Tapestry Q3 Profits Surge, Ups 2025 Forecast

Tapestry Inc., parent company of Coach and Kate Spade, reported a strong fiscal third quarter, with net income rising almost 46% to $203.3 million and adjusted earnings per share of $1.03, surpassing analyst expectations. Revenue increased 7% to $1.58 billion, largely due to a 13% sales surge in the Coach brand, while Kate Spade and the recently divested Stuart Weitzman brands saw declines. Gross margin improved, supported by product innovation, successful full-price selling—especially of popular Coach handbags like Tabby—and strategic price increases. Following these results, Tapestry raised its full-year guidance for the third time, now projecting revenue of about $6.95 billion (up 4%) and earnings per share of $5.00. Shares rose up to 11% in premarket trading after the announcement. The company remains focused on high-margin brands after abandoning a merger with Capri Holdings and divesting Stuart Weitzman.