Tapestry Inc., the parent company behind brands like Coach, Stuart Weitzman, and Kate Spade, released its Q1 2025 fiscal earnings report on Thursday, showing net sales steady at $1.51 billion with Gross profit totaled $1.13 billion gross margin was 75.3%
While the sales figures beat the company’s projections, the growth trends varied across its brand portfolio and international markets.
Tapestry Inc. Q1 2025 Financial Performance (in millions)
| Brand | Quarter Ended September 28, 2024 (in millions) |
|---|---|
| Coach | $1,170.6 |
| Kate Spade | $283.2 |
| Stuart Weitzman | $53.7 |
| Region | Quarter Ended September 28, 2024 (in millions) |
|---|---|
| North America | $948.2 |
| Greater China | $234.1 |
| Japan | $117.1 |
| Other Asia | $86.8 |
| Europe | $94.3 |
| Other | $27.0 |
| Total Tapestry | Quarter Ended September 28, 2024 (in millions) |
|---|---|
| Tapestry Total | $1,507.5 |
For Q1, Coach, Tapestry’s most prominent brand, recorded a modest 1% year-over-year increase in sales, highlighting its enduring appeal among consumers.
Similarly, Stuart Weitzman posted a 2% growth, affirming its steady position within Tapestry’s lineup.
Kate Spade, however, faced a 7% decline in sales, continuing a trend that Tapestry has been actively addressing.
Recent strategic changes for Kate Spade, including the appointment of Eva Erdmann as the new brand president and CEO (previously from L’Oréal), indicate Tapestry’s commitment to revitalizing the brand’s performance in upcoming quarters.
Breaking down the performance by region, North America saw a slight 1% dip in revenue, while China and Japan experienced sharper declines of 4% and 8%, respectively.
These shifts reflect ongoing economic pressures and consumer behavior changes in key markets. However, Europe emerged as a standout, boasting an impressive 27% growth, fueled by robust demand for luxury and fashion goods.
Additionally, the Asia region, excluding China and Japan, grew by 11%, suggesting potential in developing markets for Tapestry’s products.
Given the Q1 results, Tapestry raised its revenue outlook for the full 2025 fiscal year, now projecting over $6.75 billion in revenue, marking a potential 1% to 2% annual growth.
In response to ongoing challenges with Kate Spade, Tapestry has enacted specific strategies to reinvigorate the brand.
Erdmann’s recent appointment signals Tapestry’s renewed focus on positioning Kate Spade for a turnaround, targeting the luxury market’s evolving needs.
Conversely, Coach has continued to expand its appeal to younger demographics, with the company acquiring 1.4 million new North American customers in Q1, with Gen Z and millennial consumers accounting for over half of these acquisitions.
