Q2 2025 Tapestry Inc Earnings Call Transcript
Key Points
- Tapestry Inc (TPR) delivered record quarterly revenue and earnings per share, exceeding expectations.
- Coach achieved a 10% growth in constant currency revenue with significant margin expansion, driven by strong gains in leather goods.
- The company acquired approximately 2.7 million new customers in North America, with over half being Gen Z and millennials.
- Tapestry Inc (TPR) reported a strong gross margin performance, achieving a record second quarter gross margin.
- The company raised its fiscal year 2025 outlook, expecting revenue of over $6.85 billion and EPS growth of 13% to 14%.
- Kate Spade's revenue trends declined by 10%, indicating challenges in brand performance.
- Stuart Weitzman experienced a 16% decrease in net sales, primarily due to softness in Greater China and North America.
- The company anticipates increased SG&A expenses, driven by higher marketing spend and investments at Kate Spade.
- Tapestry Inc (TPR) faces a planned second half currency headwind, impacting financial results.
- The company acknowledges that resetting the Kate Spade brand is a multi-quarter journey, indicating prolonged challenges.
Good day, and welcome to this Tapestry conference call. Today's call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to the Global Head of Investor Relations, Christina Colone.
Good morning. Thank you for joining us. With me today to discuss our second quarter results as well as our strategies and outlook are Joanne Crevoiserat, Tapestry's Chief Executive Officer; and Scott Roe, Tapestry's Chief Financial Officer and Chief Operating Officer.
Before we begin, we must point out that this conference call will involve certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act. This includes projections for our business in the current or future quarters or fiscal years. Forward-looking statements are not guarantees, and our actual results may differ materially from those expressed or implied in the forward-looking statements.
Please refer to our annual report on Form 10-K, the press release
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