Q4 2024 Tapestry Inc Earnings Call Transcript
Key Points
- Tapestry Inc (TPR) delivered total revenue growth of 1% on a constant currency basis, led by international growth of 6%.
- The company acquired over 6.5 million new customers in North America, with over half being Gen Z and millennials.
- Tapestry Inc (TPR) achieved its highest annual gross margin in over 15 years, driven by operational efficiencies and strategic investments.
- The digital business remains strong, with sales more than three times pre-pandemic levels, representing nearly 30% of revenue at accretive margins.
- Coach brand achieved record annual revenue, surpassing $5 billion, with significant growth in handbags and accessories.
- Revenue in North America declined by 1% compared to the previous year, reflecting a challenging consumer backdrop.
- Greater China revenue declined by 10% in the fourth quarter, impacted by a more challenging consumer environment.
- Stuart Weitzman brand faced significant challenges, with disappointing financial results due to external pressures in North America and Greater China.
- The pending acquisition of Capri is facing headwinds due to Capri's recent underperformance, raising concerns about the integration and financial returns.
- SG&A expenses rose by 3% in the fourth quarter, primarily due to increased marketing expenses, impacting operating margin.
Please stand by, your program is about to begin. (Operator Instructions) Good day and welcome to the 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 fourth quarter and year-end 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, I 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 forward-looking
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