Tapestry Inc., the company behind Coach, Kate Spade, and Stuart Weitzman, has just announced its financial results for the third quarter of fiscal year 2025. And things are looking better than expected.
The company reported $1.6 billion in revenue, up 7% compared to the same time last year. Most of this growth came from strong performance by the Coach brand, which saw a 13% jump in sales.
- Coach: $1.29 Billion
- Kate Spade: $244.9 million
- Stuart Weitzman: $46.2 million
“Our third quarter outperformance reinforces our position of strength. We accelerated top and bottom-line growth and raised our outlook for the fiscal year, demonstrating the power of brand building and our connections with consumers around the world.”
Joanne Crevoiserat, Chief Executive Officer, Tapestry Inc.
Tapestry has attracted over 1.2 million new customers in North America. Many of them are Gen Z and Millennial shoppers.
The company’s strategy of focusing on direct-to-consumer sales, both in stores and online, seems to be paying off.
Coach led the way with a 15% jump in constant currency sales. However, things weren’t as strong for the other two brands. Kate Spade’s sales dropped 13%, and Stuart Weitzman fell by 18%.
In terms of regions, North America and Europe saw the biggest gains. Europe alone grew by 35% when adjusted for currency changes.
Thanks to better operations and smart inventory management, the company improved its gross margin by 140 basis points. This helped fund more investments in marketing and product innovation.
Looking ahead, Tapestry has increased its full-year forecast. It now expects:
- Around $6.95 billion in total revenue
- About $5.00 in earnings per share
- $1.3 billion in adjusted free cash flow
The company also remains on track to return over $2 billion to shareholders by the end of fiscal 2025.
Tapestry has built a strong global presence and is staying focused on growth despite a tricky global environment. With its current momentum, the company believes it’s ready to keep delivering strong results.
