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Have you evaluated the performance of Tapestry's (TPR) international operations during the quarter that concluded in March 2025? Considering the extensive worldwide presence of this maker of high-end shoes and handbags, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
While analyzing TPR's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter stood at $1.58 billion, increasing 6.9% year over year. Now, let's delve into TPR's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
A Dive into TPR's International Revenue Trends
Greater China generated $278.9 million in revenues for the company in the last quarter, constituting 17.60% of the total. This represented a surprise of -1.37% compared to the $282.77 million projected by Wall Street analysts. Comparatively, in the previous quarter, Greater China accounted for $272.8 million (12.43%), and in the year-ago quarter, it contributed $270.9 million (18.27%) to the total revenue.
Other International accounted for 7.69% of the company's total revenue during the quarter, translating to $121.9 million. Revenues from this region represented a surprise of -4.66%, with Wall Street analysts collectively expecting $127.86 million. When compared to the preceding quarter and the same quarter in the previous year, Other International contributed $154.8 million (7.05%) and $102.6 million (6.92%) to the total revenue, respectively.
During the quarter, Other Asia contributed $232.1 million in revenue, making up 14.65% of the total revenue. When compared to the consensus estimate of $240.42 million, this meant a surprise of -3.46%. Looking back, Other Asia contributed $254.4 million, or 11.59%, in the previous quarter, and $234.9 million, or 15.85%, in the same quarter of the previous year.