European Investor
06 Feb 2025, 17:32
Tapestry, Inc. reported strong results for the fiscal second quarter of 2025, with record revenue of $2.2 billion, marking a 5% increase from the previous year. The growth was driven by a 10% increase in Coach's revenue. Gross margin expanded by 280 basis points, reflecting operational improvements and lower freight expenses.
The company achieved a diluted EPS of $1.38 on a reported basis and a record non-GAAP diluted EPS of $2.00, surpassing expectations. This was driven by operational outperformance, share repurchase activity, and a favorable tax rate. Cash flow from operating activities was robust, exceeding $500 million, with adjusted free cash flow of around $890 million.
Tapestry's strategic initiatives included growing its customer base, with 2.7 million new customers acquired in North America, particularly among Gen Z and Millennials. The company saw positive revenue growth across all regions, with notable gains in Europe (+42%), North America (+4%), and APAC (+1%).
In terms of shareholder returns, Tapestry expects to return over $2 billion in fiscal 2025 through dividends and share repurchases. The company declared a quarterly dividend of $0.35 per common share, payable in March 2025.
Overall, Tapestry remains confident in its future prospects, citing strong brand performance, effective operational management, and strategic investments aimed at sustainable growth.
The company achieved a diluted EPS of $1.38 on a reported basis and a record non-GAAP diluted EPS of $2.00, surpassing expectations. This was driven by operational outperformance, share repurchase activity, and a favorable tax rate. Cash flow from operating activities was robust, exceeding $500 million, with adjusted free cash flow of around $890 million.
Tapestry's strategic initiatives included growing its customer base, with 2.7 million new customers acquired in North America, particularly among Gen Z and Millennials. The company saw positive revenue growth across all regions, with notable gains in Europe (+42%), North America (+4%), and APAC (+1%).
In terms of shareholder returns, Tapestry expects to return over $2 billion in fiscal 2025 through dividends and share repurchases. The company declared a quarterly dividend of $0.35 per common share, payable in March 2025.
Overall, Tapestry remains confident in its future prospects, citing strong brand performance, effective operational management, and strategic investments aimed at sustainable growth.
