Tapestry Threads Success in Accessible Luxury Amid Economic Hurdles

In the face of ongoing economic challenges, Tapestry and its flagship Coach brand have emerged as winners. The New York-based company's revenue is projected to have risen by 5.5% in the April-June quarter, driven by a strategic focus on accessible luxury that appeals to cost-conscious younger shoppers.

While Tapestry has thrived by pivoting towards emerging demographics, its performance has been marred by setbacks with Kate Spade. The latter brand has struggled due to excessive promotions, undermining its luxury status. Nonetheless, Tapestry remains resilient, leveraging a diversified manufacturing base to mitigate tariff risks.

According to analysts, Coach's strong margins may allow for price increases without a drop in sales, a luxury that Kate Spade cannot afford. As Tapestry prepares to announce its earnings on Thursday, investor confidence remains high, with no analysts recommending a 'sell'.

(With inputs from agencies.)