Coats Group upbeat despite flat quarterly performance

How has quarterly buying and selling been for attire and footwear parts provider Coats Group? “Subdued”, colored by “sustained macroeconomic and tariff uncertainty”.

But its temper remained upbeat in Friday’s buying and selling replace protecting the 4 months from 1 July-31 October because the group “delivered a resilient performance, in line with our expectations”. It additionally maintained its full-year outlook, citing a buying and selling performance “in line with market expectations”.

That “resilient performance” translated into revenues for the interval falling 1% as Coats mentioned it noticed “encouraging growth in target organic adjacencies as well as further outperformance in core markets”.

It added: “We have also successfully managed pricing pressures and flexed our cost base in the period. As a result operating profit was at a similar level to the same period last year, with margins consistent with H1 2025 and improved from prior year, in line with our group medium term margin target of 19%-21%”.

By division, Apparel delivered a “robust performance” within the interval with income 2% beneath the prior yr interval “due to challenging end markets”.

It famous a deal with “excellent service and operational agility” enabled the enterprise to “outperform and win share with major brands alongside good growth in China domestic”. That helped the division keep working margins at round 20%.

In Footwear, income was 4% decrease than the prior yr interval, “stabilising at similar run rates to Q2” as a consequence of “cautious customer ordering patterns given the ongoing market uncertainty”. It mentioned working revenue remained consistent with the identical interval final yr.

Better information got here from its Performance Materials division, which continued to ship an bettering performance. As anticipated, income right here elevated 4% on a yr in the past, “driven by accelerated growth in two target adjacencies”, safety fabrics and energy tapes. Operating margins here were also “significantly ahead of prior year, reflecting the benefit of operational improvements across the division”.

The group will launch full-year 2025 outcomes on 5 March 2026.