American fashion powerhouse Tapestry has announced impressive financial results, reporting $1.51 billion in net sales for the first quarter of fiscal year 2025, marking a stable performance compared to the same period last year. Despite facing challenges from fluctuating currencies, the company maintained this figure, showcasing its resilience in a tough economic environment.
The company’s gross profit reached $1.13 billion, yielding a robust margin of 75.3 percent, thanks to improved operational efficiencies and lower freight costs. Tapestry’s growth trajectory was primarily driven by significant contributions from Europe, which experienced a remarkable 27 percent increase in revenue. However, results from the Asia-Pacific region were mixed, reflecting an 11 percent rise in some markets but a 4 percent decline in Greater China. Meanwhile, North America faced a modest 1 percent decrease in sales, although it benefitted from elevated operating margins and profit due to gross margin expansion.
Tapestry, which owns well-known brands such as Coach, Kate Spade, and Stuart Weitzman, reported an operating income of $252 million, equating to a margin of 16.7 percent. Adjusted operating income reached $285 million, reflecting an 18.9 percent margin. The net income amounted to $187 million, leading to earnings of $0.79 per diluted share, while adjusted net income stood at $242 million with earnings per share of $1.02.
The company has been active in promoting its strategic initiatives aimed at enhancing customer relationships and expanding global reach, achieving strong engagement with 1.4 million new customers in North America, predominantly from Gen Z and Millennial demographics. Cash flow from operating activities came in at $120 million with free cash flow hitting $94 million, underpinning Tapestry’s commitment to sustainable growth and shareholder returns.
Joanne Crevoiserat, the CEO of Tapestry, expressed pride in the company’s ability to exceed expectations in the quarter. She attributed this success to the dedication of the teams who strengthened consumer relationships through innovative products and storytelling. Tapestry’s strategic positioning, marked by its distinctive brands and strong operational foundation, gives it the flexibility necessary to foster accelerated growth and value creation well into the future.
With these results, Tapestry continues to demonstrate its prowess in navigating the complexities of the current economic landscape while reinforcing its brand strength and market presence.
