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Tapestry Inc. (TPR-2.10%) has submitted its 10-Q filing for the quarterly period ended December 28, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $2.20 billion from $2.08 billion in the same quarter the previous year. The increase is attributed to higher sales in the Coach brand, offset by declines in the Kate Spade and Stuart Weitzman brands.
Gross profit for the quarter was $1.63 billion, up from $1.49 billion in the previous year, with the gross margin increasing to 74.4% from 71.6%. This increase was primarily due to net pricing improvements.
Selling, general, and administrative expenses rose to $1.14 billion from $1.05 billion, primarily due to higher marketing expenses.
The company reported an operating income of $492.8 million, compared to $447.6 million in the previous year. The operating margin increased to 22.4% from 21.5%.
Tapestry recorded a loss on extinguishment of debt of $120.1 million, related to the redemption of senior notes issued for a previously planned acquisition.
Net income for the quarter was $310.4 million, down from $322.3 million in the previous year. The decrease was primarily due to acquisition-related costs.
Net income per diluted share was $1.38, compared to $1.39 in the previous year.
Tapestry's cash and cash equivalents decreased by $5.16 billion during the six months ended December 28, 2024, primarily due to share repurchases and debt repayments.
The filing also details the termination of a planned acquisition of Capri Holdings Limited, resulting in the redemption of related senior notes and associated costs.
Tapestry continues to focus on its 2025 growth strategy, emphasizing customer relationships, product innovation, omni-channel experiences, and global growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Tapestry Inc. quarterly 10-Q report dated February 6, 2025. To report an error, please email earnings@qz.com.