Tapestry (TPR) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 revenue of $1.6B, up 7%–8% year-over-year at constant currency, led by 13%–15% growth at Coach and strong international performance.

• GAAP diluted EPS rose 60% to $0.95; non-GAAP EPS up 27% to $1.03, with net income up 45.9% year-over-year.

• Added 1.2M new North American customers, two-thirds Gen Z/Millennial.

• Announced sale of Stuart Weitzman to Caleres for $105M, expected to close summer 2025.

• Terminated Capri Holdings acquisition, incurring $268.4M in pre-tax expenses and redeeming $6B in senior notes.

Financial highlights

• Q3 net sales: $1.58B (+6.9%–8% YoY); gross margin: 76.1% (+140bps YoY); operating income: $254M–$420M; net income: $203M; non-GAAP EPS: $1.03.

• Coach: Q3 sales $1.29B (+12.9%–15% YoY), gross margin 78.7%, operating income $420M.

• Kate Spade: Q3 sales $245M (–12%–13% YoY), gross margin 66.7%.

• Stuart Weitzman: Q3 sales $46M (–17%–18% YoY), gross margin 52.2%, operating loss $5.6M.

• Adjusted free cash flow YTD exceeded $1B; $1.1B YTD, with $135M in Q3.

Outlook and guidance

• FY25 revenue guidance raised to ~$6.95B (+4% YoY), with operating margin expected to expand by ~100bps.

• EPS guidance increased to ~$5.00 (high-teens % growth); adjusted free cash flow expected at ~$1.3B.

• CapEx and cloud computing costs projected at ~$160M for FY25.

• Guidance assumes no material worsening of inflation or consumer sentiment and excludes one-time costs from Stuart Weitzman sale and Capri acquisition termination.