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Mar 29
Tapestry Q3 2025 Earnings Report
Reported fiscal 2025 third quarter results with record revenue and EPS, exceeding expectations.
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
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 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