Executive Summary
Tapestry Inc reported QQ3 2024 revenue of $1.4824 billion, down 2.0% year over year, with a robust gross margin of 72.8% but a material drop in operating income and net income versus the prior year. The quarter delivered a solid gross profit of approximately $1.107 billion, underscoring pricing power and mix benefits from Coach, Kate Spade, and Stuart Weitzman, even as SG&A and other operating costs rose, contributing to a 19.3% year-over-year decline in operating income and a 28.5% drop in net income. Despite profit pressure, the company preserved positive free cash flow of $78.8 million, supported by a substantial liquidity position (cash and equivalents around $6.98 billion) and a net debt position of approximately $2.29 billion after financing activity. Management commentary on near-term demand and margin trajectory was not provided in the dataset, but the quarterly metrics imply ongoing brand strength and resilience in a softer luxury environment.
Key Performance Indicators
QoQ: -4.80% | YoY:-19.31%
Key Insights
Revenue: $1,482.4m; YoY -2.04%; QoQ 0.00%
Gross Profit: $1,107.4m; Gross Margin 72.8%; YoY +0.88%; QoQ +2.59%
Operating Income: $214.6m; Operating Margin 14.48%; YoY -19.31%; QoQ -4.80%
Net Income: $139.4m; Net Margin 9.40%; YoY -28.51%; QoQ 0.00%
EPS: $0.61; Diluted $0.60; YoY -28.24%; QoQ 0.00%
Free Cash Flow: $78.8m; Operating Cash Flow $97.8m; Capex $19.0m; FCF Yield limited by capex and working capital.
Cash & Equivalents: $6.98B; Total Debt: $9.27B; Net Debt: $2.29B
Balance Sheet: Tota...
Financial Highlights
Revenue: $1,482.4m; YoY -2.04%; QoQ 0.00%
Gross Profit: $1,107.4m; Gross Margin 72.8%; YoY +0.88%; QoQ +2.59%
Operating Income: $214.6m; Operating Margin 14.48%; YoY -19.31%; QoQ -4.80%
Net Income: $139.4m; Net Margin 9.40%; YoY -28.51%; QoQ 0.00%
EPS: $0.61; Diluted $0.60; YoY -28.24%; QoQ 0.00%
Free Cash Flow: $78.8m; Operating Cash Flow $97.8m; Capex $19.0m; FCF Yield limited by capex and working capital.
Cash & Equivalents: $6.98B; Total Debt: $9.27B; Net Debt: $2.29B
Balance Sheet: Total Assets $13.73B; Stockholders’ Equity $2.78B; Current Ratio 6.59; Quick Ratio 5.98; Cash Ratio 5.11
Liquidity/Leverage: Interest Coverage 6.71x; Debt to Equity 3.34x; Long-Term Debt to Capitalization 0.73x; Dividend Payout 57.7%; Dividend Yield ~0.77%
Valuation (selected): P/E 18.9x; P/S 7.1x; P/B 3.79x; EV/EBITDA 45.9x; FCF/Share $0.34; Operating Cash Flow/Share $0.43
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.48B |
-2.04% |
0.00% |
| Gross Profit |
1.08B |
0.88% |
2.59% |
| Operating Income |
214.60M |
-19.31% |
-4.80% |
| Net Income |
139.40M |
-28.51% |
0.00% |
| EPS |
0.61 |
-28.24% |
0.00% |
Key Financial Ratios
operatingProfitMargin
14.5%
operatingCashFlowPerShare
$0.43
freeCashFlowPerShare
$0.34
dividendPayoutRatio
57.7%
Management Commentary
No earnings call transcript was provided in the dataset. As a result, management quotes and thematic takeaways from the QQ3 2024 call are not available within this analysis. The assessment below integrates the reported financials with general industry expectations and publicly disclosed guidance where applicable.
Transcript data not available in the provided dataset.
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Transcript data not available in the provided dataset.
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Forward Guidance
No explicit forward guidance was available in the provided data set. Given the results, investors should monitor: (1) trajectory of luxury demand and travel-related confidence, (2) pace of DTC e-commerce growth versus wholesale, (3) gross margin resilience amid product mix shifts and potential input cost volatility, (4) effectiveness of SG&A containment and inventory management, and (5) currency headwinds or tailwinds impacting international regions. If the company can stabilize or modestly expand gross margin while sustaining operating expense discipline, mid-single-digit revenue progression and improved cash flow could support a steadier earnings trajectory in the near term.