Tapestry ( (TPR) ) has released its Q2 earnings. Here is a breakdown of the information Tapestry presented to its investors.
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Tapestry, Inc. is a renowned global house of iconic accessories and lifestyle brands, known for its unique and independent labels such as Coach, Kate Spade, and Stuart Weitzman, operating primarily in the fashion retail sector. The company is committed to innovation and sustainability across its diverse brand portfolio.
In the latest earnings report for the quarter ended December 28, 2024, Tapestry reported a solid financial performance with net sales amounting to $2.195 billion, an increase from the previous year’s $2.084 billion. The company achieved a gross profit of $1.633 billion, driven by robust sales across its direct-to-consumer and wholesale channels.
Key financial highlights include a rise in operating income to $492.8 million, up from $447.6 million in the prior year. However, the company recorded a loss on the extinguishment of debt amounting to $120.1 million. Net income for the quarter stood at $310.4 million, slightly down from $322.3 million year-over-year. Tapestry’s strategic initiatives included a significant share repurchase program and the termination of a proposed acquisition of Capri Holdings due to regulatory hurdles.
Looking ahead, Tapestry remains focused on executing its 2025 growth strategy, which emphasizes digital innovation, cost control, and brand value retention. Despite facing challenges such as economic uncertainties and foreign exchange risks, the company is optimistic about leveraging its strengths to navigate the evolving retail landscape effectively.
