Can Tapestry’s Stock Trade Higher Following Q4 Results?

Note: Tapestry’s FY’23 ended July 2023.

Tapestry (NYSE: TPR), a luxury goods retailer of handbags, shoes, and accessories under the Coach, Kate Spade, and Stuart Weitzman brands, is scheduled to report its fiscal fourth-quarter results on Thursday, August 17. We expect the apparel retailer’s stock to trade higher post the fiscal Q4 release with revenues and earnings beating expectations. Tapestry is seeing growth in China and among Gen Z customers but faces challenges in the U.S., its biggest market, due to potential interest rate hikes and softening demand. Coach has a more significant physical presence in China, which is expected to be the key beneficiary of China’s reopening. China’s luxury market is rapidly recovering from the pandemic with greater strength and resilience. It is expected to reach around $112 billion by 2025, or approximately 25% of the total global spending.