Core Insights - Tapestry, Inc. reported strong second-quarter fiscal 2025 results, surpassing Zacks Consensus Estimates for both revenues and earnings, leading to an upward revision of its fiscal 2025 outlook [1][4][16] Financial Performance - Adjusted earnings for the fiscal second quarter were $2.00 per share, exceeding the consensus estimate of $1.74 and up from $1.63 year-over-year [4] - Net sales reached $2,195.4 million, beating the consensus estimate of $2,108 million, reflecting a 5.3% year-over-year increase [4] - Consolidated gross profit was $1.63 billion, a 9.4% increase from the previous year, with a gross margin of 74.4%, up 280 basis points [9] Customer and Sales Growth - The company added 2.7 million customers in North America, with over half from Gen Z and Millennial demographics [5] - Direct-to-consumer sales grew by 4%, driven by high-single-digit growth in digital sales and a low-single-digit increase in global brick-and-mortar sales [5] Brand Performance - Coach's net sales were $1.71 billion, an 11% year-over-year increase, while Kate Spade's sales were $416.4 million, marking a 10% decline [6] - Stuart Weitzman's net sales totaled $69.7 million, a 15% year-over-year decrease [7] Regional Sales Insights - North American sales increased by 4% to $1.51 billion, while sales in Greater China improved by 3% to $272.8 million [8] - European markets showed significant growth with a 45% increase in revenues to $129.3 million [8] Cost and Margin Analysis - Adjusted operating income was $548.2 million, up 15.2% from the previous year, with an adjusted operating margin of 25% [10] - Selling, general and administrative expenses totaled $1.08 billion, up 6.6% year-over-year, but as a percentage of net sales, it decreased by 60 basis points to 49.4% [10] Cash Flow and Shareholder Returns - The company ended the quarter with cash and short-term investments of $1 billion and long-term debt of $2.38 billion [12] - Tapestry anticipates returning over $2 billion to shareholders in fiscal 2025 through dividends and share repurchases [14] Future Outlook - Tapestry raised its fiscal 2025 revenue outlook to $6.85 billion, suggesting a 3% growth from the prior year [16] - Earnings per share are forecasted between $4.85 and $4.90, indicating a 13-14% growth from the previous year [17]

Tapestry, Inc. (NYSE:TPR) Q2 2025 Earnings Conference Call February 6, 2025 8:00 AM ET Company Participants Christina Colone - Global Head of Investor Relations Joanne Crevoiserat - Chief Executive Officer Scott Roe - Chief Financial Officer and Chief Operating Officer Todd Kahn - Chief Executive Officer and Brand President, Coach Conference Call Participants Robert Drbul - Guggenheim Securities Ike Boruchow - Wells Fargo Adrienne Yih - Barclays Matthew Boss - JPMorgan Lorraine Hutchinson - Bank of America ...

Key TakeawaysTapestry posted record holiday-quarter sales, sending shares to an all-time high.The gains were driven by an 11% year-over-year sales jump at the company's Coach brand.Tapestry also raised its full-year profit and sales guidance. Tapestry (TPR) shares surged nearly 15% to a record high as the owner of fashion retail brands set record holiday-quarter revenue and boosted its guidance on strong sales of its Coach products. The parent of brands that also include Kate Spade and Stuart Weitzman repor ...

For the quarter ended December 2024, Tapestry (TPR) reported revenue of $2.2 billion, up 5.3% over the same period last year. EPS came in at $2.00, compared to $1.63 in the year-ago quarter.The reported revenue represents a surprise of +4.14% over the Zacks Consensus Estimate of $2.11 billion. With the consensus EPS estimate being $1.74, the EPS surprise was +14.94%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expecta ...

Tapestry (TPR) came out with quarterly earnings of $2 per share, beating the Zacks Consensus Estimate of $1.74 per share. This compares to earnings of $1.63 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 14.94%. A quarter ago, it was expected that this maker of high-end shoes and handbags would post earnings of $0.95 per share when it actually produced earnings of $1.02, delivering a surprise of 7.37%.Over the last four quart ...

The logo of U.S. fashion brand Coach is seen in New York on Nov. 19, 2024.Shares of Coach parent Tapestry shot up about 15% in premarket trading after the company beat holiday-quarter sales expectations and boosted its full-year forecast.The fashion and accessories company said it now expects full-year revenue of over $6.85 billion, which would be about 3% higher than the prior year. It expects earnings per share of $4.85 to $4.90. It had previously forecasted full-year revenue of over $6.75 billion and ful ...

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Financial Performance - In the second quarter of fiscal 2025, net sales increased by 5.3% to $2,195.4 million compared to $2,084.5 million in the second quarter of fiscal 2024[194]. - Gross profit for the second quarter of fiscal 2025 was $1,633.1 million, representing a gross margin of 74.4%, up from 71.6% in the same quarter of fiscal 2024[194]. - Operating income rose by 10.1% to $492.8 million, with an operating margin of 22.4% compared to 21.5% in the prior year[194]. - The company reported a net income of $310.4 million for the second quarter of fiscal 2025, a decrease of 3.7% from $322.3 million in the same quarter of fiscal 2024[194]. - For the first six months of fiscal 2025, net sales were $3,702.9 million, a 2.9% increase from $3,597.7 million in the first six months of fiscal 2024[224]. - Gross profit for the first six months of fiscal 2025 was $2,768.0 million, representing 74.8% of net sales, compared to $2,590.9 million or 72.0% in the prior year[224]. - Net income for the first six months of fiscal 2025 was $497.0 million, a decrease of 3.9% from $517.3 million in the first six months of fiscal 2024[224]. - Net income decreased by 3.9% or $20.3 million to $497.0 million, while excluding comparability items, net income increased by $98.8 million to $691.8 million[248]. - Net income per diluted share was $2.17, compared to $2.23 in the prior year, but increased to $3.02 when excluding items affecting comparability[249]. Sales Performance by Brand - Coach's net sales rose by 10.9% or $167.4 million to $1.71 billion, driven by a $135.3 million increase in DTC sales[208]. - Kate Spade's net sales decreased by 9.6% or $44.0 million to $416.4 million, primarily due to a decline in DTC sales[208]. - Stuart Weitzman's net sales fell by 15.2% or $12.5 million to $69.7 million, reflecting a decrease in both DTC and wholesale sales[208]. - Coach's net sales increased by 6.7% or $180.6 million to $2.88 billion, driven by a $168.1 million increase in DTC sales[235]. - Kate Spade's net sales decreased by 8.4% or $64.0 million to $699.6 million, primarily due to a $73.6 million decline in DTC sales[235]. Expenses and Margins - SG&A expenses rose by 9.1% or $94.7 million to $1.14 billion, with SG&A as a percentage of net sales increasing to 51.9%[211]. - SG&A expenses increased by 7.0% or $133.1 million to $2.02 billion, with SG&A as a percentage of net sales rising to 54.6%[238]. - Operating income increased by 10.1% or $45.2 million to $492.8 million, with an operating margin of 22.4%[214]. - Excluding items affecting comparability, operating income increased by $72.3 million to $548.2 million, with an operating margin of 24.9%[214]. - Corporate operating expenses increased by 26.5% or $40.9 million to $195.1 million in Q2 fiscal 2025[222]. Debt and Financing - The company issued $4.50 billion in U.S. dollar-denominated senior unsecured notes and €1.50 billion in Euro-denominated senior unsecured notes to finance the Capri acquisition[180]. - The company incurred total pre-tax charges of $197.6 million related to the Capri Acquisition, impacting net income by $139.8 million or $0.62 per diluted share[198]. - Loss on extinguishment of debt increased by $120.1 million in Q2 fiscal 2025, compared to $0.0 million in Q2 fiscal 2024[217]. - Net interest expense decreased by $24.7 million to $24.5 million in Q2 fiscal 2025, down from $49.2 million in Q2 fiscal 2024[218]. - Loss on extinguishment of debt increased to $120.1 million, compared to $0.0 million in the prior year[244]. - Net interest expense decreased by $7.3 million to $55.2 million, primarily due to lower interest expense on the Term Loan due 2027[245]. Cash Flow and Investments - Net cash provided by operating activities decreased by $276.3 million to $625.5 million for the first six months of fiscal 2025 compared to $901.8 million in the same period of fiscal 2024[257]. - Net cash provided by investing activities increased by $1.63 billion to $979.4 million in the first six months of fiscal 2025, primarily due to proceeds from maturities and sales of investments of $2.92 billion[258][259]. - Net cash used in financing activities was $6.78 billion in the first six months of fiscal 2025, a decrease of $12.59 billion compared to a source of cash of $5.81 billion in the same period of fiscal 2024[261]. - The Company had a total cash and cash equivalents of $983.4 million as of December 28, 2024, down from $6.14 billion on June 29, 2024, reflecting a decrease of $5.16 billion[265]. - Capital expenditures and cloud computing implementation costs were $39.2 million and $68.8 million for the three and six months ended December 28, 2024, respectively, with total fiscal 2025 capital expenditures expected to be approximately $170 million[271]. Market Conditions and Strategy - The macroeconomic environment remains challenging, with the International Monetary Fund forecasting growth below historical averages due to geopolitical instability and tighter monetary policies[184]. - The company aims to prioritize balanced growth across regions, focusing on North America and China, while exploring opportunities in Southeast Asia and Europe[182]. - The company continues to monitor global economic conditions and adjust operating strategies to mitigate impacts on results while focusing on long-term growth[182]. - The company’s effective tax rate is not expected to be materially impacted by recent tax legislation changes, including the 15% global minimum tax effective January 1, 2025[190]. - Approximately 23% of the Company's cash and short-term investments were held outside the United States as of December 28, 2024[265]. - The effect of exchange rate changes on cash and cash equivalents was $12.3 million in the first six months of fiscal 2025, down from $51.0 million in the same period of fiscal 2024[264]. Risk Management - The fair values of the Kate Spade brand reporting unit exceeded their carrying values by approximately 20% as of the fiscal 2024 testing date, indicating potential risks related to future cash flows[277]. - There have been no significant changes to the Company's market risk management as outlined in the Annual Report for the fiscal year ended June 29, 2024[279]. - The Company continues to follow the same strategies for managing market risk exposures as previously disclosed[279]. - Additional information can be found in Note 8 regarding Derivative Investments and Hedging Activities[279]. - Note 11 provides insights into the Company's Debt management strategies[279]. - Note 13 discusses the Company's Investments and related strategies[279].

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 SECOND QUARTER RESULTS AND RAISES FULL YEAR OUTLOOK Link to Download Tapestry's Q2 Earnings Presentation, Including Brand Highlights New York, February 6, 2025 – Tapestry, Inc. (NYSE: TPR), a house of iconic accessories and lifestyle brands ...

The upcoming report from Tapestry (TPR) is expected to reveal quarterly earnings of $1.74 per share, indicating an increase of 6.8% compared to the year-ago period. Analysts forecast revenues of $2.11 billion, representing an increase of 1.1% year over year.The consensus EPS estimate for the quarter has been revised 0.9% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a co ...