Tapestry Stock Jumps As Coach Drives Surprise Q3 Beat and Full-Year Upgrade

Tapestry Inc TPR shares are trading higher on Thursday after reporting third-quarter earnings.

The company reported third-quarter FY25 revenue growth of 7% year-on-year to $1.58 billion, beating the analyst consensus estimate of $1.53 billion.

 FX represented a headwind of approximately 150 basis points in the quarter due to the appreciation of the U.S. Dollar.

On a constant currency basis, revenue grew 8% Y/Y, highlighted by constant currency gains in North America (+9%), Europe (+35%), and total APAC (+4%); led by 15% constant currency revenue growth at Coach.

Adjusted EPS of $1.03 beat the consensus estimate of 88 cents.

Gross profit increased 8.8% Y/Y to $1.21 billion, with the margin expanding 140 basis points to 76.1%.

Also Read: Under Armour Faces Tough Road Ahead, Says Analyst

Operating margin expanded 230 basis points to 16%, and operating income for the quarter increased 24.2% to $254 million.

Tapestry held $1.05 billion in cash and equivalents as of March 29. Inventory at the end of the third quarter was $874 million, compared to $824.8 million last year. 

The company’s board of directors declared a quarterly cash dividend of 35 cents per common share payable on June 23, 2025, to shareholders of record as of the close of business on June 6, 2025.

Operating cash flow for the quarter totaled $144 million, with an adjusted free cash flow of $135 million.

“Our third quarter outperformance reinforces our position of strength. We accelerated top and bottom-line growth and raised our outlook for the fiscal year, demonstrating the power of brand building and our connections with consumers around the world,” said CEO Joanne Crevoiserat.

Outlook: Tapestry raised the FY25 revenue guidance from over $6.85 billion to $6.95 billion, with an estimate of $6.87 billion.

The company also raised FY25 EPS outlook from $4.85 – $4.90 to about $5.00 versus an estimate of $4.92.

Price Action: TPR shares traded higher by 2.3% at $76.50 at last check Thursday.

Read Next:

• Terra Chips Maker Hain Celestial Seeks Strategic Options For Business, Announces CEO Transition

Photo: Shutterstock