Tapestry Reports Strong Q2, Cancels Capri Merger

Tapestry Inc. experienced significant stock growth following its fiscal second-quarter results for 2025, which surpassed market expectations. The company reported adjusted earnings per share of $2.00, exceeding analyst predictions, with a 5% increase in revenue to $2.20 billion, primarily driven by an 11% sales increase at its Coach brand. Despite a decline in net income, Tapestry raised its full-year guidance, anticipating revenues of over $6.85 billion and adjusted EPS of $4.85 to $4.90, reflecting strong product demand and strategic brand positioning. The company's robust performance contrasts with Capri Holdings, which experienced sales declines, highlighting Tapestry's effective brand management and market appeal among younger demographics. Tapestry's strategic focus on customer engagement and omni-channel retail experiences is expected to support its long-term growth strategy. This comes after the cancellation of a planned merger with Capri, emphasizing Tapestry's independent growth trajectory.