Core Insights - Tapestry, Inc. reported strong third-quarter fiscal 2025 results, exceeding revenue and earnings estimates, with year-over-year growth prompting an increase in fiscal 2025 outlook [1][3][18] Financial Performance - Adjusted earnings were $1.03 per share, surpassing the Zacks Consensus Estimate of 89 cents, and reflecting a 27.2% increase from 81 cents in the prior year [3] - Net sales reached $1,584.6 million, exceeding the consensus estimate of $1,529 million, marking a 6.9% year-over-year increase and 8% growth on a constant-currency basis [3] - Consolidated gross profit was $1.21 billion, up 8.9% year over year, with a gross margin increase of 140 basis points to 76.1% [9] Customer Engagement and Growth - The company acquired over 1.2 million customers in North America, with Gen Z and Millennials making up approximately two-thirds of this new customer base [4] - Direct-to-consumer revenues grew 9% on a constant-currency basis, driven by a mid-teen increase in digital sales [5] Brand Performance - Coach's net sales were $1.29 billion, a 13% year-over-year increase, while Kate Spade's sales were $244.9 million, reflecting a 13% decline [6] - Stuart Weitzman's net sales totaled $46.2 million, marking an 18% year-over-year decrease [7] Regional Sales Insights - North America sales increased 9% year over year to $951.7 million, while European markets saw a 32% increase in revenues to $92.9 million [8] - Sales in Greater China improved 3% to $278.9 million, while Japan experienced an 8% decline [8] Cost and Margin Analysis - Adjusted operating income was $277.3 million, up 15.9% from the previous year, with an adjusted operating margin increase of 140 basis points to 17.5% [10] - Selling, general and administrative expenses totaled $928.5 million, up 7% year over year, remaining flat as a percentage of net sales at 58.6% [11] Future Outlook - Tapestry anticipates mid-single-digit revenue growth for the fiscal fourth quarter, with earnings per share expected to exceed 95 cents [16][17] - The company raised its fiscal 2025 revenue outlook to $6.95 billion, indicating 4% growth from the prior year [18] - Projected earnings per share for fiscal 2025 are forecasted at $5.00, implying high-teens percentage growth from the prior year [20]

Core Insights - Tapestry reported $1.58 billion in revenue for the quarter ended March 2025, marking a year-over-year increase of 6.9% and exceeding the Zacks Consensus Estimate by 3.66% [1] - The earnings per share (EPS) for the same period was $1.03, a significant increase from $0.81 a year ago, representing a surprise of 15.73% over the consensus estimate of $0.89 [1] Financial Performance - Tapestry's shares have returned +11.1% over the past month, slightly underperforming the Zacks S&P 500 composite's +11.3% change, with a current Zacks Rank of 3 (Hold) [3] - Geographic Net Sales in Greater China were reported at $278.90 million, slightly below the average estimate of $282.77 million, reflecting a year-over-year change of +3% [4] - North America net sales reached $951.70 million, surpassing the average estimate of $881.72 million, with a year-over-year increase of +8.9% [4] Segment Performance - Net Sales for Coach amounted to $1.29 billion, exceeding the estimated $1.22 billion, with a year-over-year change of +12.9% [4] - Stuart Weitzman reported net sales of $46.20 million, falling short of the average estimate of $51.92 million, representing a year-over-year decline of -17.7% [4] - Kate Spade's net sales were $244.90 million, below the average estimate of $252.63 million, indicating a year-over-year decrease of -12.8% [4] Operating Income - Operating income for Coach was reported at $420.10 million, exceeding the average estimate of $392.26 million [4] - Stuart Weitzman experienced an operating loss of -$5.60 million, slightly worse than the estimated loss of -$5.11 million [4]

Financial Data and Key Metrics Changes - The company reported record third quarter results with total revenue gains of 8% at constant currency, exceeding expectations [6][29] - Earnings per share (EPS) increased by 27% compared to the prior year, reaching $1.30, which also exceeded guidance [10][34] - Gross margin reached 76.1%, the highest quarterly gross margin in over fifteen years, reflecting operational outperformance [32][93] Business Line Data and Key Metrics Changes - Coach brand achieved a 15% increase in revenue, driven by strong consumer demand and brand positioning [6][11] - Kate Spade experienced a revenue decline of 12% at constant currency, indicating ongoing challenges in brand repositioning [20][21] - Stuart Weitzman is in the process of being sold to Caleres, with the transaction expected to close soon [26] Market Data and Key Metrics Changes - North American revenue increased by 9%, with significant growth in customer acquisition, particularly among Gen Z and Millennials [7][30] - European revenue rose by 35%, driven by increased local consumer spending and strong new customer acquisition [30] - In Greater China, revenue growth accelerated to 5%, supported by long-term investment strategies [7][30] Company Strategy and Development Direction - The company aims to build strong emotional connections with consumers, focusing on brand heat and innovation [51][52] - There is a commitment to invest in brand building and innovation to drive long-term sustainable growth [19][27] - The strategy includes reducing promotional activity to enhance brand health and customer experience [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal year 2025 earnings of approximately $5 per share, consistent with previous targets [11][38] - The external environment is described as increasingly complex, but the company believes it can adapt and thrive [27][46] - Management highlighted the importance of maintaining strong fundamentals and competitive advantages in navigating market challenges [45][46] Other Important Information - The company generated over $1 billion in adjusted free cash flow year-to-date [29] - Inventory levels were reported to be 6% above the prior year, indicating a well-positioned supply chain [37] - The company is focused on maintaining a solid investment grade rating and a long-term gross leverage target of below 2.5 times [36] Q&A Session Summary Question: What is driving the strong performance at Coach? - Management attributed the success to strong emotional connections with consumers, high margins, and an agile supply chain [50][52] Question: Can you provide insights on the impact of tariffs for 2026? - Management indicated that they have taken actions to mitigate tariff impacts and will provide guidance at the end of the next fiscal year [57][58] Question: Can you elaborate on new customer acquisition and retention metrics? - Management emphasized the focus on acquiring younger consumers, which is driving brand relevance and higher retention rates among Gen Z [71][75] Question: How is the merchandising strategy positioned to capture market share? - Management noted that the brand is taking market share across demographics, with a focus on compelling value and innovation [79][80] Question: What are the drivers behind the recent gross margin performance? - Management highlighted operational improvements and AUR gains as key contributors to the strong gross margin [88][93]

Financial Data and Key Metrics Changes - The company reported total revenue gains of 8% at constant currency, with record third quarter earnings per share increasing by 27% compared to the prior year [5][10][29] - Gross margin reached 76.1%, the highest quarterly gross margin in over fifteen years, reflecting operational outperformance [32][92] - Operating margin increased by 140 basis points, driving profit expansion ahead of expectations [33] Business Line Data and Key Metrics Changes - Coach brand delivered a standout performance with 15% top line growth, driven by strong demand and effective brand positioning [11][30] - Kate Spade experienced a revenue decline of 12% at constant currency, while profit met expectations due to gross margin expansion [20][21] - Stuart Weitzman is in the process of being sold to Caleres, with the transaction expected to close in the summer [25] Market Data and Key Metrics Changes - International revenue rose 8%, led by a 35% increase in Europe, while North America saw a 9% revenue increase [6][30] - In Greater China, revenue growth accelerated to 5%, indicating strong consumer engagement in the region [6][30] - The APAC region overall saw a 4% sales increase, with specific growth in Australia, South Korea, and Thailand [6][30] Company Strategy and Development Direction - The company is focused on building strong emotional connections with consumers and enhancing brand relevance through innovative product offerings [50][72] - There is a commitment to reducing promotional activity to build a healthier brand and improve gross margins [23][24] - The strategy includes leveraging a diversified and agile supply chain to navigate external challenges and maintain competitive advantages [51][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal year 2025 earnings in the area of $5 per share, consistent with previous targets [11][46] - The company acknowledges the increasingly complex external environment but remains focused on its competitive advantages and long-term growth strategies [27][46] - Management highlighted the importance of capturing new and younger consumers, particularly Gen Z and Millennials, to drive sustainable growth [7][72] Other Important Information - The company plans to return over $2 billion to shareholders in fiscal 2025 through dividends and share repurchase programs [34] - Adjusted free cash flow for the third quarter was reported at $135 million, with expectations of approximately $1.3 billion for the fiscal year [37][41] - The company is committed to maintaining a solid investment grade rating and a long-term gross leverage target of below 2.5 times [36] Q&A Session Summary Question: What is driving the strong performance at Coach? - Management attributed the success to strong emotional connections with consumers, high margins, and an agile supply chain that allows for quick responses to market demands [48][50] Question: Can you provide insights on the impact of tariffs for 2026? - Management indicated that they have taken actions to mitigate tariff impacts and emphasized their focus on maintaining innovation and quality [57][59] Question: How is new customer acquisition impacting growth? - The company highlighted that acquiring new and younger consumers is crucial for long-term growth, with a focus on emotional connections to enhance customer retention [67][72] Question: What is the strategy for Coach's performance across different channels? - Management discussed the "One Coach" strategy, which integrates full-price products into outlet channels, enhancing consumer experience and maintaining brand value [101][103]

Core Viewpoint - Tapestry (TPR) reported quarterly earnings of $1.03 per share, exceeding the Zacks Consensus Estimate of $0.89 per share, and showing an increase from $0.81 per share a year ago, indicating a strong performance in the high-end retail sector [1][2]. Financial Performance - The company achieved revenues of $1.58 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.66% and up from $1.48 billion in the same quarter last year [2]. - Tapestry has consistently outperformed consensus EPS estimates over the last four quarters, with an earnings surprise of 15.73% in the latest report [1][2]. Stock Performance - Tapestry shares have increased approximately 14.4% since the beginning of the year, contrasting with a decline of -4.3% in the S&P 500 [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.01 on revenues of $1.65 billion, and for the current fiscal year, it is $4.92 on revenues of $6.88 billion [7]. - The outlook for the retail - apparel and shoes industry, where Tapestry operates, is currently in the bottom 37% of Zacks industries, which may impact stock performance [8].

Financial Performance & Outlook - Tapestry's Q3 revenue reached $1.58 billion, with an 8% increase compared to the previous year on a constant currency basis[58] - Coach brand experienced a 15% revenue growth on a constant currency basis[50, 58] - The company raised its FY25 revenue outlook to approximately $6.95 billion, a 4% increase versus the prior year on a reported basis[69] - Diluted adjusted EPS is projected to be around $5.00, representing a high-teens percentage growth compared to last year[69] - Adjusted free cash flow is expected to be approximately $1.3 billion[69] Brand Performance - Coach's operating income margin was 32.4% [58] - Kate Spade's revenue declined by 12%[58, 62] - Stuart Weitzman's net sales were $46 million, a decrease of 17%[58] - Tapestry has entered into an agreement to sell Stuart Weitzman to Caleres[66] Strategic Initiatives & Global Presence - North America accounted for 65% of revenue, while International accounted for 35%[71] - The company acquired over 12 million new customers in North America[50] - Digital channels accounted for 29% of sales[33] - The company expects to return over $2 billion to shareholders in FY25[78]

Financial Performance - Net sales for the third quarter of fiscal 2025 reached $1,584.6 million, a 6.9% increase from $1,482.4 million in the same period of fiscal 2024[218]. - Gross profit for the third quarter of fiscal 2025 was $1,205.8 million, representing 76.1% of net sales, compared to 74.7% in the prior year[218]. - Operating income increased by 24.2% to $253.7 million in the third quarter of fiscal 2025, up from $204.3 million in the same quarter of fiscal 2024[218]. - Net income for the third quarter of fiscal 2025 was $203.3 million, a 45.9% increase from $139.4 million in the third quarter of fiscal 2024[218]. - Net sales increased by 6.9% or $102.2 million to $1.58 billion in Q3 fiscal 2025, with an 8.4% increase excluding currency impacts[228]. - Coach net sales rose by 12.9% or $147.9 million to $1.29 billion, driven by a $149.8 million increase in DTC sales[231]. - Gross profit increased by 8.9% or $98.4 million to $1.21 billion, with gross margin improving by 140 basis points to 76.1%[229]. - Operating income was reported at $253.7 million, an increase of 24.2% compared to the previous year[236]. - Net income for Q3 fiscal 2025 was $203.3 million, translating to $0.95 per diluted share[221]. - Net income rose 45.9% or $63.9 million to $203.3 million in Q3 FY2025 from $139.4 million in Q3 FY2024, with a diluted net income per share of $0.95[242][244]. Expenses and Charges - SG&A expenses rose by 5.4% or $49.0 million to $952.1 million, while as a percentage of net sales decreased to 60.1%[234]. - Acquisition and divestiture costs totaled $18.6 million, impacting operating income negatively by $23.6 million[223]. - SG&A expenses for Kate Spade decreased 7.6% or $13.2 million to $160.4 million in Q3 FY2025, while SG&A as a percentage of net sales increased 370 basis points to 65.5%[238]. - Corporate incurred charges affecting comparability of $109.0 million, leading to an 8.1% increase in SG&A expenses to $401.1 million[265]. - The company incurred total pre-tax charges of $268.4 million related to the terminated Capri Acquisition, impacting operating income and net income significantly[251]. Market and Economic Conditions - The macroeconomic environment remains challenging, with organizations revising global growth forecasts downwards due to trade tensions and geopolitical instability[210]. - Currency fluctuations resulted in a decrease of $22.5 million in net sales for the three months ended March 29, 2025, with a 20 basis point negative impact on operating margin[211]. Strategic Plans and Initiatives - The Company plans to focus on building lasting customer relationships and fueling fashion innovation as part of its 2025 growth strategy[203]. - The divestiture of the Stuart Weitzman Business is expected to generate $105.0 million in cash consideration, with the transaction anticipated to close in summer 2025[201]. - The company has a voluntary supply chain finance program to improve working capital efficiency, allowing suppliers to sell receivables on a non-recourse basis[297]. - The company expects total capital expenditures and cloud computing costs for fiscal 2025 to be approximately $160 million, with $35.7 million and $104.5 million spent during the three and nine months ended March 29, 2025, respectively[298]. Cash Flow and Financing - Net cash provided by operating activities decreased by $229.8 million to $769.8 million in the first nine months of fiscal 2025[283]. - Net cash provided by investing activities was $948.2 million in the first nine months of fiscal 2025, a $1.43 billion increase compared to a use of cash of $486.1 million in the same period of fiscal 2024[284]. - Net cash used in financing activities was $6.81 billion in the first nine months of fiscal 2025, a $12.54 billion increase compared to a source of cash of $5.73 billion in the same period of fiscal 2024[286]. - As of March 29, 2025, cash and cash equivalents decreased by $5.08 billion to $1.04 billion compared to $6.14 billion as of June 29, 2024[291]. - The company authorized a share repurchase program of up to $2.00 billion, with $800.0 million remaining from a previous program initiated in May 2022[299]. - The company completed an accelerated share repurchase agreement for $2.00 billion, receiving an initial delivery of 28,363,766 shares[300]. Brand Performance - Kate Spade net sales decreased by 12.7% or $35.8 million to $244.9 million, primarily due to lower DTC sales[231]. - Stuart Weitzman net sales fell by 17.7% or $9.9 million to $46.2 million, with a 17.2% decrease when excluding currency impacts[231]. - Coach's net sales rose by 8.5% or $328.5 million to $4.17 billion, driven by a $317.9 million increase in DTC sales[260]. - Kate Spade's net sales decreased by 9.6% or $99.8 million to $944.5 million, primarily due to a $105.5 million decline in DTC sales[260]. - Stuart Weitzman's net sales decreased by 11.2% or $21.3 million to $169.6 million, with SG&A expenses decreasing by 15.0% to $107.9 million[260][265]. Tax and Regulatory Considerations - The Company is committed to monitoring regulatory developments related to tax legislation, which may have a modest negative impact on its effective tax rate starting in fiscal 2026[214]. - The effective tax rate decreased to 14.9% in Q3 FY2025 from 17.7% in Q3 FY2024, with a non-GAAP effective tax rate of 16.4%[241].

Exhibit 99.1 CONTACTS: Tapestry, Inc. Analysts and Investors: Christina Colone Global Head of Investor Relations 212/946-7252 ccolone@tapestry.com Media: Jennifer Leemann Global Head of Communications 212/631-2797 jleemann@tapestry.com TAPESTRY, INC. REPORTS FISCAL 2025 THIRD QUARTER RESULTS AND RAISES FULL YEAR OUTLOOK Achieved Record Third Quarter Revenue and EPS with Growth Exceeding Expectations Link to Download Tapestry's Q3 Earnings Presentation, Including Brand Highlights New York, May 8, 2025 – Tape ...

Core Viewpoint - Tapestry (TPR) is expected to report quarterly earnings of $0.89 per share, a 9.9% increase year-over-year, with revenues projected at $1.53 billion, reflecting a 3.1% year-over-year increase [1] Earnings Estimates - The consensus EPS estimate has been revised 0.6% higher in the last 30 days, indicating analysts' collective reevaluation of their initial estimates [2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3] Key Metrics Projections - Analysts estimate 'Net Sales- Coach' at $1.22 billion, a 6.8% increase from the prior year [5] - 'Net Sales- Stuart Weitzman' is forecasted at $51.92 million, a decrease of 7.5% year-over-year [5] - 'Net Sales- Kate Spade' is projected at $252.63 million, indicating a 10% decline from the previous year [5] Geographic Sales Estimates - 'Geographic Net Sales- North America' is expected to reach $881.72 million, a 0.9% increase year-over-year [6] - 'Geographic Net Sales- Greater China' is projected at $282.77 million, reflecting a 4.4% year-over-year increase [6] - 'Geographic Net Sales- Greater China- Coach' is estimated at $258.09 million, a 6.1% increase from the prior year [6] Additional Geographic Sales Insights - 'Geographic Net Sales- Other Asia- Coach' is expected to be $207.67 million, a 3.3% increase year-over-year [7] - 'Geographic Net Sales- Other- Coach' is projected at $103.54 million, indicating a significant 27.8% increase from the prior year [7] - 'Geographic Net Sales- North America- Kate Spade' is estimated at $186.23 million, a 14.1% decrease year-over-year [8] Performance Overview - Tapestry shares have increased by 15.6% in the past month, outperforming the Zacks S&P 500 composite, which rose by 0.4% [9]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Tapestry, with a focus on how actual results compare to estimates, which could significantly impact the stock price [1][2]. Earnings Expectations - Tapestry is expected to report earnings of $0.89 per share, reflecting a +9.9% change year-over-year, with revenues projected at $1.53 billion, up 3.1% from the previous year [3]. - The earnings report is scheduled for May 8, 2025, and could lead to stock price movements depending on whether the results exceed or fall short of expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised 0.6% higher in the last 30 days, indicating a collective reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with positive readings being more reliable [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have shown a nearly 70% success rate in delivering positive surprises [8]. Historical Performance - Tapestry has consistently beaten consensus EPS estimates, achieving this in the last four quarters, including a +14.94% surprise in the most recent quarter [12][13]. Conclusion - While Tapestry does not currently appear to be a strong candidate for an earnings beat, investors should consider other influencing factors before making investment decisions [16].