Workflow
Tapestry(TPR) - 2025 Q1 - Quarterly Results
TPRTapestry(TPR)2024-11-07 11:45

Revenue Performance - Revenue totaled 1.51billion,approximatelyin−linewithprioryearonbothreportedandconstantcurrencybasis,withFXrepresentinga40−basispointheadwind[7]−NetsalesforthequarterendedSeptember28,2024were1.51 billion, approximately in-line with prior year on both reported and constant currency basis, with FX representing a 40-basis point headwind[7] - Net sales for the quarter ended September 28, 2024 were 1,507.5 million, a slight decrease of 0.4% compared to 1,513.2millioninthesameperiodlastyear[22]−Coachbrandrevenuegrew21,513.2 million in the same period last year[22] - Coach brand revenue grew 2% at constant currency to 1.17 billion, while Kate Spade revenue declined 6% and Stuart Weitzman grew 2%[9] - Coach brand sales grew 1% year-over-year to 1,170.6million,withconstantcurrencygrowthof21,170.6 million, with constant currency growth of 2%[23] - Kate Spade sales declined 7% to 283.2 million, with constant currency decline of 6%[23] - Stuart Weitzman sales increased 2% to 53.7million,withconstantcurrencygrowthof253.7 million, with constant currency growth of 2%[23] Gross Margin and Profitability - Gross margin expanded by 280 basis points to 75.3%, driven by operational improvements, lower freight expense, and FX tailwinds[6][7] - Gross profit increased to 1,134.9 million in Q1 2024, up 3.4% from 1,097.7millioninQ12023[22]−NorthAmericarevenuedeclined11,097.7 million in Q1 2023[22] - North America revenue declined 1%, but operating margin and profit dollars increased due to gross margin expansion[4] - Operating income was 252.0 million, down slightly from 253.2millionintheprioryearperiod[22]−Netincomedecreased4.3253.2 million in the prior year period[22] - Net income decreased 4.3% to 186.6 million compared to 195.0millioninQ12023[22]−DilutedEPSwas195.0 million in Q1 2023[22] - Diluted EPS was 0.79, down from 0.84inthesamequarterlastyear[22]CashFlowandFinancialPosition−Cashflowfromoperatingactivitieswas0.84 in the same quarter last year[22] Cash Flow and Financial Position - Cash flow from operating activities was 120 million, and free cash flow was 94million,supportinglong−termgrowthandshareholderreturns[4][10]−Freecashflowfortheperiodiscalculatedas94 million, supporting long-term growth and shareholder returns[4][10] - Free cash flow for the period is calculated as 119.5 million (Net cash flows from operating activities) less 25.6million(Purchasesofpropertyandequipment),resultingin25.6 million (Purchases of property and equipment), resulting in 93.9 million[30][32][33] - Net cash provided by operating activities was 119.5millionfortheperiodendingSeptember28,2024,comparedto119.5 million for the period ending September 28, 2024, compared to 75.3 million for the same period in 2023[32] - Net cash provided by investing activities was 190.1million,drivenby190.1 million, driven by 1,694.9 million in proceeds from maturities and sales of investments, offset by 1,479.2millioninpurchasesofinvestments[33]−Cashandcashequivalentsincreasedby1,479.2 million in purchases of investments[33] - Cash and cash equivalents increased by 320.9 million to 6,462.9millionasofSeptember28,2024,comparedto6,462.9 million as of September 28, 2024, compared to 6,142.0 million at the beginning of the period[34] - Total assets increased to 13,728.9millionasofSeptember28,2024,comparedto13,728.9 million as of September 28, 2024, compared to 13,396.3 million as of June 29, 2024[31] International Performance - International revenue grew 2% at constant currency, with Europe up 27% and APAC down 2%[4] - Coach's international store count decreased by 12 stores to 594 as of September 28, 2024, due to 16 closures and 4 openings[35] - Kate Spade's international store count decreased by 3 stores to 178 as of September 28, 2024, with 6 closures and 3 openings[35] - Stuart Weitzman's international store count remained flat at 60 stores as of September 28, 2024, with 2 openings and 2 closures[35] Direct-to-Consumer and Customer Acquisition - Direct-to-consumer sales were in-line with prior year, with digital revenue up high-single digits and brick-and-mortar sales down low-single digits[5] - The company acquired approximately 1.4 million new customers in North America, with over half being Gen Z and Millennials[3] Inventory and Expenses - Inventory increased to 1.03 billion, reflecting higher in-transit levels, consistent with expectations[10] - Corporate SG&A expenses increased to 154.2 million, up from 136.1millioninQ12023[24]−Thecompanyreported136.1 million in Q1 2023[24] - The company reported 33.4 million in acquisition costs affecting comparability in Q1 2024[24] Outlook and Guidance - The company raised its full-year revenue outlook to over 6.75billion,representing16.75 billion, representing 1% to 2% growth, and expects EPS of 4.50 to $4.55[13][14]