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Dec 28, 2024
Tapestry Q2 2025 Earnings Report
Reported record second quarter revenue and raised full year outlook.
Key Takeaways
Tapestry, Inc. reported strong second-quarter results, with record revenue of $2.2 billion, a 5% increase year-over-year, driven by 10% growth at Coach. The company raised its fiscal year 2025 outlook for revenue, operating margin, EPS, and free cash flow. Diluted EPS was $1.38 on a reported basis and a record $2.00 on a non-GAAP basis.
Delivered record second quarter revenue of $2.2 Billion, exceeding expectations, and representing a 5% increase compared to the prior year fueled by 10% growth at Coach
Drove 280 Basis Points of Gross Margin Expansion Versus Prior Year
Achieved Diluted EPS of $1.38 on a Reported Basis and Record non-GAAP Diluted EPS of $2.00, Growing Ahead of the Company’s Outlook
Remain On Track to Return Over $2 Billion to Shareholders in Fiscal Year 2025
Revenue by Segment
Forward Guidance
Tapestry is raising its Fiscal 2025 outlook, which is provided on a non-GAAP basis.
Positive Outlook
- Revenue of over $6.85 billion, representing growth of approximately 3% versus prior year on a reported basis, including an expected currency headwind of over 50 basis points.
- Operating margin expansion of approximately 100 basis points versus prior year as compared to prior guidance of over 50 basis points of expansion.
- Tax rate of approximately 17% to 18% versus prior guidance of approximately 19%.
- Weighted average diluted share count of approximately 223 million shares as compared to prior guidance of approximately 238 million shares, reflecting the benefit of share repurchase activity.
- Earnings per diluted share of $4.85 to $4.90, representing 13% to 14% growth compared to the prior year, and exceeding the Company’s prior guidance of $4.50 to $4.55.
Challenges Ahead
- No revenue, net interest, or earnings impact related to the terminated acquisition of Capri Holdings Limited.
- No further appreciation of the U.S. Dollar; information provided based on spot rates at the time of forecast.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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