Core Insights - Kering Group reported a surprise in its third-quarter earnings, with sales performance exceeding Wall Street expectations despite a year-on-year decline [1] - The company's revenue for Q3 was approximately €3.42 billion, down about 10% year-on-year, but slightly above analyst expectations of €3.31 billion [1] - Same-store sales decreased by 5% in Q3, a significant improvement compared to a 15% decline in Q2, indicating a slowdown in the downward trend [1] Group Performance - Gucci: Q3 revenue was €1.342 billion, down 18% year-on-year, with same-store sales declining 14%, slightly better than the expected 15% drop [3] - Yves Saint Laurent: Q3 revenue was €620 million, down 7% year-on-year, with same-store sales down 4% [3] - Bottega Veneta: Q3 revenue was €393 million, down 1% year-on-year, with same-store sales increasing by 3% [3] Management Commentary - Kering's new CEO, Luca de Meo, noted a significant improvement in Q3 performance compared to Q2, although the overall results remain below market averages [1] - CFO Armelle Poulou expressed satisfaction with the recent creative direction changes at Gucci, which may help improve sales [2]

Core Insights - Tapestry, the parent company of Coach, reported a strong performance in Q3 of fiscal year 2025, with net sales reaching $1.58 billion, a 7% year-over-year increase, surpassing analyst expectations of $1.53 billion [1][4] - The adjusted earnings per share were $1.03, exceeding the market forecast of $0.88 [1][4] - Coach brand sales grew by 13% to $1.29 billion, driven by product innovation and effective marketing strategies [2] Brand Performance - Coach emerged as the primary growth driver for Tapestry, while other brands, Kate Spade and Stuart Weitzman, faced significant declines in sales, dropping 13% and 18% respectively [2] - The challenges for Kate Spade and Stuart Weitzman include brand aging and insufficient product innovation, which need to be addressed for future growth [2] Industry Comparison - Tapestry's performance stands out in a challenging luxury goods market, where competitors like LVMH and Kering reported declines in revenue [3] - LVMH's Q1 revenue fell by 3%, while Kering's revenue dropped by 14%, indicating a broader industry slowdown [3] Future Outlook - Following the strong quarterly results, Tapestry raised its full-year revenue growth forecast to 4%, expecting total revenue to reach $6.95 billion, above previous estimates [4] - The adjusted earnings per share forecast for the full year was also increased to $5, surpassing earlier guidance [4] - However, Tapestry's heavy reliance on Coach raises concerns about potential risks if market conditions change or consumer preferences shift [4]