Tapestry Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.73%.
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%. 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.
- 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
“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.”
Tapestry CEO, on the earnings call
Forward Guidance & Outlook
Tapestry raised its fiscal 2025 non-GAAP outlook: revenue of approximately $6.95 billion (4% growth vs. prior year, up from ~3% prior guidance), operating margin expansion of approximately 100 basis points, net interest expense of approximately $25 million (down from $35 million), tax rate of approximately 17.5%, weighted average diluted share count of approximately 223 million, EPS of approximately $5.00 (up from $4.85-$4.90 prior guidance), and adjusted free cash flow of approximately $1.3 billion (up from $1.2 billion). The outlook embeds 145% tariffs on Chinese imports and 10% on other global imports per April 10, 2025 trade policies, with immaterial FY2025 impact expected. The outlook assumes no material worsening of inflationary pressures or consumer confidence and excludes one-time Stuart Weitzman divestiture costs and terminated Capri acquisition impacts.
TPR YoY Financials
TPR Revenue by Segment
TPR Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.