Tapestry, Inc · Q4 2024 earnings

Briefing

Tapestry's fourth quarter results exceeded expectations, capping off a successful year with strong financial performance.

Tapestry, Inc. reported Q4 results exceeding expectations, with net sales of $1.59 billion. The company's gross profit reached $1.19 billion, and net income was $159 million, resulting in earnings per diluted share of $0.68. Non-GAAP earnings per diluted share was $0.92. The company is focused on driving growth and shareholder value.

• Net sales totaled $1.59 billion, a 2% decline year-over-year on a reported basis but approximately even with the prior year excluding currency headwinds.
• Gross profit reached $1.19 billion with a gross margin of 74.9%, benefiting from operational improvements and lower freight expenses.
• Reported operating income was $235 million, with an operating margin of 14.8%; non-GAAP operating income was $262 million, with an operating margin of 16.5%.
• Net income was $159 million, resulting in earnings per diluted share of $0.68, while non-GAAP net income was $217 million, with earnings per diluted share of $0.92.

Headline financials

Revenue & EPS history

Tapestry expects for Fiscal 2025 on a non-GAAP basis: Revenue in the area of $6.7 billion, representing growth compared to the prior year on a reported basis, including approximately 50 basis points of currency pressure. On a constant currency basis, revenue is expected to increase approximately 1% versus prior year; Operating margin expansion in the area of 50 basis points compared to prior year; Net interest income of approximately $20 million; Earnings per diluted share of $4.45 to $4.50, representing mid-single digit growth compared to the prior year.