TAPESTRY, INC.
For the period ended Mar 28, 2026. Filed May 7, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 28, 2026 · Filed May 7, 2026
TPR$132.80-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-12-27; filed 2026-02-05.
0001116132-26-000005
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-28; filed 2026-05-07.
0001116132-26-000011
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
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Tables are not compared: 21 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (46)
Current report
Current Trends and Outlook
Current report
Import Tariffs
Current report
On February 20, 2026, the U.S. Supreme Court ruled that tariffs collected under the International Emergency Economic Powers Act ("IEEPA") were invalid. The U.S. Court of International Trade subsequently ordered refunds for qualifying customs entries. Since fiscal 2025, the Company has remitted approximately $115 million related to IEEPA tariffs. Customs Border Protection has established a phased administrative process for submitting refund claims for certain IEEPA tariffs. However, the amount and timing of any recoveries remain uncertain pending confirmation of eligibility, submission, acceptance, processing and payment of claims, and certain categories of entries may be addressed in later phases. As of March 28, 2026, the Company did not record a receivable related to potential IEEPA tariff refunds. Following the Supreme Court's decision, the U.S. Administration announced a new 10% global tariff under Section 122 of the Trade Act of 1974 which became effective February 24, 2026, for a period of up to 150 days. The outlook for future trade policy remains uncertain. The Company continues to monitor these developments, assess their potential impact on its business and implement mitigation strategies where possible.
Current report
Conflict in the Middle East
Current report
The conflict in the Middle East, which began during the third quarter of fiscal 2026, has contributed to heightened geopolitical uncertainty, including impacts to global supply chains and energy prices. The Company does not have directly operated stores in the Middle East and has a minimal distributor business which was less than 1% of the Company’s total Net sales for fiscal 2025. While the Company has not experienced a material impact to its operations or financial results, the Company continues to closely monitor the situation and the potential impact it may have on consumer sentiment in the Middle East and other geographies across the globe.
Current report
Foreign Exchange Impact
Current report
THIRD QUARTER FISCAL 2026 COMPARED TO THIRD QUARTER FISCAL 2025
Current report
Third Quarter Fiscal 2026 Items
Current report
In the third quarter of fiscal 2026, the Company incurred charges as follows:
Current report
Third Quarter Fiscal 2025 Items
Current report
In the third quarter of fiscal 2025, the Company incurred charges as follows:
Current report
•Acquisition and Divestiture Costs - Total pre-tax charges of $18.6 million primarily due to the loss on business held for sale, store impairment, professional fees and share-based compensation expense related to the Stuart Weitzman Business Divestiture.
Current report
•Organizational Efficiency Costs - Total pre-tax charges of $5.0 million primarily related to severance costs and technology costs.
Current report
These actions taken together negatively impacted operating income by $23.6 million and reduced the provision for income tax by $7.1 million resulting in a net decrease in net income of $16.5 million or $0.08 per diluted share.
Current report
Tapestry, Inc. Summary – Third Quarter of Fiscal 2026
Current report
SG&A expenses increased 10.2% or $96.9 million to $1.05 billion in the third quarter of fiscal 2026 as compared to $952.1 million in the third quarter of fiscal 2025. As a percentage of net sales, SG&A expenses decreased to 54.6% during the third quarter of fiscal 2026 from 60.1% during the third quarter of fiscal 2025. Excluding items affecting comparability in the third quarter of fiscal 2026, SG&A expenses increased 12.7% or $117.9 million to $1.05 billion from $928.5 million in the third quarter of fiscal 2025. SG&A as a percentage of net sales decreased 410 basis points to 54.5% compared to 58.6% during the third quarter of fiscal 2025, which includes a 10 basis point benefit from the divestiture of Stuart Weitzman. The remaining 400 basis point decrease in SG&A as a percentage of net sales was primarily due to leverage of fixed costs on higher net sales, partially offset by higher marketing spend.
Current report
(1)Excluding items affecting comparability, SG&A expenses increased 24.3% or $145.3 million to $743.7 million in the third quarter of fiscal 2026 as compared to $598.4 million in the third quarter of fiscal 2025. SG&A as a percentage of net sales decreased approximately 260 basis points to 43.7% in the third quarter of fiscal 2026 as compared to 46.3% in the third quarter of fiscal 2025.
Current report
(2)Excluding items affecting comparability, SG&A expenses decreased 1.4% or $2.2 million to $158.2 million in the third quarter of fiscal 2026 as compared to $160.4 million in the third quarter of fiscal 2025. SG&A as a percentage of net sales increased 650 basis points to 72.0% in the third quarter of fiscal 2026 as compared to 65.5% in the third quarter of fiscal 2025.
Current report
(3)Excluding items affecting comparability, SG&A expenses increased 2.9% or $3.9 million to $144.5 million in the third quarter of fiscal 2026 as compared to $140.6 million in the third quarter of fiscal 2025.
Current report
Operating income increased $173.8 million to $427.5 million in the third quarter of fiscal 2026 as compared to $253.7 million in the third quarter of fiscal 2025. Operating margin increased to 22.3% in the third quarter of fiscal 2026 as compared to 16.0% in the third quarter of fiscal 2025. Excluding items affecting comparability, operating income increased $152.8 million to $430.1 million in the third quarter of fiscal 2026 from $277.3 million in the third quarter of fiscal 2025. Operating margin increased 490 basis points to 22.4% in the third quarter of fiscal 2026 as compared to 17.5% in the third quarter of fiscal 2025, which includes an 80 basis point benefit from the divestiture of Stuart Weitzman. The remaining increase in operating margin was primarily attributed to a 10 basis point increase in Gross margin and a 400 basis point decrease in SG&A as a percentage of sales.
Current report
•Coach Operating Income increased $175.1 million to $595.2 million in the third quarter of fiscal 2026. Operating margin increased approximately 260 basis points to 35.0% in the third quarter of fiscal 2026 as compared to 32.4% in the third quarter of fiscal 2025. Excluding items affecting comparability, operating income increased $175.2 million to $595.3 million in the third quarter of fiscal 2026 from $420.1 million in the third quarter of fiscal 2025; and operating margin increased approximately 260 basis points to 35.0% in the third quarter of fiscal 2026 as compared to 32.4% in the third quarter of fiscal 2025. This increase in operating margin was primarily attributed to:
Current report
◦Gross margin, remained even mainly due to net pricing improvements, offset by the impact of higher tariffs;
Current report
◦SG&A expenses as a percentage of net sales, decreased approximately 260 basis points mainly due to leverage of fixed costs on higher net sales, partially offset by higher marketing spend.
Current report
•Kate Spade Operating Loss increased $20.7 million to a loss of $20.7 million in the third quarter of fiscal 2026. Operating margin decreased to (9.4)% in the third quarter of fiscal 2026 as compared to 0.0% in the third quarter of fiscal 2025. Excluding items affecting comparability, operating loss increased $23.5 million to a loss of $20.7 million in the third quarter of fiscal 2026 from Operating income of $2.8 million in the third quarter of fiscal 2025; and operating margin decreased to (9.4)% in the third quarter of fiscal 2026 as compared to 1.2% in the third quarter of fiscal 2025. This decrease in operating margin was primarily attributed to:
Current report
Net interest expense decreased $2.3 million to $13.1 million in the third quarter of fiscal 2026 as compared to $15.4 million in the third quarter of fiscal 2025. This decrease in Interest expense, net, was mainly due to lower bond interest expense on senior notes, partially offset by lower interest income.
Current report
Other income increased $0.8 million to $1.6 million in the third quarter of fiscal 2026 as compared to Other income of $0.8 million in the third quarter of fiscal 2025. This increase in Other income was related to an increase in foreign exchange gains.
Current report
Net income increased 69.1% or $140.5 million to $343.8 million in the third quarter of fiscal 2026 as compared to $203.3 million in the third quarter of fiscal 2025. Excluding items affecting comparability, net income increased $126.2 million to $346.0 million in the third quarter of fiscal 2026 from $219.8 million in the third quarter of fiscal 2025.
Current report
First Nine Months of Fiscal 2026 Items
Current report
In the first nine months of fiscal 2026, the Company incurred charges as follows:
Current report
These actions taken together negatively impacted operating income by $31.7 million and reduced the provision for income tax by $3.8 million resulting in a net decrease in net income of $27.9 million or $0.14 per diluted share.
Current report
First Nine Months of Fiscal 2025 Items
Current report
In the first nine months of fiscal 2025, the Company incurred charges as follows:
Current report
•Acquisition and Divestiture Costs - Includes costs related to the terminated Capri Acquisition and the Stuart Weitzman Business Divestiture. These charges include:
Current report
◦Stuart Weitzman Business Divestiture Costs: Total pre-tax charges of $18.6 million primarily due to the loss on business held for sale, store impairment, professional fees and share-based compensation expense.
Current report
•Organizational Efficiency Costs - Total pre-tax charges of $5.0 million primarily related to severance costs and technology costs.
Current report
SG&A expenses increased 7.3% or $218.0 million to $3.19 billion in the first nine months of fiscal 2026 as compared to $2.98 billion in the first nine months of fiscal 2025. As a percentage of net sales, SG&A expenses decreased to 52.1% during the first nine months of fiscal 2026 from 56.3% during the first nine months of fiscal 2025. Excluding items affecting comparability in the first nine months of fiscal 2026, SG&A expenses increased 10.2% or $291.0 million to $3.15 billion from $2.86 billion in the first nine months of fiscal 2025. SG&A as a percentage of net sales decreased approximately 250 basis points to 51.6% compared to 54.1% during the first nine months of fiscal 2025, which includes a 30 basis point benefit from the divestiture of Stuart Weitzman. The remaining 220 basis point decrease in SG&A as a percentage of net sales was primarily due to leverage of fixed costs on higher net sales and lower distribution costs, partially offset by higher marketing spend.
Current report
(1)Excluding items affecting comparability, SG&A expenses increased 20.7% or $378.3 million to $2.20 billion in the first nine months of fiscal 2026 as compared to $1.83 billion in the first nine months of fiscal 2025. SG&A as a percentage of net sales decreased approximately 180 basis points to 41.8% in the first nine months of fiscal 2026 as compared to 43.6% in the first nine months of fiscal 2025.
Current report
(3)Excluding items affecting comparability, SG&A expenses increased 6.8% or $27.2 million to $428.3 million in the first nine months of fiscal 2026 as compared to $401.1 million in the first nine months of fiscal 2025.
Current report
Operating income increased $473.6 million to $1.47 billion in the first nine months of fiscal 2026 as compared to $1.00 billion in the first nine months of fiscal 2025. Operating margin increased to 24.0% in the first nine months of fiscal 2026 as compared to 18.9% in the first nine months of fiscal 2025. Excluding items affecting comparability, operating income increased
Current report
•Coach Operating Income increased $501.5 million to $1.93 billion in the first nine months of fiscal 2026. Operating margin increased to 36.6% in the first nine months of fiscal 2026 as compared to 34.3% in the first nine months of fiscal 2025. Excluding items affecting comparability, operating income increased $502.8 million to $1.93 billion in the first nine months of fiscal 2026 from $1.43 billion in the first nine months of fiscal 2025; and operating margin increased approximately 230 basis points to 36.6% in the first nine months of fiscal 2026 as compared to 34.3% in the first nine months of fiscal 2025. This increase in operating margin was primarily attributed to:
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Removed paragraphs (37)
Previous report
Current Macroeconomic Conditions and Outlook
Previous report
Currency volatility, geopolitical instability and political uncertainty, such as the impact of policies implemented and that may be implemented by the U.S. Presidential Administration, including, but not limited to, changes to trade agreements, tax legislation or duty rates may also contribute to a worsening of the macroeconomic environment or adversely impact our business.
Previous report
In response to the current environment, the Company is closely monitoring changes and continues to take strategic actions considering near-term exigencies and remains committed to maintaining the health of the brands and business.
Previous report
SECOND QUARTER FISCAL 2026 COMPARED TO SECOND QUARTER FISCAL 2025
Previous report
Second Quarter Fiscal 2026 Items
Previous report
In the second quarter of fiscal 2026, the Company incurred charges as follows:
Previous report
Second Quarter Fiscal 2025 Items
Previous report
In the second quarter of fiscal 2025, the Company incurred charges as follows:
Previous report
•Acquisition Costs - Total pre-tax charges of $197.6 million attributable to the Capri Acquisition. These charges include:
Previous report
These actions taken together negatively impacted operating income by $55.4 million, increased Loss on extinguishment of debt by $119.4 million, increased interest expense by $22.8 million and reduced the provision for income tax by $57.8 million resulting in a net decrease in net income by $139.8 million or $0.62 per diluted share.
Previous report
Tapestry, Inc. Summary – Second Quarter of Fiscal 2026
Previous report
SG&A expenses increased 2.8% or $31.7 million to $1.17 billion in the second quarter of fiscal 2026 as compared to $1.14 billion in the second quarter of fiscal 2025. As a percentage of net sales, SG&A expenses decreased to 46.8% during the second quarter of fiscal 2026 from 51.9% during the second quarter of fiscal 2025. Excluding items affecting comparability in the second quarter of fiscal 2026, SG&A expenses increased 7.7% or $83.7 million to $1.17 billion from $1.08 billion in the second quarter of fiscal 2025. SG&A as a percentage of net sales decreased 270 basis points to 46.7% compared to 49.4% during the second quarter of fiscal 2025, which includes a 40 basis point benefit from the divestiture of Stuart Weitzman. The remaining 230 basis point decrease in SG&A as a percentage of net sales was primarily due to leverage of fixed costs on higher net sales, lower distribution costs and lower professional fees, partially offset by higher marketing spend.
Previous report
(1)Excluding items affecting comparability, SG&A expenses decreased 1.3% or $2.8 million to $202.8 million in the second quarter of fiscal 2026 as compared to $205.6 million in the second quarter of fiscal 2025. SG&A as a percentage of net sales increased approximately 710 basis points to 56.4% in the second quarter of fiscal 2026 as compared to 49.3% in the second quarter of fiscal 2025.
Previous report
(2)Excluding items affecting comparability, SG&A expenses increased 2.4% or $3.6 million to $143.3 million in the second quarter of fiscal 2026 as compared to $139.7 million in the second quarter of fiscal 2025.
Previous report
Operating income increased $223.6 million to $716.4 million in the second quarter of fiscal 2026 as compared to $492.8 million in the second quarter of fiscal 2025. Operating margin increased to 28.6% in the second quarter of fiscal 2026 as compared to 22.4% in the second quarter of fiscal 2025. Excluding items affecting comparability, operating income increased $171.6 million to $719.8 million in the second quarter of fiscal 2026 from $548.2 million in the second quarter of fiscal 2025. Operating margin increased approximately 390 basis points to 28.8% in the second quarter of fiscal 2026 as compared to 24.9% in the second quarter of fiscal 2025, which includes a 90 basis point benefit from the divestiture of Stuart Weitzman. The remaining increase in operating margin was primarily attributed to a 60 basis point increase in Gross margin and a 230 basis point decrease in SG&A as a percentage of sales.
Previous report
•Coach Operating Income increased $225.6 million to $846.5 million in the second quarter of fiscal 2026, resulting in an operating margin increase of approximately 310 basis points to 39.5% in the second quarter of fiscal 2026 as compared to 36.4% in the second quarter of fiscal 2025. This increase in operating margin was primarily attributed to:
Previous report
◦SG&A expenses as a percentage of net sales, decreased 240 basis points mainly due to leverage of fixed costs on higher net sales and lower distribution costs, partially offset by higher marketing spend.
Previous report
•Kate Spade Operating Income decreased $51.7 million to $16.3 million in the second quarter of fiscal 2026. Operating margin decreased to 4.5% in the second quarter of fiscal 2026 as compared to 16.4% in the second quarter of fiscal 2025. Excluding items affecting comparability, operating income decreased $51.4 million to $16.6 million in the second quarter of fiscal 2026 from $68.0 million in the second quarter of fiscal 2025; and operating margin decreased approximately 1,180 basis points to 4.6% in the second quarter of fiscal 2026 as compared to 16.4% in the second quarter of fiscal 2025. This decrease in operating margin was primarily attributed to:
Previous report
Other expense decreased $1.0 million to $1.9 million in the second quarter of fiscal 2026 as compared to Other expense of $2.9 million in the second quarter of fiscal 2025. This decrease in other expense was related to a decrease in foreign exchange losses.
Previous report
Net income increased 80.9% or $250.9 million to $561.3 million in the second quarter of fiscal 2026 as compared to $310.4 million in the second quarter of fiscal 2025. Excluding items affecting comparability, net income increased $114.5 million to $564.7 million in the second quarter of fiscal 2026 from $450.2 million in the second quarter of fiscal 2025.
Previous report
First Six Months of Fiscal 2026 Items
Previous report
In the first six months of fiscal 2026, the Company incurred charges as follows:
Previous report
These actions taken together negatively impacted operating income by $29.1 million and reduced the provision for income tax by $3.4 million resulting in a net decrease in net income by $25.7 million or $0.12 per diluted share.
Previous report
First Six Months of Fiscal 2025 Items
Previous report
In the first six months of fiscal 2025, the Company incurred charges as follows:
Previous report
SG&A expenses increased 6.0% or $121.1 million to $2.14 billion in the first six months of fiscal 2026 as compared to $2.02 billion in the first six months of fiscal 2025. As a percentage of net sales, SG&A expenses decreased to 51.0% during the first six months of fiscal 2026 from 54.6% during the first six months of fiscal 2025. Excluding items affecting comparability in the first six months of fiscal 2026, SG&A expenses increased 8.9% or $173.1 million to $2.11 billion from $1.93 billion in the first six months of fiscal 2025. SG&A as a percentage of net sales decreased 200 basis points to 50.3% compared to 52.3% during the first six months of fiscal 2025, which includes a 40 basis point benefit from the divestiture of Stuart Weitzman. The remaining 160 basis point decrease in SG&A as a percentage of net sales was primarily due to leverage of fixed costs on higher net sales and lower distribution costs, partially offset by higher marketing spend.
Previous report
(1)Excluding items affecting comparability, SG&A expenses increased 19.0% or $233.0 million to $1.46 billion in the first six months of fiscal 2026 as compared to $1.23 billion in the first six months of fiscal 2025. SG&A as a percentage of net sales decreased approximately 160 basis points to 40.9% in the first six months of fiscal 2026 as compared to 42.5% in the first six months of fiscal 2025.
Previous report
(3)Excluding items affecting comparability, SG&A expenses increased 8.9% or $23.3 million to $283.8 million in the first six months of fiscal 2026 as compared to $260.5 million in the first six months of fiscal 2025.
Previous report
Operating income increased $299.8 million to $1.04 billion in the first six months of fiscal 2026 as compared to $744.8 million in the first six months of fiscal 2025. Operating margin increased to 24.8% in the first six months of fiscal 2026 as compared to 20.1% in the first six months of fiscal 2025. Excluding items affecting comparability, operating income increased
Previous report
•Coach Operating Income increased $326.4 million to $1.33 billion in the first six months of fiscal 2026. Operating margin increased to 37.3% in the first six months of fiscal 2026 as compared to 35.0% in the first six months of fiscal 2025. Excluding items affecting comparability, operating income increased $327.6 million to $1.34 billion in the first six months of fiscal 2026 from $1.01 billion in the first six months of fiscal 2025; and operating margin increased approximately 240 basis points to 37.4% in the first six months of fiscal 2026 as compared to 35.0% in the first six months of fiscal 2025. This increase in operating margin was primarily attributed to:
Previous report
◦Gross margin, increased approximately 60 basis points mainly due to net pricing improvements, partially offset by the impact of higher tariffs and unfavorable currency impacts;
Previous report
◦SG&A expenses as a percentage of net sales, decreased approximately 160 basis points mainly due to leverage of fixed costs on higher net sales and lower distribution costs, partially offset by higher marketing spend.
Previous report
Loss on Extinguishment of Debt
Previous report
Other income decreased $0.1 million to $1.4 million in the first six months of fiscal 2026 as compared to income of $1.5 million in the first six months of fiscal 2025. Excluding items affecting comparability, Other income remained even at $1.5 million compared to the first six months of fiscal 2025.
Previous report
Net income increased 68.2% or $339.1 million to $836.1 million in the first six months of fiscal 2026 as compared to $497.0 million in the first six months of fiscal 2025. Excluding items affecting comparability, net income increased $170.0 million to $861.8 million in the first six months of fiscal 2026 from $691.8 million in the first six months of fiscal 2025.
Previous report
The Company’s reported results are presented in accordance with GAAP. The reported SG&A expenses, operating income, interest expense, other expense (income), provision for income taxes, net income and earnings per diluted share in the second quarter and first six months of fiscal 2026 and fiscal 2025 and the reported Loss on extinguishment of debt in the second quarter and first six months of fiscal 2025, reflect certain items affecting comparability, including the impact of the Acquisition and Divestiture and Organizational Efficiency Costs. As a supplement to the Company's reported results, these measures are also reported on a non-GAAP basis to exclude the impact of these items along with a reconciliation to the most directly comparable GAAP measures.
Previous report
•Accrued liabilities were a source of cash of $63.5 million in the first six months of fiscal 2026 compared to a use of cash of $11.7 million in the first six months of fiscal 2025, primarily driven by an increase in accrued duty due to higher tariffs, increase in senior notes accrued interest due to timing of payments, partially offset by a decrease in other tax liabilities and higher Annual Incentive Plan payments compared to the prior year.
Reworded paragraphs (71)
Previous wording
•Results of Operations. An analysis of our results of operations in the second quarter of fiscal 2026 compared to the second quarter of fiscal 2025 and the first six months of fiscal 2026 compared to the first six months of fiscal 2025.
Current wording
•Results of Operations. An analysis of our results of operations in the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025 and the first nine months of fiscal 2026 compared to the first nine months of fiscal 2025.
Previous wording
•Coach -Includes global sales of primarily Coach brand products to customers through our DTC, wholesale and licensing businesses.
Current wording
•Coach -Includes global sales of primarily Coach brand products to customers through our direct-to-consumer ("DTC"), wholesale and licensing businesses.
Previous wording
On February 16, 2025, the Company entered into a sale and purchase agreement (the “Purchase Agreement”) with Caleres, Inc. (the “Purchaser”) to sell the Stuart Weitzman Business (as defined below). The sale was completed on August 4, 2025 (the "Stuart Weitzman Business Divestiture"). The Purchaser acquired certain assets and liabilities of the Company's global business of designing, manufacturing, promotion, marketing, production, distribution, sales and licensing of Stuart Weitzman branded products (the "Stuart Weitzman Business") for total cash consideration of $105.0 million (the "Purchase Price"). The Purchase Price is subject to customary adjustments for cash, indebtedness, net working capital and transaction expenses. Effective in the first quarter of fiscal 2026, following the Stuart Weitzman Business Divestiture, the Company's reportable segments are Coach and Kate Spade. Refer to Note 5, "Acquisitions and Divestitures" for further information.
Current wording
On February 16, 2025, the Company entered into a sale and purchase agreement (the “Purchase Agreement”) with Caleres, Inc. (the “Purchaser”) to sell the Stuart Weitzman Business (as defined below). The sale was completed on August 4, 2025 (the "Stuart Weitzman Business Divestiture"). The Purchaser acquired certain assets and liabilities of the Company's global business of designing, manufacturing, promotion, marketing, production, distribution, sales and licensing of Stuart Weitzman branded products (the "Stuart Weitzman Business") for a final aggregate purchase price of $109.1 million, which included customary adjustments for net working capital and indebtedness. Effective in the first quarter of fiscal 2026, following the Stuart Weitzman Business Divestiture, the Company's reportable segments are Coach and Kate Spade. Refer to Note 5, "Acquisitions and Divestitures" for further information.
Previous wording
During the second quarter of fiscal 2026, the macroeconomic environment remained challenging and volatile. While certain organizations that monitor the global economy, including the International Monetary Fund, continue to forecast growth, these projections remain subject to uncertainty and have fluctuated in recent periods. The forecast is reflective of the current volatile environment, including the continuation of trade tensions, financial market volatility and the negative economic impacts of geopolitical instability in certain regions of the world.
Current wording
During the third quarter of fiscal 2026, the macroeconomic environment remained challenging and volatile. While certain organizations that monitor the global economy continue to forecast growth, these projections remain subject to uncertainty and have fluctuated in recent periods. The forecast is reflective of the current volatile environment, including the continuation of trade tensions, financial market volatility, inflationary pressure and the negative economic impacts of geopolitical instability in certain regions of the world.
Previous wording
During the second half of fiscal 2025, the U.S. Government announced tariffs on imports from select countries. The majority of the Company's products sold in the U.S. are imported from countries in which these tariffs were announced. Additionally, during the first quarter of fiscal 2026, the President of the United States issued an executive order removing the de minimis exemption for low value shipments imported into the U.S. for all countries beginning August 29, 2025. As a result of these changes in the tariff landscape, including the de minimis removal, for the three and six months ended December 27, 2025, the Company's gross margin was negatively impacted by approximately 190 basis points and 140 basis points, respectively. The Company continues to take actions to mitigate the negative impacts of these incremental costs during the remainder of the fiscal year and beyond.
Current wording
During the second half of fiscal 2025, the U.S. Government announced tariffs on imports from select countries. The majority of the Company's products sold in the U.S. are imported from countries in which these tariffs were announced. Additionally, during the first quarter of fiscal 2026, the President of the United States issued an executive order removing the de minimis exemption for low value shipments imported into the U.S. for all countries beginning August 29, 2025. As a result of these changes in the tariff landscape, for the three and nine months ended March 28, 2026, the Company's gross margin was negatively impacted by approximately 180 basis points and 150 basis points, respectively.
Previous wording
In the second quarter of fiscal 2026, the U.S. Dollar continued to fluctuate as compared to foreign currencies in regions where we conduct our business. This trend has resulted in impacts to our business including, but not limited to, for the three months ended December 27, 2025, increased Net sales of $0.9 million, with no impact to either gross margin or operating margin. For the six months ended December 27, 2025, fluctuations in foreign currency exchange rates resulted in increased Net sales of $11.4 million and a negative impact to gross margin and operating margin of approximately 20 basis points and 20 basis points, respectively.
Current wording
In the third quarter of fiscal 2026, the U.S. Dollar continued to fluctuate as compared to foreign currencies in regions where we conduct our business. This trend has resulted in impacts to our business including, but not limited to, for the three months ended March 28, 2026, increased Net sales of $35.1 million and a negative impact of approximately 10 basis points to both gross margin and operating margin. For the nine months ended March 28, 2026, fluctuations in foreign currency exchange rates resulted in increased Net sales of $46.5 million and a negative impact of approximately 20 basis points to both gross margin and operating margin.
Previous wording
The Company's results are typically affected by seasonal trends. During the first fiscal quarter, we typically build inventory for the winter and holiday season. In the second fiscal quarter, working capital requirements are reduced substantially as we generate higher net sales and operating income, especially during the holiday season.
Current wording
The Company's results are typically affected by seasonal trends. During the first fiscal quarter, we typically build inventory for the winter and holiday season. In the second fiscal quarter, working capital requirements are reduced substantially as we generate higher net sales and operating income, especially during the holiday season. Fluctuations in net sales, operating income and operating cash flows of the Company in any fiscal quarter may be affected by the timing of wholesale shipments and other events affecting retail sales, including weather and macroeconomic events.
Previous wording
For a detailed discussion of significant risk factors that have the potential to cause our actual results to differ materially from our expectations, see Part II, Item 1A. "Risk Factors" herein and as disclosed in our Annual Report on Form 10-K for the year ended June 28, 2025.
Current wording
We continue to monitor these global economic conditions and industry trends in order to evaluate and adjust our operating strategies and cost management opportunities to mitigate the related impact on our results of operations, while remaining focused on the long-term growth of our business and protecting the value of our brands. For a detailed discussion of significant risk factors that have the potential to cause our actual results to differ materially from our expectations, see Part II, Item 1A. "Risk Factors" herein and as disclosed in our Annual Report on Form 10-K for the year ended June 28, 2025.
Previous wording
The following table summarizes results of operations for the second quarter of fiscal 2026 compared to the second quarter of fiscal 2025. All percentages shown in the table below and the discussion that follows have been calculated using unrounded numbers.
Current wording
The following table summarizes results of operations for the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025. All percentages shown in the table below and the discussion that follows have been calculated using unrounded numbers.
Previous wording
The Company’s reported results are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The reported results during the second quarter of fiscal 2026 and fiscal 2025 reflect certain items which affect the comparability of our results, as noted in the following table. Refer to "Non-GAAP Measures" herein for further discussion on the Non-GAAP measures.
Current wording
The Company’s reported results are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The reported results during the third quarter of fiscal 2026 and fiscal 2025 reflect certain items which affect the comparability of our results, as noted in the following table. Refer to "Non-GAAP Measures" herein for further discussion on the Non-GAAP measures.
Previous wording
•Acquisition and Divestiture - Total pre-tax income of $0.8 million related to the Stuart Weitzman Business Divestiture primarily due to income from the Transition Services Agreement with the Purchaser ("TSA"), partially offset by professional fees.
Current wording
•Acquisition and Divestiture - Total pre-tax income of $3.0 million related to the Stuart Weitzman Business Divestiture.
Previous wording
•Organizational Efficiency Costs - Total pre-tax charges of $4.2 million primarily related to technology costs.
Current wording
•Organizational Efficiency Costs - Total pre-tax charges of $5.6 million primarily related to technology costs.
Previous wording
These actions negatively impacted operating income by $3.4 million and net income by $3.4 million or $0.01 per diluted share.
Current wording
These actions negatively impacted operating income by $2.6 million and reduced the provision for income tax by $0.4 million resulting in a net decrease in net income of $2.2 million or $0.01 per diluted share.
Previous wording
The change in Net sales for the second quarter of fiscal 2026 compared to the second quarter of fiscal 2025 has been presented both including and excluding currency fluctuation effects. All percentages shown in the tables below and the discussion that follows have been calculated using unrounded numbers.
Current wording
The change in Net sales for the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025 has been presented both including and excluding currency fluctuation effects. All percentages shown in the tables below and the discussion that follows have been calculated using unrounded numbers.
Previous wording
Net sales in the second quarter of fiscal 2026 increased 14.0% or $307.0 million to $2.50 billion. Excluding the impact of the Stuart Weitzman Business and foreign currency, net sales increased by 17.7% or $375.8 million.
Current wording
Net sales in the third quarter of fiscal 2026 increased 21.2% or $336.0 million to $1.92 billion. Excluding the impact of the Stuart Weitzman Business and foreign currency, net sales increased by 22.6% or $347.1 million.
Previous wording
•Coach Net sales increased 25.3% or $433.1 million to $2.14 billion in the second quarter of fiscal 2026. Excluding the impact of foreign currency, Net sales increased 25.3% or $432.3 million. This increase in Net sales was primarily due to an increase of $373.6 million in DTC sales, mainly driven by North America, Greater China and Europe.
Current wording
•Coach Net sales increased 31.5% or $407.5 million to $1.70 billion in the third quarter of fiscal 2026. Excluding the impact of foreign currency, Net sales increased 29.0% or $374.9 million. This increase in Net sales was primarily due to an increase of $322.9 million in DTC sales, mainly driven by North America, Greater China and Europe.
Previous wording
•Kate Spade Net sales decreased 13.6% or $56.4 million to $360.0 million in the second quarter of fiscal 2026. Excluding the impact of foreign currency, Net sales decreased 13.6% or $56.5 million. This decrease in Net sales was primarily due to a decrease of $54.0 million in DTC sales.
Current wording
•Kate Spade Net sales decreased 10.3% or $25.3 million to $219.6 million in the third quarter of fiscal 2026. Excluding the impact of foreign currency, Net sales decreased 11.3% or $27.8 million. This decrease in Net sales was primarily due to a decrease of $24.3 million in DTC sales.
Previous wording
Gross profit increased 15.6% or $255.3 million to $1.89 billion in the second quarter of fiscal 2026 from $1.63 billion in the second quarter of fiscal 2025. Gross margin increased 110 basis points to 75.5% in the second quarter of fiscal 2026 from 74.4% in the second quarter of fiscal 2025, which includes a 50 basis point benefit from the divestiture of Stuart Weitzman. The remaining 60 basis point increase in Gross margin was primarily attributed to net pricing improvements, favorable brand mix, partially offset by the impact of higher tariffs. Refer to "Current Macroeconomic Conditions and Outlook" for further information.
Current wording
Gross profit increased 22.4% or $270.7 million to $1.48 billion in the third quarter of fiscal 2026 from $1.21 billion in the third quarter of fiscal 2025. Gross margin increased 80 basis points to 76.9% in the third quarter of fiscal 2026 from 76.1% in the third quarter of fiscal 2025, which includes a 70 basis point benefit from the divestiture of Stuart Weitzman. The remaining 10 basis point increase in Gross margin was primarily attributed to net pricing improvements and favorable brand mix, substantially offset by the impact of higher tariffs. Refer to "Global Economic Conditions and Industry Trends" for further information.
Previous wording
The Company includes inbound product-related transportation costs from our service providers within Cost of sales. The Company, similar to some companies, includes certain transportation-related costs due to our distribution network in SG&A expenses rather than in Cost of sales; for this reason, our gross margins may not be comparable to that of entities that include all costs related to their distribution network in Cost of sales.
Current wording
The Company includes inbound product-related transportation costs from our service providers within Cost of sales. The Company, similar to some companies, includes certain transportation-related costs due to our distribution network in SG&A expenses rather than in Cost of sales; for this reason, our gross margins may not be comparable to those of entities that include all costs related to their distribution network in Cost of sales.
Previous wording
◦Gross margin, decreased 470 basis points mainly due to the impact of higher tariffs and unfavorable channel mix, partially offset by net pricing improvements;
Current wording
◦Gross margin, decreased 410 basis points mainly due to the impact of higher tariffs and unfavorable channel mix, partially offset by net pricing improvements;
Previous wording
◦SG&A expenses as a percentage of net sales, increased approximately 710 basis points mainly driven by higher marketing spend and deleverage of fixed costs on lower net sales.
Current wording
◦SG&A expenses as a percentage of net sales, increased 650 basis points mainly driven by higher marketing spend and deleverage of fixed costs on lower net sales.
Previous wording
•Corporate Operating Expenses decreased 25.0% or $48.7 million to $146.4 million in the second quarter of fiscal 2026. Excluding items affecting comparability, Corporate operating expenses increased $3.6 million to $143.3 million from $139.7 million in the second quarter of fiscal 2025.
Current wording
•Corporate Operating Expenses decreased 8.6% or $13.8 million to $147.0 million in the third quarter of fiscal 2026. Excluding items affecting comparability, Corporate operating expenses increased $3.9 million to $144.5 million from $140.6 million in the third quarter of fiscal 2025.
Previous wording
The effective tax rate was 19.5% in the second quarter of fiscal 2026 as compared to 10.1% in the second quarter of fiscal 2025. Excluding items affecting comparability, the effective tax rate was 19.4% in the second quarter of fiscal 2026 as compared to 17.1% in the second quarter of fiscal 2025. The increase in effective tax rate was primarily attributable to the impact of Pillar Two and the impact of discrete items compared to the prior year period.
Current wording
The effective tax rate was 17.4% in the third quarter of fiscal 2026 as compared to 14.9% in the third quarter of fiscal 2025. Excluding items affecting comparability, the effective tax rate was 17.4% in the third quarter of fiscal 2026 as compared to 16.4% in the third quarter of fiscal 2025. The increase in effective tax rate was primarily attributable to the impact of Pillar Two, partially offset by the geographical mix of earnings.
Previous wording
Net income per diluted share was $2.68 in the second quarter of fiscal 2026 as compared to net income per diluted share of $1.38 in the second quarter of fiscal 2025. Excluding items affecting comparability, net income per diluted share increased $0.69 to $2.69 in the second quarter of fiscal 2026 from $2.00 in the second quarter of fiscal 2025, primarily due to higher net income and a decrease in shares outstanding.
Current wording
Net income per diluted share was $1.65 in the third quarter of fiscal 2026 as compared to net income per diluted share of $0.95 in the third quarter of fiscal 2025. Excluding items affecting comparability, net income per diluted share increased $0.63 to $1.66 in the third quarter of fiscal 2026 from $1.03 in the third quarter of fiscal 2025, primarily due to higher net income.
Previous wording
FIRST SIX MONTHS FISCAL 2026 COMPARED TO FIRST SIX MONTHS FISCAL 2025
Current wording
FIRST NINE MONTHS FISCAL 2026 COMPARED TO FIRST NINE MONTHS FISCAL 2025
Previous wording
The following table summarizes results of operations for the first six months of fiscal 2026 compared to the first six months of fiscal 2025. All percentages shown in the table below and the discussion that follows have been calculated using unrounded numbers.
Current wording
The following table summarizes results of operations for the first nine months of fiscal 2026 compared to the first nine months of fiscal 2025. All percentages shown in the table below and the discussion that follows have been calculated using unrounded numbers.
Previous wording
The Company’s reported results are presented in accordance with GAAP. The reported results during the first six months of fiscal 2026 and fiscal 2025 reflect certain items which affect the comparability of our results, as noted in the following tables. Refer to "Non-GAAP Measures" herein for further discussion on the Non-GAAP measures.
Current wording
The Company’s reported results are presented in accordance with GAAP. The reported results during the first nine months of fiscal 2026 and fiscal 2025 reflect certain items which affect the comparability of our results, as noted in the following tables. Refer to "Non-GAAP Measures" herein for further discussion on the Non-GAAP measures.
Previous wording
Effective in the first quarter of fiscal 2026, following the Stuart Weitzman Business Divestiture on August 4, 2025, the Company's reportable segments are Coach and Kate Spade. For the first six months of fiscal 2026, prior to the completion of the sale on August 4, 2025, Stuart Weitzman Net sales were $14.6 million, Gross profit was $7.7 million and SG&A expenses were $8.7 million resulting in an Operating loss of $1.0 million. These results were considered as items affecting comparability in the first six months of fiscal 2026. For the first six months of fiscal 2025, Stuart Weitzman Net sales were $123.4 million, Gross profit was $70.4 million and SG&A expenses were $78.8 million resulting in an Operating loss of $8.4 million. These results were not considered as items affecting comparability in the first six months of fiscal 2025.
Current wording
Effective in the first quarter of fiscal 2026, following the Stuart Weitzman Business Divestiture on August 4, 2025, the Company's reportable segments are Coach and Kate Spade. For the first nine months of fiscal 2026, prior to the completion of the sale on August 4, 2025, Stuart Weitzman Net sales were $14.6 million, Gross profit was $7.7 million and SG&A expenses were $8.7 million resulting in an Operating loss of $1.0 million. These results were considered as items affecting comparability in the first nine months of fiscal 2026. For the first nine months of fiscal 2025, Stuart Weitzman Net sales were $169.6 million, Gross profit was $94.5 million and SG&A expenses were $108.5 million resulting in an Operating loss of $14.0 million. Excluding items affecting comparability, Stuart Weitzman Net sales were $169.6 million, Gross profit was $94.5 million and SG&A expenses were $107.9 million resulting in an Operating loss of $13.4 million in the first nine months of fiscal 2025.
Previous wording
•Acquisition and Divestiture - Total pre-tax charges of $13.9 million related to the Stuart Weitzman Business Divestiture primarily due to professional fees and severance costs, partially offset by income from the TSA.
Current wording
•Acquisition and Divestiture - Total pre-tax charges of $10.9 million related to the Stuart Weitzman Business Divestiture primarily due to professional fees and severance costs, partially offset by income from the TSA.
Previous wording
•Organizational Efficiency Costs - Total pre-tax charges of $15.2 million primarily related to technology costs and severance costs.
Current wording
•Organizational Efficiency Costs - Total pre-tax charges of $20.8 million primarily related to technology costs and severance costs.
Previous wording
•Acquisition Costs - Total pre-tax charges of $268.4 million attributable to the Capri Acquisition. These charges include:
Current wording
◦Capri Acquisition Costs: Total pre-tax charges of $268.4 million primarily related to:
Previous wording
◦Loss on extinguishment of debt - $119.4 million primarily related to redemption premiums, as well as unamortized debt issuance costs and discounts, as a result of the redemption of the Capri Acquisition Senior Notes in the first six months of fiscal 2025 due to the termination of the Capri Acquisition agreement;
Current wording
▪Loss on extinguishment of debt - $119.4 million primarily related to redemption premiums, as well as unamortized debt issuance costs and discounts, as a result of the redemption of the Capri Acquisition Senior Notes in the first nine months of fiscal 2025 due to the termination of the Capri Acquisition agreement;
Previous wording
◦SG&A expenses - $88.8 million primarily related to expense reimbursement payment made to Capri and professional fees recorded within Corporate;
Current wording
▪SG&A expenses: $88.8 million primarily related to expense reimbursement payment made to Capri and professional fees recorded;
Previous wording
◦Interest expense, net - $60.2 million of financing related charges which primarily includes the net impact of the Capri Acquisition Senior Notes.
Current wording
▪Interest expense, net: $60.2 million of financing related charges which primarily includes the net impact of the Capri Acquisition Senior Notes; and
Previous wording
These actions taken together negatively impacted operating income by $88.8 million, increased Loss on extinguishment of debt by $119.4 million, increased interest expense by $60.2 million and reduced the provision for income tax by $73.6 million resulting in a net decrease in net income by $194.8 million or $0.85 per diluted share.
Current wording
These actions taken together negatively impacted operating income by $112.4 million, increased Loss on extinguishment of debt by $119.4 million, increased interest expense by $60.2 million and reduced the provision for income tax by $80.7 million resulting in a net decrease in net income of $211.3 million or $0.93 per diluted share.
Previous wording
Tapestry, Inc. Summary – First Six Months of Fiscal 2026
Current wording
Tapestry, Inc. Summary – First Nine Months of Fiscal 2026
Previous wording
The change in net sales and gross margin for the first six months of fiscal 2026 compared to fiscal 2025 has been presented both including and excluding currency fluctuation effects.
Current wording
The change in net sales and gross margin for the first nine months of fiscal 2026 compared to fiscal 2025 has been presented both including and excluding currency fluctuation effects.
Previous wording
Effective in the first quarter of fiscal 2026, following the Stuart Weitzman Business Divestiture on August 4, 2025, the Company's reportable segments are Coach and Kate Spade. For the first six months of fiscal 2026, prior to the completion of the sale on August 4, 2025, Stuart Weitzman Net sales were $14.6 million, Gross profit was $7.7 million and SG&A expenses were $8.7 million resulting in an Operating loss of $1.0 million. These results were considered as items affecting comparability in the first six months of fiscal 2026. For the first six months of fiscal 2025, Stuart Weitzman Net sales were $123.4 million, Gross profit was $70.4 million and SG&A expenses were $78.8 million resulting in an Operating loss of $8.4 million. These results were not considered as items affecting comparability in the first six months of fiscal 2025.
Current wording
Effective in the first quarter of fiscal 2026, following the Stuart Weitzman Business Divestiture on August 4, 2025, the Company's reportable segments are Coach and Kate Spade. For the first nine months of fiscal 2026, prior to the completion of the sale on August 4, 2025, Stuart Weitzman Net sales were $14.6 million, Gross profit was $7.7 million and SG&A expenses were $8.7 million resulting in an Operating loss of $1.0 million. These results were considered as items affecting comparability in the first nine months of fiscal 2026. For the first nine months of fiscal 2025, Stuart Weitzman Net sales were $169.6 million, Gross profit was $94.5 million and SG&A expenses were $108.5 million resulting in an Operating loss of $14.0 million. Excluding items affecting comparability, Stuart Weitzman Net sales were $169.6 million, Gross profit was $94.5 million and SG&A expenses were $107.9 million resulting in an Operating loss of $13.4 million in the first nine months of fiscal 2025.
Previous wording
Net sales in the first six months of fiscal 2026 increased 13.6% or $504.1 million to $4.21 billion. Excluding the impact of the Stuart Weitzman Business and foreign currency, net sales increased by 16.8% or $601.5 million.
Current wording
Net sales in the first nine months of fiscal 2026 increased 15.9% or $840.1 million to $6.13 billion. Excluding the impact of the Stuart Weitzman Business and foreign currency, net sales increased by 18.5% or $948.6 million.
Previous wording
•Coach Net Sales increased 24.0% or $692.3 million to $3.57 billion in the first six months of fiscal 2026. Excluding the impact of foreign currency, net sales increased 23.7% or $682.3 million. This increase in Net sales was primarily due to an increase of $596.3 million in DTC sales, mainly driven by North America, Greater China and Europe.
Current wording
•Coach Net Sales increased 26.4% or $1.10 billion to $5.27 billion in the first nine months of fiscal 2026. Excluding the impact of foreign currency, net sales increased 25.3% or $1.06 billion. This increase in Net sales was primarily due to an increase of $919.2 million in DTC sales, mainly driven by North America, Greater China and Europe.
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Previous report — wording carried elsewhere
We will continue to monitor the below trends and evaluate and adjust our operating strategies and cost management opportunities to mitigate the related impact on our results of operations, while remaining focused on the long-term growth of our business and protecting the value of our brands.
Previous report — wording carried elsewhere
Fluctuations in net sales, operating income and operating cash flows of the Company in any fiscal quarter may be affected by the timing of wholesale shipments and other events affecting retail sales, including weather and macroeconomic events.
Previous report — wording carried elsewhere
◦Loss on extinguishment of debt - $119.4 million primarily related to redemption premiums, as well as unamortized debt issuance costs and discounts, as a result of the redemption of the Capri Acquisition Senior Notes in the second quarter of fiscal 2025 due to the termination of the Capri Acquisition agreement;
Previous report — wording carried elsewhere
◦SG&A expenses - $55.4 million primarily related to expense reimbursement payment made to Capri and professional fees recorded within Corporate;
Previous report — wording carried elsewhere
◦Interest expense, net - $22.8 million of financing related charges which primarily includes the net impact of the Capri Acquisition Senior Notes.
Previous report — wording carried elsewhere
◦Gross margin, increased 80 basis points mainly due to net pricing improvements, partially offset by the impact of higher tariffs;
Previous report — wording carried elsewhere
Loss on extinguishment of debt decreased $120.1 million to $0.0 million in the second quarter of fiscal 2026 as compared to $120.1 million in the second quarter of fiscal 2025. Excluding items affecting comparability, Loss on extinguishment of debt decreased $0.7 million to $0.0 million in the second quarter of fiscal 2026 as compared to $0.7 million in the second quarter of fiscal 2025.
Previous report — wording carried elsewhere
Net interest expense decreased $7.1 million to $17.4 million in the second quarter of fiscal 2026 as compared to $24.5 million in the second quarter of fiscal 2025. Excluding items affecting comparability, net interest expense increased $15.7 million to $17.4 million from interest expense of $1.7 million in the second quarter of fiscal 2025. This increase in Interest expense, net, was mainly due to an increase in interest expense as a result of the issuance of the 2030 and 2035 Senior Notes and lower interest income.