Tapestry Reports Mixed Q2 Results with Raised EPS Guidance

Tapestry, Inc. reports mixed Q2 earnings. While the company's earnings declined, they exceeded analysts' expectations. Notably, revenue grew by 5.3%, and EPS guidance for FY25 was raised. Investors should assess potential stock price volatility.

Date: 06-02-2025

AI Rating: 6

Earnings Per Share (EPS)
Tapestry reported a net income of $310.40 million or $1.38 per share for the second quarter, which is a decrease from $322.30 million or $1.39 per share from last year. However, adjusted earnings were stronger at $450.20 million or $2.00 per share, exceeding analysts' expectations of $1.75 per share. This indicates a positive sentiment among investors as the company beat the Street estimates despite a decline in net earnings.

Revenue Growth
The company's revenue grew by 5.3%, rising to $2.195 billion compared to $2.085 billion last year. This growth in revenue contrasts with the decline in net income and shows increasing demand for the company's products.

Future Guidance
Tapestry raised its FY25 EPS guidance to a range of $4.85 to $4.90, up from the previous guidance of $4.50 to $4.55. This forecast revision adds a layer of optimism about future financial performance, suggesting that the company is confident in its growth strategy.

Stocks: TPR