- Coats Group
- 05 March 2026 10:03:52
Source: Sharecast
London-listed Coats said adjusted operating profit rose 7% to $290m on revenue of $1.46bn, up 2% on a reported basis and flat organically.
It added that it was too soon to assess any impact on trading from the US-Israel war on Iran.
“Our assumption is that our core apparel and footwear end markets will remain uncertain in 2026, with comparatives becoming easier as the year progresses,” the company said.
“We expect to grow organically in 2026, even under conditions of market uncertainty. That said, we are mindful of the potential impact on demand and supply chains as a result of the conflict in the Middle East, which we are assessing.”
Coats lifted its medium-term operating margin target to 21-23% from 19-21% and the five-year free cash flow goal to around $1bn.
Record free cash flow of $160m exceeded the company’s $132m guidance.
Footwear was down 2% organically, with US tariff disruption forcing customer to take a cautious approach to inventory management.
“Towards the end of the year, we saw brands managing down inventory further in response to the uncertain 2026 outlook, consistent with trends in the wider market. As such we estimate our core footwear end markets were down c.4-5% vs 2024 for the full year,” the company said.
The newly-acquired OrthoLite contributed $42.6m in revenue and $10.5m in operating profit in its first two months under Coats' ownership.
Reporting by Frank Prenesti for Sharecast.com