Tapestry(US:TPR) ZACKSยท2025-08-14 16:21Core Insights - Tapestry, Inc. (TPR) reported strong fourth-quarter fiscal 2025 results, surpassing Zacks Consensus Estimates for both revenues and earnings, with year-over-year increases in both metrics and an improvement in gross margin [1][3][12] Financial Performance - Adjusted earnings for the fiscal fourth quarter were $1.04 per share, exceeding the consensus estimate of $1.01 and reflecting a 13% increase from $0.92 in the prior year [3] - Net sales reached $1,723.2 million, beating the consensus estimate of $1,684 million, marking an 8.3% year-over-year increase and 8% growth on a constant-currency basis [4][11] - Consolidated gross profit was $1.32 billion, up 10.4% from the previous year, with a gross margin increase of 140 basis points to 76.3% [12] Brand Performance - Coach brand net sales were $1.43 billion, exceeding the consensus estimate of $1.39 billion, with a 14% year-over-year increase [7] - Kate Spade's sales were $252.6 million, falling short of the consensus estimate and reflecting a 13% decline [7] - Stuart Weitzman reported net sales of $45.5 million, surpassing estimates but showing a 10% year-over-year decrease [8] Customer Engagement - The company acquired 1.5 million new customers in North America, with Gen Z and Millennial consumers accounting for approximately 60% of new customers [5] - Direct-to-consumer revenues grew 6% on a constant-currency basis, driven by mid-teens growth in digital revenues [6] Regional Sales Insights - North American sales increased 8% year-over-year to $1.10 billion, while Greater China sales improved 18% to $273.9 million [9] - European markets showed a 13% revenue increase to $104.2 million, while Japan experienced a 7% decline [9] Future Guidance - For fiscal 2026, Tapestry projects revenues to be close to $7.2 billion, indicating low-single-digit growth from the prior year [23] - Earnings per share are forecasted to be between $5.30 and $5.45, reflecting a growth of 4-7% from the previous year [25]