Tapestry, Inc. has released their fourth quarter and full year fiscal 2024 results, reporting several key financial and strategic highlights. The company achieved a reported diluted EPS of $3.50 and a record non-GAAP diluted EPS of $4.29, surpassing their own outlook. The company also saw a gross margin expansion of 250 basis points and generated over $1.1 billion in operating and free cash flow in fiscal year 2024.
In terms of revenue, the company delivered a record annual revenue at the Coach brand and acquired over 6.5 million new customers during the year in North America alone, over half of which were Gen Z and millennials.
In the fiscal year, Tapestry achieved a 1% revenue growth at constant currency, including a record year at Coach which surpassed $5 billion in sales. The company also saw international topline growth of 6% at constant currency, with revenue gains in Europe (+14%), Other Asia (+9%), Japan (+5%), and Greater China (+3%) compared to the prior year.
The company's gross profit totaled $1.19 billion in the fourth quarter, with a gross margin of 74.9%, which included operational improvements and a benefit of approximately 90 basis points from lower freight expense, as well as FX tailwinds. For the full year, gross profit totaled $4.89 billion, with a gross margin of 73.3%, reflecting a benefit of 130 basis points from lower freight expense, operational improvements, and FX tailwinds.
Tapestry's non-GAAP net income for the full year was $1.00 billion, with earnings per diluted share of $4.29, compared to a net income of $936 million and earnings per diluted share of $3.88 in the prior year on both a reported and non-GAAP basis.
Looking ahead to fiscal 2025, Tapestry expects revenue in the area of $6.7 billion, representing growth compared to the prior year on a reported basis, including approximately 50 basis points of currency pressure. The company also anticipates operating margin expansion, net interest income of approximately $20 million, a tax rate of approximately 19%, and earnings per diluted share of $4.45 to $4.50, representing mid-single digit growth compared to the prior year.
Despite facing challenges such as the proposed acquisition of Capri Holdings Limited and the impact of the global economic and consumer environment, Tapestry remains optimistic about its strategic agenda and future growth prospects. Following these announcements, the company's shares moved -0.7%, and are now trading at a price of $37.96. Check out the company's full 8-K submission here.
