Shares of Tapestry Inc. (TPR) surged 5.69% in pre-market trading on Thursday, following the release of its impressive third-quarter financial results. The luxury fashion house, known for brands such as Coach, Kate Spade, and Stuart Weitzman, outperformed market expectations across key financial metrics.
Tapestry reported Q3 sales of $1,580 million, significantly surpassing the IBES estimate of $1,527 million. The company's adjusted earnings per share (EPS) came in at $1.03, handily beating the analyst consensus of $0.88. Net income for the quarter stood at $203 million, with an operating margin of 16%, demonstrating the company's ability to maintain profitability amid challenging market conditions.
Looking ahead, Tapestry provided an optimistic outlook for fiscal year 2025, projecting revenue of $6,950 million. The company also reaffirmed its commitment to shareholder returns, stating it is on track to return over $2 billion to shareholders in the current fiscal year. Additionally, Tapestry noted that tariffs are expected to have an immaterial impact on its fiscal 2025 results, alleviating potential investor concerns about trade-related headwinds.
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