Tapestry Inc Earnings
In a remarkable fiscal year 2025, Tapestry Inc. (NYSE:TPR) reported an exceptional performance characterized by significant financial achievements and strategic advancements. The company experienced record-breaking revenue figures that underscored its robust market position and strategic execution. This report delves into Tapestry's financial highlights, revenue breakdown, key developments, executive insights, shareholder returns, and stock forecast.
Tapestry Inc Results
Financial Performance Summary
| Metric | Q4 Fiscal 2025 | YoY Change (%) | Full Year Fiscal 2025 | YoY Change (%) |
|---|---|---|---|---|
| Total Revenue | $1.72 billion | +8% | $7.01 billion | +5% |
| Gross Profit | $1.32 billion | +11% | $5.29 billion | +8% |
| Gross Margin | 76.3% | +1.4 ppt | 75.4% | +2.1 ppt |
| Operating Income (Non-GAAP) | $289 million | +10% | $1.40 billion | +12% |
| Net Income (Non-GAAP) | $223 million | +3% | $1.13 billion | +13% |
| Earnings Per Share (Non-GAAP) | $1.04 | +13% | $5.10 | +19% |
Tapestry delivered substantial year-over-year growth across multiple key financial metrics. The fourth quarter was particularly strong, with revenues reaching $1.72 billion, an 8% increase from the prior year, highlighting the company's continued market strength.
Revenue Breakdown
Segment Performance
| Segment | Q4 Revenue (USD millions) | YoY Change (% Q4) | Full Year Revenue (USD billions) | YoY Change (% FY) |
|---|---|---|---|---|
| Coach | $1.02 billion | +14% | $4.50 billion | +10% |
| Total APAC | 18% Growth | 2% Growth | ||
| North America (Total) | +8% | +5% |
Tapestry's Coach brand led the growth charge with an impressive 14% increase in fourth-quarter revenue, significantly contributing to the company’s overall performance. Additionally, the Asia-Pacific region, including Greater China, exhibited remarkable growth, with Greater China alone showing an impressive 18% surge. This regional growth, combined with strong North American sales, supported Tapestry's strategic priorities for global expansion.
Key Developments
Tapestry identified several notable developments throughout the fiscal year that contributed to its strong performance. One highlight was the acquisition of approximately 1.5 million new customers in North America alone during the fourth quarter. This influx was primarily driven by a growing consumer base of Gen Z and Millennials, which made up about 60% of new customers acquired.
Moreover, Tapestry's direct-to-consumer revenue grew by 6% in the fourth quarter, and digital revenue experienced mid-teens percentage growth, indicating the company's successful omni-channel strategy. Additionally, the Coach brand's handbag segment saw a robust mid-teens percentage gain in average unit retail (AUR) prices for the quarter, reflecting strong product innovation and market reception.
Comments from Company Officers
Joanne Crevoiserat, CEO of Tapestry, Inc., highlighted the company's strategic achievements, stating, "Fiscal 2025 was a breakout year for Tapestry as our systemic approach to brand-building is capturing a new generation of consumers around the world. Our strong growth, capped by our fourth quarter outperformance, reinforces that our strategies are working." She further emphasized the company's commitment to creativity, craftsmanship, and value at scale, which are expected to drive long-term growth.
Dividends and Share Repurchases
Tapestry has a robust capital return strategy, which includes both dividends and share repurchases. In fiscal 2025, the company returned $2.3 billion to shareholders. The Board approved a 14% increase in quarterly dividends, resulting in an annual rate of $1.60 per share. Additionally, the company embarked on a $2 billion accelerated share repurchase program, executing strategic buybacks at an average price of approximately $78 per share.
Tapestry Inc Stock Forecast
Considering Tapestry's outstanding fiscal 2025 performance and their fiscal 2026 outlook, the company's market position remains strong. The continued expansion of its global footprint, innovative product offerings, and robust omni-channel strategy provide a solid foundation for future growth.
Stock Price Projections:
- High Projection : $80, assuming continued strong execution of strategic initiatives and favorable market conditions.
- Low Projection : $65, considering potential risks from international trade tensions and market volatility.
Overall, Tapestry Inc. is well-positioned for sustained growth, underpinned by a sound strategic approach, strong financial health, and market-leading brands. Investors and stakeholders can look forward to further value creation as Tapestry continues to enhance its operational capabilities and market presence.
