Tapestry Revenues Rise 19% in Q3, Boosted By Coach and China

"Our third-quarter outperformance reflects the compounding benefits of our Amplify strategy, as we bring creativity, craftsmanship, and value to more consumers around the world. Coach revenues were up 29% to $1.7 billion in Q3, delivering strong growth globally - Greater China (up 58%), North America (up 27%), and Europe (up 27%) were all key regions for the brand."

"Tapestry's focus on customer acquisition, which is a core tenet of its Amplify strategy, seems to be paying off, with 2.4 million new customers acquired globally during the quarter and 35% of which were Gen Z. Coach announced it had increased its marketing spend by approximately 50% year-on-year, with a continued shift toward top-funnel brand-building to drive long-term demand and customer acquisition."

"Footwear grew 20% in the quarter, led by the Soho sneakers, while Coach's hero handbags, such as the Tabby, the New York, and the Rowan, outperformed. Gross profit increased 22%, while gross margin increased from 76.1% to 76.9%, demonstrating strong operational efficiency and pricing power."

Tapestry reported third-quarter revenues of $1.9 billion, representing 19% year-on-year growth on a constant currency basis. Coach, the company's flagship brand, delivered exceptional results with 29% revenue growth to $1.7 billion, driven by strong performance across Greater China (up 58%), North America (up 27%), and Europe (up 27%). Footwear sales grew 20%, led by Soho sneakers, while hero handbags including Tabby, New York, and Rowan performed strongly. The company acquired 2.4 million new customers globally, with 35% being Gen Z consumers. Gross profit increased 22% with margins expanding to 76.9%. Coach increased marketing spend by 50% to focus on brand-building and customer acquisition. Kate Spade revenues declined 11% due to strategic promotion pullbacks, though the brand is investing in customer experience and creator activations. Greater China emerged as a standout region with 55% sales growth.

Read at Vogue