Tapestry Stock Soars On Q2 Earnings Beat, Raised Outlook: Retail Sentiment Brightens

Shares of Tapestry Inc. soared more than 12% on Thursday after the luxury lifestyle company posted better-than-expected second-quarter earnings and raised its fiscal 2025 outlook, lifting retail sentiment.

For the second quarter, Tapestry posted earnings per share of $2.00, beating Wall Street estimates of $1.75, according to Stocktwits data. Revenues came in at $2.2 billion, up 5% over last year, beating consensus expectations of $2.11 billion.

Tapestry raised its Fiscal 2025 outlook, saying it now expects revenue of over $6.85 billion, a 3% increase over the prior year, including an expected currency headwind of over 50 basis points. The growth is ahead of its prior guidance of about 1% to 2% growth versus prior year on a reported and constant currency basis.

The company said its operating margin expansion is expected to be about 100 basis points higher than last year, compared to prior guidance of over 50 basis points.

"Our strong second quarter outperformance is a testament to our exceptional teams and our collective commitment to disciplined brand building," said Joanne Crevoiserat, CEO of Tapestry. "During the important holiday season, we meaningfully advanced our growth agenda, bringing innovation and craftsmanship to consumers around the world. Our success is clearly reflected in the accelerated top and bottom-line gains we achieved, resulting in record quarterly revenue and adjusted earnings per share.”

Sentiment on Stocktwits turned ‘bullish’ compared to ‘bearish’ a week ago. Message volumes climbed into the ‘extremely high’ zone from ‘low’.

Tapestry also declared a quarterly cash dividend of $0.35 per common share payable on March 24, 2025 to shareholders of record as of the close of business on March 6.

Tapestry, focused on luxury accessories and fashion, owns and operates such brands as Coach, Kate Spade, and Stuart Weitzman.

Tapestry stock is up 25.8% year-to-date.

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