Tapestry ( (TPR) ) has released its Q3 earnings. Here is a breakdown of the information Tapestry presented to its investors.
Tapestry, Inc. is a leading global house of brands, including Coach, Kate Spade, and Stuart Weitzman, known for its iconic accessories and lifestyle products in the fashion industry.
In its fiscal 2025 third-quarter earnings report, Tapestry, Inc. announced record revenue and earnings per share (EPS), surpassing expectations and prompting an upward revision of its full-year financial outlook.
The company reported a 7% increase in revenue to $1.6 billion, driven by a 13% growth in the Coach brand. Gross margin expanded by 140 basis points, and diluted EPS rose by 60% on a GAAP basis. Tapestry also acquired over 1.2 million new customers, with significant growth among Gen Z and Millennials. The company continues its commitment to shareholder returns, expecting to return over $2 billion in fiscal 2025.
Tapestry’s strategic focus on digital and direct-to-consumer channels resulted in a 9% increase in direct-to-consumer revenue. The company also achieved significant revenue growth in Europe and Asia, with a notable 35% increase in Europe. Operating income improved, and the company maintained strong financial health with a leverage ratio of 1.6x.
Looking ahead, Tapestry is optimistic about its future growth prospects, with plans to leverage its global scale and brand strength to navigate complex market conditions and deliver sustainable growth and value to shareholders.