Tapestry Reports $183.2 Million Net Income, 5.1% Sales Growth for Fiscal Year Ending June 28, 2025

Tapestry, Inc. reported a net income of $183.2 million for the fiscal year ending June 28, 2025, a significant decrease of 77.6% compared to $816.0 million in the previous fiscal year. The company's total net sales increased by 5.1% to $7.01 billion, up from $6.67 billion in fiscal 2024. This growth was primarily driven by a 9.9% increase in sales from the Coach brand, which accounted for approximately 79.9% of total net sales, while Kate Spade and Stuart Weitzman saw declines in sales of 10.3% and 10.9%, respectively. The overall gross profit rose to $5.29 billion, reflecting an increase in gross margin to 75.4% from 73.3% in the prior year, attributed to net pricing improvements.

The fiscal year was marked by significant operational changes, including the divestiture of the Stuart Weitzman business, completed on August 4, 2025, for $105 million. This strategic decision was part of Tapestry's broader efforts to streamline operations and focus on its core brands. Additionally, the company faced challenges, including a $854.8 million impairment charge related to the Kate Spade brand, which was driven by reduced cash flow expectations and increased costs due to changes in tariff policies. The company also incurred $120.1 million in losses related to the extinguishment of debt associated with the terminated Capri Holdings acquisition.

In terms of operational metrics, Tapestry's direct-to-consumer (DTC) sales represented approximately 86% of total net sales, with a notable increase in e-commerce and store sales primarily in North America and Greater China. The company operated a total of 1,371 stores globally as of June 28, 2025, a slight decrease from 1,402 stores in the previous year. The total employee headcount stood at approximately 19,000, with around 15,100 working in retail locations.

Looking ahead, Tapestry has outlined its growth strategy, "futurespeed," which focuses on building lasting customer relationships, fueling fashion innovation, delivering compelling omni-channel experiences, and powering global growth, particularly in North America and China. The company anticipates that ongoing macroeconomic challenges, including currency fluctuations and geopolitical instability, may impact its financial performance in the upcoming fiscal year. However, Tapestry remains committed to leveraging its brand strengths and operational efficiencies to navigate these challenges and drive future growth.