Tapestry Inc (TPR)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 75.44% | 75.09% | 74.77% | 73.91% | 73.29% | 72.71% | 72.28% | 71.36% | 70.78% | 69.92% | 69.27% | 69.09% | 69.57% | 70.37% | 70.71% | 71.35% | 71.04% | 70.47% | 67.15% | 66.06% |
| Operating profit margin | 5.92% | 17.93% | 17.47% | 17.09% | 17.09% | 17.59% | 17.85% | 17.57% | 17.60% | 17.21% | 16.54% | 16.92% | 17.59% | 17.78% | 17.42% | 17.52% | 16.85% | 8.84% | -8.05% | -8.38% |
| Pretax margin | 3.08% | 14.70% | 13.89% | 14.99% | 15.17% | 16.09% | 16.82% | 17.18% | 17.16% | 16.57% | 15.67% | 15.00% | 15.66% | 15.89% | 15.43% | 16.33% | 15.62% | 7.31% | -9.60% | -9.75% |
| Net profit margin | 2.61% | 12.50% | 11.74% | 12.12% | 12.23% | 13.15% | 13.80% | 14.03% | 14.05% | 13.51% | 12.69% | 12.29% | 12.81% | 12.99% | 12.84% | 13.70% | 14.52% | 7.03% | -9.22% | -9.22% |
The profitability analysis of Tapestry Inc. over the period from September 2020 to June 2025 reveals a progressive enhancement in gross profit margin, indicative of improved cost control and revenue realization strategies. Starting at 66.06% in September 2020, the gross profit margin exhibits a consistent upward trend, reaching approximately 75.44% by June 2025. This steady rise suggests an increasing ability to generate profit from sales after accounting for the cost of goods sold.
In contrast, the operating profit margin initially experienced a significant turnaround, moving from a negative figure of -8.38% in September 2020 to positive territory by March 2021 at 8.84%. The margin remained relatively stable with modest fluctuations between approximately 16.5% and 17.6% until early 2024, reflecting steady core operational profitability. However, a notable decline occurs in the second quarter of 2025, where the margin drops sharply to 5.92%, possibly signaling rising operating expenses or strategic investments impacting operational efficiency.
The pretax margin follows a similar trajectory, transitioning from negative values (-9.75% in September 2020) to positive margins around 15.7-17% through 2023 and early 2024, before a pronounced decline to 3.08% in June 2025. This decline could be attributed to increased costs, lower non-operating income, or other financial pressures affecting pre-tax profitability.
At the net profit margin level, the company demonstrated a similar pattern: initial losses in late 2020 (-9.22%) transitioned into consistent profitability by March 2021, peaking at 14.52% in June 2021. Subsequent fluctuations maintained positive margins around 12-14% until early 2024. The margin diminishes significantly in June 2025 to 2.61%, aligning with the declines observed in operating and pretax margins.
Overall, Tapestry Inc.'s profitability metrics reveal a robust recovery and consistent profitability from early 2021 through late 2024. Nevertheless, the notable decline in mid-2025 across all profitability ratios warrants attention, suggesting a potential shift in cost structure, competitive pressures, or strategic changes impacting the company's profit-generating ability.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.31% | 16.88% | 16.33% | 8.30% | 8.51% | 8.59% | 8.69% | 16.40% | 16.47% | 16.43% | 15.03% | 16.03% | 16.18% | 16.18% | 14.30% | 13.24% | 11.55% | 5.38% | -4.59% | -4.92% |
| Return on assets (ROA) | 2.78% | 11.77% | 10.97% | 5.88% | 6.09% | 6.42% | 6.72% | 13.10% | 13.15% | 12.90% | 11.53% | 11.65% | 11.79% | 11.82% | 10.55% | 10.35% | 9.95% | 4.28% | -5.25% | -5.41% |
| Return on total capital | 61.16% | 74.44% | 79.24% | 38.28% | 39.25% | 42.47% | 45.36% | 48.80% | 51.40% | 51.13% | 47.32% | 50.80% | 52.29% | 47.16% | 38.98% | 33.59% | 29.76% | 14.32% | -12.88% | -15.74% |
| Return on equity (ROE) | 12.72% | 57.54% | 59.54% | 27.08% | 28.17% | 31.74% | 34.89% | 38.73% | 41.09% | 39.79% | 36.17% | 36.57% | 37.47% | 34.21% | 28.57% | 26.33% | 25.59% | 11.30% | -14.81% | -17.41% |
The profitability ratios of Tapestry Inc exhibit notable variations over the analyzed periods, reflecting fluctuations in the company's operational efficiency and overall profitability.
Operating Return on Assets (Operating ROA):
Initially deep in negative territory at -4.92% as of September 2020, the ratio improved steadily throughout 2021 and 2022, reaching a peak of approximately 16.47% in June 2023. This upward trend suggests enhanced operational efficiency and better utilization of assets during this period. However, a significant decline is observed in late 2023, with the ratio dropping sharply to 8.69% at the end of 2023 and remaining below double digits through mid-2024. A subsequent recovery occurs in late 2024 and early 2025, with the ratio rising back above 16%, indicating renewed operational gains. The latest figure for September 2025 (6.31%) reflects a decline again, signaling potential challenges in maintaining previous levels of operations.
Return on Assets (ROA):
Similar to Operating ROA, the ROA turned positive in March 2021 after prior losses in early 2020. It showed a consistent upward trajectory into 2022, peaking around 13.15% during June 2023. Similar to Operating ROA, a decline is apparent in late 2023 and through mid-2024, with ratios falling below 7%, before rebounding to approximately 11.77% in March 2025. The most recent figure indicates decreased profitability efficiency relative to total assets, which may suggest increased asset bases or reduced net income.
Return on Total Capital:
This metric presents a stark contrast to previous ratios during certain periods. Initially negative during 2020, profitability improved markedly from March 2021 onwards, reaching peaks close to 52% in June 2022. The ratio then stabilizes around 50%, before declining steadily in late 2023 and mid-2024, with a substantial resurgence in December 2024 to 79.24%. The recent figure for June 2025 (61.16%) indicates a decline but still remains relatively high compared to earlier periods, reflecting robust capital efficiency over this timeframe.
Return on Equity (ROE):
ROE reflects the greatest volatility among these ratios. It was negative at the start of the analyzed period (-17.41% in September 2020) but improved significantly into 2021, reaching a peak of approximately 41.09% in June 2023. The ratio then softens slightly through late 2023 and 2024, and notably plunges to 12.72% in June 2025. This sharp decrease may indicate increased equity or net income reductions relative to shareholders’ equity, or a combination thereof.
Overall Analysis:
The data indicates periods of substantial operational improvement from 2021 through mid-2023, with peak profitability ratios across most indicators. These positive trends are temporarily interrupted by declines in late 2023 and 2024, potentially due to macroeconomic factors, strategic reevaluations, or market challenges. Nonetheless, the ratios suggest that Tapestry Inc has demonstrated resilient profitability potential, albeit with some instances of volatility that merit further investigation into underlying causes such as changes in sales, margins, asset utilization, or capital structure adjustments.