Tapestry, Inc. stock research
FY2025 Q3
Tapestry (TPR) Gross Margin — Quarter Ended Mar 29, 2025
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin improved relative to both the preceding quarter and the year-ago period, as cost of revenue declined more sharply than revenue on a sequential basis.
Gross margin takeaway
Quarter ended Mar 29, 2025 · FY2025 Q3
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin improved relative to both the preceding quarter and the year-ago period, as cost of revenue declined more sharply than revenue on a sequential basis.
- The strongest observable margin driver is the gross margin rate, which reached its highest level among the three reported quarters. This improvement occurred even as revenue declined sequentially, indicating that cost of revenue decreased at a faster rate than revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
76.1%
Gross profit
$1.2B
Revenue
$1.6B
Cost of revenue
$378.8M
Quarter-over-quarter change
+1.7 pts
Year-over-year change
+1.4 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 |
|---|---|---|---|---|
| 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% |
| Mar 29, 2025 | $1.6B | $1.2B | $378.8M | 76.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 28, 2024
+1.7 pts
Year-over-year change
Mar 30, 2024
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the gross margin rate, which reached its highest level among the three reported quarters. This improvement occurred even as revenue declined sequentially, indicating that cost of revenue decreased at a faster rate than revenue.
Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Monitor whether the cost of revenue can sustain its lower level relative to revenue in future quarters.