TAPESTRY Outlook Fy25 raises the increase of Q3 sales 7 %

TAPESTRY, the parent company of Coach and Kate Spade, recorded net sales of $ 1.58 billion in the third quarter (Q3) of the fiscal year 2025 (fiscal year 25), which represents an increase of 7 % on the basis of reported or an 8 % increase based on the fixed currency against the same last financial period.

The company’s growth is due to large gains from the fixed currency in various regions, including 9 % in North America, 35 % in Europe, and 4 % in Asia and the Pacific.

The main shareholder in this growth was the trained brand, which has seen a 15 % strong increase in the basis of a fixed currency.

The revenue of the direct consumer of the quarter increased by 9 % on the basis of a fixed currency, supported by an increase in percentage in digital sales in digital sales and the rise in medium numbers in the sales of the brick and highlight store.

TAPESTRY has published the operating income of $ 254 million based on the generally accepted accounting principles (GAAP) in the third quarter of FY25, which leads to a 16.0 % operating margin. This performance exceeds the numbers of last year at a value of $ 204 million, at a margin of 13.8 %.

The company also witnessed the net increase in its income to $ 203 million during this quarter, compared to 139 million dollars registered in the third quarter of the 24th year.

Its diluted profits of the share were reported at $ 0.95 on the basis of the principles of acceptable accounting in general, compared to $ 0.60 for each diluted share in the Q3 FY24.

The total expenditures, general and administrative in Tapestry reached $ 952 million in the third quarter of the fiscal year 25, which represents 60.1 % of sales based on the principles of acceptable accounting in general.

The company’s total profit was $ 1.21 billion in the third quarter of the fiscal year 25, with a total margin of 76.1 %, reflecting operating improvements of about 140 basis points on the total total profit for the previous year of $ 1.11 billion and a total margin of 74.7 %.

In light of these positive results, Tapestry has reviewed the FY25 forecast up on the basis of the generally accepted accounting principles.

The company now expects the revenues to be about 6.95 billion dollars, indicating 4 % growth over the previous year on the basis of reporting despite the opposite winds of the expected currency about 50 basis points, exceeding previous expectations of about 3 % of growth.

TAPESTRY Projects expand an operating margin of about 100 basis points during the previous year, and corresponds to previous directives.

It is expected that the reduced profits of the share will be about 5.00 dollars, which indicates the growth of the high percentage compared to last year and exceeding the previous expectations between $ 4.85 and $ 4.90.

The updated expectations include commercial policies from April 10, 2025, including an expected additional tariff of 145 % on imports from China and an additional tariff of 10 % on all other international imports, the company said.

It indicates that these definitions are expected to have a little impact on the results of the fiscal year 25 due to the timing associated with sale and commodities during transit.