Tapestry ( (TPR) ) has released its Q1 earnings. Here is a breakdown of the information Tapestry presented to its investors.
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Tapestry, Inc. is a leading global house of iconic accessories and lifestyle brands, including Coach, Kate Spade, and Stuart Weitzman, known for their innovative products and distinctive customer experiences in the fashion industry.
In its fiscal 2025 first-quarter report, Tapestry, Inc. announced impressive financial results, exceeding its own expectations, with significant contributions from the Coach brand and a raised full-year outlook. The company demonstrated strong operational performance, underpinned by strategic initiatives and effective management amidst a challenging economic environment.
Key financial highlights include achieving a diluted earnings per share (EPS) of $0.79 and a record non-GAAP diluted EPS of $1.02. The company’s gross margin expanded by 280 basis points, driven by operational efficiencies and favorable currency impacts. Tapestry reported net sales of $1.51 billion, maintaining stability compared to the previous year, despite a mixed performance across regions. Notably, Europe saw a 27% increase in revenue, while North America experienced a slight decline. The company also focused on expanding its customer base, notably acquiring 1.4 million new customers in North America, primarily from Gen Z and Millennials.
The company maintained strong cash flows, generating $120 million from operating activities and $94 million in free cash flow, supporting its growth agenda and shareholder return program. Additionally, Tapestry’s strategic focus on omni-channel experiences and digital engagement helped stabilize direct-to-consumer sales, with digital revenue seeing growth.
Looking ahead, Tapestry is optimistic, raising its fiscal 2025 outlook with expectations of over $6.75 billion in revenue and continued operating margin improvements. The company aims to leverage its robust brand portfolio and agile platform to drive sustained growth and value creation in the coming years.
