Tapestry, Inc, the parent company of renowned brands Coach, Kate Spade, and Stuart Weitzman, has reported net sales of $1.51 billion in the fiscal 2025 (FY25) first quarter (Q1) ended September 28, 2024, showcasing resilience and growth amidst a challenging economic landscape. They were consistent with the prior year, despite a 40-basis point headwind from currency fluctuations.
Tapestry, Inc has reported $1.51 billion in net sales for Q1 FY25, maintaining levels from the prior year despite currency challenges.
Gross profit was $1.13 billion with a 75.3 per cent margin, bolstered by operational efficiencies and reduced freight costs.
Strong European growth (+27 per cent) offset mixed Asia-Pacific results and a slight North American decline.
The company’s gross profit reached $1.13 billion in Q1, with a gross margin of 75.3 per cent, driven by operational improvements, lower freight expenses, and favourable currency effects.
Tapestry’s operating income was $252 million on a reported basis, with a margin of 16.7 per cent and adjusted operating income was $285 million, reflecting an 18.9 per cent margin. Its net income totalled $187 million, translating to earnings per diluted share of $0.79, while adjusted net income stood at $242 million, with earnings per share at $1.02, the company said in a press release.
Revenue remained stable compared to the previous year on both a reported and constant currency basis. Coach led with topline growth and increasing profitability, while Europe recorded an impressive 27 per cent increase in revenue. The Asia-Pacific region showed mixed results, with an 11 per cent rise in other Asian markets but a 4 per cent decline in Greater China. North America saw a 1 per cent decline in sales; however, the region benefitted from higher operating margins and profit due to gross margin expansion.
The American fashion holding company achieved double-digit growth in adjusted earnings per share (EPS) and strong cash flow generation despite global economic challenges. It focused on strategic goals aimed at deepening customer relationships, expanding global growth, and enhancing brand desirability. Significant customer engagement was achieved, with 1.4 million new customers acquired in North America, over half of whom were from Gen Z and Millennial demographics.
Tapestry generated $120 million in cash flow from operating activities and $94 million in free cash flow, reinforcing its long-term growth strategies and shareholder returns, the release added.
Joanne Crevoiserat, chief executive officer of Tapestry, Inc, said, “Our first quarter results outperformed expectations, showcasing the brand magic and operational excellence that fuel our strategic growth agenda. Our talented global teams fostered consumer connections through innovative products, experiences, and storytelling, while managing our business with focus and discipline against a dynamic backdrop. We remain in a position of strength, with distinctive brands, an agile platform, and robust cash flow that provide us with strategic and financial flexibility to deliver accelerated organic growth and enhanced value creation in FY25 and for years to come.”
Fibre2Fashion News Desk (HU)