On August 15, 2024, Tapestry Inc (TPR, Financial) released its 8-K filing for the fourth quarter and full year fiscal 2024, showcasing robust financial results that surpassed analyst expectations. Tapestry Inc, the parent company of Coach, Kate Spade, and Stuart Weitzman, operates approximately 1,400 stores globally and has a significant presence in North America, Europe, and Asia.
Fiscal 2024 Fourth Quarter Financial Results
For the fourth quarter ended June 29, 2024, Tapestry Inc reported net sales of $1,591.1 million, a slight decrease from $1,619.5 million in the same period last year. Despite this, the company's gross profit increased to $1,191.2 million from $1,172.7 million, reflecting improved cost management and operational efficiency.
Full Year Fiscal 2024 Financial Results
For the full fiscal year, Tapestry Inc achieved net sales of $6,671.2 million, marginally up from $6,660.9 million in the previous year. The company's gross profit for the year was $4,889.5 million, compared to $4,714.9 million in fiscal 2023. Net income for the year stood at $816.0 million, down from $936.0 million in the prior year, primarily due to acquisition-related costs.
Performance by Brand and Region
| Brand | Q4 2024 Revenue (in millions) | % Change | FY 2024 Revenue (in millions) | % Change |
|---|---|---|---|---|
| Coach | $1,250.4 | 0% | $5,095.3 | 3% |
| Kate Spade | $290.1 | -6% | $1,334.4 | -6% |
| Stuart Weitzman | $50.6 | -19% | $241.5 | -14% |
Regionally, North America remained the largest market, contributing $4,314.0 million to the annual revenue, while Europe showed significant growth with a 26% increase in Q4 revenue to $92.3 million.
Balance Sheet and Cash Flow Highlights
Tapestry Inc's balance sheet remains strong, with significant cash flow generation. The company returned $321 million to shareholders through dividends in fiscal 2024, representing a 17% increase from the previous year. The Board of Directors has approved a quarterly cash dividend of $0.35 per common share, payable on September 23, 2024.
Strategic Initiatives and Acquisition
In August 2023, Tapestry Inc announced its agreement to acquire Capri Holdings Limited, which includes brands such as Michael Kors, Versace, and Jimmy Choo. This acquisition is expected to enhance Tapestry's market position and drive future growth. However, the Federal Trade Commission has filed a lawsuit to block the acquisition, and Tapestry is confident in its legal position to proceed with the transaction.
Non-GAAP Reconciliation and Financial Outlook
During the fiscal fourth quarter, Tapestry recorded certain items that decreased pre-tax income by $60 million and net income by $58 million. For the full fiscal year, these items amounted to $227 million in pre-tax income and $184 million in net income. These adjustments were primarily related to acquisition costs.
Joanne Crevoiserat, Chief Executive Officer of Tapestry Inc, stated, "Our fourth quarter results exceeded expectations, capping a successful year. This is a testament to our passionate global teams whose creativity and exceptional execution continue to fuel our brands and business."
For fiscal 2025, Tapestry Inc expects to maintain its annual dividend rate and continue its strategic initiatives to drive growth and shareholder value.
For more detailed financial information, please refer to Tapestry Inc's 8-K filing.
Explore the complete 8-K earnings release (here) from Tapestry Inc for further details.
