The American fashion group Tapestry Inc. slipped deep into the red numbers in the fourth quarter of the 2024/25 financial year due to negative special effects. Overall, the results that the company released on Thursday exceeded the market expectations.
In the final quarter, which ended on June 28th, the group sales were $ 1.72 billion ($ 1.47 billion). He rose by eight percent compared to the same period in the previous year and reached a new record value.
The unexpectedly significant growth owed the group to its main brand Coach, whose revenues increased by 14 percent to just under $ 1.43 billion. The other two labels, on the other hand, had to accept considerable losses. The sales of Kate Spade fell by 13 percent to $ 252.6 million. The revenue of the Stuart Weitzman brand, whose sale was carried out to the Caleres shoe company a few days ago, shrank by ten percent to $ 45.5 million.
One -red pollution ensures deep red numbers
The group was able to increase its gross margin, but high disposal burdened the result. This included extensive value adjustments to the Kate Spade brand, expenses for restructuring measures and costs in the course of the sale of Stuart Weitzman.
Therefore, Tapestry had to accept a net loss of $ 517.1 million (442.5 million euros) in the fourth quarter after a surplus of $ 159.3 million was achieved in the previous year.
Adjusted for special effects, the net profit reached a height of $ 223 million. In doing so, he exceeded the corresponding previous year’s level of $ 217 million and the expectations of the analyst: inside.
Customs increases dampen the profit forecasts
In the entire financial year 2024/25, the group turnover was $ 7.01 billion, which meant an increase of five percent compared to the previous year. The net profit fell to $ 183.2 million due to the high disposal of $ 816.0.
For the current financial year 2025/26, the management expects to grow in sales to around $ 7.2 billion despite the sale of Stuart Weitzman. The diluted profit per share, which was adjusted for special effects, is to be increased to $ 5.30 to $ 5.45 last year. The result forecast remained behind the market expectations. Management justified the reserved objective with the expected loads from higher tariffs.