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Jun 29, 2024
Tapestry Q4 2024 Earnings Report
Tapestry's fourth quarter results exceeded expectations, capping off a successful year with strong financial performance.
Key Takeaways
Tapestry, Inc. reported Q4 results exceeding expectations, with net sales of $1.59 billion. The company's gross profit reached $1.19 billion, and net income was $159 million, resulting in earnings per diluted share of $0.68. Non-GAAP earnings per diluted share was $0.92. The company is focused on driving growth and shareholder value.
Net sales totaled $1.59 billion, a 2% decline year-over-year on a reported basis but approximately even with the prior year excluding currency headwinds.
Gross profit reached $1.19 billion with a gross margin of 74.9%, benefiting from operational improvements and lower freight expenses.
Reported operating income was $235 million, with an operating margin of 14.8%; non-GAAP operating income was $262 million, with an operating margin of 16.5%.
Net income was $159 million, resulting in earnings per diluted share of $0.68, while non-GAAP net income was $217 million, with earnings per diluted share of $0.92.
Tapestry
Tapestry
Tapestry Revenue by Segment
Revenue by Segment
Coach Revenue
CapyFin.comKate Spade Revenue
CapyFin.comStuart Weitzman Revenue
CapyFin.com Forward Guidance
Tapestry expects for Fiscal 2025 on a non-GAAP basis: Revenue in the area of $6.7 billion, representing growth compared to the prior year on a reported basis, including approximately 50 basis points of currency pressure. On a constant currency basis, revenue is expected to increase approximately 1% versus prior year; Operating margin expansion in the area of 50 basis points compared to prior year; Net interest income of approximately $20 million; Earnings per diluted share of $4.45 to $4.50, representing mid-single digit growth compared to the prior year.
Positive Outlook
- Revenue in the area of $6.7 billion, representing growth compared to the prior year on a reported basis.
- Revenue is expected to increase approximately 1% versus prior year on a constant currency basis.
- Operating margin expansion in the area of 50 basis points compared to prior year.
- Net interest income of approximately $20 million.
- Earnings per diluted share of $4.45 to $4.50, representing mid-single digit growth compared to the prior year.
Challenges Ahead
- Approximately 50 basis points of currency pressure on revenue.
- Incorporates a negative impact of $0.35 related to the suspension of share repurchase activity due to the proposed acquisition of Capri Holdings Limited.
- An estimated currency headwind of approximately $0.20 versus the Company’s Fiscal 2025 EPS target as provided at its Investor Day in 2022.
- No revenue, net interest, or earnings impact related to the proposed acquisition of Capri Holdings Limited.
- No further appreciation of the U.S. Dollar.
Revenue & Expenses
Visualization of income flow from segment revenue to net income