Tapestry, the parent company of the Coach and Kate Spade brands, has reported revenue of $1.72bn in the fourth quarter (Q4) of the fiscal year 2025 (FY25) – an 8% increase compared to the previous year.
This growth was led by a 14% gain at the Coach brand, with constant currency growth in North America, Europe and Asia-Pacific (APAC), including an 18% increase in Greater China.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The quarter experienced a 0.5% positive impact from foreign exchange, as the US dollar’s value declined.
Gross profit stood at $1.32bn, resulting in a gross margin of 76.3%. Operating income on a non-generally accepted accounting principles (GAAP) basis was $289m, with an operating margin of 16.8%.
Net income on a non-GAAP basis was $223m, with earnings per diluted share of $1.04.
For the full fiscal year, net sales totalled $7.01bn – 5% up from the previous year.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataGross profit reached $5.29bn, with a gross margin of 75.4%. Operating income on a non-GAAP basis was $1.40bn, with an operating margin of 20%.
Net income on a non-GAAP basis was $1.13bn, with earnings per diluted share of $5.10.
Tapestry ended the fiscal year with $1.12bn in cash, cash equivalents and short-term investments.
Total borrowings stood at $2.39bn, representing net debt of $1.27bn.
The Gen Z and Millennial demographics accounted for 60% of new customers in both the quarter and the year.
The company’s direct-to-consumer revenue increased by 6% for the quarter and 5% for the year on a constant currency basis, with digital revenue growth in the mid-teens and low-double-digits for the quarter and year respectively.
Tapestry’s gross margin expanded by 140 basis points for the quarter and 210 basis points for the year, driven by operational outperformance and discipline.
Tapestry CEO Joanne Crevoiserat stated: “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 $3bn cumulatively to shareholders.”
Tapestry stated that it “initiates fiscal year 2026 outlook for continued revenue, operating margin, and earnings growth inclusive of tariff and trade policy impacts”.
The company expects revenue to approach $7.2bn, with operating margins improving from the previous year.
The company anticipates net interest expenses of approximately $65m, a tax rate of around 18%, and earnings per diluted share between $5.30 and $5.45.
In early August 2025, Tapestry sold its footwear brand Stuart Weitzman to Caleres for $120.2m.
