Tariffs will have a disproportionate impact on Kate Spade, Roe flagged, given the brand’s high exposure in the US.
“We are building the brand for continued healthy gains well into the future. This is our priority and we’re executing behind it. Having said that, we are facing greater than previously expected profit headwinds from tariffs and duties, with the earlier than expected ending of the de minimis exemption being a meaningful factor,” Roe told investors on the call.
He said Tapestry is “leveraging its agile supply chain to optimise its global manufacturing footprint”, to minimise tariff exposure where possible, and working closely with service providers to drive efficiencies. “We’re taking thoughtful actions to mitigate these impacts while continuing to deliver the compelling value, quality and innovation that is foundational to our brands,” Roe continued.
“Even with tariffs, we’re continuing to expand our operating margin this year, and we’re well positioned to fully offset the impact of tariffs over time,” Crevoiserat added.
By region, Tapestry said North America revenues were up 5 per cent year-on-year to $4.5 billion in fiscal 2025. During the year, the group acquired over 6.8 million new customers in North America, fuelled by the growth of Gen Z and millennial cohorts, Crevoiserat said. Coach alone acquired four million new customers in North America this year, with over a million new customers in the fourth quarter, of which nearly 70 per cent were Gen Zs and millennials, she added. “Importantly, these customers are transacting at higher AUR [average unit retail, or the average price at which a product is sold] and have a higher retention rate in the balance of our client base, demonstrating that these relationships are healthy and sticky.”
Full-year revenues in Europe were up 28 per cent to $420.7 million. Total Asia-Pacific full-year revenues were up 2 per cent: Greater China was up 5 per cent to $1 billion, Japan was down 5 per cent to $514.8 million, and Other Asia (including Malaysia, Australia, South Korea and Singapore) was up 8 per cent to $380.3 million.
Looking forward, Tapestry expects revenue to approach $7.2 billion by the end of fiscal 2026, representing mid-single-digit growth. In North America, the company expects revenue to increase mid single digits, and Europe to grow by around 20 per cent. For Asia-Pacific, Tapestry anticipates the same level of growth in China, a high-single-digit decline in Japan and high-single-digit gains in the rest of Asia-Pacific.
“As we look forward, we have proven our ability to navigate a complex and dynamic external backdrop,” Crevoiserat said. “We will continue to execute, leveraging the power of our competitive and structural advantages, our global scale, our compelling value competition, and the strong fundamentals of our business.”
Comments, questions or feedback? Email us at feedback@voguebusiness.com.
More from this author:
Inside Saks Global’s personalisation strategy
How luxury brands reached peak Hamptons this summer
Swiss watches face 39% tariffs. What does it mean for the industry?