Tapestry Inc reported a challenging QQ1 2025 with revenue of USD 1.5075 billion, reflecting a substantial year-over-year decline of approximately 27.7% and a modest sequential drop of about 5.3%. The gross margin remained exceptionally strong at 75.28%, underscoring resilient product economics and brand mix despite softer top-line performance. Operating income stood at USD 252.0 million, delivering an operating margin of 16.72%, while net income reached USD 186.6 million and diluted EPS was USD 0.79â0.81 depending on the metric chosen. The company generated USD 119.5 million of operating cash flow and USD 93.9 million of free cash flow for the quarter, supported by a robust USD 6.46 billion cash balance and a net debt position of USD 2.34 billion. Equally notable is the capital allocation cadence: USD 81.4 million in dividends, USD 34.5 million in share repurchases, and USD 41.7 million in share issuances, with total debt still elevated at USD 8.81 billion and long-term debt at USD 8.20 billion. The results highlight a company with strong profitability on a margin basis and healthy liquidity, but faced with a softer revenue environment and leveraged balance sheet dynamics. Absent management guidance in the provided data, the near-term path hinges on demand stabilization, channel mix optimization, and continued focus on direct-to-consumer growth and inventory discipline.