Tapestry, Inc. Reports Strong Financial Results for Q2 Ended December 28, 2024

Tapestry, Inc., the parent company of iconic lifestyle brands Coach, Kate Spade, and Stuart Weitzman, released its financial results for the second fiscal quarter ended December 28, 2024. The company reported record quarterly revenue of $2.2 billion, marking a 5% increase compared to the previous year. The growth was primarily driven by a 10% revenue increase at Coach. The company also achieved a robust gross margin expansion of 280 basis points compared to the prior year.

Joanne Crevoiserat, the Chief Executive Officer of Tapestry, highlighted the strong performance during the holiday season and emphasized the company’s commitment to disciplined brand building. The company saw accelerated top and bottom-line growth, resulting in record revenue and adjusted earnings per share for the quarter.

Strategic and Financial Highlights included:

1. Building Lasting Customer Relationships: Tapestry welcomed approximately 2.7 million new customers to its brands in North America, with over half being Gen Z and Millennials
2. Powering Global Growth: Revenue growth of 5% above the prior year, with significant gains in Europe (+42%), North America (+4%), and total APAC (+1%)
3. Delivering Compelling Omni-Channel Experiences: Achieving direct-to-consumer sales growth of 4%, with a focus on digital revenue and brick-and-mortar sales
4. Fueling Fashion Innovation: Noteworthy innovation, especially at Coach, leading to significant gross margin expansion of 280 basis points
5. Shareholder Return Programs: Tapestry plans to return over $2 billion to shareholders in Fiscal Year 2025 through dividends and share repurchases

The financial outlook has been revised upwards for Fiscal Year 2025, with expectations for revenue of over $6.85 billion, operating margin expansion, diluted earnings per share of $4.85 to $4.90, and adjusted free cash flow of approximately $1.2 billion. The company anticipates returning more than 100% of its free cash flow to shareholders in the current fiscal year.

While the financial outlook is optimistic, Tapestry cautions that unforeseen external factors could impact results, and financial outcomes may differ from the provided guidance.

Tapestry’s quarterly conference call to review these results will be held on February 6, 2025, offering further insights into the company’s performance and strategic direction. Additionally, the company plans to release its Fiscal 2025 third-quarter results on May 8, 2025.

The company’s detailed financial statements and additional information can be accessed on the Tapestry website or through SEC filings.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Tapestry’s 8K filing here.

About Tapestry

Tapestry, Inc provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women’s handbags; and women’s accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms.