TAPESTRY, INC.
For the period ended Sep 26, 2026. Filed Nov 5, 2026.
View on SEC.govAbout this filing
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.
Sep 26, 2026 · Filed Nov 5, 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 2026-03-28; filed 2026-05-07.
0001116132-26-000011
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-26; filed 2026-11-05.
0001116132-26-000031
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.
Compared 211 previous paragraphs and 151 current paragraphs.
71 unchanged; 47 reworded; 29 added; 85 removed; 8 previous and 4 current paragraphs rearranged.
Tables are not compared: 21 previous and 13 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 (29)
Current report
Tapestry, Inc. is a global house of iconic accessories and lifestyle brands uniting the magic of Coach and Kate Spade New York. Together, we stretch what’s possible – advancing brands further than they could go alone, expanding their reach to new geographies and generations. Inspired by our consumers, we create experiences and products that build lasting brand love and elevate everyday life.
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 ("CIT") subsequently ordered refunds for qualifying customs entries, including applicable interest. U.S. Customs and Border Protection ("CBP") established a phased administrative process for submitting refund claims for certain IEEPA tariffs. The Company paid approximately $117 million in IEEPA tariffs. During the fourth quarter of fiscal 2026, the Company received cash refunds related to the previously paid IEEPA tariffs of $2 million which was recognized as a reduction to Cost of sales. In addition, as of June 27, 2026, the Company applied the loss recovery model and determined that the receipt of the remaining refunds of the previously paid but not received IEEPA tariffs was probable. The Company estimated the amount of the probable refund to be $115 million, of which $96 million was recognized as a reduction to Cost of sales, $10 million was recorded as Accrued liabilities and $9 million was applied as a reduction to tariffs that remained in Inventory. During the first quarter of fiscal 2027, the Company collected substantially all the cash related to the tariff refund. The Company also received $4 million of related interest which was recorded as a reduction to Selling, general and administrative expenses and recognized $9 million as a reduction of Cost of sales related to tariffs included in Inventory as of June 27, 2026. Collectively, these items resulted in a $13 million benefit to Operating income during the first quarter of fiscal 2027.
Current report
FIRST QUARTER FISCAL 2027 COMPARED TO FIRST QUARTER FISCAL 2026
Current report
First Quarter Fiscal 2027 Items
Current report
•Distribution Network Optimization Costs - Total pre-tax charges of $15 million primarily related to costs to transition from our Ohio fulfillment center to a third-party facility in Pennsylvania.
Current report
Supplemental Segment Data
Current report
First Quarter Fiscal 2026 Items
Current report
These actions taken together negatively impacted operating income by $26 million and reduced the provision for income tax by $4 million resulting in a net decrease in net income by $22 million or $0.10 per diluted share.
Current report
Supplemental Segment Data
Current report
Stuart Weitzman Business Divestiture
Current report
(1)Excluding items affecting comparability, Gross profit decreased 7.8% or $13 million to $154 million in the first quarter of fiscal 2027 as compared to $167 million in the first quarter of fiscal 2026. Gross margin increased 190 basis points to 66.0% in the first quarter of fiscal 2027 as compared to 64.1% in the first quarter of fiscal 2026.
Current report
SG&A expenses increased 9.4% or $91 million to $1.06 billion in the first quarter of fiscal 2027 as compared to $973 million in the first quarter of fiscal 2026. As a percentage of net sales, SG&A expenses decreased to 56.2% during the first quarter of fiscal 2027 from 57.0% during the first quarter of fiscal 2026. Excluding items affecting comparability in the first quarter of fiscal 2027, SG&A expenses increased 12.0% or $112 million to $1.05 billion from $939 million in the first quarter of fiscal 2026. SG&A as a percentage of net sales decreased 10 basis points to 55.5% compared to 55.6% during the first quarter of fiscal 2026. The decrease in SG&A as a percentage of net sales was primarily due to leverage of fixed costs on higher net sales and lower professional fees, partially offset by higher marketing spend and higher occupancy costs.
Current report
(1)Excluding items affecting comparability, SG&A expenses increased 17.1% or $108 million to $746 million in the first quarter of fiscal 2027 as compared to $638 million in the first quarter of fiscal 2026. SG&A as a percentage of net sales increased 40 basis points to 45.0% in the first quarter of fiscal 2027 as compared to 44.6% in the first quarter of fiscal 2026.
Current report
(2)Excluding items affecting comparability, SG&A expenses decreased 0.6% or $1 million to $160 million in the first quarter of fiscal 2027 as compared to $161 million in the first quarter of fiscal 2026. SG&A as a percentage of net sales increased 680 basis points to 68.7% in the first quarter of fiscal 2027 as compared to 61.9% in the first quarter of fiscal 2026.
Current report
(3)Excluding items affecting comparability, SG&A expenses increased 3.0% or $5 million to $145 million in the first quarter of fiscal 2027 as compared to $140 million in the first quarter of fiscal 2026.
Current report
Operating income increased $96 million to $424 million in the first quarter of fiscal 2027 as compared to $328 million in the first quarter of fiscal 2026. Operating margin increased to 22.4% in the first quarter of fiscal 2027 as compared to 19.3% in the first quarter of fiscal 2026. Excluding items affecting comparability, operating income increased $85 million to $439 million in the first quarter of fiscal 2027 from $354 million in the first quarter of fiscal 2026. Operating margin increased approximately 230 basis points to 23.2% in the first quarter of fiscal 2027 as compared to 20.9% in the first quarter of fiscal 2026. The increase in operating margin was primarily attributed to a 220 basis point increase in Gross margin and a 10 basis point decrease in SG&A as a percentage of sales.
Current report
•Coach Operating Income increased $103 million to $590 million in the first quarter of fiscal 2027. Operating margin increased to 35.5% in the first quarter of fiscal 2027 as compared to 34.1% in the first quarter of fiscal 2026. Excluding items affecting comparability, operating income increased $102 million to $590 million in the first quarter of fiscal 2027 from $488 million in the first quarter of fiscal 2026; and operating margin increased 130 basis points to 35.5% in the first quarter of fiscal 2027 as compared to 34.2% in the first quarter of fiscal 2026. This increase in operating margin was primarily attributed to:
Current report
◦Gross margin, increased 170 basis points mainly due to net pricing improvements and favorable net tariff impacts;
Current report
◦SG&A expenses as a percentage of net sales, increased 40 basis points mainly due to higher marketing spend, higher occupancy costs, partially offset by leverage of fixed costs on higher net sales.
Current report
◦Gross margin, increased 190 basis points mainly due to favorable net tariff impacts and net pricing improvements;
Current report
Net interest expense remained even at $13 million in the first quarter of fiscal 2027 and the first quarter of fiscal 2026.
Current report
Net income increased 31.0% or $85 million to $360 million in the first quarter of fiscal 2027 as compared to $275 million in the first quarter of fiscal 2026. Excluding items affecting comparability, net income increased $74 million to $371 million in the first quarter of fiscal 2027 from $297 million in the first quarter of fiscal 2026.
Current report
Items affecting comparability in the current or comparable periods, as applicable, include:
Current report
•Distribution Network Optimization Costs - The Company incurred Distribution Network Optimization Costs which consist of non-recurring costs, primarily related to optimizing its distribution centers. These costs mainly relate to the transition from our Ohio fulfillment center to a third-party facility in Pennsylvania.
Current report
•Other assets was a source of cash of $110 million in the first quarter of fiscal 2027 compared to a use of cash of $54 million in the first quarter of fiscal 2026, primarily driven by collection in the current year of IEEPA and tax refunds.
Current report
The $551 million of cash used in the first quarter of fiscal 2026 was primarily due to repurchase of common stock of $698 million, partially offset by proceeds from commercial paper, net of $240 million.
Current report
Management believes that existing cash balances, cash flows from operations, existing credit facilities, our commercial paper program, and access to capital markets will provide sufficient liquidity to meet our debt obligations, including any repayment of debt or refinancing of debt, working capital needs, planned capital expenditures, other contractual obligations and payment of anticipated quarterly dividends for at least the next twelve months and the foreseeable future thereafter.
Current report
IEEPA Tariff Refund
Current report
During the fourth quarter of fiscal 2026, the Company received cash refunds related to the previously paid IEEPA tariffs of $2 million which was recognized as a reduction to Cost of sales. In addition, as of June 27, 2026, the Company applied the loss recovery model and determined that the receipt of the remaining refunds of the previously paid IEEPA tariffs was probable. The Company estimated the amount of the probable refund to be $115 million, of which $96 million was recognized as a reduction to Cost of sales, $10 million was recorded as Accrued liabilities and $9 million was applied as a reduction to tariffs that remained in Inventory. During the first quarter of fiscal 2027, the Company collected substantially all the cash related to the tariff refund.
Removed paragraphs (85)
Previous report
Tapestry, Inc. is a house of iconic accessories and lifestyle brands. Our global house of brands unites the magic of Coach and kate spade new york. Each of our brands are unique and independent, while sharing a commitment to innovation and authenticity defined by distinctive products and differentiated customer experiences across channels and geographies. We use our collective strengths to move our customers and empower our communities, to make the fashion industry more sustainable, and to harness the power of an inclusive culture. Individually, our brands are iconic. Together, we can stretch what’s possible.
Previous report
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 report
Capri Holdings Limited Acquisition
Previous report
On August 10, 2023, the Company entered into the Merger Agreement by and among the Company, Sunrise Merger Sub, Inc., a direct wholly owned subsidiary of Tapestry, and Capri. In order to finance the Capri Acquisition, on November 27, 2023, the Company issued $4.50 billion of U.S. dollar-denominated senior unsecured notes and €1.50 billion of Euro-denominated senior unsecured notes (the "Capri Acquisition Senior Notes") which, together with the $1.40 billion of delayed draw unsecured term loan facilities (the "Capri Acquisition Term Loan Facilities") executed on August 30, 2023, completed the expected financing for the Capri Acquisition. On April 22, 2024, the FTC filed a complaint against the Company and Capri in the United States District Court for the Southern District of New York seeking to enjoin the consummation of the Capri Acquisition, and on October 24, 2024, the Court issued its Opinion and Order granting the FTC's request for a preliminary injunction of the Merger, pending an administrative trial on the merits which was scheduled to begin on December 9, 2024. On November 13, 2024, the Parties entered into a Termination Agreement (the “Termination Agreement”), pursuant to which the Parties agreed to terminate the Merger Agreement, including all schedules and exhibits thereto and all ancillary agreements contemplated thereby or entered pursuant thereto, effective immediately. Pursuant to the Termination Agreement, the Company agreed to reimburse Capri for its expenses in an amount equal to $45.1 million in cash on November 14, 2024. On November 25, 2024, due to the termination of the Merger Agreement and pursuant to the terms of the indenture governing the Capri Acquisition Senior Notes, as supplemented, the Company redeemed all outstanding Capri Acquisition Senior Notes at a redemption price of 101% of the aggregate principal amount of such Capri Acquisition Senior Notes, plus accrued and unpaid interest to, but excluding, the date of redemption. In addition, the Capri Acquisition Term Loan Facilities were terminated concurrently with the execution of the Termination Agreement on November 13, 2024. Refer to Note 5, "Acquisitions and Divestitures" for further information.
Previous report
Tax Legislation
Previous report
On August 16, 2022, the Inflation Reduction Act of 2022 was signed into law, with tax provisions primarily focused on implementing a 15% corporate alternative minimum tax (“CAMT”) on global adjusted financial statement income and a 1% excise tax on share repurchases. The CAMT was effective at the beginning of fiscal 2024 and did not have a material impact on the Company’s effective tax rate.
Previous report
On December 12, 2022, the E.U. member states reached an agreement to implement the Organization for Economic Co-operation and Development’s (“OECD”) reform of international taxation known as Pillar Two Global Anti-Base Erosion Rules (“GloBE”), which broadly mirrors the Inflation Reduction Act by imposing a 15% global minimum tax on multinational companies. These rules subject multinational companies to three possible tax mechanisms individually known as the Income Inclusion Rule (“IIR”), the Undertaxed Profits Rule (“UTPR”) and the Qualified Domestic Minimum Top-up Tax (“QDMTT”). The rules became effective on January 1, 2025. Based on the countries in which we do business, these rule changes started to negatively impact the Company's effective tax rate beginning in fiscal 2026. On January 5, 2026, the OECD published additional guidance regarding the application of GloBE rules to U.S. parented multinational enterprises ("U.S. MNEs"). Most notably, the agreement excludes U.S. MNEs from the UTPR and IIR; however, QDMTT is still in force based on current legislation and will continue to have a negative impact on the Company's effective tax rate in fiscal 2026 and beyond.
Previous report
THIRD QUARTER FISCAL 2026 COMPARED TO THIRD QUARTER FISCAL 2025
Previous report
Third Quarter Fiscal 2026 Items
Previous report
In the third quarter of fiscal 2026, the Company incurred charges as follows:
Previous report
•Acquisition and Divestiture - Total pre-tax income of $3.0 million related to the Stuart Weitzman Business Divestiture.
Previous report
Third Quarter Fiscal 2025 Items
Previous report
In the third quarter of fiscal 2025, the Company incurred charges as follows:
Previous 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.
Previous report
•Organizational Efficiency Costs - Total pre-tax charges of $5.0 million primarily related to severance costs and technology costs.
Previous 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.
Previous report
Tapestry, Inc. Summary – Third Quarter of Fiscal 2026
Previous report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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:
Previous report
◦Gross margin, remained even mainly due to net pricing improvements, offset by the impact of higher tariffs;
Previous 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.
Previous report
◦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 report
•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 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.
Previous 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.
Previous report
FIRST NINE MONTHS FISCAL 2026 COMPARED TO FIRST NINE MONTHS FISCAL 2025
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NM - Not meaningful
Previous report
GAAP to Non-GAAP Reconciliation
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First Nine Months of Fiscal 2026 Items
Previous report
In the first nine months of fiscal 2026, the Company incurred charges as follows:
Previous 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.
Previous report
First Nine Months of Fiscal 2025 Items
Previous report
In the first nine months of fiscal 2025, the Company incurred charges as follows:
Previous report
•Acquisition and Divestiture Costs - Includes costs related to the terminated Capri Acquisition and the Stuart Weitzman Business Divestiture. These charges include:
Previous report
◦Capri Acquisition Costs: Total pre-tax charges of $268.4 million primarily related to:
Showing the first 40 of 85 passages. Open the source sections for the rest.
Reworded paragraphs (47)
Previous wording
•Global Economic Conditions and Industry Trends. This section includes a discussion on global economic conditions and industry trends that affect comparability that are important in understanding results of operations and financial conditions, and in anticipating future trends.
Current wording
•Global Economic Conditions and Industry Trends. This section includes a discussion of global economic conditions and industry trends that affect comparability that are important in understanding results of operations and financial condition, and in anticipating future trends.
Previous 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.
Current wording
•Results of Operations. An analysis of our results of operations in the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026.
Previous wording
•Coach -Includes global sales of primarily Coach brand products to customers through our direct-to-consumer ("DTC"), wholesale and licensing businesses.
Current wording
•Coach -Includes global sales of primarily Coach brand products to customers through our DTC, wholesale and licensing businesses.
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•Fueling Fashion Innovation & Product Excellence: The Company aims to lead with handbags and leathergoods with targeted lifestyle expansion in footwear.
Current wording
•Fuel Fashion Innovation & Product Excellence: The Company aims to lead with handbags and leathergoods with targeted lifestyle expansion in footwear.
Previous wording
•Delivering Compelling Experiences to Drive Global Growth: The Company aims to sustain growth in North America and accelerate momentum in international markets, prioritizing Greater China and Europe.
Current wording
•Deliver Compelling Experiences to Drive Global Growth: The Company aims to sustain growth in North America and accelerate momentum in international markets, prioritizing Greater China and Europe.
Previous 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.
Current wording
During the first quarter of fiscal 2027, 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. Continued trade tensions, financial market volatility, elevated interest rates, inflationary pressure and ongoing geopolitical instability continue to pose risks to economic growth and consumer spending.
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, 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.
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.
Previous wording
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 wording
Following the Supreme Court's decision, the U.S. Administration announced a 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, which expired on July 24, 2026. On May 7, 2026, the CIT ruled the Section 122 tariffs were invalid. The government has appealed the ruling and the Company is awaiting a decision from the U.S. Court of Appeals. On July 23, 2026, the U.S. Administration announced the final remedy in the Section 301 investigations relating to forced labor practices, imposing new tariff rates ranging from 10% to 12.5% on most imports from certain countries, effective upon the expiration of the temporary Section 122 tariffs. 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.
Previous wording
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 wording
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 represented less than 1% of the Company’s total Net sales for fiscal 2026. While the Company has not experienced a material impact to its operations or financial results to date, the Company continues to closely monitor developments and their potential macroeconomic effects on its business, including from global supply chain disruptions, increased transportation and energy costs, and changes in consumer sentiment and spending in the Middle East and other geographies across the globe.
Previous 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.
Current wording
In the first quarter of fiscal 2027, 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 September 26, 2026, increased Net sales by $1 million and positively impacted gross margin and operating margin by approximately 20 basis points and 10 basis points, respectively.
Previous 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.
Current wording
The following table summarizes results of operations for the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026. 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 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.
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 first quarter of fiscal 2027 and fiscal 2026 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
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.
Current wording
These actions negatively impacted operating income by $15 million and reduced the provision for income tax by $4 million resulting in a net decrease in net income of $11 million or $0.06 per diluted share.
Previous 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.
Current wording
•Acquisition and Divestiture Costs- Total pre-tax charges of $15 million related to the Stuart Weitzman divestiture primarily due to professional fees, severance costs as well as the Stuart Weitzman Operating loss for the period.
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•Organizational Efficiency Costs - Total pre-tax charges of $20.8 million primarily related to technology costs and severance costs.
Current wording
•Organizational Efficiency Costs - Total pre-tax charges of $11 million primarily related to technology costs and severance costs.
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Tapestry, Inc. Summary – First Nine Months of Fiscal 2026
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Tapestry, Inc. Summary – First Quarter of Fiscal 2027
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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.
Current wording
The change in Net sales for the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026 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
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.
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 quarter of fiscal 2026, prior to the completion of the sale on August 4, 2025, Stuart Weitzman Net sales were $15 million, Gross profit was $8 million and SG&A expenses were $9 million resulting in an Operating loss of $1 million. These results were considered as Items Affecting Comparability in the three months ended September 27, 2025.
Previous 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.
Current wording
Net sales in the first quarter of fiscal 2027 increased 11.1% or $189 million to $1.89 billion. Excluding the impact of the Stuart Weitzman Business and foreign currency, net sales increased by 12.0% or $203 million.
Previous 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.
Current wording
•Coach Net sales increased 16.1% or $231 million to $1.66 billion in the first quarter of fiscal 2027. Excluding the impact of foreign currency, Net sales increased 16.0% or $229 million. This increase in Net sales was primarily due to an increase of $144 million in DTC sales, mainly driven by North America, Greater China and Europe. The increase in net sales was also attributed to an $84 million increase in wholesale sales, mainly driven by international wholesale sales.
Previous 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.
Current wording
•Kate Spade Net sales decreased 10.4% or $27 million to $233 million in the first quarter of fiscal 2027. Excluding the impact of foreign currency, Net sales decreased 9.9% or $26 million. This decrease in Net sales was primarily due to a decrease of $17 million in DTC sales. The decrease in net sales was also attributed to a $9 million decrease in wholesale sales.
Previous wording
Gross profit increased 17.4% or $691.6 million to $4.67 billion in the first nine months of fiscal 2026 from $3.97 billion in the first nine months of fiscal 2025. Gross margin increased 90 basis points to 76.1% in the first nine months of fiscal 2026 from 75.2% in the first nine months of fiscal 2025. Excluding items affecting comparability, gross margin increased 100 basis points to 76.2% in the first nine months of fiscal 2026 from 75.2% in the first nine months of fiscal 2025, which includes a 60 basis point benefit from the divestiture of Stuart Weitzman. The remaining 40 basis point increase in gross margin was primarily attributed to net pricing improvements and favorable brand mix, partially offset by the impact of higher tariffs. Refer to "Global Economic Conditions and Industry Trends" for further information.
Current wording
Gross profit increased 14.4% or $187 million to $1.49 billion in the first quarter of fiscal 2027 from $1.30 billion in the first quarter of fiscal 2026. Gross margin increased to 78.6% in the first quarter of fiscal 2027 from 76.3% in the first quarter of fiscal 2026. Excluding items affecting comparability, Gross margin increased 220 basis points to 78.7% in the first quarter of fiscal 2027 from 76.5% in the first quarter of fiscal 2026. The increase in Gross margin was primarily attributed to net pricing improvements, favorable net tariff impacts and favorable brand mix. Refer to "Global Economic Conditions and Industry Trends" for further information.
Previous wording
•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 wording
•Kate Spade Operating Loss increased $26 million to a loss of $20 million in the first quarter of fiscal 2027. Operating margin decreased to (8.7)% in the first quarter of fiscal 2027 as compared to 2.1% in the first quarter of fiscal 2026. Excluding items affecting comparability, operating loss increased $12 million to a loss of $6 million in the first quarter of fiscal 2027 from Operating income of $6 million in the first quarter of fiscal 2026; and operating margin decreased 490 basis points to (2.7)% in the first quarter of fiscal 2027 as compared to 2.2% in the first quarter of fiscal 2026. This decrease in operating margin was primarily attributed to:
Previous 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.
Current wording
◦SG&A expenses as a percentage of net sales, increased 680 basis points mainly driven by higher marketing spend and deleverage of fixed costs on lower net sales.
Previous wording
•Corporate Operating Expenses decreased 10.4% or $52.9 million to $457.2 million in the first nine months of fiscal 2026. Excluding items affecting comparability, Corporate operating expenses increased $27.2 million to $428.3 million from $401.1 million in the first nine months of fiscal 2025. This increase in operating expenses was attributed to an increase in SG&A expenses primarily due to higher compensation costs, higher professional fees and higher information technology costs, partially offset by lower occupancy costs.
Current wording
•Corporate Operating Expenses decreased 11.5% or $18 million to $146 million in the first quarter of fiscal 2027. Excluding items affecting comparability, Corporate operating expenses as a percentage of net sales decreased 70 basis points to 7.6% in the first quarter of fiscal 2027 as compared to 8.3% in the first quarter of fiscal 2026; and operating expenses increased $5 million to $145 million from $140 million in the first quarter of fiscal 2026. The increase in operating expenses was primarily due to higher compensation costs, partially offset by lower professional fees.
Previous wording
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 wording
Other income decreased $4 million to other expense of less than $1 million in the first quarter of fiscal 2027 as compared to Other income of $4 million in the first quarter of fiscal 2026. This decrease in other income was related to a decrease in foreign exchange gains.
Previous 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.
Current wording
The effective tax rate was 12.5% in the first quarter of fiscal 2027 as compared to 13.8% in the first quarter of fiscal 2026. Excluding items affecting comparability, the effective tax rate was 12.7% in the first quarter of fiscal 2027 as compared to 13.7% in the first quarter of fiscal 2026. The decrease in effective tax rate was primarily attributable to the geographical mix of earnings.
Previous 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.
Current wording
Net income per diluted share was $1.76 in the first quarter of fiscal 2027 as compared to net income per diluted share of $1.28 in the first quarter of fiscal 2026. Excluding items affecting comparability, net income per diluted share increased $0.44 to $1.82 in the first quarter of fiscal 2027 from $1.38 in the first quarter of fiscal 2026, primarily due to higher net income.
Previous wording
The Company’s reported results are presented in accordance with GAAP. The Company presents certain non-GAAP measures, including segment operating income (loss), segment SG&A expenses, SG&A expense ratio, operating margin, Operating Income (loss), Loss on extinguishment of debt, Interest expense, Other expense (income), Provision for income taxes, Net income (loss) and Net Income (loss) per diluted common share, which exclude items affecting comparability such as Acquisition and Divestiture costs and Organizational Efficiency costs, as applicable. Reconciliations between the non-GAAP measure and the most directly comparable GAAP measure are included in the Item 2. "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section where applicable.
Current wording
The Company’s reported results are presented in accordance with GAAP. The Company presents certain non-GAAP measures, including segment operating income (loss), segment SG&A expenses, segment gross profit, SG&A expense ratio, operating margin, Operating Income (loss), Provision for income taxes, Net income (loss) and Net Income (loss) per diluted common share, which exclude items affecting comparability.
Previous wording
These non-GAAP performance measures were used by management to conduct and evaluate its business during its regular review of operating results for the periods affected. Management and the Company’s Board utilized these non-GAAP measures to make decisions about the uses of Company resources, analyze performance between periods, develop internal projections and measure management performance. The Company’s internal management reporting excluded these items. In addition, the human resources committee of the Company’s Board uses these non-GAAP measures when setting and assessing achievement of incentive compensation goals.
Current wording
These non-GAAP performance measures were used by management to conduct and evaluate its business during its regular review of operating results for the periods affected. Management and the Company’s Board utilized these non-GAAP measures to make decisions about the uses of Company resources, analyze performance between periods, develop internal projections and measure management performance. The Company’s internal management reporting excluded these items. In addition, the HR Committee of the Company’s Board uses these non-GAAP measures when setting and assessing achievement of incentive compensation goals.
Previous wording
The Company incurred Acquisition and Divestiture items which consist of non-recurring costs, related to the Stuart Weitzman Business Divestiture, inclusive of professional fees, one-time severance costs, compensation costs, operating net loss and TSA income. The Company also incurred Organizational Efficiency Costs which consist of non-recurring costs, primarily from various initiatives aimed at streamlining the organization and optimizing processes. These costs mainly include one-time technology and severance related charges.
Current wording
•Acquisition and Divestiture Costs- The Company incurred Acquisition and Divestiture items which consist of non-recurring costs related to the Stuart Weitzman Business Divestiture, inclusive of professional fees, one-time severance costs, compensation costs, operating net loss and TSA income.
Previous wording
The Company’s cash and cash equivalents decreased by $53.5 million in the first nine months of fiscal 2026 as compared to a decrease of $5.08 billion in the first nine months of fiscal 2025, as discussed below.
Current wording
The Company’s cash and cash equivalents decreased by $376 million in the first quarter of fiscal 2027 as compared to a decrease of $381 million in the first quarter of fiscal 2026, as discussed below.
Previous wording
Net cash provided by operating activities increased $686.5 million primarily due to higher net income of $479.6 million, changes in operating assets and liabilities of $220.4 million, as well as lower impact of non-cash adjustments of $13.5 million.
Current wording
Net cash provided by operating activities increased $84 million primarily due to higher net income of $85 million, changes in operating assets and liabilities of $38 million, partially offset by lower impact of non-cash adjustments of $39 million.
Previous wording
The $220.4 million increase in changes in operating asset and liability balances were primarily driven by the following:
Current wording
The $38 million increase in changes in operating asset and liability balances were primarily driven by the following:
Previous wording
•Inventory was a source of cash of $16.3 million in the first nine months of fiscal 2026 compared to a use of cash of $132.7 million in the first nine months of fiscal 2025, primarily driven by increased inventory purchases for Coach in the prior year to support sales growth and the strategic decision to pull forward receipts.
Current wording
•Inventory was a use of cash of $222 million in the first quarter of fiscal 2027 compared to a use of cash of $161 million in the first quarter of fiscal 2026, primarily driven by increased inventory purchases for Coach to support sales growth.
Previous wording
•Accounts receivable were a use of cash of $81.8 million in the first nine months of fiscal 2026 compared to a use of cash of $43.8 million in the first nine months of fiscal 2025, primarily driven by an increase in sales at Coach.
Current wording
•Accounts receivable were a use of cash of $106 million in the first quarter of fiscal 2027 compared to a use of cash of $46 million in the first quarter of fiscal 2026, primarily driven by an increase in wholesale sales at Coach.
Previous wording
Net cash used in investing activities in the first nine months of fiscal 2026 was $10.4 million as compared to a source of cash of $948.2 million in the first nine months of fiscal 2025, resulting in a $958.6 million decrease in net cash provided by investing activities.
Current wording
Net cash used in investing activities in the first quarter of fiscal 2027 was $53 million as compared to a source of cash of $69 million in the first quarter of fiscal 2026, resulting in a $122 million decrease in net cash provided by investing activities.
Previous wording
The $948.2 million source of cash in the first nine months of fiscal 2025 was primarily due to proceeds from maturities and sales of investments of $2.92 billion, partially offset by purchases of investments of $1.89 billion, mainly related to the proceeds of the Capri Acquisition Senior Notes.
Current wording
The $53 million use of cash in the first quarter of fiscal 2027 was primarily due to purchases of property and equipment of $48 million and purchases of investments of $21 million, partially offset by proceeds from maturities and sales of investments of $16 million.
Previous wording
The $10.4 million use of cash in the first nine months of fiscal 2026 was primarily due to purchases of property and equipment of $112.8 million and purchases of investments of $9.3 million, partially offset by proceeds from the divestiture of the Stuart Weitzman Business of $109.1 million.
Current wording
The $69 million source of cash in the first quarter of fiscal 2026 was primarily due to proceeds from the divestiture of the Stuart Weitzman business of $109 million, partially offset by purchases of property and equipment of $32 million.
Previous wording
Net cash used in financing activities was $1.49 billion in the first nine months of fiscal 2026 as compared to a use of cash of $6.81 billion in the first nine months of fiscal 2025, resulting in a net decrease in use of cash for financing activities of $5.32 billion.
Current wording
Net cash used in financing activities was $526 million in the first quarter of fiscal 2027 as compared to a use of cash of $551 million in the first quarter of fiscal 2026, resulting in a net decrease in use of cash for financing activities of $25 million.
Showing the first 40 of 47 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
In the first quarter of fiscal 2027, the Company incurred charges as follows:
Current report — wording carried from elsewhere
In the first quarter of fiscal 2026, the Company incurred charges as follows:
Current report — wording carried from elsewhere
•Organizational Efficiency Costs - The Company also incurred Organizational Efficiency Costs which consist of non-recurring costs, primarily from various initiatives aimed at streamlining the organization and optimizing processes. These costs mainly include one-time technology and severance related charges.
Current report — wording carried from elsewhere
On February 20, 2026, the U.S. Supreme Court ruled that tariffs collected under the IEEPA were invalid. The CIT subsequently ordered refunds for qualifying customs entries, including applicable interest. CBP established a phased administrative process for submitting refund claims for certain IEEPA tariffs.
Rearranged previous paragraphs (8)
Previous report — wording carried elsewhere
•Organizational Efficiency Costs - Total pre-tax charges of $5.6 million primarily related to technology costs.
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
(4)Corporate expenses, which are included within SG&A expenses discussed above, but are not directly attributable to a reportable segment.
Previous report — wording carried elsewhere
◦SG&A expenses as a percentage of net sales, increased 620 basis points mainly driven by higher marketing spend and deleverage of fixed costs on lower net sales.