Tapestry 2025 Q3 Earnings Strong Performance as Net Income Rises 45.8%

Tapestry (TPR) reported its fiscal 2025 Q3 earnings on May 08th, 2025. Tapestry exceeded expectations with a notable 7% revenue growth year-on-year, reaching $1.58 billion, surpassing the analyst consensus estimate of $1.53 billion. The company also raised its fiscal year 2025 revenue and EPS guidance, now anticipating $6.95 billion in revenue and EPS of $5.00, both above prior estimates. The results reflect Tapestry's strong brand performance, particularly in the Coach segment, and its strategic focus on global expansion and consumer engagement.

Revenue
Tapestry's total revenue increased by 6.9% to $1.58 billion in 2025 Q3, up from $1.48 billion in 2024 Q3.

Earnings/Net Income
Tapestry's EPS rose 60.7% to $0.98 in 2025 Q3 from $0.61 in 2024 Q3, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $203.30 million in 2025 Q3, marking 45.8% growth from $139.40 million in 2024 Q3. The significant rise in EPS reflects Tapestry's robust earnings performance.

Price Action
The stock price of Tapestry edged down 2.08% during the latest trading day, jumped 10.00% during the most recent full trading week, and surged 23.10% month-to-date.

Post-Earnings Price Action Review
Over the past five years, buying Tapestry (TPR) shares after a revenue quarter-over-quarter increase and holding for 30 days has delivered strong returns. This strategy achieved an overall return of 541.18%, significantly outperforming the benchmark return of 92.56% by a margin of 448.62%. While the strategy experienced a maximum drawdown of -41.46% and maintained a Sharpe ratio of 1.02, indicating some risk with moderate returns, it achieved a compound annual growth rate (CAGR) of 45.22%. This performance reflects its effectiveness in driving capital appreciation despite inherent risks, highlighting its potential as a viable investment strategy.

CEO Commentary
Joanne Crevoiserat, Chief Executive Officer of Tapestry, Inc., emphasized the company's strong performance in the third quarter, highlighting accelerated growth in both revenue and earnings, which surpassed expectations. She noted that Tapestry's ability to connect with consumers globally and its commitment to brand building are key strengths. Despite a complex external environment, Crevoiserat expressed confidence in the company's strategic advantages, including its global scale and strong fundamentals, asserting a clear vision for future growth and shareholder value.

Guidance
Tapestry has raised its fiscal year 2025 revenue, earnings, and cash flow outlook. The company expects to return over $2 billion to shareholders, exceeding 100% of its adjusted free cash flow, through dividends and share repurchases. Tapestry anticipates maintaining its annual dividend rate of $1.40 per common share and continues its $2 billion Accelerated Share Repurchase program, with an additional $800 million remaining under its previous share repurchase authorization.

Additional News
Tapestry, Inc. has made headlines with its strategic initiatives beyond earnings. Notably, the company announced a quarterly cash dividend of $0.35 per common share, payable on June 23, 2025, reinforcing its commitment to returning capital to shareholders. Furthermore, Tapestry continues its $2 billion Accelerated Share Repurchase program, with $800 million still available under the previous authorization. These moves underscore the company's strong cash flow and its strategic focus on enhancing shareholder value. Additionally, Morgan Stanley recently upgraded Tapestry's rating to "Overweight," setting a new target price of $90, reflecting confidence in Tapestry's growth prospects and market position.