Company Sees Revenue Surpassing $6.85 Billion For Fiscal Year
Tapestry Inc., the owner of Coach, has once again raised its guidance for the current fiscal year after stronger-than-anticipated sales at its leading label. The company announced on Thursday that it now expects revenue to exceed $6.85 billion, reflecting a 3 percent increase from the previous year. Tapestry had already lifted its sales outlook in November.
In the most recent quarter, Coach reported an 11 percent sales jump, outpacing analyst expectations. As a result, Tapestry’s shares rose 13 percent in premarket trading in New York.
The company also lifted its profit forecast, projecting earnings per diluted share of $4.85 to $4.90, up from the earlier estimate of $4.50 to $4.55. The revised guidance partly stems from a $2 billion accelerated share buyback the company introduced in November. Beyond that initiative, Tapestry noted it has $800 million left under a prior share repurchase program.
Tapestry’s outlook accounts for a potential 10 percent tariff on US imports from China, which the company expects to have minimal impact on its fiscal 2025 results.
These figures stand in contrast to Capri Holdings Ltd., owner of Michael Kors and Versace, which reported a 12 percent drop in quarterly sales on Wednesday. Tapestry executives had planned to acquire Capri but ended the deal last month following a court ruling that it would harm competition. Since then, Tapestry’s shares have climbed, reflecting optimism that the company can maintain momentum at Coach and address challenges at Kate Spade, whose sales declined 10 percent in the last quarter.