TP
TPR
Sep 28, 2024
Quarter ended Sep 28, 2024 · FY2025 Q1

Tapestry, Inc. stock research

Tapestry (TPR) Free Cash Flow — Quarter Ended Sep 28, 2024

Free cash flow improved from the same quarter last year but declined from the prior quarter. The free cash flow margin strengthened year over year while weakening sequentially.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Free cash flow improved from the same quarter last year but declined from the prior quarter. The free cash flow margin strengthened year over year while weakening sequentially.

  • Revenue was stable compared to the prior year and slightly lower than the previous quarter. Operating cash flow increased from the prior year but decreased from the prior quarter, while capital expenditure was higher than the prior year but lower than the prior quarter. The resulting free cash flow and margin followed a similar pattern.
  • Compared to the immediately preceding quarter, free cash flow and margin were lower due to a larger decline in operating cash flow relative to the reduction in capital expenditure. Compared to the same quarter one year earlier, free cash flow and margin were higher, driven by improved operating cash flow.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

$1.2B

Trailing twelve-month free cash flow.

Quarter free cash flow

$93.9M

Free cash flow in the selected fiscal quarter.

Operating cash flow

$119.5M

Cash generated by operations before capital spending.

CapEx

$25.6M

Capital spending and related asset purchases.

FCF margin

6.2%

The share of revenue converted into free cash flow.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2023-12-30$2.1B$826.5M$22.8M$803.7M38.6%
2024-03-30$1.5B$97.8M$19.0M$78.8M5.3%
2024-06-29$1.6B$256.0M$46.2M$209.8M13.2%
2024-09-28$1.5B$119.5M$25.6M$93.9M6.2%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income50.3%Shows whether accounting earnings convert into cash.
CapEx / revenue1.7%Lower capital intensity usually supports FCF margin.
Net cash-$545.4MCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Supportive

Year-over-Year Free Cash Flow Improvement

Free cash flow and margin were higher compared to the same quarter last year, with operating cash flow higher and capital expenditure slightly higher.

The year-over-year increase in free cash flow reflects a higher operating cash flow relative to capital expenditure.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Revenue was stable compared to the prior year and slightly lower than the previous quarter. Operating cash flow increased from the prior year but decreased from the prior quarter, while capital expenditure was higher than the prior year but lower than the prior quarter. The resulting free cash flow and margin followed a similar pattern.

Compared to the immediately preceding quarter, free cash flow and margin were lower due to a larger decline in operating cash flow relative to the reduction in capital expenditure. Compared to the same quarter one year earlier, free cash flow and margin were higher, driven by improved operating cash flow.

Monitor the trend in operating cash flow, as it is the primary driver of free cash flow changes.

TPR Free Cash Flow — Quarter Ended Sep 28, 2024