Tapestry Q4 revenues rise 8% to $1.72bn
Growth was led by Coach’s 13% constant currency sales increase in Greater China and double-digit revenue gains in Europe
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Tapestry, the luxury group behind Coach, has reported stronger-than-expected results for its fourth quarter, as revenues rose 8% to $1.72bn (£1.27bn) in the three months to 28 June.
According to the group, its growth was led by Coach’s 13% constant currency sales increase in Greater China and double-digit revenue gains in Europe.
Tapestry’s gross margin expanded by 140 basis points to 76.3% for the quarter, driven by operational improvements, while net income reached $223m (£164m) on a non-GAAP basis, up from $217m (£160m) a year earlier. GAAP results showed a net loss of $517m (£381m), reflecting charges related to previously planned merger activity.
As a result, full-year revenues rose 5% to $7.01bn (£5.17bn), while gross margin improved 210 basis points to 75.4%. The company reported adjusted earnings per share of $5.10 (£3.76), exceeding its own target set at its 2022 investor day.
North America revenues increased 5% for the year, with Europe up 28% and Asia Pacific rising 2%. Coach, Tapestry’s largest brand, delivered 10% growth on a constant currency basis.
Meanwhile, direct-to-consumer sales grew 5% year on year, with digital sales up by a low double-digit percentage and in-store sales growing at a low single-digit rate.
Tapestry said it added 6.8 million new customers in North America over the year, around 60% of whom were aged under 40.
Joanne Crevoiserat, chief executive of Tapestry, said: “Fiscal 2025 was a breakout year for Tapestry as our systemic approach to brand-building is capturing a new generation of consumers around the world.
“Importantly, we achieved bold targets we set three years ago in a dynamic landscape, delivering over $5 (£3.69) in adjusted earnings per share and returning more than $3bn (£2.21) cumulatively to shareholders.”
Looking ahead, the group forecast low single-digit revenues growth for fiscal 2026, with adjusted earnings per share expected to rise to between $5.30 (£3.91) and $5.45 (£4.02), despite anticipated cost headwinds from US tariffs.
The outlook excludes the impact of Stuart Weitzman, which was sold on 4 August. Tapestry expects free cash flow to approach $1.3bn (£960m) in the coming year.
