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The parent company of Coach, Kate Spade and Stuart Weitzman posts solid profit expansion and strong shareholder returns.
Financials
12 November, 2025
Table of contents
Tapestry Inc. released its Fiscal 2025 full-year and fourth-quarter results on 14 August 2025, covering the reporting period from July 2, 2024 to June 28, 2025. The results highlight steady topline growth and continued margin expansion despite portfolio restructuring and one-time impairment charges. The group’s annual revenue surpassed $ 7 billion, reflecting a mid-single-digit increase versus 2024, led by double-digit growth at Coach.
Operating discipline, higher average unit retail prices, and strong cash generation underpinned the performance, with gross margin exceeding 75%, marking a 210-basis-point improvement year-on-year.
CEO Joanne Crevoiserat described FY 2025 as a “breakout year” for the company, driven by its systemic brand-building strategy, global omnichannel reach, and data-driven execution. Despite impairment charges related to Kate Spade and the divestiture of Stuart Weitzman, Tapestry Inc. delivered adjusted earnings above $5 per share and returned more than $2,3 billion to shareholders through buybacks and dividends.
| Metric | FY 2025 ($ billion) | FY 2024 ($ billion) | Δ YoY (%) | FY 2023 ($ billion) | Δ YoY (%) | FY 2022 ($ billion) | Δ YoY (%) | FY 2021 ($ billion) |
|---|---|---|---|---|---|---|---|---|
| Revenue | 7,01 | 6,67 | +5,1% | 6,66 | +0,1% | 6,68 | +16,3% | 5,74 |
| Cost of Sales | 1,72 | 1,78 | -3,4% | 1,94 | -8,8% | 2,03 | +22,3% | 1,66 |
| Gross Profit | 5,28 | 4,88 | +8,2% | 4,71 | +1,3% | 4,65 | +13,9% | 4,08 |
| Operating Income | 0,41 | 1,14 | -64% | 1,172 | -0,29% | 1,175 | +21,9% | 0,96 |
| Net Income | -0,18 | 0,82 | -122% | 0,93 | +9,4% | 0,85 | +2,4% | 0,83 |
Tapestry Inc.’s financial trajectory from FY 2021 to FY 2025 illustrates a steady but uneven pattern of growth shaped by strategic recalibration and portfolio restructuring. Over the five-year span, revenue expanded from $5,74 billion to $7,01 billion, marking an overall increase of roughly +22%, though 2025 growth moderated to +5,1% YoY amid portfolio streamlining and macro-economic headwinds.
Gross profit rose +8,2% YoY, reflecting stronger pricing discipline and supply-chain efficiency, with gross margin exceeding 75% for the first time. In contrast, operating income declined -64% YoY and net income turned negative (-$0,18 billion) due to non-recurring impairment charges on Kate Spade and divestiture-related costs from Stuart Weitzman.
Across brands, Coach remained the undisputed growth engine, delivering $5,6 billion in annual revenue (+10% YoY) and accounting for roughly 80% of Tapestry Inc.’s total sales. The brand’s sustained momentum reflected mid-teens average unit retail (AUR) gains and broad-based strength across categories, with double-digit growth in handbags and leather goods offsetting softness in apparel and footwear. By contrast, Kate Spade recorded a -10% decline to $1,2 billion, impacted by assortment rationalisation and brand repositioning following its intangible-asset impairment. Stuart Weitzman fell -11% to $0,2 billion, reflecting deliberate divestiture timing and weaker wholesale demand.
This divergence highlights a two-speed portfolio structure: Coach’s proven scale and pricing power continue to anchor group profitability, while the smaller brands undergo strategic reset. Importantly, Coach’s growth alone more than offset the combined contraction of Kate Spade and Stuart Weitzman, underscoring its critical role in stabilising Tapestry Inc.’s top line and maintaining the group’s ~20% adjusted operating margin.
When benchmarked against global peers, Tapestry Inc.’s topline resilience contrasts with softer profitability:
LVMH Moët Hennessy - Louis Vuitton reported ≈ +2% revenue growth in 2025 and operating margin above 26%, buoyed by selective retail and beauty.
Kering Group registered a -7% decline in 2024 as Gucci and Balenciaga restructured, with margin slipping below 20%.
Capri Holdings Limited, pre-acquisition termination, faced -5% sales contraction led by Michael Kors.
Within this context, Tapestry Inc.’s +5% revenue gain and 20% adjusted operating margin place it solidly within the mid-tier “affordable-luxury” segment - above Capri on profitability but below the scale of European majors.
In operational terms, Tapestry’s cost control and omnichannel leverage - digital sales up mid-teens and 6,8 million new customers (≈ 60% Gen Z and Millennials) - underscore its brand modernisation and data-driven retail capabilities. Its $1,35 billion free cash flow and 1,4× leverage ratio signal financial flexibility to reinvest while sustaining shareholder returns.
Looking ahead, management guides FY 2026 revenue to ~$7,2 billion (+3%) with EPS +4-7%, implying continued gross-margin improvement despite temporary tariff pressure (~230 bps).
Industrywide, experts forecast the global personal-luxury-goods market to expand 3-5% in 2026, with the accessible-luxury leather-goods niche - Tapestry Inc.’s core - expected to outpace at 4-6%, driven by U.S. resilience, China’s gradual rebound, and younger-consumer demand for entry-luxury pieces.
Against this backdrop, Tapestry Inc.’s disciplined brand focus, operational agility, and pricing strength position it to maintain competitiveness and deliver margin recovery in 2026, while sustaining its role as the leading American player in the global accessible-luxury segment.
| Region | FY 2025 Revenue ($ million) | FY 2024 Revenue ($ million) | Δ YoY (%) |
|---|---|---|---|
| North America | 4.516,5 | 4.314,0 | +5% |
| Greater China | 1.059,7 | 1.012,6 | +5% |
| Japan | 514,8 | 554,4 | -7% |
| Other Asia | 380,3 | 348,5 | +9% |
| Europe | 420,7 | 326,6 | +29% |
| Other Countries / MEA & Licensing | 118,7 | 115,1 | +3% |
| Total Tapestry | 7.010,7 | 6.671,2 | +5% |
Regionally, North America remained Tapestry Inc.’s anchor, delivering $4,52 billion (+5 %) amid stable U.S. demand and strong outlet conversion.
Greater China matched that growth at +5%, led by Coach’s +18% surge in Q4 and improving mainland footfall. Europe outperformed expectations with a +29% increase, driven by tourist recovery and higher full-price sell-through, while Other Asia rose +9% on momentum in South Korea and Singapore. Conversely, Japan softened -7% because of currency depreciation and subdued domestic luxury spending, and Other Countries / Licensing added a modest +3%.
This pattern underscores Tapestry Inc.’s healthy geographic diversification - with North America accounting for roughly two-thirds of sales but international regions providing the incremental growth. The sharp rebound in Europe and steady expansion across Asia confirm that the group’s multi-market omnichannel model continues to cushion against regional volatility while positioning Coach and Kate Spade for further traction in FY 2026.
March 2025: Coach debuted its Fall 2025 collection during New York Fashion Week, marking the 10-year anniversary of Creative Director Stuart Vevers. The show revived archival silhouettes such as the Rogue and Tabby bags, combined with modern varsity influences, reaffirming Coach’s accessible-luxury positioning.
February 2025: The brand introduced the Coach Play line, a limited-edition series of bright leather goods and small accessories designed for experiential retail activations across Asia.
November 2024: Kate Spade New York unveiled its Holiday 2024 capsule, focusing on whimsical “Joy to Go” designs and digital personalisation, contributing to solid seasonal momentum in direct-to-consumer channels.
September 2024: Stuart Weitzman launched its Iconic Nude capsule, modernising its signature sandal family with lower-impact materials - its final creative launch before the brand’s divestiture.
August 2025: Tapestry Inc. completed the sale of Stuart Weitzman, finalising its portfolio simplification and sharpening focus on Coach and Kate Spade.
June 2025: The company advanced its Kate Spade turnaround, appointing an interim design collective and realigning merchandising around lifestyle and gifting categories.
Throughout FY 2025: CEO Joanne Crevoiserat reiterated the group’s “Winning With Purpose” strategic pillars - brand differentiation, consumer centricity, and disciplined capital allocation. Tapestry Inc. also executed a $2 billion accelerated share-repurchase (ASR) programme, returning over $2,3 billion to shareholders across the fiscal year.
June 2025: Coach rolled out its “Wear Your Story” global campaign featuring Jennifer Lopez, Lil Nas X and Kōki, blending storytelling with Gen Z engagement.
April 2025: Kate Spade introduced “City of Joy,” a spring campaign starring Sydney Sweeney, reinforcing its message of optimism and New York roots.
H2 2024 - H1 2025: Coach Dreams Sunset Eau de Parfum expanded under the Inter Parfums licence, driving double-digit growth in fragrance revenue.
FY 2025: Tapestry Inc. brands amplified visibility at global events - from the Met Gala to the CFDA Awards - aligning celebrity placement with product storytelling and social reach.
May 2025: Coach opened its Shanghai Taikoo Li Qiantan flagship, integrating digital styling tools and immersive heritage zones.
March 2025: Kate Spade introduced its “Joy Shop” experiential pop-ups across Los Angeles, Tokyo and Milan, reinforcing emotional engagement and gifting.
FY 2025: Across the group, more than 40 stores were renovated under the Coach Expressive Luxury 2.0 concept, merging craftsmanship showcases with personalisation kiosks.
Digital: The company strengthened its omnichannel ecosystem by expanding to Zalando GmbH (Europe) and Tmall Luxury Pavilion (China), complementing mid-teens digital-revenue growth.
June 2025: Coach x Keith Haring Foundation capsule relaunched, honouring New York’s artistic heritage and reinforcing brand authenticity.
December 2024: Kate Spade x The Met Museum collaboration released an exclusive accessories edit inspired by “Women Artists in Focus,” tying fashion to cultural storytelling.
FY 2025: Tapestry Inc. participated in the CFDA + UPS “Made in America” sustainability initiative, mentoring emerging U.S. designers on responsible sourcing.
April 2025: Tapestry Inc. published its FY 2024 Corporate Responsibility Report, confirming 44% reduction in Scope 1 & 2 emissions versus 2019 and extending supplier climate-reporting coverage.
Ongoing FY 2025: Coach (Re)Loved expanded globally, with more than 1 million products refurbished since inception, supporting circular-economy goals.
May 2025: Kate Spade launched the “Empower Her” Fund, promoting mental-health advocacy for women through community partnerships and workplace training.
FY 2025: Renewable-electricity usage across Tapestry Inc. ’s owned operations exceeded 70%, aligning with its 2025 ESG roadmap and preparing for new 2030 science-based targets.
Tapestry Inc. closed Fiscal 2025 (July 2 2024 - June 28 2025) with record revenue of $7 billion, a strengthened gross margin, and a more focused brand portfolio. The year marked a pivotal transition as the Group streamlined its structure, exited Stuart Weitzman, and doubled down on the scalability of Coach and the repositioning of Kate Spade. Despite non-recurring charges that weighed on reported earnings, Tapestry’s operational resilience, expanding digital ecosystem, and high-margin brand mix reinforced its standing as the leading American player in the global accessible-luxury segment.
Looking ahead, the Group anticipates continued topline and margin improvement in Fiscal 2026, projecting revenue to approach $7,2 billion (+3%) and EPS growth of 4-7%, even after absorbing an estimated 230 bps tariff impact. Coach’s innovation pipeline, including refreshed heritage silhouettes and celebrity-driven collaborations, is expected to sustain momentum, while Kate Spade’s creative reset and gifting-led lifestyle strategy aim to stabilise sales and re-ignite brand equity.
On a broader scale, the accessible-luxury leather-goods market - where Tapestry Inc. commands a dominant share - is forecast to expand 4-6% in 2026, supported by Gen Z demand, China’s gradual rebound, and resilient U.S. spending. Tapestry Inc.’s investment in data analytics, store modernisation, and sustainability initiatives positions it to capture that growth efficiently. With a healthy net-debt ratio of 1,4×, free cash flow of $1,35 billion, and a 14% dividend increase approved for FY 2026, the company is entering the next fiscal year with a solid balance sheet and clear strategic focus.
Ultimately, FY 2025 demonstrated that Tapestry Inc.’s disciplined brand stewardship and operational agility can translate creative equity into consistent financial performance. As global luxury normalises after two volatile years, the Group’s emphasis on innovation, purpose-led storytelling, and targeted international expansion is set to drive sustainable, compounding growth through FY 2026 and beyond.
Cover Image: WWD.
Read the full Tapestry Inc. report Here.
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