“Our strong second quarter outperformance is a testament to our exceptional teams and our collective commitment to disciplined brand building,” said Joanne Crevoiserat, Chief Executive Officer of Tapestry. “During the important holiday season, we meaningfully advanced our growth agenda, bringing innovation and craftsmanship to consumers around the world. Our success is clearly reflected in the accelerated top and bottom-line gains we achieved, resulting in record quarterly revenue and adjusted earnings per share. Further, we raised our outlook for the year, harnessing our position of strength to deliver superior results, while making strategic investments to extend our competitive advantages and power durable growth”.

Second Quarter Results

For the second quarter of fiscal 2025, which ended on the 28^th of November, Tapestry reported net sales of 2.20 billion US dollars, an increase of 5% on a reported and constant currency basis, as compared to the same period of last year.

While Coach contributed 1.71 billion US dollars to the company’s total net sales in the period, up by 11% or 10% on a constant currency basis, Kate Spade contributed 416.4 million US dollars, down by 10% on a reported and constant currency basis, and Stuart Weitzman 69.7 million US dollars, down by 15% or 16% on a constant currency basis.

From a regional perspective, it’s worth highlighting the growth of 45%, or 42% on a constant currency basis, in Europe to 129.3 million US dollars and 4% in North America to 1.51 billion US dollars, as compared to the second quarter of fiscal 2024. In the APAC region, Tapestry grew by only 1% during this period.

In the second quarter of the current fiscal year, the company’s gross profit improved to 1.63 billion US dollars from 1.49 billion US dollars with a gross margin of 74.4% compared to 71.6% in the same period of last year. This was driven by operational improvements of 260 basis points and a 20-basis point benefiting from lower freight costs.

Tapestry recorded an operating income of 493 million US dollars and an operating margin of 22.4% in the second quarter, as compared to 448 million US dollars and 21.5% in a similar period of the previous year. Non-GAAP operating income was 548 million US dollars and gross margin was 24.9%, as compared to a non-GAAP operating income of 476 million US dollars in the second quarter of the previous year.

In the three months to the 28^th of December, the company’s net income improved to 310 million US dollars, with earnings per diluted share of 1.38 billion US dollars, from 322 million US dollars, with earnings per diluted share of 1.39 US dollars, in the same period of last year.  Non-GAAP net income totalled 450 million US dollars, with earnings per diluted share of 2.00 US dollars, as compared to non-GAAP net income of 377 million US dollars, with earnings per diluted share of 1.63 US dollars, in the same period of last year.

Fiscal 2025 Outlook

Tapestry now expects revenue to exceed 6.85 billion US dollars, representing growth of approximately 3% over the prior year on a reported basis, ahead of previous guidance of approximately 1% to 2% growth over the prior year on a reported and constant currency basis.

Earnings per diluted share are anticipated in the range of 4.85 to 4.90 US dollars, representing 13% to 14% growth as compared to the prior year, and exceeding the previous guidance of 4.50 to 4.55 US dollars.