Tapestry Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.33%.
Did TPR Beat Earnings? Q4 2025 Results
Tapestry closed out fiscal 2025 with a record fourth quarter, posting earnings per share of $1.04 against a consensus estimate of $1.02 — a 1.96% beat — while revenue of $1.72 billion topped the $1.67 billion estimate by 3.28% and grew 8.3% year over year. The driving force behind the quarter was unmistakably Coach, which delivered 14% reported revenue growth fueled by mid-teens handbag price gains and roughly 1.5 million new North American customers in the period, with approximately 60% of those shoppers coming from Gen Z and Millennial cohorts. That momentum, however, was tempered by a sharp decline in Kate Spade — down 13% in the quarter — alongside an $854.80 million impairment charge on Kate Spade's brand intangibles and goodwill, a stark signal of the challenges facing the secondary brand. Gross margin expanded 140 basis points to 76.3% in Q4, reflecting operational discipline that absorbed currency headwinds. Looking into fiscal 2026, management guided EPS of $5.30 to $5.45 but flagged an estimated $160 million tariff headwind — a figure that sent shares sharply lower despite the underlying beat.
- Coach brand revenue growth of 14% in Q4 driven by mid-teens handbag AUR gains and broad-based leathergoods traction
- Acquired approximately 1.5 million new North American customers in Q4, with ~60% Gen Z and Millennial
- Direct-to-consumer revenue increased 6% for Q4 on a constant currency basis, with mid-teens Digital revenue growth
- Gross margin expansion of 140 basis points in Q4 driven by approximately 200 basis points of operational improvements
- Greater China revenue growth of 18% in the quarter
- Europe constant currency revenue growth of 10% in the quarter
“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. Importantly, we achieved bold targets we set three years ago in a dynamic landscape, delivering over $5 in adjusted earnings per share and returning more than $3 billion cumulatively to shareholders. Looking ahead, the creativity, craftsmanship, and compelling value we offer at scale – combined with the agility of our operating model – position us to drive compounding long-term growth and shareholder value.”
Tapestry CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2026, Tapestry expects revenue approaching $7.2 billion (low-single-digit reported growth; mid-single-digit pro-forma growth excluding Stuart Weitzman), operating margin above prior year reflecting 250+ basis points of underlying expansion offset by ~230 basis points of tariff/duty headwinds (~$160 million impact), net interest expense of ~$65 million, tax rate of ~18%, diluted share count of ~213 million, and EPS of $5.30 to $5.45 (4% to 7% growth, including over $0.60 negative tariff impact). Adjusted free cash flow is expected to approach $1.3 billion. The outlook assumes U.S. trade and tax policies as of August 1, 2025, excludes Stuart Weitzman one-time costs and results, and excludes non-recurring organizational efficiency costs. The company also expects to buy back $800 million in common stock under existing authorization.
TPR YoY Financials
TPR Revenue by Segment
TPR Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.