Tapestry Inc (NYSE:TPR) stock rose 3.66% (As on August 15, 11:16:51 AM UTC-4, Source: Google Finance) after the company exceeded the estimates for fourth quarter revenues and earnings. However, the company’s annual outlook for a key profit metric missed analysts’ forecasts due in part to tariffs, a sign that Wall Street is still adjusting to the full cost of duties for US companies. The company showcased broad-based growth in the fiscal fourth quarter, with the Coach brand driving momentum through strong consumer engagement, especially among Gen Z and Millennials. Tapestry emphasized global gains, with notable strength in North America, Europe and China, supported by product innovation and digital expansion. TPR’s direct-to-consumer model and agile supply chain remain central to its strategy for long-term, sustainable growth across a dynamic retail landscape.

Moreover, in the fiscal fourth quarter, the company acquired 1.5 million customers in North America, fueled by increasing engagement from Gen Z and Millennial consumers, who accounted for about 60% of new customers for both periods. Direct-to-consumer revenues grew 6% on a constant-currency basis, driven by mid-teens growth in digital revenues and a low-single-digit gain in global brick-and-mortar sales.

TPR in the fourth quarter of FY25 has reported the adjusted earnings per share of $1.04, beating the analysts’ estimates for the adjusted earnings per share of $1.01, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 14 percent to $1.723 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $1.684 billion. The company reported an adjusted operating income of $288.6 million, up 10.2% from $262 million in the year-ago period.

The owner of Coach and Kate Spade said it’s expecting earnings per diluted share to be between $5.30 to $5.45 in the current fiscal year. That would be a 4% to 7% increase versus the prior year. Analysts in a Bloomberg survey were expecting the profit metric to reach $5.49. The difference likely lies in tariffs. Tapestry’s EPS outlook includes a negative impact of 60 cents from higher duties, the company said in a statement. It’s not clear that Wall Street has fully accounted for those costs.

Tapestry is forecasting revenue of nearly $7.2 billion in the current fiscal year that’s expected to end in June, slightly above analysts’ expectations of $7.12 billion. That excludes sales from shoe brand Stuart Weitzman, which Tapestry sold after it didn’t generate much revenue. That figure would be a mid-single-digit percentage increase in sales versus the prior year.