Tapestry, Inc, the parent company of renowned brands Coach, Kate Spade and Stuart Weitzman, reported net sales of $1.51 billion in the first quarter (Q1) of fiscal year 2025 (FY25) ending September 28, 2024, showing resilience and growth amid a challenging economic landscape. They were consistent with the prior year, despite a 40 basis point headwind due to currency fluctuations.
Tapestry, Inc reported $1.51 billion in net sales for the first quarter of FY25, maintaining year-ago levels despite currency challenges. Gross profit was $1.13 billion with a margin of 75.3 percent, driven by operational efficiencies and reduced freight costs. Strong European growth (+27 percent) offset mixed results in Asia-Pacific and a slight decline in North America.
The company's gross profit reached $1.13 billion in the first quarter, with a gross margin of 75.3 percent, driven by operational improvements, lower freight expenses and favorable currency effects.
Tapestry's operating income was $252 million as reported, reflecting a margin of 16.7 percent, and adjusted operating income was $285 million, reflecting a margin of 18.9 percent. Its net income amounted to $187 million, translating to diluted earnings per share of $0.79, while adjusted net income stood at $242 million, with earnings per share of $1.02, it said. the company in a press release.
Revenue was stable compared to the previous year, both in reported and constant currency terms. Coach led with revenue growth and higher profitability, while Europe saw an impressive 27 percent increase in revenue. The Asia-Pacific region showed mixed results, with other Asian markets up 11 percent but down 4 percent in Greater China. North America saw a 1 percent drop in sales; However, the region benefited from higher operating margins and profits 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 objectives aimed at deepening customer relationships, expanding global growth and enhancing brand appeal. Significant customer engagement was achieved, with 1.4 million new customers acquired in North America, more than half of which were within Generation Z and Millennial demographics.
Tapestry generated $120 million in cash flow from operating activities and $94 million in free cash flow, reinforcing its strategies for long-term growth and shareholder returns, the statement added.
Joanne Crevoiserat, CEO of Tapestry, Inc.said: “Our first quarter results exceeded expectations, showcasing the brand magic and operational excellence driving 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 in a dynamic context. “We remain in a strong position, with distinctive brands, an agile platform and strong cash flow providing us with strategic and financial flexibility to achieve accelerated organic growth and further value creation in FY25 and beyond.”
Fiber2Fashion News Desk (HU)
