Tapestry Inc (TPR)
Pretax margin
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 216,100 | 1,011,900 | 1,143,100 | 1,047,000 | 897,300 |
| Revenue | US$ in thousands | 7,010,700 | 6,671,200 | 6,660,900 | 6,684,500 | 5,746,300 |
| Pretax margin | 3.08% | 15.17% | 17.16% | 15.66% | 15.62% |
June 30, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $216,100K ÷ $7,010,700K
= 3.08%
The pretax margin of Tapestry Inc. has exhibited notable variations over the period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the pretax margin stood at 15.62%, indicating the portion of revenue remaining before income taxes, which reflects relatively stable profitability prior to tax obligations. This margin experienced a marginal increase in the subsequent year, reaching 15.66% on June 30, 2022, suggesting a slight improvement in operational efficiency or cost management during that period.
By June 30, 2023, the pretax margin saw a more substantial rise to 17.16%, indicating enhanced profitability prior to taxes and possibly improved gross margins or overall operational performance. However, this upward trend did not sustain beyond this date, as by June 30, 2024, the pretax margin significantly declined to 15.17%, approaching the earlier levels observed in 2021. This decrease may reflect increased operating costs, promotional activities, or other factors adversely impacting profitability before taxes.
The data for June 30, 2025, reveals a sharp and substantial decline in pretax margin to 3.08%, representing a drastic deterioration in pre-tax profitability. This significant decline could be attributable to extraordinary charges, reductions in revenue, increased costs, or other adverse financial developments impacting the company's operational margins during that period.
Overall, the pretax margin trend indicates periods of stability and modest improvement followed by notable deterioration towards the end of the analysis period. The dramatic decline in 2025 suggests significant challenges or extraordinary items affecting the company's pre-tax profitability.
Peer comparison
Jun 30, 2025