Coach Faces Tariff Hit; Mexico School Costs Up; Pop Mart Soars

This week in retail, Coach owner warns of profit hit from tariffs, while Mexican families face a 12.7% rise in back-to-school costs. Pop Mart reports a 397% profit surge, Granolín enters Walmart Mexico with new funding, and Shein lifts UK sales ahead of its expected IPO.

More news below:

Coach Owner Tapestry Sees US$160 Million Profit Hit from Tariffs

Tapestry, the parent company of Coach, projected annual profit below analyst expectations as rising US tariffs increased costs, sending its shares down 14%. The company said tariffs introduced by President Donald Trump are expected to cost about US$160 million in fiscal 2026. Luxury and accessible-luxury retailers face higher import duties on goods produced in Southeast Asia, where Tapestry manufactures most Coach and Kate Spade handbags in Vietnam, Cambodia, the Philippines, and India.

Mexican Families to Spend 12.7% More on Back-to-School 2025

Mexican families will spend 12.66% more on back-to-school expenses this year compared to 2024, according to the National Alliance of Small Merchants (ANPEC). The organization estimates that the average cost per student will reach up to MX$10,916 (US$580). The analysis shows that school supply lists recorded the highest increase at 16.66%, followed by cleaning products required by schools at 15.10%.

Pop Mart 1H25 Profit Soars 397%, Driven by Labubu Demand

Pop Mart reported a 396.5% increase in net profit and a 204.4% rise in revenue for the first half of the year, driven by strong global demand for its Labubu doll and expansion into higher-margin overseas markets. The company’s performance exceeded forecasts in an earnings preview last month, which had projected at least 200% revenue growth and a recurring net profit increase of 350%.

Granolín Lands in Walmart Mexico with US$1.5 Million Seed Funding

Chilean foodtech startup Granolín has expanded into Walmart Mexico, raising US$1.5 million in seed funding to support its growth in North America. Founded in 2017, Granolín is now available in roughly 430 Walmart Mexico stores, marking its first major international retail presence.  

Shein’s UK Sales Top US$2.7 Billion, Up 32% Ahead of IPO

Shein’s UK operations posted £2.05 billion (US$2.7 billion) in sales for 2024, up 32.3% from the previous year, according to a company filing. The UK ranks as Shein’s third-largest market, after the United States and Germany, as the fast-fashion retailer prepares for a Hong Kong IPO.