Gross margin expands for seventh straight quarter
Inventory 39;wellcontrolled and current39; heading into FY 25
Annual forecasts roughly in line with estimates
Shares rise 8

Aug 15 Reuters Tapestry beat analysts39; expectations for fourthquarter results on robust demand for its popular Coach Tabby handbags, signaling interest in affordable luxury as global spending eases from postpandemic highs.

The company39;s shares rose 8 in early trading on Thursday.

Tapestry has banked on Tabby shoulder bags to drive more fullprice sales at its stores, as Stuart and Kate Spade struggle with weak demand in the U.S. and China.

Tabby handbags, with their detachable straps and textured pebbled leather material, have become a hot pick among Gen Z and Millennials. The bags retail for up to 750.

Meanwhile, global luxury giants such as LVMH, Burberry and Gucci owner Kering are grappling with signs of customers pulling back on purchases after a strong run over the past two years.

There is a view that luxury is fading but there were winners in luxury as well, said Simeon Siegel, managing director of equity research at BMO Capital Markets.

We are seeing divergence across the retail spectrum in a way that we didn39;t see in the pandemic. That is a good thing if you are good operator. Perhaps less so if you are not, he added.

Ralph Lauren and Canada Goose also beat estimates from a focus on fullprice sales.

Meanwhile, Tapestry said on Friday it expects to close the Capri deal this…