Tapestry 2025 Q4 Earnings Sharp Net Loss Amid Revenue Growth

Tapestry (TPR) reported its fiscal 2025 Q4 earnings on August 14, 2025. The results marked a significant turnaround in profitability, with the company posting a net loss of $517.10 million, or $24.90 per share, compared to a net income of $159.30 million, or $6.92 per share, in the prior year. Despite the sharp decline in earnings, the firm delivered a revenue increase of 8.3% year-over-year to $1.72 billion.

Tapestry’s total revenue for fiscal 2025 Q4 rose to $1.72 billion, representing an 8.3% increase from $1.59 billion in the same period of 2024. This growth reflects the company’s ongoing efforts to drive brand engagement and expand its omnichannel presence. Despite the positive revenue momentum, the earnings outlook deteriorated significantly, with the company swinging from a profit to a loss.

Earnings per share dropped dramatically, with Tapestry posting a loss of $24.90 per share in Q4 2025, compared to a profit of $6.92 per share in the year-ago quarter. The net loss for the period was $517.10 million, a 424.6% deterioration from the $159.30 million net income in the previous year. The sharp decline in profitability indicates a challenging operating environment, likely influenced by external pressures and strategic initiatives.

The stock price of Tapestry has continued to reflect investor concern, with the shares declining 0.27% during the latest trading day, 11.79% over the past week, and 5.82% month-to-date. While the recent post-earnings performance has historically been favorable, with a 204.98% return over the past three years when revenue declines were reported, the current bearish trend suggests a cautious market sentiment.

Following the release of the quarterly results, a strategy of buying TPR shares after a revenue decline and holding for 30 days historically delivered strong returns. Over the past three years, this approach returned 204.98%, significantly outperforming the benchmark return of 46.48%. The strategy demonstrated a 158.51% excess return and a compound annual growth rate of 46.87%, with no maximum drawdown recorded. These results suggest the potential for value creation in the wake of market overreactions to earnings disappointments, though investors should consider current market dynamics before implementing such a strategy.

CEO Joanne C. Crevoiserat emphasized Tapestry’s strong fiscal 2025 performance, with $7 billion in revenue and an adjusted EPS of $5.10. She credited the company's brand-building initiatives, omnichannel engagement, and strategic focus on Gen Z and millennial customers for its resilience amid macroeconomic uncertainty. Coach, a key segment within Tapestry, delivered 10% revenue growth and 13% constant-currency gains in Q4, driven by AUR expansion, leather goods innovation, and immersive retail experiences. Crevoiserat also highlighted Kate Spade’s early-stage turnaround efforts, including investments in Gen Z marketing and streamlined product offerings. Her tone remained optimistic, underlining the company’s long-term positioning as a durable, fashion-forward brand with structural advantages.

Looking ahead, Tapestry guided for fiscal 2026 pro forma revenue of approximately $7.2 billion, with mid-single-digit growth expected in North America, 20% growth in Europe, and high single-digit growth in China. Earnings per share are projected to range between $5.30 and $5.45, representing 4–7% growth, though the company will face $0.60 of tariff headwinds. Operating margin expansion is anticipated, despite a 230-basis-point pressure on gross margin from tariffs. Capital expenditures are expected to be around $200 million, with a focus on store openings and digital investments.

Additional News
Within the three weeks following Tapestry’s earnings release, several noteworthy developments emerged, though none directly related to M&A, C-level changes, or dividend announcements. Notably, Nigeria’s Federal Government successfully evacuated 11 stranded miners from the Central African Republic on August 15, highlighting its ongoing humanitarian and diplomatic efforts. Meanwhile, in political news, the Peoples Democratic Party (PDP) established a 44-member zoning committee to prepare for its November 15–16 National Elective Convention, with party leader Wike being urged to maintain total loyalty to its internal processes. In economic policy, the Federal Government announced plans to collaborate more closely with the Nigerian Economic Society to strengthen evidence-based policymaking.