Tapestry raises annual forecast again as Coach handbags see strong demand

Tapestry raised its 2025 revenue and profit forecasts for the third time this year on Thursday, benefiting from strong full-price sales of its Coach handbags and limited exposure to sweeping U.S. tariffs.

The company’s shares rose 14% in premarket trading after steady demand for its Tabby, Brooklyn and Empire leather handbags among younger shoppers in North America and China helped it surpass third-quarter sales expectations.

Despite a broader downturn in the luxury market affecting players such as French conglomerates LVMH and Kering, Tapestry’s results reflected gains from product innovations, a sharp marketing strategy and consistent full-price selling.

The company now expects earnings of around $5 per share, up from its previous forecast of $4.85 to $4.90. For the quarter ended March 29, Tapestry posted net sales of $1.58 billion, exceeding analysts’ average estimate of $1.53 billion, according to LSEG data.

Tapestry now anticipates annual revenue of approximately $6.95 billion, compared to its earlier February projection of more than $6.85 billion.

FashionNetwork.com with Reuters