Coach Revenue Gains Offset Kate Spade Losses as Stuart Weitzman Declines Ahead of Sale to Caleres
- Tapestry reports record third quarter growth
- Coach revenue gains offset losses at Kate Spade
- Stuart Weitzman sees steep declines before sale to Caleres
- CEO Joanne Crevoiserat confident in future growth and shareholder value
- North America revenue up 9% to $952 million
- Europe revenue up 32% to $93 million
- China revenue up 3% to $279 million
- Japan revenue down 8% to $138 million
- Rest of Asia revenue up 11% to $94 million
- Neil Saunders praises Coach’s performance but warns about Kate Spade’s positioning
Tapestry has reported record growth for its third quarter, with Coach’s revenue gains offsetting losses at Kate Spade. The company raised its fiscal 2025 revenue outlook to $6.95 billion, representing a 4% year-over-year increase. CEO Joanne Crevoiserat expressed confidence in the brand’s future and ability to deliver durable growth. In North America, which accounts for 60% of Tapestry’s market share, third-quarter revenue rose by 9% to $952 million. European revenue grew 32% to $93 million, while Chinese revenue increased 3% to $279 million. Japanese revenue fell 8% to $138 million, and the rest of Asia saw a 11% rise to $94 million. Analyst Neil Saunders praised Coach’s performance but noted that Kate Spade lacked coherence and strong storytelling. Stuart Weitzman is set for a decline before its sale to Caleres this summer.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Tapestry’s financial performance, including specific revenue figures for different regions and insights from an industry expert. It also includes relevant context on the potential impact of tariffs on consumer behavior. However, it contains some subjective statements about the desirability of certain brands and the future growth potential of Kate Spade.
Noise Level: 3
Noise Justification: The article provides relevant information about Tapestry’s record growth and its impact on stock prices, as well as a brief analysis of the factors contributing to this growth. It also mentions some concerns about the Kate Spade brand and the upcoming sale of Stuart Weitzman. However, it could provide more in-depth analysis or context for the company’s performance in different regions and the overall market conditions.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses Tapestry’s record growth, stock rise, and updated revenue outlook, which are financial topics. It also mentions the impact on financial markets as the company’s stock rose by 7% in early morning trading.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the article.
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