Back to today’s briefing

Story perspectives

Tapestry Soars Past $6.85B Forecast, Rival Struggles

2/6/2025

46 11

Summary

Story summary

Tapestry has elevated its annual sales forecast to exceed $6.85 billion, fueled by a robust second-quarter revenue of $2.20 billion, largely thanks to soaring demand for its Coach brand, especially the popular Tabby bags. This news sent shares soaring nearly 16%. Meanwhile, rival Capri Holdings struggles with declining sales and a bleak outlook after a thwarted merger with Tapestry.

History

Historical Context

Tapestry's surge in sales echoes the 1990s luxury market boom, where brands like Coach expanded through acquisitions. The failed merger with Capri Holdings mirrors past regulatory challenges faced by companies, highlighting ongoing scrutiny over market consolidation in the luxury sector, reminiscent of the FTC's intervention in earlier high-profile deals.

1 of 2

Story summary

Tapestry has elevated its annual sales forecast to exceed $6.85 billion, fueled by a robust second-quarter revenue of $2.20 billion, largely thanks to soaring demand for its Coach brand, especially the popular Tabby bags. This news sent shares soaring nearly 16%. Meanwhile, rival Capri Holdings struggles with declining sales and a bleak outlook after a thwarted merger with Tapestry.

1 / 2