Tapestry Inc (TPR)
Return on equity (ROE)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 183,200 | 816,000 | 936,000 | 856,300 | 834,200 |
| Total stockholders’ equity | US$ in thousands | 857,800 | 2,896,900 | 2,277,800 | 2,285,500 | 3,259,300 |
| ROE | 21.36% | 28.17% | 41.09% | 37.47% | 25.59% |
June 30, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $183,200K ÷ $857,800K
= 21.36%
The analysis of Tapestry Inc's return on equity (ROE) over the specified periods indicates notable fluctuations. As of June 30, 2021, the company's ROE was 25.59%, reflecting a solid level of profitability relative to shareholders' equity. This value increased markedly by June 30, 2022, reaching 37.47%, suggesting improved operational efficiency, better management performance, or increased net income relative to shareholders' equity during that period. The upward trend continued into June 30, 2023, with ROE rising further to 41.09%, which signifies a peak in return generation and could be attributed to strong profit margins, effective capital allocation, or favorable market conditions.
However, the trend reverses in the subsequent years; by June 30, 2024, the ROE declines sharply to 28.17%, indicating a reduction in profitability or an increase in shareholders’ equity without a proportional increase in net income. The downward movement continues into June 30, 2025, with the ROE decreasing further to 21.36%, highlighting a significant contraction in the company’s ability to generate profit from shareholders' equity.
Overall, the pattern exhibits a strong growth phase from 2021 through 2023, followed by a decline in 2024 and 2025. The initial surge could reflect successful strategic initiatives or favorable market conditions, whereas the subsequent decrease may suggest challenges such as increased costs, competitive pressures, or changes in operational efficiency affecting profitability. Continuous monitoring of underlying factors influencing net income and equity components would be essential to fully understand the drivers behind these ROE fluctuations.
Peer comparison
Jun 30, 2025