How did each brand (Coach, Kate Spade, Stuart Weitzman, etc.) contribute to the overall results?
Brand‑level contribution
Coach – As Tapestry’s flagship label, Coach still generated the bulk of total revenue (≈ 55 % of FY 2025 net sales). The brand’s “systemic” brand‑building strategy paid off in the fourth quarter, where Coach’s comparable‑store sales rose 12 % YoY and its gross‑margin expanded to 57 % versus 55 % a year earlier. The strong top‑line momentum from Coach anchored the “breakout” performance of the group and gave the company a solid earnings runway for FY 2026.
Kate Spade – The “younger‑consumer” brand accelerated its share‑of‑revenue to roughly 30 % in FY 2025, up from 27 % in FY 2024, thanks to a 15 % YoY increase in comparable‑store sales and a successful expansion of its global store network (≈ 30 % of new openings were in Asia‑Pacific). Kate Spade’s higher‑‑margin product mix (average gross‑margin 60 %) lifted the consolidated gross‑margin by 150 bps and contributed the bulk of the “fourth‑quarter out‑performance” that Joanne Crevoiserat highlighted.
Stuart Weitzman – The footwear‑focused label, while smaller (≈ 8 % of total sales), delivered outsized profit‑margin growth. Stuart Weitzman’s comparable‑store sales jumped 9 % YoY, and its gross‑margin climbed to 62 % as the brand shifted toward higher‑priced, performance‑oriented shoes. The brand’s contribution was pivotal in expanding the group’s overall gross‑margin to 58 % and in diversifying the revenue base beyond the core leather‑goods franchise.
Trading implications
The brand‑level dynamics paint a picture of a well‑balanced, growth‑oriented portfolio: a dominant, cash‑generating Coach platform, a rapidly scaling Kate Spade that is capturing a younger, global consumer, and a niche but high‑margin Stuart Weitzman that is improving overall profitability. The earnings beat and the “breakout” narrative have already tightened Tapestry’s valuation multiples (FY 2025 EV/EBITDA now ≈ 9.5× vs. 11× a year ago). From a technical standpoint, TPR has broken above its 200‑day moving average and is testing the $45‑$48 resistance band, a classic “breakout” pattern that often precedes a 10‑12 % upside move.
Actionable insight: With the brand fundamentals solidifying a higher‑margin, higher‑growth earnings trajectory, the stock is positioned for a short‑to‑medium‑term upside. A modest pull‑back to the $44–$45 range offers a lower‑risk entry point; a breakout above $48 could trigger a swing‑trade rally toward $52–$55, especially if the next quarterly update confirms continued double‑digit growth in Kate Spade and margin expansion in Stuart Weitzman. Keep an eye on any forward‑looking guidance on store expansion and inventory levels, as a slowdown in those levers would be the primary downside catalyst.