Tapestry Q3 2025 Earnings Report
Key Takeaways
Tapestry delivered strong results in the third quarter of fiscal 2025, with revenue increasing 7% and GAAP diluted EPS up 60% compared to the prior year. This performance was driven by robust growth in the Coach brand and expansion in gross and non-GAAP operating margins. The company also raised its full-year outlook for revenue, earnings, and cash flow.
Achieved record third quarter revenue of $1.6 billion, a 7% increase year-over-year.
Reported GAAP diluted EPS of $0.95, up 60% from the prior year.
Non-GAAP diluted EPS was $1.03, an increase of 27% compared to the prior year.
Experienced strong growth in the Coach brand, with revenue increasing 13%.
Tapestry
Tapestry
Tapestry Revenue by Segment
Tapestry Revenue by Geographic Location
Forward Guidance
Tapestry is raising its fiscal year 2025 outlook, expecting revenue growth and improved profitability.
Positive Outlook
- Revenue of approximately $6.95 billion, representing 4% growth versus prior year.
- Operating margin expansion of approximately 100 basis points versus prior year.
- Net interest expense of approximately $25 million, lower than previous guidance.
- Earnings per diluted share in the area of $5.00, representing high-teens percentage growth.
- Adjusted free cash flow of approximately $1.3 billion, ahead of prior guidance.
Challenges Ahead
- Expected currency headwind of nearly 50 basis points on reported revenue.
- Outlook embeds expectation for additional tariffs on imports, though expected to have immaterial impact in FY25.
- Excludes one-time transaction costs associated with the pending sale of Stuart Weitzman.
- Excludes non-recurring costs associated with organizational efficiency efforts.
- Excludes net interest and earnings impact related to the terminated acquisition of Capri Holdings Limited.
Revenue & Expenses
Visualization of income flow from segment revenue to net income