Tapestry raises 2025 revenue outlook as Q3 outperforms

Tapestry outperformed in the third quarter of the current financial year, with a revenue increase driven by constant currency growth seen both at its Coach brand and across the European region. Over the period ended March 29, 2025, the company, which also owns Kate Spade and Stuart Weitzman, posted a revenue of 1.58 billion dollars, representing an 8 percent constant currency growth on the year prior.

Coach was the only brand within the portfolio to report an increase in revenue, reaching 1.29 billion dollars, an uptick of 15 percent on the year prior. Kate Spade, meanwhile, saw revenue drop 12 percent to 244.9 million dollars, while Stuart Weitzman took the biggest hit at a 17 percent decrease in revenue to 46.2 million dollars.

Group gross profit came to 1.21 billion dollars, with a gross margin of 76.1 percent. This was an improvement on Q3 of last year, when the company reported a profit of 1.11 billion dollars. Its operating income, meanwhile, also increased from 204 million dollars to 254 million dollars on a GAAP basis. The operating margin sat at 16 percent. Net income over the period amounted to 203 million dollars, with earnings per diluted share of 95 cents on a GAAP basis.

Europe and Coach drive forward sales

In terms of region, Europe saw the most growth in revenue, increasing 35 percent to 92.9 million dollars. This was followed by Asian countries outside Japan and Greater China, for which revenue increased 14 percent. Alternatively, while revenue in China rose 5 percent to 278.9 million dollars, in Japan, it fell 2 percent to 93.9 million dollars. North America remained strong, however, recorded a revenue of 951.7 million dollars, at a growth rate of 9 percent.

In a statement, Tapestry CEO, Joanne Crevoiserat, said the Q3 “outperformance” reinforced the group’s “position of strength”, thus pushing it to raise its outlook for the year. “Importantly, while the external backdrop is complex, our vision remains clear,” Crevoiserat added. “We maintain a bias for action and will harness our competitive advantages, including our global scale, compelling value and strong fundamentals, to adapt and win in any environment.”

For 2025, Tapestry is now anticipating a revenue of around 6.95 billion dollars, representing a growth of 4 percent, up from its previously estimated 3 percent increase. Its operating margin for the period is anticipated to expand 100 basis points versus the year prior, while its earnings per diluted share is forecast to be in the area of 5 dollars, a high-teens percentage growth rate on 2024 figures.