Tapestry Inc (0LD5.L) Q3 2025 Earnings Report

Tapestry Inc reported QQ3 2025 revenue of USD 1.5846 billion, with a robust gross margin of 76.1% and operating margin of 16.0%. Net income reached USD 203.3 million and earnings per share (diluted) USD 0.95, reflecting a solid bottom-line delivery despite a meaningful sequential revenue decline. The quarter exhibits a classic mix-driven profile: strong brand profitability on a high-margin product assortment, yet a sharp QoQ revenue drop (-27.8%) from Q2 2025, underscoring seasonality and channel mix dynamics. Free cash flow was modest but positive at USD 113.4 million, supporting a conservative liquidity stance given a sizable debt burden. The company continues to generate attractive gross margins on a diverse premium portfolio (Coach, Kate Spade, Stuart Weitzman) and maintains a durable balance sheet, though leverage remains a focal point for investors.

Looking forward, management commentary (where available) and the quarterly metrics suggest ongoing brand strength and a path to moderate top-line growth as wholesale normalization and DTC acceleration progress. Near-term risks include channel mix volatility, macro headwinds in consumer spending, and currency/FX exposure. Investors should monitor inventory levels (days of inventory on hand ~208 days), working capital movements, and debt reduction trajectory as key catalysts for improving cash flow visibility and balance sheet resilience.