Tapestry

TPR Q3 2025 Earnings

Reported May 8, 2025 at 6:45 AM ET · SEC Source

Q3 25 EPS

$1.03

BEAT +17.06%

Est. $0.88

Q3 25 Revenue

$1.58B

BEAT +3.71%

Est. $1.53B

vs S&P Since Q3 25

+67.8%

BEATING MARKET

TPR +97.6% vs S&P +29.8%

Market Reaction

Did TPR Beat Earnings? Q3 2025 Results

Tapestry delivered a record fiscal third quarter, posting revenue of $1.58 billion, up 6.9% year-over-year, and non-GAAP diluted EPS of $1.03, beating the $0.88 Wall Street consensus by 17.06% and clearing the $1.53 billion revenue estimate by 3.71%.… Read more Tapestry delivered a record fiscal third quarter, posting revenue of $1.58 billion, up 6.9% year-over-year, and non-GAAP diluted EPS of $1.03, beating the $0.88 Wall Street consensus by 17.06% and clearing the $1.53 billion revenue estimate by 3.71%. The standout driver was Coach, whose $1.29 billion in quarterly revenue surged 13% on a reported basis, powered by handbag innovation, a mid-teens average unit retail gain, and strong traction among Gen Z and millennial shoppers, who accounted for roughly two-thirds of the more than 1.2 million new North American customers acquired in the period. Gross margin expanded 140 basis points to 76.1%, while non-GAAP operating margin improved to 17.5% from 16.1% a year ago. On the strength of the beat, management raised its full-year fiscal 2025 outlook for the third time this year, lifting revenue guidance to approximately $6.95 billion and EPS to approximately $5.00, even as it absorbed the impact of 145% tariffs on Chinese imports, an effect it characterized as immaterial to fiscal 2025 results.

Key Takeaways

  • Coach brand revenue growth of 13% (15% constant currency) driven by strong handbag innovation and mid-teens AUR gains
  • 140 basis points of gross margin expansion reflecting operational improvements
  • Acquired over 1.2 million new customers in North America, with approximately two-thirds being Gen Z and Millennials
  • Direct-to-consumer revenue increased 9% on a constant currency basis with mid-teens digital revenue growth
  • Strong constant currency growth in Europe (+35%) and North America (+9%)
  • Agile and globally scaled supply chain enabling innovation, margin expansion, and diligent inventory management
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TPR YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

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TPR Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q3 26
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TPR Revenue by Geography

With YoY comparisons, source: SEC Filings

Q3 25 Q3 26

“Our third quarter outperformance reinforces our position of strength. We accelerated top and bottom-line growth and raised our outlook for the fiscal year, demonstrating the power of brand building and our connections with consumers around the world. Importantly, while the external backdrop is complex, our vision remains clear. We maintain a bias for action and will harness our competitive advantages, including our global scale, compelling value, and strong fundamentals, to adapt and win in any environment. We are confident in our future and the meaningful opportunity to deliver durable growth and shareholder value.”

— Joanne Crevoiserat, Q3 2025 Earnings Press Release