Tapestry lifts outlook as Coach powers through, Kate Spade lags
Coach's continued strength with both affluent and younger shoppers is offsetting a persistent drag from Kate Spade, as Tapestry raises its annual forecast.
Tapestry has issued an upbeat annual earnings forecast after beating Wall Street estimates for quarterly profit, with the group's flagship Coach brand posting sales growth of 8.9% for the quarter. The performance was driven by resilient demand from both affluent, older shoppers and younger consumers drawn to Coach's handbags, a rare combination that has kept the brand growing even as broader discretionary spending has softened elsewhere in fashion retail.
The result underlines how selectively demand is flowing in the so-called accessible luxury tier. Coach has spent recent years sharpening its brand positioning and leaning into viral, younger-skewing product moments, a strategy that appears to be paying off in reported numbers rather than just social chatter. That stands in sharp contrast to Kate Spade, the group's smaller brand, where persistent weakness continues to weigh on the portfolio and complicate Tapestry's messaging to investors.
The divergence matters beyond Tapestry's own results. It offers a live case study for the wider accessible-luxury and premium handbag sector on what is working: consistent creative direction, product newness and price architecture that appeals across generations. For rivals and for Tapestry itself, the question now is whether Kate Spade can be repositioned or whether it becomes a persistent drag that eventually forces harder strategic choices about the brand's place in the portfolio.
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