Tapestry, Ralph Lauren buck China slowdown that hit LVMH, Kering

What happened Ralph Lauren reported China revenue growth of more than 35% YoY for the quarter ended September 26. Tapestry, the owner of Coach and Kate Spade, reported a 43% rise in Greater China sales for the same period. Both companies raised their full-year forecasts on November 5. China revenue at Ralph Lauren rose more than 35% on both a reported and constant-currency basis in its fiscal second quarter. The company attributed the gain to higher comparable store sales and new distribution, and it opened a store at Hopson One (合生汇) in Beijing during the period. Revenue in Asia, its fastest-growing region, increased 28% to $571 million. Comparable store sales there rose 24%, with digital sales up 31% on a comparable basis. Group revenue climbed 9% to $2.2 billion, or 10% in constant currency. Average unit retail across the company’s direct-to-consumer network rose 9%, while Europe trailed with revenue up 1% and comparable store sales down 1%. Ralph Lauren now expects constant-currency revenue to grow 6% to 7% this fiscal year, up from its earlier 5% to 6% forecast. Chief Executive Patrice Louvet noted that the company had raised its outlook “once again,” following an upgrade in August. At Tapestry, Greater China sales rose 43% to $385 million in the fiscal first quarter, or 39% in constant currency. The company’s definition of the region covers mainland China, Hong Kong, Macao, and Taiwan. Total revenue increased 11% to $1.89 billion, or 12% when the prior-year period excludes Stuart Weitzman, which Tapestry sold in August 2025. Coach drove the gains, with revenue up 16% to $1.66 billion and international sales up 30%. Kate Spade’s revenue fell 10%. Tapestry said it added 2.6 million new customers globally during the quarter, about 35% of them Gen Z. It raised its annual revenue forecast to between $8.5 billion and $8.6 billion, from $8.4 billion to $8.5 billion, and now expects adjusted earnings per share of $8.25 to $8.35. The Jing Take Those results sit apart from what Europe’s biggest luxury groups reported for roughly the same three months. LVMH said a slowdown in Chinese demand hurt its fashion and leather goods division, where organic revenue fell 5% in the third quarter, and group organic growth slowed to 1%. Gucci’s comparable retail sales fell 9%, with Kering singling out weaker store traffic in Asia-Pacific, especially mainland China, and in Japan. Hermès posted flat third-quarter sales at constant exchange rates in Asia excluding Japan, its largest region, and described Greater China as stable over the first nine months. Accessible luxury sits apart from Chanel and Hermès Price tiers also separate the two sets of companies. Tapestry called itself a “house of accessible luxury” in a 2022 regulatory filing. In 2024, a US federal judge blocked its planned takeover of Capri after ruling that accessible-luxury handbags form a distinct market. Bloomberg Law reported that the judge defined the market as handbags priced from $100 to $1,000. The Federal Trade Commission had set that market apart from what it called “true luxury” brands such as Chanel, Louis Vuitton, and Hermès. Ralph Lauren sells across six categories, from apparel to home and hospitality, under labels including Ralph Lauren Purple Label, Polo Ralph Lauren, and Lauren Ralph Lauren. In their releases, neither American company linked its results to conditions in the wider Chinese market. Ralph Lauren points to same-store gains and new distribution. Its directly operated stores in Asia rose to 273 from 249 a year earlier, though concessions in the region fell to 591 from 638. The store growth follows a new China retail strategy the company launched with its World of Ralph Lauren store in Beijing’s Sanlitun (三里屯) in April 2021. Tapestry Chief Executive Joanne Crevoiserat credited the company’s mix of “creativity, craftsmanship, and value” with bringing in new customers. Why China luxury market comparisons have limits The comparison has limits. Ralph Lauren does not disclose its China revenue in dollars, and Tapestry’s Greater China region is broader than the mainland, so neither figure lines up neatly with the European groups’ regional reporting. Growth rates also say little about scale. Tapestry’s $385 million in Greater China sales compares with the 1.65 billion euros ($1.87 billion) Hermès generated across its broader Asia excluding Japan region in the same period. Both companies expect slower growth in the holiday quarter. Ralph Lauren forecasts constant-currency revenue growth of 3% to 4% for its third quarter, including about one point of drag from wholesale timing and cuts to off-price sales. Tapestry guides 5% to 6% for its second quarter. Its next results, due February 4, 2027, will show whether its China momentum holds through the period. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Tapestry, Ralph Lauren buck China slowdown that hit LVMH, Kering

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Tapestry, Ralph Lauren buck China slowdown that hit LVMH, Kering

TUMI’s new growth playbook: From travel expertise to lifestyle performance