Schwab Network on $TPR (Nov 5, 2026)
Tapestry has lagged since the start of the year despite a 14% year-to-date gain and being up about 25% year-over-year including today. Coach revenue rose 16% on Gen Z and luxury-bag share gains; EPS $1.82 beat $1.57 and revenue $1.89 billion beat. Kate Spade is still weak, down 10% year-on-year, but Coach offsets it.
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Come on, Diane, let's look at the tapestry now. Yes. This is a company that was quite strong last year, but this year Coach's parent company Tapestry has been lagging since the beginning of the year.
It had a 14% gain year-to-date. So, adding today's change, we're up about 25% year-over-year. This is based on their latest results. The coach has to be given credit. Coach's revenue increased by 16% compared to a year ago.
This is all about Coach capturing the market. They are attracting Gen Z buyers, whether it's North America, China, Europe. They are capturing market share in luxury bags.
According to their performance on a quarterly basis, consolidated earnings per share were $1.82, which was better than expected. The market was expecting $1.57. Revenue was $1.89 billion, which was better than expected.
Management says that the $200 to $500 range is most appropriate for their product. So, that's where they're selling the handbags.
Now, I want to highlight a weak point, which is Kate Spade. This has been a problem for them for a long time. It's still a challenging place, down 10 percent year-on-year, but the coach is making up for it.