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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
Tapestry
Tapestry
Tapestry Revenue by Segment
Tapestry Revenue by Geographic Location
Revenue by Segment
Coach Revenue
CapyFin.comKate Spade Revenue
CapyFin.comStuart Weitzman Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comGreater China Revenue
CapyFin.comJapan Revenue
CapyFin.comOther Asia Revenue
CapyFin.comEurope Revenue
CapyFin.comOther Revenue
CapyFin.com 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.
- No material worsening of inflationary pressures or consumer confidence.
- No benefit from the potential reinstatement of the Generalized System of Preferences (“GSP”).
- No impact related to any future policy changes resulting from the U.S. Presidential Administration change.
Revenue & Expenses
Visualization of income flow from segment revenue to net income