Tapestry Inc (TPR)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 183,200 | 859,600 | 795,700 | 807,600 | 816,000 | 880,800 | 928,100 | 935,700 | 936,000 | 900,700 | 836,700 | 824,700 | 856,300 | 867,300 | 836,300 | 829,400 | 834,200 | 340,600 | -428,200 | -440,400 |
| Total stockholders’ equity | US$ in thousands | 1,440,100 | 1,493,800 | 1,336,500 | 2,981,900 | 2,896,900 | 2,775,100 | 2,659,800 | 2,415,700 | 2,277,800 | 2,263,400 | 2,313,200 | 2,255,400 | 2,285,500 | 2,535,000 | 2,927,400 | 3,150,000 | 3,259,300 | 3,015,000 | 2,890,700 | 2,530,100 |
| 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% |
June 30, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $183,200K ÷ $1,440,100K
= 12.72%
The analysis of Tapestry Inc.'s Return on Equity (ROE) over the specified period reveals several notable trends and fluctuations. Initially, during the fiscal year ending September 30, 2020, the company's ROE was negative at -17.41%, indicating that the firm was experiencing losses relative to shareholders’ equity during that period. This negative figure persisted through December 31, 2020, with an ROE of -14.81%, suggesting ongoing challenges in generating positive shareholder returns amid the economic conditions possibly influenced by the early impact of the COVID-19 pandemic.
A significant turnaround occurred by the first quarter of 2021, with ROE rising to 11.30%, reflecting improved profitability and operational performance. This positive trend continued through the subsequent quarters, reaching 25.59% by June 30, 2021, and further escalating to over 26% in September 2021. The upward momentum persisted into 2022, with ROE reaching 28.57% at year's end and surpassing 34% in the first quarter of 2022, indicative of strong operational efficiency and effective leverage utilization.
Throughout 2022, the ROE maintained high levels, peaking at approximately 37.47% in June, with a slight contraction to 36.57% in September and 36.17% in December. In 2023, the trend of elevated ROE continued, with values such as 39.79% in March and 41.09% in June, showcasing sustained profitability and efficient use of shareholders’ equity. However, a marginal decline was observed in the latter part of the year, with ROE decreasing to 38.73% in September and further down to 34.89% by December 2023.
The subsequent fiscal quarters exhibited a notable volatility. In 2024, ROE dropped to 31.74% in March and further to 28.17% in June, indicating a potential moderation in profitability or changing capital dynamics. Despite the decline, the ROE remained substantially positive compared to previous years. A significant anomaly is observed at the end of 2024, where ROE surged sharply to 59.54%, followed by 57.54% in the first quarter of 2025. These elevated figures suggest periods of exceptional profitability or significant reductions in shareholders’ equity, possibly due to one-time gains, share repurchases, or reallocations.
In the most recent quarter available—June 30, 2025—the ROE significantly declined to 12.72%, reflecting a potential normalization or challenge in sustaining previously high levels of profitability. Overall, the trend reveals a company that transitioned from negative returns during the initial phases of 2020, achieved substantial profitability in subsequent years, and experienced periods of volatility driven by possible strategic financial maneuvers or market conditions.
In summary, Tapestry Inc.'s ROE trend demonstrates a marked recovery from significant losses in 2020 to sustained periods of high profitability in 2022 and early 2023, with fluctuations thereafter, including unprecedented peaks likely linked to extraordinary financial activities, and overall indicates an organization with strong profitability potential intertwined with shifts in capital structure and performance metrics.
Peer comparison
Jun 30, 2025