Trading Statement
Four-month revenue 1% lower organically; Apparel up 1%, Footwear down 4%; full-year outlook unchanged.
vs expectations: in line
- Apparel revenue growth (organic) 1% (prior 1 January to 30 April 2025)
- Footwear revenue growth (organic) (4)% (prior 1 January to 30 April 2025)
- Group revenue growth (organic) (1)% (prior 1 January to 30 April 2025)
- Group EBIT margin slightly higher than same period last year
Select text to share a quote on X · sign in to keep highlights & notes in your COA notes
Coats Group plc ('Coats' or the 'Group'), a world-leading Tier 2 supplier of critical components to the apparel and footwear industries, today announces a trading update for the four month period 1 January to 30 April 2026 (the 'period') ahead of its Annual General Meeting to be held later today.
| Continuing operations | 1 st January to 30 th April 2026 revenue versus same period in 2025 | |
|---|---|---|
| Organic CER | Reported | |
| Apparel | 1% | 1% |
| Footwear | (4)% | 55% |
| Group | (1)% | 18% |
All following references are at organic constant exchange rates (CER) unless specified.
The Group delivered a robust performance with revenue 1% lower against a solid pre-tariff comparator period.
Apparel revenue was up 1%, strongly outperforming the core thread end market, driven by our key differentiators of operational agility, enduring customer relationships and our global manufacturing capabilities. The division continues to win market share across its portfolio including in China domestic and also saw strong growth in automotive thread.
In line with our expectations, Footwear revenue was 4% lower on an organic basis, which we estimate to be inline with industry trends, as customer caution persisted and inventory levels remained low. OrthoLite revenue was lower than the same period last year on a proforma basis against a very strong prior year comparator and temporary capacity challenges in Indonesia, where we are expanding our footprint. Our plans to realise cost synergies are on track and we are increasingly positive on sales synergies. We remain confident in OrthoLite's growth prospects.
Group EBIT margin was slightly higher than the same period last year, reflecting the benefits of the 2025 footprint consolidation in Footwear and the positive contribution from OrthoLite.
While the ongoing tensions in the Middle East have not had a material impact on trading to date, we are monitoring conditions closely. We have promptly enacted our well-honed operational and commercial playbook ensuring optimal pricing and cost discipline. We will continue to take action as required to mitigate supply chain pressures and raw material and energy cost increases.
Outlook
The Group's full year outlook remains unchanged with a modest second half profit weighting due to expected inflation cost recovery timing.
We expect full year free cash flow generation to remain strong, enabling the Group to continue to reduce leverage into our target range of 1-2x by year-end.
The Group will release its interim results on Tuesday 28 July 2026.
Enquiry details
| Investors | Chris Dyett | Coats Group plc | +44 (0) 7974 974 690 |
| Media | Nick Hasell / Victoria Hayns | FTI Consulting | +44 (0)20 3727 1340 |
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.