Global Head of Investor Relations
jleemann@tapestry.com TAPESTRY, INC. REPORTS FISCAL 2027 FIRST QUARTER RESULTS AND RAISES FULL YEAR OUTLOOK
Exceeded First Quarter Revenue, Gross Margin, Operating Margin, and EPS Guidance ●
Del ive red Rev enu e of $1. 9 B ill ion , an Inc rea se of 11% on a R epo rte d B asi s and 12% on a Pro For ma Bas is Ver sus Pri or Yea r, Led by 16% Gro wth at Coa ch Bra nd
Exp and ed Gro ss Mar gin by 230 Bas is Poi nts on a G AAP Bas is and 220 Bas is Poi nts on a N on- GAA P B asi s
Ach iev ed GAA P D ilu ted EPS of $1. 76, up 38% Ver sus Pri or Yea r, and Non -GA AP Dil ute d EPS of $1. 82, an Inc rea se of 32% Ver sus Pri or Yea r
Ret urn ed App rox ima tel y $ 700 Mil lio n to Sha reh old ers Thr oug h D ivi den ds and Sha re Rep urc has es
Inc rea ses Fis cal Yea r 2 027 Cap ita l R etu rn Out loo k to $2. 0 B ill ion Dri ven by Inc rem ent al Sha re Rep urc has es
Rai ses Fis cal Yea r 2 027 Rev enu e, Ope rat ing Mar gin , and Ear nin gs Out loo k
Lin k to Dow nlo ad Tap est ry’ s Q1 Ear nin gs Pre sen tat ion , I ncl udi ng Bra nd Hig hli ght s
, November 5, 2026 – Tapestry, Inc. (NYSE: TPR), a house of iconic accessories and lifestyle brands, consisting of Coach and Kate Spade New York, today reported results for the fiscal first quarter ended September 26, 2026. 10 HUDSON YARDS, NEW YORK, NY 10001 TELEPHONE 212 594 1850FAX 212 594 1682WWW.TAPESTRY.COM 1 Joanne Crevoiserat, Chief Executive Officer of Tapestry, Inc., commented: “Our first quarter marked a powerful start to the year, with revenue, margin, and earnings growth ahead of expectations and strength around the world. Our Amplify strategy continues to bring new consumers to our brands through our distinctive combination of creativity, craftsmanship, and value. Building on this outperformance, we are raising our full year outlook, reflecting our confidence in the durability of our growth.
Behind these results are advantages that compound over time, including our deep consumer understanding, data-driven approach, and global scale. Together, they reinforce our conviction that our greatest opportunities are ahead of us as we continue to drive long-term value for our customers, our teams, and our shareholders.” Tapestry, Inc. Fiscal 2027 First Quarter Financial Highlights (Unaudited) – in USD millions except per share data
1 Pro forma Net sales and related growth rates exclude Net sales of the Stuart Weitzman Business on a reported and constant currency basis, in prior period presented. Refer to Schedule 2.
2 Refer to Schedule 3 for reconciliation between GAAP and Non-GAAP measures. 2 Summary of Pro Forma Revenue Information (Unaudited) – in USD millions
1 Pro forma Net sales and related growth rates exclude Net sales of the Stuart Weitzman Business on a reported and constant currency basis. Refer to Schedule 2.
2 Refer to "About Tapestry, Inc." section below for countries included within each region.
, w hic h is foc use d on fou r key pil lar s t hat und erp in dur abl e g row th:
Thi s s tra teg y is dri vin g the Com pan y’s res ult s and dee pen ing the com pet iti ve adv ant age s t hat sup por t l ong -te rm gro wth .
, welcoming 2.6 million new consumers in the quarter, of which approximately 35% were Gen Z; at the same time, demand from existing customers increased, demonstrating the Company’s ability to create lasting consumer relationships; 3 ●
Ach iev ed str ong gro wth in the cor e l eat her goo ds off eri ng , led by han dba g r eve nue gai ns at Coa ch, whe re han dba g AUR inc rea sed at a l ow- dou ble -di git per cen tag e r ate and uni ts ros e l ow- sin gle dig its , u nde rsc ori ng the bra nd' s d esi rab ili ty, inn ova tio n, and val ue pro pos iti on;
Del ive red bro ad- bas ed gro wth acr oss reg ion s, gai nin g m ark et sha re, and exp and ing the ove ral l c ate gor y . On a pro for ma con sta nt cur ren cy bas is in the fir st qua rte r, Nor th Ame ric a r eve nue gre w 4%, Eur ope rev enu e i ncr eas ed 22% , and APA C r eve nue ros e 2 8%, whi ch inc lud ed Gre ate r C hin a g row th of 39% . C oac h d eli ver ed 16% gro wth , i ncl udi ng 7% gro wth in Nor th Ame ric a and 30% gro wth int ern ati ona lly ;
Dro ve 9% Dir ect - to- Con sum er rev enu e g row th on a pro for ma bas is, exc eed ing exp ect ati ons , w ith sto re rev enu e g row ing low -do ubl e-d igi ts and dig ita l i ncr eas ing mid -si ngl e-d igi ts. In add iti on, who les ale gro wth of app rox ima tel y 30% was dri ven by int ern ati ona l m ark ets ; s tro ng pro fit abi lit y in eac h c han nel all ows the Com pan y to mee t c ons ume rs whe re the y a re, del ive rin g b ran d-a ccr eti ve exp eri enc es whi le gen era tin g c omp ell ing ret urn s.
Ove ral l, Tap est ry gre w pro for ma rev enu e by 12% , n on- GAA P o per ati ng pro fit by 24% , and non -GA AP ear nin gs per dil ute d s har e by 32% , d emo nst rat ing the com pou ndi ng adv ant age s of its bra nd- bui ldi ng cap abi lit ies , g lob al sca le, and dis cip lin ed exe cut ion .
The Com pan y now exp ect s to ret urn app rox ima tel y $ 2.0 bil lio n to sha reh old ers in Fis cal 202 7 t hro ugh its cap ita l r etu rn pro gra ms, an inc rea se fro m p rio r g uid anc e, whi ch inc lud es app rox ima tel y $ 700 mil lio n r etu rne d in the fis cal fir st qua rte r:
Div ide nd: The Com pan y’s Boa rd of Dir ect ors dec lar ed a q uar ter ly cas h d ivi den d of $0. 462 5 per com mon sha re pay abl e on Dec emb er 21, 202 6 to sha reh old ers of rec ord as of the clo se of bus ine ss on Dec emb er 4, 202 6. In Fis cal 202 7, the Com pan y c ont inu es to ant ici pat e an ann ual div ide nd of $1. 85 per sha re. 4 ●
: Tapestry now expects to repurchase $1.7 billion in common stock in the fiscal year under its existing share repurchase authorization, an increase of $350 million versus its prior guidance. During the first quarter, the Company spent $600 million to repurchase approximately 4.6 million shares of its common stock at an average cost of $130 per share.
During the fiscal first quarter of 2027, Tapestry recorded charges related to distribution network optimization initiatives that decreased operating income by $15 million, net income by $11 million, and diluted earnings per share by $0.06. Please refer to the Financial Schedules included herein for a full reconciliation of the Company’s reported GAAP to non-GAAP results. Ove rvi ew of Fis cal 202 7 F irs t Q uar ter Fin anc ial Res ult s
tot ale d $ 1.8 9 b ill ion , i ncr eas ing 11% on a r epo rte d and con sta nt cur ren cy bas is. Exc lud ing Stu art Wei tzm an sal es in the pri or yea r p eri od, pro for ma net sal es inc rea sed 12% on a r epo rte d and con sta nt cur ren cy bas is.
tot ale d $ 1.4 9 b ill ion on a G AAP bas is com par ed to $1. 30 bil lio n in the pri or yea r. On a n on- GAA P b asi s, gro ss pro fit tot ale d $ 1.4 9 b ill ion , w hil e g ros s m arg in was 78. 7%, rep res ent ing an exp ans ion of 220 bas is poi nts ver sus pri or yea r, dri ven by ope rat ion al imp rov eme nts of app rox ima tel y 130 bas is poi nts , a 70- bas is poi nt net ben efi t f rom tar iff s and dut ies , and a 2 0- bas is poi nt ben efi t f rom for eig n c urr enc y.
totaled $1.06 billion on a GAAP basis compared to $973 million in the prior year. On a non-GAAP basis, SG&A expenses totaled $1.05 billion, representing 55.5% of sales, 10 basis points below prior year, including a 140-basis point increase in marketing investment. 5 ●
was $42 4 m ill ion on a G AAP bas is, com par ed to pri or yea r o per ati ng inc ome of $32 8 m ill ion . On a n on- GAA P b asi s, ope rat ing inc ome was $43 9 m ill ion , an inc rea se of 24% ver sus the pri or yea r, whi le ope rat ing mar gin was 23. 2%, rep res ent ing an exp ans ion of app rox ima tel y 230 bas is poi nts ver sus the pri or yea r.
was les s t han $1 mil lio n v ers us oth er inc ome of $4 mil lio n in the pri or yea r.
was 12. 5% on a G AAP bas is and 12. 7% on a n on- GAA P b asi s v ers us the pri or yea r tax rat e of 13. 8% on a G AAP bas is and 13. 7% on a n on- GAA P b asi s.
was $1.76 on a GAAP basis compared to $1.28 in the prior year, an increase of 38%. Non-GAAP EPS was $1.82 compared to $1.38 in the prior year, an increase of 32%.
were $2.56 billion. The Company’s leverage ratio, based on gross debt to adjusted EBITDA, was 1.1x as of the end of the fiscal quarter.
was an inflow of $197 million compared to an inflow of $113 million in the prior year.
was an inflow of $56 million compared to an inflow of $103 million in the prior year. 6 ●
Cap Ex and imp lem ent ati on cos ts rel ate d to Clo ud Com put ing wer e $55 mil lio n v ers us $38 mil lio n a yea r a go.
Tap est ry is rai sin g its Fis cal 202 7 o utl ook , w hic h is pro vid ed on a n on- GAA P and com par abl e 5 2- wee k v ers us 52- wee k b asi s:
of app rox ima tel y $ 8.5 bil lio n to $8. 6 b ill ion , r epr ese nti ng app rox ima tel y 6% to 7% gro wth on a c ons tan t c urr enc y b asi s v ers us pri or yea r. For eig n c urr enc y is exp ect ed to be a 30 bas is poi nt ben efi t to rev enu e g row th in the fis cal yea r. Thi s is abo ve pri or gui dan ce of $8. 4 b ill ion to $8. 5 b ill ion ;
exp ans ion of app rox ima tel y 100 bas is poi nts ver sus pri or yea r. Thi s is abo ve pri or gui dan ce for an inc rea se of app rox ima tel y 50 bas is poi nts ;
of app rox ima tel y $60 mil lio n v ers us pri or gui dan ce of app rox ima tel y $55 mil lio n;
of app rox ima tel y 18% ver sus pri or gui dan ce of app rox ima tel y 1 8.5 %;
of app rox ima tel y 200 mil lio n, ver sus pri or gui dan ce of app rox ima tel y 203 mil lio n;
of $8.25 to $8.35, representing 17% to 18% growth versus prior year. This is above prior guidance of $7.80 to $7.90
approaching $1.7 billion, including CapEx and Cloud Computing costs of $300 million or approximately 3% to 4% of revenue. This is unchanged from prior guidance. 7 In add iti on, for the sec ond fis cal qua rte r of 202 7, the Com pan y e xpe cts :
gro wth of app rox ima tel y 5% to 6% on a c ons tan t c urr enc y b asi s v ers us pri or yea r. For eig n c urr enc y is exp ect ed to be a 70 bas is poi nt ben efi t to rev enu e g row th in the fis cal qua rte r;
of app rox ima tel y $ 3.0 5, rep res ent ing low -te ens gro wth ver sus pri or yea r.
Exc lud es the imp act of the 53 rd wee k in Fis cal 202 7, whi ch is exp ect ed to con tri but e an add iti ona l p erc ent age poi nt to ann ual rev enu e g row th and hav e a neu tra l i mpa ct on ope rat ing mar gin for the ful l f isc al yea r;
Emb eds a l ow- to- mid -20 % t ari ff rat e on U.S . i nve nto ry rec eip ts in Fis cal 202 7, res ult ing in a m ode st net ben efi t f rom tar iff s y ear -ov er- yea r;
Emb eds cur ren t g lob al tax pol ici es, inc lud ing the imp act of OEC D P ill ar Two gui dan ce;
Inc lud es for eig n c urr enc y e xch ang e r ate s u sin g s pot rat es at the tim e of for eca st;
Ass ume s no mat eri al wor sen ing of inf lat ion ary pre ssu res or con sum er con fid enc e.
Giv en the dyn ami c n atu re of the se and oth er ext ern al fac tor s, fin anc ial res ult s c oul d d iff er mat eri all y f rom the out loo k p rov ide d.
The Com pan y is not abl e to pro vid e a ful l r eco nci lia tio n of the non -GA AP fin anc ial mea sur es to GAA P p res ent ed in thi s r ele ase and on the Com pan y’s con fer enc e c all bec aus e c ert ain mat eri al ite ms tha t i mpa ct the se mea sur es hav e not yet occ urr ed and can not be rea son abl y e sti mat ed at thi s t ime . A cco rdi ngl y, a r eco nci lia tio n of the Com pan y’s non -GA AP fin anc ial mea sur e g uid anc e to the cor res pon din g G AAP mea sur e is not ava ila ble wit hou t u nre aso nab le eff ort . 8
The Company will host a conference call to review these results at 8:00 a.m. (ET) today, November 5, 2026. Interested parties may listen to the conference call via live webcast by accessing www.tapestry.com/investors or calling 1-866-847-4217 or 1-203-518-9845 and providing the Conference ID 1183076. A telephone replay will be available starting at 12:00 p.m. (ET) today for a period of five business days. To access the telephone replay, call 1-800-283-4641 or 1-402-220-0851. A webcast replay of the earnings conference call will also be available for five business days on the Tapestry website. In addition, presentation slides have been posted to the Company’s website at www.tapestry.com/investors .
The Company expects to report fiscal 2027 second quarter results on Thursday, February 4, 2027.
To receive notification of future announcements, please register at www.tapestry.com/investors ("Subscribe to E-Mail Alerts").
Our global house of iconic accessories and lifestyle brands unites 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. To learn more about Tapestry, please visit www.tapestry.com . For important news and information regarding Tapestry, visit the Investor Relations section of our website at www.tapestry.com/investors . In addition, investors should continue to review our news releases and filings with the SEC. We use each of these channels of distribution as primary channels for publishing key information to our investors, some of which may contain material and previously non-public information. The Company’s common stock is traded on the New York Stock Exchange under the symbol TPR. 9 The information made available in this press release may contain forward-looking statements based on management's current expectations. Forward-looking statements include, but are not limited to, the statements under “Financial Outlook,” statements regarding long-term performance, statements regarding the Company’s capital deployment plans, including anticipated annual dividend rates and share repurchase plans, and statements that can be identified by the use of forward-looking terminology such as "may," “can,” “could,” “if,” "continue," “assumes,” “embed,” “compound,” “contribute,” “differ,” "should," "expect," “confidence,” “conviction,” “trends,” “anticipate,” "estimate," “future,” “plan,” “potential,” “opportunities,” “ahead,” “create,” “build,” “fuel,” “deliver,” “ignite,” “grow,” “believe,” “will,” “would,” “uncertain,” “achieve,” “strategic,” “growth,” "guidance," "forecast," “outlook,” “commit,” “innovation,” “drive,” “leverage,” “generate,” “effort,” “approaching,” “expanding,” “advancing,” “deepening,” “reinforce,” “underpin,” “lasting,” “elevate,” “long-term,” “durable growth,” “durability,” “Amplify strategy,” “we stretch what’s possible,” similar expressions, and variations or negatives of these words. They include, without limitation, statements regarding future anticipated capital expenditures. Future results may differ materially from management's current expectations, based upon a number of important factors, including risks and uncertainties such as economic conditions, recession and inflationary measures, the impact of international trade disputes and the risks associated with potential changes to international trade and policy agreements, including the imposition or threat of imposition of new or increased tariffs or retaliatory tariffs implemented by countries where our manufacturers are located as well as the imposition of additional duties on the products we import, risks associated with operating in international markets, including currency fluctuations and changes in economic or political conditions in the markets where we sell or source our products, the ability to anticipate consumer preferences and retain the value of our brands and respond to changing fashion and retail trends in a timely manner, including our ability to execute on our e-commerce and digital strategies, the impact of tax and other legislation, the ability to successfully implement the initiatives under our Amplify strategy, the effect of existing and new competition in the marketplace, our ability to successfully identify and implement any sales, acquisitions or strategic transactions on attractive terms or at all, our ability to achieve intended benefits, cost savings and synergies from acquisitions, our ability to control costs, the effect of seasonal and quarterly fluctuations on our sales or operating results, the risks associated with cyber security threats, privacy or data security breaches, and the development, use, governance and regulation of artificial intelligence technologies, our ability to satisfy our outstanding debt obligations or incur additional indebtedness, the risks associated with climate change and other corporate responsibility issues, our ability to protect against infringement of our trademarks and other proprietary rights, and the impact of pending and potential future legal proceedings, etc. In addition, purchases of shares of the Company’s common stock will be made subject to market conditions and at prevailing market prices. Please refer to the Company’s latest Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission for a complete list of risks and important factors. The Company assumes no obligation to revise or update any such forward-looking statements for any reason, except as required by law.
Management utilizes non-GAAP and constant currency measures to conduct and evaluate its business during its regular review of operating results for the periods affected and to make decisions about Company resources and performance. The Company believes presenting these non-GAAP measures, which exclude items affecting comparability, is useful to investors and others in evaluating the Company’s ongoing operating and financial results in a manner that is consistent with management’s evaluation of business performance and in understanding how such results compare with the Company’s historical performance. Additionally, the Company believes presenting these metrics on a constant currency basis will help investors and analysts to understand the effect of significant year-over- year foreign currency exchange rate fluctuations on these performance measures and provide a framework to assess how business is performing and expected to perform excluding these effects.
The Company reports information in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). The Company's management does not, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Further, the non-GAAP measures utilized by the Company may be unique to the Company, as they may be different from non-GAAP measures used by other companies.
The Company operates on a global basis and reports financial results in U.S. dollars in accordance with GAAP. Percentage increases/decreases in net sales for the Company and each segment have been presented both including and excluding currency fluctuation effects from translating foreign-denominated sales into U.S. dollars and compared to the same periods in the prior quarter and fiscal year. The Company calculates constant currency net sales results by translating current period net sales in local currency using the prior year period’s currency conversion rate. Due to the sale of Stuart Weitzman on August 4, 2025, the Company presents pro forma net sales and related growth rates, which exclude Stuart Weitzman’s Net sales from the prior year period. In the Summary of Pro Forma Revenue Information table, Greater China includes mainland China, Taiwan, Hong Kong SAR, and Macao SAR. Other Asia includes Australia, South Korea, Malaysia, Singapore, and other countries primarily within Asia. Other primarily represents royalties earned from the Company's licensing partners and sales in the Middle East. 10 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 such as Distribution Network Optimization Costs, Acquisition and Divestiture Costs and Organizational Efficiency Costs, as applicable. A reconciliation to the most directly comparable GAAP measures is provided in the tables accompanying this release.
The Company also presents Adjusted Free Cash Flow, which is a non-GAAP measure, and is calculated as Net cash provided by (used in) operating activities less Purchases of property and equipment, adjusted for the cash impacts of Items affecting comparability included in operating cash flows related to Distribution Network Optimization Costs, Acquisition and Divestiture Costs and Organizational Efficiency Costs, and Changes in operating assets and liabilities of items affecting comparability. The Company believes that Adjusted Free Cash Flow is an important liquidity measure of the cash that is available after capital expenditures for operational expenses, investment in our business and items affecting comparability. The Company believes that Adjusted Free Cash Flow is useful to investors because it measures the Company’s ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet, invest in future growth and return capital to stockholders.
The Company also presents Leverage Ratio, which is a non-GAAP metric, and is calculated as total debt, which includes Current debt and Long-term debt, divided by Adjusted EBITDA for the trailing twelve months. Adjusted EBITDA is calculated as Net Income (Loss), excluding: Interest expense, net; Provision for income taxes; Depreciation and amortization; Cloud Computing amortization; Share-based compensation; and Items affecting comparability including Distribution Network Optimization Costs, Acquisition and Divestiture Costs, Organizational Efficiency Costs and IEEPA tariff refunds. The Company believes that the Leverage Ratio is an important metric to assess the strength of our balance sheet and credit quality and demonstrates our commitment to maintaining an investment-grade credit rating. 11
(unaudited) September 26, September 27, QUARTER ENDED 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net sales $ 1,894 $ 1,705 Cost of sales 406 404 Gross profit 1,488 1,301 Selling, general and 1,064 973 administrative expenses Operating 424 328 income (loss) Interest 13 13 expense, net Other expense — (4 ) (income) Income (loss) before 411 319 provision for income taxes Provision (benefit) for 51 44 income taxes Net income $ 360 $ 275 (loss) Net income (loss) per share: Basic $ 1.81 $ 1.32 Diluted $ 1.76 $ 1.28 Shares used in computing net income (loss) per share: Basic 199.3 207.6 Diluted 204.5 215.5
Pro Forma Net sales and related growth rates exclude Net sales of the Stuart Weitzman Business on a reported and constant currency basis. 13
(*) Relates primarily to costs to transition from our Ohio fulfillment center to a third-party facility in Pennsylvania. 14
1 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 and Cost of sales were $7 million.
(*) Relates to costs incurred by the Company in connection with the divestiture of the Stuart Weitzman Business.
(**) Relates to organizational efficiency costs, primarily related to technology costs and severance costs. 15
(unaudited) (audited) September 26, 2026 June 27, 2026 ────────────────────────────────────────────────────────────────────────────── ASSETS Cash, cash equivalents and $ 782 $ 1,152 short-term investments Receivables 343 237 Inventories 1,055 826 Other current assets 561 667 Total current assets 2,741 2,882 Property and 507 502 equipment, net Operating lease 1,512 1,417 right-of-use assets Other assets 1,855 1,891 Total assets $ 6,615 $ 6,692 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 679 $ 582 Accrued liabilities 633 755 Current portion of operating lease 301 308 liabilities Current debt 597 — Total current 2,210 1,645 liabilities Long-term debt 1,960 2,379 Long-term operating 1,371 1,266 lease liabilities Other liabilities 730 710 Stockholders' equity 344 692 Total liabilities and stockholders' $ 6,615 $ 6,692 equity
September September 27, (unaudited) 26, 2026 (unaudited) 2025 ────────────────────────────────────────────────────────────────────────────── CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES Net income $ 360 $ 275 (loss) Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciati… and 40 37 amortizati… Amortizati… of cloud 14 14 computing arrangemen… Other non-cash 37 79 items Changes in operating (254 ) (292 ) assets and liabilities Net cash provided by (used in) 197 113 operating activities CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES Purchases of property (48 ) (32 ) and equipment Purchases of (21 ) (9 ) investments Proceeds from sale of business, — 109 net of cash divested Other items 16 1 Net cash provided by (used in) (53 ) 69 investing activities CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES Payment of (92 ) (83 ) dividends Repurchase of common (603 ) (698 ) stock Proceeds from/(Repa… of) 200 240 commercial paper, net Other items (31 ) (10 ) Net cash provided by (used in) (526 ) (551 ) financing activities Effect of exchange rate on 6 (12 ) cash and cash equivalents Net increase (decrease) (376 ) (381 ) in cash and cash equivalents Cash and cash equivalents $ 975 $ 1,100 at beginning of period Cash and cash equivalents $ 599 $ 719 at end of period
September 26, September 27, Quarter Ended 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net cash provided by (used in) $ 197 $ 113 operating activities (GAAP) Purchases of property and (48 ) (32 ) equipment Items affecting comparability - — 15 Acquisition and Divestiture Costs Items affecting comparability - — 8 Organizational Efficiency Costs Items affecting comparability - 15 — Distribution Network Optimization Costs Changes in operating assets and liabilities of items affecting comparability Accrued 1 (1 ) liabilities Other assets1 (109 ) — Adjusted Free Cash Flow $ 56 $ 103 (Non-GAAP)
1 Primarily relates to the cash collection of the IEEPA tariff refund. 18 Schedule 8: Adjusted EBITDA and Leverage Ratio GAAP to Non-GAAP Reconciliation
ADJUSTED EBITDA for the Trailing Twelve Months ("TTM") ended on September 26, 2026, and LEVERAGE RATIO as of September 26, 2026
(*) Adjusted EBITDA is calculated as Net Income (Loss), excluding Interest expense, net; Provision for income taxes; Depreciation and amortization; Cloud computing amortization; Share-based compensation; Items affecting comparability including Acquisition and Divestiture Costs, Organizational Efficiency Costs, IEEPA, and Distribution Network Optimization Costs
(**) Total Debt Includes Current debt and Long-term debt as of September 26, 2026
(***) Leverage Ratio is calculated as Total Debt as of September 26, 2026 divided by Adjusted EBITDA for the trailing twelve months ended September 26, 2026 19
Full text with the tables
Exhibit 99.1
CONTACTS:
Tapestry, Inc.
Analysts and Investors:
Christina Colone
Global Head of Investor Relations
212/946-7252
ccolone@tapestry.com
Media:
Jennifer Leemann
Global Head of Communications
212/631-2797
jleemann@tapestry.com
TAPESTRY, INC. REPORTS FISCAL 2027 FIRST QUARTER RESULTS AND RAISES FULL YEAR
OUTLOOK
Exceeded First Quarter Revenue, Gross Margin, Operating Margin, and EPS Guidance
●
Del
ive
red
Rev
enu
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of
$1.
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ill
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an
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gs
Out
loo
k
Lin
k
to
Dow
nlo
ad
Tap
est
ry’
s
Q1
Ear
nin
gs
Pre
sen
tat
ion
, I
ncl
udi
ng
Bra
nd
Hig
hli
ght
s
New York
, November 5, 2026 – Tapestry, Inc. (NYSE: TPR), a house of iconic accessories
and lifestyle brands, consisting of Coach and Kate Spade New York, today
reported results for the fiscal first quarter ended September 26, 2026.
10 HUDSON YARDS, NEW YORK, NY 10001 TELEPHONE 212 594 1850FAX 212 594
1682WWW.TAPESTRY.COM
1
Joanne Crevoiserat, Chief Executive Officer of Tapestry, Inc., commented:
“Our first quarter marked a powerful start to the year, with revenue, margin,
and earnings growth ahead of expectations and strength around the world. Our
Amplify strategy continues to bring new consumers to our brands through our
distinctive combination of creativity, craftsmanship, and value. Building on
this outperformance, we are raising our full year outlook, reflecting our
confidence in the durability of our growth.
Behind these results are advantages that compound over time, including our deep
consumer understanding, data-driven approach, and global scale. Together, they
reinforce our conviction that our greatest opportunities are ahead of us as we
continue to drive long-term value for our customers, our teams, and our
shareholders.”
Tapestry, Inc. Fiscal 2027 First Quarter Financial Highlights (Unaudited) – in
USD millions except per share data
Quar…
Ended
──────────────────────────────────────────────────────────────────────────────
Con…
Cur…
%
Sept… Sept…
26, 27, Chan… Cha…
2026 2025
Net $ 1,894 $ 1,705 11 % 11 %
sal…
Pro
For… 1,894 1,690 12 % 12 %
Net
sal…
Gro… $ 1,488 $ 1,301 14 %
pro…
Gro… 78.6 % 76.3 % 230
mar… bps
Non…
Gro… $ 1,490 $ 1,293 15 %
pro…
Non… 220
Gro… 78.7 % 76.5 % bps
mar…
Ope… $ 424 $ 328 29 %
inc…
Ope… 22.4 % 19.3 % 310
mar… bps
Non…
Ope… $ 439 $ 354 24 %
inc…
Non… 230
Ope… 23.2 % 20.9 % bps
mar…
Ear…
per $ 1.76 $ 1.28 38 %
dil…
sha…
Non…
Ear…
per 1.82 1.38 32 %
dil…
sha…
1 Pro forma Net sales and related growth rates exclude Net sales of the Stuart
Weitzman Business on a reported and constant currency basis, in prior period
presented. Refer to Schedule 2.
2 Refer to Schedule 3 for reconciliation between GAAP and Non-GAAP measures.
2
Summary of Pro Forma Revenue Information (Unaudited) – in USD millions
Quarter
Ended
September % Change Constant
26, 2026 Reported Currency
──────────────────────────────────────────────────────────────────────────────
Brand
Coach $ 1,661 16 % 16 %
Kate Spade 233 (10 )% (10 )%
Region
North $ 1,110 4 % 4 %
America
Greater 385 43 % 39 %
China2
Japan 103 (5 )% 4 %
Other Asia2 114 26 % 23 %
Europe 151 20 % 22 %
Other2 31 11 % 11 %
Tapestry $ 1,894 12 % 12 %
Pro Forma1
1 Pro forma Net sales and related growth rates exclude Net sales of the Stuart
Weitzman Business on a reported and constant currency basis. Refer to Schedule
2.
2 Refer to "About Tapestry, Inc." section below for countries included within
each region.
Tapestry, Inc. Strategic Highlights
Tapestry advanced its
Amplify growth strategy
, w
hic
h
is
foc
use
d
on
fou
r
key
pil
lar
s t
hat
und
erp
in
dur
abl
e g
row
th:
●
Build Emotional Connection with Consumers
●
Fuel Fashion Innovation and Product Excellence
●
Del
ive
r C
omp
ell
ing
Exp
eri
enc
es
to
Dri
ve
Glo
bal
Gro
wth
●
Ignite the Power of our People
Thi
s s
tra
teg
y
is
dri
vin
g
the
Com
pan
y’s
res
ult
s
and
dee
pen
ing
the
com
pet
iti
ve
adv
ant
age
s t
hat
sup
por
t l
ong
-te
rm
gro
wth
.
Hig
hli
ght
s f
rom
the
fis
cal
fir
st
qua
rte
r
of
202
7 i
ncl
ude
d:
●
Drove strong new customer acquisition globally
, welcoming 2.6 million new consumers in the quarter, of which approximately 35%
were Gen Z; at the same time, demand from existing customers increased,
demonstrating the Company’s ability to create lasting consumer relationships;
3
●
Ach
iev
ed
str
ong
gro
wth
in
the
cor
e l
eat
her
goo
ds
off
eri
ng
,
led
by
han
dba
g r
eve
nue
gai
ns
at
Coa
ch,
whe
re
han
dba
g
AUR
inc
rea
sed
at
a l
ow-
dou
ble
-di
git
per
cen
tag
e r
ate
and
uni
ts
ros
e l
ow-
sin
gle
dig
its
, u
nde
rsc
ori
ng
the
bra
nd'
s d
esi
rab
ili
ty,
inn
ova
tio
n,
and
val
ue
pro
pos
iti
on;
●
Del
ive
red
bro
ad-
bas
ed
gro
wth
acr
oss
reg
ion
s,
gai
nin
g m
ark
et
sha
re,
and
exp
and
ing
the
ove
ral
l c
ate
gor
y .
On
a
pro
for
ma
con
sta
nt
cur
ren
cy
bas
is
in
the
fir
st
qua
rte
r,
Nor
th
Ame
ric
a r
eve
nue
gre
w
4%,
Eur
ope
rev
enu
e i
ncr
eas
ed
22%
,
and
APA
C r
eve
nue
ros
e 2
8%,
whi
ch
inc
lud
ed
Gre
ate
r C
hin
a g
row
th
of
39%
. C
oac
h d
eli
ver
ed
16%
gro
wth
, i
ncl
udi
ng
7%
gro
wth
in
Nor
th
Ame
ric
a
and
30%
gro
wth
int
ern
ati
ona
lly
;
●
Dro
ve
9%
Dir
ect
-
to-
Con
sum
er
rev
enu
e g
row
th
on
a
pro
for
ma
bas
is,
exc
eed
ing
exp
ect
ati
ons
, w
ith
sto
re
rev
enu
e g
row
ing
low
-do
ubl
e-d
igi
ts
and
dig
ita
l i
ncr
eas
ing
mid
-si
ngl
e-d
igi
ts.
In
add
iti
on,
who
les
ale
gro
wth
of
app
rox
ima
tel
y
30%
was
dri
ven
by
int
ern
ati
ona
l m
ark
ets
; s
tro
ng
pro
fit
abi
lit
y
in
eac
h c
han
nel
all
ows
the
Com
pan
y
to
mee
t c
ons
ume
rs
whe
re
the
y a
re,
del
ive
rin
g b
ran
d-a
ccr
eti
ve
exp
eri
enc
es
whi
le
gen
era
tin
g c
omp
ell
ing
ret
urn
s.
Ove
ral
l,
Tap
est
ry
gre
w
pro
for
ma
rev
enu
e
by
12%
, n
on-
GAA
P o
per
ati
ng
pro
fit
by
24%
,
and
non
-GA
AP
ear
nin
gs
per
dil
ute
d s
har
e
by
32%
, d
emo
nst
rat
ing
the
com
pou
ndi
ng
adv
ant
age
s
of
its
bra
nd-
bui
ldi
ng
cap
abi
lit
ies
, g
lob
al
sca
le,
and
dis
cip
lin
ed
exe
cut
ion
.
Shareholder Return Programs
The
Com
pan
y
now
exp
ect
s
to
ret
urn
app
rox
ima
tel
y $
2.0
bil
lio
n
to
sha
reh
old
ers
in
Fis
cal
202
7 t
hro
ugh
its
cap
ita
l r
etu
rn
pro
gra
ms,
an
inc
rea
se
fro
m p
rio
r g
uid
anc
e,
whi
ch
inc
lud
es
app
rox
ima
tel
y $
700
mil
lio
n r
etu
rne
d
in
the
fis
cal
fir
st
qua
rte
r:
●
Div
ide
nd:
The
Com
pan
y’s
Boa
rd
of
Dir
ect
ors
dec
lar
ed
a q
uar
ter
ly
cas
h d
ivi
den
d
of
$0.
462
5
per
com
mon
sha
re
pay
abl
e
on
Dec
emb
er
21,
202
6
to
sha
reh
old
ers
of
rec
ord
as
of
the
clo
se
of
bus
ine
ss
on
Dec
emb
er
4,
202
6.
In
Fis
cal
202
7,
the
Com
pan
y c
ont
inu
es
to
ant
ici
pat
e
an
ann
ual
div
ide
nd
of
$1.
85
per
sha
re.
4
●
Share Repurchases
: Tapestry now expects to repurchase $1.7 billion in common stock in the fiscal
year under its existing share repurchase authorization, an increase of $350
million versus its prior guidance. During the first quarter, the Company spent
$600 million to repurchase approximately 4.6 million shares of its common stock
at an average cost of $130 per share.
Non-GAAP Reconciliation
During the fiscal first quarter of 2027, Tapestry recorded charges related to
distribution network optimization initiatives that decreased operating income by
$15 million, net income by $11 million, and diluted earnings per share by $0.06.
Please refer to the Financial Schedules included herein for a full
reconciliation of the Company’s reported GAAP to non-GAAP results.
Ove
rvi
ew
of
Fis
cal
202
7 F
irs
t Q
uar
ter
Fin
anc
ial
Res
ult
s
●
Net sales
tot
ale
d $
1.8
9 b
ill
ion
, i
ncr
eas
ing
11%
on
a r
epo
rte
d
and
con
sta
nt
cur
ren
cy
bas
is.
Exc
lud
ing
Stu
art
Wei
tzm
an
sal
es
in
the
pri
or
yea
r p
eri
od,
pro
for
ma
net
sal
es
inc
rea
sed
12%
on
a r
epo
rte
d
and
con
sta
nt
cur
ren
cy
bas
is.
●
Gross profit
tot
ale
d $
1.4
9 b
ill
ion
on
a G
AAP
bas
is
com
par
ed
to
$1.
30
bil
lio
n
in
the
pri
or
yea
r.
On
a n
on-
GAA
P b
asi
s,
gro
ss
pro
fit
tot
ale
d $
1.4
9 b
ill
ion
, w
hil
e g
ros
s m
arg
in
was
78.
7%,
rep
res
ent
ing
an
exp
ans
ion
of
220
bas
is
poi
nts
ver
sus
pri
or
yea
r,
dri
ven
by
ope
rat
ion
al
imp
rov
eme
nts
of
app
rox
ima
tel
y
130
bas
is
poi
nts
, a
70-
bas
is
poi
nt
net
ben
efi
t f
rom
tar
iff
s
and
dut
ies
,
and
a 2
0-
bas
is
poi
nt
ben
efi
t f
rom
for
eig
n c
urr
enc
y.
●
SG&A expenses
totaled $1.06 billion on a GAAP basis compared to $973 million in the prior
year. On a non-GAAP basis, SG&A expenses totaled $1.05 billion, representing
55.5% of sales, 10 basis points below prior year, including a 140-basis point
increase in marketing investment.
5
●
Operating income
was
$42
4 m
ill
ion
on
a G
AAP
bas
is,
com
par
ed
to
pri
or
yea
r o
per
ati
ng
inc
ome
of
$32
8 m
ill
ion
.
On
a n
on-
GAA
P b
asi
s,
ope
rat
ing
inc
ome
was
$43
9 m
ill
ion
,
an
inc
rea
se
of
24%
ver
sus
the
pri
or
yea
r,
whi
le
ope
rat
ing
mar
gin
was
23.
2%,
rep
res
ent
ing
an
exp
ans
ion
of
app
rox
ima
tel
y
230
bas
is
poi
nts
ver
sus
the
pri
or
yea
r.
●
Net interest expense
was
$13
mil
lio
n
in
bot
h
the
cur
ren
t
and
pri
or
yea
r.
●
Other expense
was
les
s t
han
$1
mil
lio
n v
ers
us
oth
er
inc
ome
of
$4
mil
lio
n
in
the
pri
or
yea
r.
●
Tax rate
was
12.
5%
on
a G
AAP
bas
is
and
12.
7%
on
a n
on-
GAA
P b
asi
s v
ers
us
the
pri
or
yea
r
tax
rat
e
of
13.
8%
on
a G
AAP
bas
is
and
13.
7%
on
a n
on-
GAA
P b
asi
s.
●
Earnings per diluted share
was $1.76 on a GAAP basis compared to $1.28 in the prior year, an increase of
38%. Non-GAAP EPS was $1.82 compared to $1.38 in the prior year, an increase of
32%.
Balance Sheet and Cash Flow Highlights
Cash, cash equivalents and short-term investments
totaled $782 million and
total borrowings outstanding
were $2.56 billion. The Company’s leverage ratio, based on gross debt to
adjusted EBITDA, was 1.1x as of the end of the fiscal quarter.
Inventory
was $1.06 billion versus prior year ending inventory of $1.02 billion.
Cash flow from operating activities
was an inflow of $197 million compared to an inflow of $113 million in the prior
year.
Adjusted free cash flow
was an inflow of $56 million compared to an inflow of $103 million in the prior
year.
6
●
Cap
Ex
and
imp
lem
ent
ati
on
cos
ts
rel
ate
d
to
Clo
ud
Com
put
ing
wer
e
$55
mil
lio
n v
ers
us
$38
mil
lio
n a
yea
r a
go.
Financial Outlook
Tap
est
ry
is
rai
sin
g
its
Fis
cal
202
7 o
utl
ook
, w
hic
h
is
pro
vid
ed
on
a n
on-
GAA
P
and
com
par
abl
e 5
2-
wee
k v
ers
us
52-
wee
k b
asi
s:
●
Revenue
of
app
rox
ima
tel
y $
8.5
bil
lio
n
to
$8.
6 b
ill
ion
, r
epr
ese
nti
ng
app
rox
ima
tel
y
6%
to
7%
gro
wth
on
a c
ons
tan
t c
urr
enc
y b
asi
s v
ers
us
pri
or
yea
r.
For
eig
n c
urr
enc
y
is
exp
ect
ed
to
be
a
30
bas
is
poi
nt
ben
efi
t
to
rev
enu
e g
row
th
in
the
fis
cal
yea
r.
Thi
s
is
abo
ve
pri
or
gui
dan
ce
of
$8.
4 b
ill
ion
to
$8.
5 b
ill
ion
;
●
Operating margin
exp
ans
ion
of
app
rox
ima
tel
y
100
bas
is
poi
nts
ver
sus
pri
or
yea
r.
Thi
s
is
abo
ve
pri
or
gui
dan
ce
for
an
inc
rea
se
of
app
rox
ima
tel
y
50
bas
is
poi
nts
;
●
Net interest expense
of
app
rox
ima
tel
y
$60
mil
lio
n v
ers
us
pri
or
gui
dan
ce
of
app
rox
ima
tel
y
$55
mil
lio
n;
●
Tax rate
of
app
rox
ima
tel
y
18%
ver
sus
pri
or
gui
dan
ce
of
app
rox
ima
tel
y 1
8.5
%;
●
Weighted average diluted share count
of
app
rox
ima
tel
y
200
mil
lio
n,
ver
sus
pri
or
gui
dan
ce
of
app
rox
ima
tel
y
203
mil
lio
n;
●
Earnings per diluted share
of $8.25 to $8.35, representing 17% to 18% growth versus prior year. This is
above prior guidance of $7.80 to $7.90
;
●
Adjusted free cash flow
approaching $1.7 billion, including CapEx and Cloud Computing costs of $300
million or approximately 3% to 4% of revenue. This is unchanged from prior
guidance.
7
In
add
iti
on,
for
the
sec
ond
fis
cal
qua
rte
r
of
202
7,
the
Com
pan
y e
xpe
cts
:
●
Revenue
gro
wth
of
app
rox
ima
tel
y
5%
to
6%
on
a c
ons
tan
t c
urr
enc
y b
asi
s v
ers
us
pri
or
yea
r.
For
eig
n c
urr
enc
y
is
exp
ect
ed
to
be
a
70
bas
is
poi
nt
ben
efi
t
to
rev
enu
e g
row
th
in
the
fis
cal
qua
rte
r;
●
Earnings per diluted share
of
app
rox
ima
tel
y $
3.0
5,
rep
res
ent
ing
low
-te
ens
gro
wth
ver
sus
pri
or
yea
r.
Ple
ase
not
e
the
Com
pan
y’s
non
-GA
AP
out
loo
k:
●
Exc
lud
es
the
imp
act
of
the
53
rd
wee
k
in
Fis
cal
202
7,
whi
ch
is
exp
ect
ed
to
con
tri
but
e
an
add
iti
ona
l p
erc
ent
age
poi
nt
to
ann
ual
rev
enu
e g
row
th
and
hav
e a
neu
tra
l i
mpa
ct
on
ope
rat
ing
mar
gin
for
the
ful
l f
isc
al
yea
r;
●
Emb
eds
a l
ow-
to-
mid
-20
% t
ari
ff
rat
e
on
U.S
. i
nve
nto
ry
rec
eip
ts
in
Fis
cal
202
7,
res
ult
ing
in
a m
ode
st
net
ben
efi
t f
rom
tar
iff
s y
ear
-ov
er-
yea
r;
●
Emb
eds
cur
ren
t g
lob
al
tax
pol
ici
es,
inc
lud
ing
the
imp
act
of
OEC
D P
ill
ar
Two
gui
dan
ce;
●
Inc
lud
es
for
eig
n c
urr
enc
y e
xch
ang
e r
ate
s u
sin
g s
pot
rat
es
at
the
tim
e
of
for
eca
st;
●
Ass
ume
s
no
mat
eri
al
wor
sen
ing
of
inf
lat
ion
ary
pre
ssu
res
or
con
sum
er
con
fid
enc
e.
Giv
en
the
dyn
ami
c n
atu
re
of
the
se
and
oth
er
ext
ern
al
fac
tor
s,
fin
anc
ial
res
ult
s c
oul
d d
iff
er
mat
eri
all
y f
rom
the
out
loo
k p
rov
ide
d.
Fin
anc
ial
Out
loo
k -
Non
-GA
AP
Adj
ust
men
ts
:
The
Com
pan
y
is
not
abl
e
to
pro
vid
e a
ful
l r
eco
nci
lia
tio
n
of
the
non
-GA
AP
fin
anc
ial
mea
sur
es
to
GAA
P p
res
ent
ed
in
thi
s r
ele
ase
and
on
the
Com
pan
y’s
con
fer
enc
e c
all
bec
aus
e c
ert
ain
mat
eri
al
ite
ms
tha
t i
mpa
ct
the
se
mea
sur
es
hav
e
not
yet
occ
urr
ed
and
can
not
be
rea
son
abl
y e
sti
mat
ed
at
thi
s t
ime
. A
cco
rdi
ngl
y,
a r
eco
nci
lia
tio
n
of
the
Com
pan
y’s
non
-GA
AP
fin
anc
ial
mea
sur
e g
uid
anc
e
to
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8
Conference Call Details
The Company will host a conference call to review these results at 8:00 a.m.
(ET) today, November 5, 2026. Interested parties may listen to the conference
call via live webcast by accessing www.tapestry.com/investors or calling
1-866-847-4217 or 1-203-518-9845 and providing the Conference ID 1183076. A
telephone replay will be available starting at 12:00 p.m. (ET) today for a
period of five business days. To access the telephone replay, call
1-800-283-4641 or 1-402-220-0851. A webcast replay of the earnings conference
call will also be available for five business days on the Tapestry website. In
addition, presentation slides have been posted to the Company’s website at
www.tapestry.com/investors .
Upcoming Events
The Company expects to report fiscal 2027 second quarter results on Thursday,
February 4, 2027.
To receive notification of future announcements, please register at
www.tapestry.com/investors ("Subscribe to E-Mail Alerts").
About Tapestry, Inc.
Our global house of iconic accessories and lifestyle brands unites 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. To learn
more about Tapestry, please visit www.tapestry.com . For important news and
information regarding Tapestry, visit the Investor Relations section of our
website at www.tapestry.com/investors . In addition, investors should continue
to review our news releases and filings with the SEC. We use each of these
channels of distribution as primary channels for publishing key information to
our investors, some of which may contain material and previously non-public
information. The Company’s common stock is traded on the New York Stock Exchange
under the symbol TPR.
9
The information made available in this press release may contain forward-looking
statements based on management's current expectations. Forward-looking
statements include, but are not limited to, the statements under “Financial
Outlook,” statements regarding long-term performance, statements regarding the
Company’s capital deployment plans, including anticipated annual dividend rates
and share repurchase plans, and statements that can be identified by the use of
forward-looking terminology such as "may," “can,” “could,” “if,” "continue,"
“assumes,” “embed,” “compound,” “contribute,” “differ,” "should," "expect,"
“confidence,” “conviction,” “trends,” “anticipate,” "estimate," “future,”
“plan,” “potential,” “opportunities,” “ahead,” “create,” “build,” “fuel,”
“deliver,” “ignite,” “grow,” “believe,” “will,” “would,” “uncertain,” “achieve,”
“strategic,” “growth,” "guidance," "forecast," “outlook,” “commit,”
“innovation,” “drive,” “leverage,” “generate,” “effort,” “approaching,”
“expanding,” “advancing,” “deepening,” “reinforce,” “underpin,” “lasting,”
“elevate,” “long-term,” “durable growth,” “durability,” “Amplify strategy,” “we
stretch what’s possible,” similar expressions, and variations or negatives of
these words. They include, without limitation, statements regarding future
anticipated capital expenditures. Future results may differ materially from
management's current expectations, based upon a number of important factors,
including risks and uncertainties such as economic conditions, recession and
inflationary measures, the impact of international trade disputes and the risks
associated with potential changes to international trade and policy agreements,
including the imposition or threat of imposition of new or increased tariffs or
retaliatory tariffs implemented by countries where our manufacturers are located
as well as the imposition of additional duties on the products we import, risks
associated with operating in international markets, including currency
fluctuations and changes in economic or political conditions in the markets
where we sell or source our products, the ability to anticipate consumer
preferences and retain the value of our brands and respond to changing fashion
and retail trends in a timely manner, including our ability to execute on our
e-commerce and digital strategies, the impact of tax and other legislation, the
ability to successfully implement the initiatives under our Amplify strategy,
the effect of existing and new competition in the marketplace, our ability to
successfully identify and implement any sales, acquisitions or strategic
transactions on attractive terms or at all, our ability to achieve intended
benefits, cost savings and synergies from acquisitions, our ability to control
costs, the effect of seasonal and quarterly fluctuations on our sales or
operating results, the risks associated with cyber security threats, privacy or
data security breaches, and the development, use, governance and regulation of
artificial intelligence technologies, our ability to satisfy our outstanding
debt obligations or incur additional indebtedness, the risks associated with
climate change and other corporate responsibility issues, our ability to protect
against infringement of our trademarks and other proprietary rights, and the
impact of pending and potential future legal proceedings, etc. In addition,
purchases of shares of the Company’s common stock will be made subject to market
conditions and at prevailing market prices. Please refer to the Company’s latest
Annual Report on Form 10-K and its other filings with the Securities and
Exchange Commission for a complete list of risks and important factors. The
Company assumes no obligation to revise or update any such forward-looking
statements for any reason, except as required by law.
Management utilizes non-GAAP and constant currency measures to conduct and
evaluate its business during its regular review of operating results for the
periods affected and to make decisions about Company resources and performance.
The Company believes presenting these non-GAAP measures, which exclude items
affecting comparability, is useful to investors and others in evaluating the
Company’s ongoing operating and financial results in a manner that is consistent
with management’s evaluation of business performance and in understanding how
such results compare with the Company’s historical performance. Additionally,
the Company believes presenting these metrics on a constant currency basis will
help investors and analysts to understand the effect of significant year-over-
year foreign currency exchange rate fluctuations on these performance measures
and provide a framework to assess how business is performing and expected to
perform excluding these effects.
The Company reports information in accordance with U.S. Generally Accepted
Accounting Principles ("GAAP"). The Company's management does not, nor does it
suggest that investors should, consider non-GAAP financial measures in isolation
from, or as a substitute for, financial information prepared in accordance with
GAAP. Further, the non-GAAP measures utilized by the Company may be unique to
the Company, as they may be different from non-GAAP measures used by other
companies.
The Company operates on a global basis and reports financial results in U.S.
dollars in accordance with GAAP. Percentage increases/decreases in net sales for
the Company and each segment have been presented both including and excluding
currency fluctuation effects from translating foreign-denominated sales into
U.S. dollars and compared to the same periods in the prior quarter and fiscal
year. The Company calculates constant currency net sales results by translating
current period net sales in local currency using the prior year period’s
currency conversion rate. Due to the sale of Stuart Weitzman on August 4, 2025,
the Company presents pro forma net sales and related growth rates, which exclude
Stuart Weitzman’s Net sales from the prior year period. In the Summary of Pro
Forma Revenue Information table, Greater China includes mainland China, Taiwan,
Hong Kong SAR, and Macao SAR. Other Asia includes Australia, South Korea,
Malaysia, Singapore, and other countries primarily within Asia. Other primarily
represents royalties earned from the Company's licensing partners and sales in
the Middle East.
10
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 such as Distribution Network Optimization Costs,
Acquisition and Divestiture Costs and Organizational Efficiency Costs, as
applicable. A reconciliation to the most directly comparable GAAP measures is
provided in the tables accompanying this release.
The Company also presents Adjusted Free Cash Flow, which is a non-GAAP measure,
and is calculated as Net cash provided by (used in) operating activities less
Purchases of property and equipment, adjusted for the cash impacts of Items
affecting comparability included in operating cash flows related to Distribution
Network Optimization Costs, Acquisition and Divestiture Costs and Organizational
Efficiency Costs, and Changes in operating assets and liabilities of items
affecting comparability. The Company believes that Adjusted Free Cash Flow is an
important liquidity measure of the cash that is available after capital
expenditures for operational expenses, investment in our business and items
affecting comparability. The Company believes that Adjusted Free Cash Flow is
useful to investors because it measures the Company’s ability to generate or use
cash. Once our business needs and obligations are met, cash can be used to
maintain a strong balance sheet, invest in future growth and return capital to
stockholders.
The Company also presents Leverage Ratio, which is a non-GAAP metric, and is
calculated as total debt, which includes Current debt and Long-term debt,
divided by Adjusted EBITDA for the trailing twelve months. Adjusted EBITDA is
calculated as Net Income (Loss), excluding: Interest expense, net; Provision for
income taxes; Depreciation and amortization; Cloud Computing amortization;
Share-based compensation; and Items affecting comparability including
Distribution Network Optimization Costs, Acquisition and Divestiture Costs,
Organizational Efficiency Costs and IEEPA tariff refunds. The Company believes
that the Leverage Ratio is an important metric to assess the strength of our
balance sheet and credit quality and demonstrates our commitment to maintaining
an investment-grade credit rating.
11
Schedule 1: Consolidated Statements of Operations
TAPESTRY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Quarter Ended September 26, 2026 and September 27, 2025
(in millions, except per share data)
(unaudited) September 26, September 27,
QUARTER ENDED 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net sales $ 1,894 $ 1,705
Cost of sales 406 404
Gross profit 1,488 1,301
Selling,
general and 1,064 973
administrative
expenses
Operating 424 328
income (loss)
Interest 13 13
expense, net
Other expense — (4 )
(income)
Income (loss)
before 411 319
provision for
income taxes
Provision
(benefit) for 51 44
income taxes
Net income $ 360 $ 275
(loss)
Net income
(loss) per
share:
Basic $ 1.81 $ 1.32
Diluted $ 1.76 $ 1.28
Shares used in
computing net
income
(loss) per
share:
Basic 199.3 207.6
Diluted 204.5 215.5
12
Schedule 2: Detail to Net Sales
TAPESTRY, INC.
DETAIL TO NET SALES
For the Quarter Ended September 26, 2026 and September 27, 2025
(in millions)
(unaudited)
Consta…
Septem… Curren…
QUARTER Septemb… 27, %
ENDED 26, 2026 2025 % Change Change
──────────────────────────────────────────────────────────────────────────────
Coach $ 1,661 $ 1,430 16 % 16 %
Kate 233 260 (10 )% (10 )%
Spade
Stuart — 15 NM NM
Weitz…
Total $ 1,894 $ 1,705 11 % 11 %
Tapes…
Total
Tapes… $ 1,894 $ 1,690 12 % 12 %
Pro
Forma1
1
Pro Forma Net sales and related growth rates exclude Net sales of the Stuart
Weitzman Business on a reported and constant currency basis.
13
TAPESTRY, INC.
GAAP TO NON-GAAP RECONCILIATION
(in millions, except per share data)
(unaudited)
For the
Quarter
Ended
September
26, 2026
──────────────────────────────────────────────────────────────────────────────
Items
Affecting
Comparab…
GAAP Distribu… Non-GAAP
Basis Network Basis
(As Optimiza… (Exclud…
Reported) Costs (*) Items)
Gross
Profit
Coach 1,336 — 1,336
Kate 152 (2 ) 154
Spade
Gross $ 1,488 $ (2 ) $ 1,490
profit
SG&A
expenses
Coach 746 — 746
Kate 172 12 160
Spade
Corpora… 146 1 145
SG&A $ 1,064 $ 13 $ 1,051
expenses
Operati…
income
(loss)
Coach 590 — 590
Kate (20 ) (14 ) (6 )
Spade
Corpora… (146 ) (1 ) (145 )
Operati…
income $ 424 $ (15 ) $ 439
(loss)
Interest
expense, 13 — 13
net
Other
(income) — — —
expense
Provisi…
for 51 (4 ) 55
income
taxes
Net
income $ 360 $ (11 ) $ 371
(loss)
Net
income
(loss)
per $ 1.76 $ (0.06 ) $ 1.82
diluted
common
share
(*) Relates primarily to costs to transition from our Ohio fulfillment center to
a third-party facility in Pennsylvania.
14
TAPESTRY, INC.
GAAP TO NON-GAAP RECONCILIATION
(in millions, except per share data)
(unaudited)
For
the
Quar…
Ended
Sept…
27,
2025
──────────────────────────────────────────────────────────────────────────────
Items
Affe…
Comp…
GAAP Acqu… Orga… Non-…
Basis and Effi… Basis
(As Dive… Costs (Exc…
Repo… Costs (**) Item…
(*)
Gro…
Pro…
Coa… 1,1… — — 1,1…
Kate 167 — — 167
Spa…
Stu… 8 8 — —
Wei…
Gro… $ 1,3… $ 8 $ — $ 1,2…
pro…
SG&A
exp…
Coa… 639 — 1 638
Kate 161 — — 161
Spa…
Stu… 9 9 — —
Wei…
Cor… 164 14 10 140
SG&A $ 973 $ 23 $ 11 $ 939
exp…
Ope…
inc…
(lo…
Coa… 487 — (1 ) 488
Kate 6 — — 6
Spa…
Stu… (1 ) (1 ) — —
Wei…
Cor… (164 ) (14 ) (10 ) (140 )
Ope…
inc… $ 328 $ (15 ) $ (11 ) $ 354
(lo…
Int…
exp… 13 — — 13
net
Oth…
(in… (4 ) — — (4 )
exp…
Pro…
for 44 (2 ) (2 ) 48
inc…
tax…
Net
inc… $ 275 $ (13 ) $ (9 ) $ 297
(lo…
Net
inc…
(lo…
per $ 1.28 $ (0.… ) $ (0.… ) $ 1.38
dil…
com…
sha…
1 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 and Cost of sales
were $7 million.
(*) Relates to costs incurred by the Company in connection with the divestiture
of the Stuart Weitzman Business.
(**) Relates to organizational efficiency costs, primarily related to technology
costs and severance costs.
15
Schedule 5: Condensed Consolidated Balance Sheets
TAPESTRY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
At September 26, 2026 and June 27, 2026
(in millions)
(unaudited) (audited)
September 26, 2026 June 27, 2026
──────────────────────────────────────────────────────────────────────────────
ASSETS
Cash, cash
equivalents and $ 782 $ 1,152
short-term
investments
Receivables 343 237
Inventories 1,055 826
Other current assets 561 667
Total current assets 2,741 2,882
Property and 507 502
equipment, net
Operating lease 1,512 1,417
right-of-use assets
Other assets 1,855 1,891
Total assets $ 6,615 $ 6,692
LIABILITIES AND
STOCKHOLDERS' EQUITY
Accounts payable $ 679 $ 582
Accrued liabilities 633 755
Current portion of
operating lease 301 308
liabilities
Current debt 597 —
Total current 2,210 1,645
liabilities
Long-term debt 1,960 2,379
Long-term operating 1,371 1,266
lease liabilities
Other liabilities 730 710
Stockholders' equity 344 692
Total liabilities
and stockholders' $ 6,615 $ 6,692
equity
16
Schedule 6:Condensed Consolidated Statement of Cash Flows
TAPESTRY, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the Three Months Ended September 26, 2026 and September 27, 2025
(in millions)
September September 27,
(unaudited) 26, 2026 (unaudited) 2025
──────────────────────────────────────────────────────────────────────────────
CASH FLOWS
PROVIDED BY
(USED IN)
OPERATING
ACTIVITIES
Net income $ 360 $ 275
(loss)
Adjustments
to
reconcile
net income
to
net cash
provided by
(used in)
operating
activities:
Depreciati…
and 40 37
amortizati…
Amortizati…
of cloud 14 14
computing
arrangemen…
Other
non-cash 37 79
items
Changes in
operating (254 ) (292 )
assets and
liabilities
Net cash
provided by
(used in) 197 113
operating
activities
CASH FLOWS
PROVIDED BY
(USED IN)
INVESTING
ACTIVITIES
Purchases
of property (48 ) (32 )
and
equipment
Purchases
of (21 ) (9 )
investments
Proceeds
from sale
of
business, — 109
net of
cash
divested
Other items 16 1
Net cash
provided by
(used in) (53 ) 69
investing
activities
CASH FLOWS
PROVIDED BY
(USED IN)
FINANCING
ACTIVITIES
Payment of (92 ) (83 )
dividends
Repurchase
of common (603 ) (698 )
stock
Proceeds
from/(Repa…
of) 200 240
commercial
paper, net
Other items (31 ) (10 )
Net cash
provided by
(used in) (526 ) (551 )
financing
activities
Effect of
exchange
rate on 6 (12 )
cash and
cash
equivalents
Net
increase
(decrease) (376 ) (381 )
in cash and
cash
equivalents
Cash and
cash
equivalents $ 975 $ 1,100
at
beginning
of period
Cash and
cash
equivalents $ 599 $ 719
at end of
period
17
TAPESTRY, INC.
ADJUSTED FREE CASH FLOW
GAAP TO NON-GAAP RECONCILIATION
For the Quarter Ended September 26, 2026 and September 27, 2025
(in millions)
(unaudited)
September 26, September 27,
Quarter Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net cash
provided by
(used in) $ 197 $ 113
operating
activities
(GAAP)
Purchases of
property and (48 ) (32 )
equipment
Items
affecting
comparability
- — 15
Acquisition
and
Divestiture
Costs
Items
affecting
comparability
- — 8
Organizational
Efficiency
Costs
Items
affecting
comparability
- 15 —
Distribution
Network
Optimization
Costs
Changes in
operating
assets and
liabilities of
items
affecting
comparability
Accrued 1 (1 )
liabilities
Other assets1 (109 ) —
Adjusted Free
Cash Flow $ 56 $ 103
(Non-GAAP)
1 Primarily relates to the cash collection of the IEEPA tariff refund.
18
Schedule 8: Adjusted EBITDA and Leverage Ratio GAAP to Non-GAAP Reconciliation
TAPESTRY, INC.
ADJUSTED EBITDA for the Trailing Twelve Months ("TTM") ended on September 26,
2026, and LEVERAGE RATIO as of September 26, 2026
GAAP TO NON-GAAP RECONCILIATION
(in millions)
(unaudited)
Dec… Mar… June Sept… Sep…
Qua… 27, 28, 27, 26, 26,
End… 2025 2026 2026 2026 TTM 2026
──────────────────────────────────────────────────────────────────────────────
Net
In…
(L… $ 561 $ 344 $ 348 $ 360 $ 1,6…
-
(G…
Ad…
fo…
In…
ex… 17 13 12 13 55
net
Pr…
for 136 72 81 51 340
in…
ta…
De…
and 40 39 45 40 164
am…
Cl…
co… 14 15 13 14 56
am…
Sh…
co… 29 27 26 31 113
ex…
It…
af…
co…
- (1 ) (3 ) — — (4 )
Ac…
and
Di…
Co…
It…
af…
co…
- 4 6 8 — 18
Or…
Ef…
Co…
It…
af…
co… — — (98 ) — (98 )
-
IE…
It…
af…
co…
- — — 10 15 25
Di…
Ne…
Op…
Co…
Ad…
EB… $ 800 $ 513 $ 445 $ 524 $ 2,2…
(N…
(*)
To…
De…
(*…
as $ 2,5…
of
Se…
26,
20…
Le…
Ra…
(*…
as 1.1
of
Se…
26,
20…
(*) Adjusted EBITDA is calculated as Net Income (Loss), excluding Interest
expense, net; Provision for income taxes; Depreciation and amortization; Cloud
computing amortization; Share-based compensation; Items affecting comparability
including Acquisition and Divestiture Costs, Organizational Efficiency Costs,
IEEPA, and Distribution Network Optimization Costs
(**) Total Debt Includes Current debt and Long-term debt as of September 26,
2026
(***) Leverage Ratio is calculated as Total Debt as of September 26, 2026
divided by Adjusted EBITDA for the trailing twelve months ended September 26,
2026
19
Schedule 9: Store Count by Brand
TAPESTRY, INC.
STORE COUNT
At June 27, 2026 and September 26, 2026
(unaudited)
Directly-Ope… As ofJune 27, As ofSeptember
Store Count: 2026 Openings (Closures) 26, 2026
──────────────────────────────────────────────────────────────────────────────
Coach
North America 336 4 -1 339
International 637 11 -4 644
Total Coach 973 15 -5 983
Kate Spade
North America 178 — — 178
International 148 — -8 140
Total Kate 326 — -8 318
Spade
20