above Wall Street projections.