Agenda-setting intelligence, analysis and advice for the global fashion community.
What’s Happening: Two of retail’s most powerful brands are set to report their latest quarterly earnings this week: On Running on Tuesday and Coach-owner Tapestry Inc. on Thursday.
Brand Buzz Vs. Tariffs: Inflation is creeping up, the consumer is cautious, and yet strong brands are still winning. Last week’s earnings from Ralph Lauren made that clear: Despite global macro headwinds, the company extended its winning streak, raised its annual outlook, and proved that brand heat and product discipline can still drive growth. E.l.f. Beauty, too, was able to maintain its topline momentum despite raising prices by $1 this month.
Still Running: On, which reports Tuesday, has become one of the most closely watched players in performance-lifestyle. Expecting a whopping 35 percent in sales growth, Wall Street will be watching for any signs that On’s meteoric rise is plateauing. More likely though, the brand’s expanding footprint in both wholesale and DTC — plus its broadening product catalogue — could keep growth steady despite softer consumer sentiment.
Uneven Market: Tapestry, parent to Coach, Kate Spade and Stuart Weitzman, reports Thursday. The spotlight will be on Coach’s brand momentum, which has helped lift the group through an uneven North American market. Its longtime rival, Capri-owned Michael Kors, for instance, has fared not so well and remains in the midst of a years-long turnaround. For Coach, all eyes will be on how much pricing power and full-price selling the company can maintain heading into fall.
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Consumer demand for accessible luxury and cultish brand affinity is proving to be one of the few stable forces in a rocky retail environment. While inflation and tariffs continue to impact shopper behaviour, both companies are betting that strong storytelling and product innovation can carry them through.
It’s also worth watching whether either company updates guidance — both have global ambitions and exposure to markets like China and Europe, where recovery has been patchy.
If results mirror the tone set by Ralph Lauren, this could be another moment for brand-driven players to prove that, even in uncertain times, desire beats discounting.
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