Tapestry, Inc. stock research
FY2025 Q2
Tapestry (TPR) Gross Margin — Quarter Ended Dec 28, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose less than proportionally. Gross margin weakened slightly from the prior quarter but improved from the year-ago period.
Gross margin takeaway
Quarter ended Dec 28, 2024 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose less than proportionally. Gross margin weakened slightly from the prior quarter but improved from the year-ago period.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to the year-ago quarter, supporting gross margin expansion.
- Compared to the immediately preceding quarter, gross margin was slightly lower despite higher revenue and gross profit. Compared to the same quarter one year earlier, gross margin was higher, with revenue and gross profit both higher and cost of revenue lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
74.4%
Gross profit
$1.6B
Revenue
$2.2B
Cost of revenue
$562.3M
Quarter-over-quarter change
-0.9 pts
Year-over-year change
+2.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 30, 2024 | $1.5B | $1.1B | $375.0M | 74.7% |
| Jun 29, 2024 | $1.6B | $1.2B | $399.9M | 74.9% |
| Sep 28, 2024 | $1.5B | $1.1B | $372.6M | 75.3% |
| Dec 28, 2024 | $2.2B | $1.6B | $562.3M | 74.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 28, 2024
-0.9 pts
Year-over-year change
Dec 30, 2023
+2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to the year-ago quarter, supporting gross margin expansion.
Compared to the immediately preceding quarter, gross margin was slightly lower despite higher revenue and gross profit. Compared to the same quarter one year earlier, gross margin was higher, with revenue and gross profit both higher and cost of revenue lower.
Monitor the trajectory of cost of revenue relative to revenue, as a shift in this relationship could affect gross margin stability.