Tapestry, Inc.: A Thread of Success in Fiscal Year 2024

Tapestry, Inc. (NYSE: TPR), a leading house of iconic accessories and lifestyle brands, has woven a tapestry of success in its fiscal year 2024. The company's strategic initiatives, operational excellence, and focus on innovation have driven remarkable financial results, positioning it as a formidable player in the luxury goods market.

Tapestry's strategic priorities, such as building lasting customer relationships and powering global growth, have been instrumental in its fiscal year 2024 performance. The company's focus on acquiring new customers, particularly Gen Z and Millennials, has contributed to its growth and market position. In North America alone, Tapestry acquired over 6.5 million new customers, with over half belonging to the Gen Z and Millennial generations. This customer-centric approach has enabled Tapestry to expand its reach and strengthen its brand loyalty.

Tapestry's international expansion and revenue gains in various regions have also played a significant role in its overall performance. The company achieved international topline growth of 6% at constant currency in FY24, with revenue gains in Europe (+14%), Other Asia (+9%), Japan (+5%), and Greater China (+3%) compared to the prior year. This global growth strategy has allowed Tapestry to diversify its revenue streams and tap into new markets.

Tapestry's operational improvements, including gross margin expansion and lower freight expense, have contributed to its financial success. The company achieved a strong gross margin expansion of 250 basis points in the fiscal year, driven by operational outperformance and favorable exchange rates. This, coupled with robust operating and free cash flow of over $1.1 billion, has fueled Tapestry's strategic growth agenda.

The record annual revenue at the Coach brand has also significantly impacted Tapestry's overall fiscal year 2024 performance. The Coach brand surpassed $5 billion in sales, driven by handbag revenue growth and AUR gains. This remarkable achievement demonstrates the brand's strength and appeal in the luxury goods market.

Tapestry's focus on delivering compelling omni-channel experiences and fueling fashion innovation has further enhanced its position in the market. The company's immersive retail experiences and new concepts have driven awareness and engagement among younger customer cohorts. Additionally, Tapestry's strong digital positioning, with revenue more than three times above pre-pandemic levels, has solidified its presence in the digital landscape.

In conclusion, Tapestry, Inc. has woven a tapestry of success in its fiscal year 2024, driven by strategic initiatives, operational excellence, and a focus on innovation. The company's customer-centric approach, international expansion, operational improvements, and record brand performance have positioned it as a formidable player in the luxury goods market. As Tapestry continues to evolve and adapt to the dynamic backdrop, it remains committed to driving growth and shareholder value for years to come.