FASANO, Italy - May 19 - Tapestry expects about 70% of the group's growth in the coming years to originate outside the United States, with China and Europe singled out as the main priorities for expansion.
"Our penetration right now is relatively lower in international markets," CEO Joanne Crevoiserat told attendees on Monday. She pointed to China, which currently represents about 15% of Tapestry's business, as an area with considerable upside, especially among younger consumers. "There is so much more potential if we think about the population in China, particularly with young consumers," she said, framing the opportunity as a route to positioning Tapestry brands as consumers' first luxury bag purchase and thereby building long-term loyalty.
Crevoiserat noted that Tapestry's sales in China have expanded by double digits over the past two years, a trend that occurred while the broader handbag market was weak. "We see a tremendous opportunity to continue to grow in that market," she said on the sidelines of the Financial Times Business of Luxury Summit in Italy, adding that the company is increasing investment in the region.
In Europe, which accounts for roughly 6% of total sales, the company has shifted its approach away from reliance on tourist traffic and toward cultivating demand from younger, local shoppers. The strategic pivot reflects a deliberate effort to diversify customer mix and deepen penetration among residents rather than depending on transient visitors.
Asked about mergers and acquisitions, Crevoiserat said Tapestry is concentrating on organic growth initiatives. She emphasized leveraging current momentum at Coach and reigniting growth at Kate Spade rather than pursuing inorganic deals at this time.
The comments outline a growth strategy centered on geographic expansion and targeted investment in markets where Tapestry sees under-penetration and demographic tailwinds, while maintaining an explicit preference for building brands internally rather than through acquisitions.
Summary
Tapestry plans for about 70% of its near-term growth to come from international markets, with China and Europe as focal points. The company reports double-digit sales growth in China over the past two years and is reallocating investment toward younger, local customers in Europe. Management is prioritizing organic expansion, building on Coach and re-energizing Kate Spade.