Tapestry Sets Record Revenue and Margin
(NYSE:TPR) reported its results for the fiscal fourth quarter 2025 (period ended June 28, 2025) on August 14, 2025, delivering $7 billion in annual revenue for fiscal 2025, representing 5% year-over-year growth, a record operating margin of 20% for fiscal 2025, and adjusted EPS of $5.10, up 19% year-over-year. Strategic highlights include Coach achieving double-digit revenue growth across key markets in fiscal 2025, continued expansion of direct-to-consumer channels, a divestiture of Stuart Weitzman, and the announcement of a $160 million tariff headwind expected in fiscal 2026, mitigated by proactive supply chain and pricing initiatives. Guidance for fiscal 2026 (non-GAAP) projects revenue approaching $7.2 billion, non-GAAP EPS of $5.30 to $5.45, and $1 billion in planned capital returns despite new tariff costs and an impairment charge at Kate Spade.
Coach revenue grew 10% in fiscal 2025, with constant currency sales up 13% in the fiscal fourth quarter and double-digit growth in North America, China, and Europe. Coach added over 1 million new customers in North America in the fiscal fourth quarter, 70% of whom were Gen Z and millennials, and achieved mid-teens average unit retail (AUR) growth in the fiscal fourth quarter and higher retention rates among younger cohorts.
Coach’s ability to attract and retain younger customers at higher AUR levels positions Tapestry for durable, long-term growth and strengthens its competitive advantage in the luxury market.
Source Fool.com
