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Jun 28, 2025
Tapestry Q4 2025 Earnings Report
Tapestry reported record Q4 revenue but booked a significant net loss due to impairment charges.
Key Takeaways
Tapestry, Inc. achieved record fourth-quarter revenue of $1.72 billion driven by strength in the Coach brand, but posted a GAAP net loss of $517 million due to impairment charges related to Kate Spade.
Record Q4 revenue of $1.72B, led by strong Coach performance
GAAP EPS was $(2.49) due to impairment charges, while Adj. EPS reached $1.04
Coach brand revenue rose to $1.425B, up from $1.25B
Gross margin expanded by 140 basis points to 76.3%
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Tapestry expects modest revenue growth and higher operating margins in FY26, though tariffs and trade policy will weigh on profitability.
Positive Outlook
- Revenue approaching $7.2B for FY26
- Mid-single-digit pro forma revenue growth excluding Stuart Weitzman
- Operating margin expected to rise over FY25
- EPS guidance of $5.30 to $5.45
- Adjusted free cash flow expected to reach $1.3B
Challenges Ahead
- Negative tariff and duty impact of ~230 basis points to margin
- Over $0.60 EPS impact from trade policy changes
- Higher net interest expense of ~$65M
- No inclusion of one-time restructuring costs in guidance
- Excludes results from Stuart Weitzman sale which closed early FY26
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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