Coats holds guidance as apparel growth offsets softer footwear demand

Coats Group plc ( (GB:COA) ) has issued an announcement.

Coats Group plc reported a broadly resilient start to 2026, with group revenue down 1% at constant exchange rates against a strong pre-tariff comparator period, while reported revenue rose, reflecting currency movements. Apparel revenue grew 1% as the division outperformed the core thread market, gaining share in China’s domestic segment and in automotive thread, supported by operational agility, long-standing customer relationships and its global manufacturing footprint.

Footwear revenue fell 4% organically, in line with industry trends amid ongoing customer caution and low inventory levels, and OrthoLite sales declined versus a strong prior-year period and temporary capacity constraints in Indonesia, though cost synergy plans remain on track and sales synergies are improving. Group EBIT margin edged higher thanks to prior-year footprint consolidation in Footwear and OrthoLite’s contribution, and management maintained full-year guidance, highlighting strong expected free cash flow to reduce leverage into the 1–2x target range, while monitoring Middle East tensions and supply chain cost pressures closely.

The most recent analyst rating on (GB:COA) stock is a Buy with a £125.00 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Spark’s Take on COA Stock

According to Spark, TipRanks’ AI Analyst, COA is a Outperform.

The score is driven primarily by strong financial performance (step-change improvement in cash flow and a strengthened balance sheet in the provided statements) and supportive earnings-call guidance (upgraded medium-term targets and continued margin/FCF focus). Valuation further boosts the score due to a low P/E and a reasonable dividend yield. Technicals are positive with price above key moving averages and healthy momentum.

To see Spark’s full report on COA stock, click here.

More about Coats Group plc

Coats Group plc is a UK-headquartered FTSE 250 company and a world-leading Tier 2 manufacturer supplying essential materials, components and software solutions to the global apparel and footwear industries. With more than 250 years of experience, around 19,000 employees worldwide and $1.5 billion in 2025 revenue, it focuses on innovation, sustainability and digital technologies to enhance product quality and supply chain performance.

Average Trading Volume: 4,731,885

Technical Sentiment Signal: Strong Buy

Current Market Cap: £1.59B

Learn more about COA stock on TipRanks’ Stock Analysis page.