Tapestry’s revenue is expected to grow by 5.5% in the April-June quarter, driven by demand for its affordable luxury handbags. Accessible luxury brands like Tapestry and Ralph Lauren are thriving as younger shoppers choose more budget-friendly options over opulent luxury labels like Kering.

Tapestry’s revenue for the fiscal fourth quarter is projected to reach $1.7 billion, marking its second-quickest growth in 12 quarters. The Coach brand, which makes up 82% of Tapestry’s revenue, likely saw an almost 11% increase in the June quarter. Tapestry’s shares have risen by over two-thirds this year.

Tapestry’s success in targeting younger demographics with brands like Tabby and Brooklyn Bag has led to strong sales, while European luxury brands have struggled due to high prices. With less than 10% of production from China, Tapestry is well-positioned to navigate cross-border tariff risks with a diversified manufacturing base.

Despite Tapestry’s overall success, the Kate Spade brand has faced challenges, with revenue likely falling by 13% in the April-June period. Analysts believe Coach could raise prices without losing customers, but Kate Spade may struggle to do the same due to heavy promotions impacting its upscale image.

Tapestry is set to report earnings on Thursday, with at least 16 analysts rating it as “buy” or higher and no “sell” calls. The company’s ability to adapt to changing consumer preferences and market conditions will be closely watched by investors and analysts.

Read more at Yahoo Finance: Tapestry quarterly revenue likely rose 5.5% as Coach bags drew young shoppers