Tapestry (TPR) Q4 2025 earnings summary

Executive summary

• Achieved record fiscal year 2025 with $7.01 billion in revenue, 20% operating margin, and $5.10 adjusted EPS, all growing year-over-year.

• Returned $2.3 billion to shareholders, including $2 billion in accelerated share repurchases and $300 million in dividends.

• Demonstrated resilience and agility amid a complex macroeconomic environment, with strong brand-building and consumer engagement strategies.

• Completed the sale of Stuart Weitzman in August 2025.

• Board authorized a 14% increase in quarterly dividend for fiscal 2026.

Financial highlights

• Fiscal year 2025 revenue grew 5% to $7.01B, with Coach up 10% to $5.60B and Kate Spade down 10% to $1.20B.

• Fourth quarter sales rose 8% year-over-year, with North America up 8%, Europe up 10%, and China up 18%.

• Fourth quarter gross margin reached a record 76.3%, up 140 basis points; EPS for the quarter was $1.40, up 12%.

• Adjusted free cash flow for FY25 was $1.35 billion, up from $1.28 billion prior year.

• Leverage ratio at 1.4x; net debt $1.27 billion at year-end.

Outlook and guidance

• Fiscal 2026 revenue expected to approach $7.2 billion, with mid-single-digit growth and an 80 bps FX tailwind.

• EPS guidance: $5.30–$5.45, up 4–7%, including a $0.60 headwind from tariffs.

• Gross margin to decline by ~70 basis points due to a 230 bps tariff/duty headwind.

• Over $1 billion in capital to be returned to shareholders; $800 million in share repurchases planned.

• Free cash flow expected to approach $1.3 billion; capex around $200 million.