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TPR · Tapestry

25 filings

10-K

TPR 10-K Annual Reports

Tapestry - 25 annual reports

Filing record · 2016–202610-K1110-Q328-K145

2026
Tapestry Annual Report, Year Ended Jun 27, 2026
Tapestry, Inc. (NYSE: TPR) reported fiscal 2026 (52 weeks ended June 27, 2026) net sales of $8.00 billion, up 14.2% from $7.01 billion in fiscal 2025, with Coach driving growth (Coach net sales rose 23.5% to $6.91 billion) while Kate Spade net sales fell 10.2% to $1.07 billion. Operating income rose to $1.91 billion (23.9% of net sales) from $415.0 million, though the prior year included $854.8 million of Kate Spade impairment charges. Net income was $1.53 billion, or $7.27 per diluted share, versus $183.2 million, or $0.82, in fiscal 2025. On a non-GAAP basis, excluding items affecting comparability, net income was $1.48 billion, or $7.05 per diluted share, compared with $1.13 billion, or $5.10, in fiscal 2025. The company completed the sale of the Stuart Weitzman business to Caleres, Inc. on August 4, 2025 for a final price of $109.1 million, leaving two reportable segments, Coach and Kate Spade. It introduced its 2028 growth strategy, Amplify, in the first quarter of fiscal 2026. Gross margin expanded 240 basis points to 77.8%, and the company stated that fiscal 2026 gross margin was negatively impacted by approximately 130 basis points from tariffs on an adjusted basis. Cash from operations increased to $1.98 billion, and the company repurchased $1.55 billion of common stock and paid $326.1 million in dividends during the year. Balance-sheet items warrant attention: consolidated debt was approximately $2.38 billion, stockholders' equity fell to $692.1 million, and the filing discloses an IEEPA tariff refund receivable of $114.7 million, with the timing of collection dependent on the CBP and U.S. Treasury refund process. Tariff uncertainty remains significant, including a 10% Section 122 tariff that expired on July 24, 2026 and a Section 301 remedy imposing new rates of 10% to 12.5% on most imports from certain countries.
Aug 13, 2026
2025
Tapestry Annual Report, Year Ended Jun 28, 2025
Tapestry, Inc. reported fiscal 2025 net sales of $7.01 billion, up 5.1% from $6.67 billion, with Coach driving growth. Coach net sales rose 9.9% to $5.60 billion, while Kate Spade net sales fell 10.3% to $1.20 billion and Stuart Weitzman fell 10.9% to $215.1 million. Gross margin improved 210 basis points to 75.4%, mainly from net pricing improvements. Reported results were hit by $984.5 million of items affecting comparability, chiefly $854.8 million of Kate Spade impairment charges and $268.4 million of Capri Acquisition costs. Operating income fell to $415.0 million from $1.14 billion, and net income fell to $183.2 million, or $0.82 per diluted share, from $816.0 million, or $3.50. Excluding these items, the company reported net income of $1.13 billion, or $5.10 per diluted share. The balance sheet changed substantially. Cash and cash equivalents fell to $1.10 billion from $6.14 billion, largely because of debt repayment of $7.16 billion, including the redemption of the Capri Acquisition Senior Notes after the Capri merger was terminated in November 2024. Total debt was approximately $2.39 billion at June 28, 2025. The company issued $1.50 billion of senior unsecured notes due 2030 and 2035 and entered a $2.00 billion unsecured revolving credit facility maturing May 22, 2030. Stockholders' equity declined to $857.8 million from $2.90 billion, reflecting the impairments, a $2.00 billion accelerated share repurchase program, and dividends of $299.3 million. Looking ahead, the company estimates a projected tariff and trade policy impact of approximately 230 basis points to operating margin in fiscal 2026 after mitigating actions. The Stuart Weitzman Business was sold to Caleres, Inc. for $105.0 million, with the sale completed on August 4, 2025. Management plans to present a new long-term growth strategy at an investor day in September 2025.
Aug 14, 2025
2024
Tapestry Annual Report, Year Ended Jun 29, 2024
Tapestry, Inc. (NYSE: TPR) reported fiscal 2024 (52 weeks ended June 29, 2024) net sales of $6.67 billion, up 0.2% or $10.3 million from $6.66 billion in fiscal 2023, with growth of 1.3% excluding currency effects. Gross margin rose 250 basis points to 73.3%, and operating income declined 2.8% to $1.14 billion, with operating margin of 17.1%. Net income fell 12.8% to $816.0 million, or $3.50 per diluted share, reflecting $226.6 million of pre-tax acquisition costs tied to the proposed Capri Holdings acquisition. Excluding those items, net income was $1.00 billion, or $4.29 per diluted share. Coach generated 76.4% of net sales, Kate Spade 20.0% and Stuart Weitzman 3.6%. The most significant item for investors is the pending $8.50 billion enterprise value acquisition of Capri Holdings Limited at $57.00 per share in cash. Tapestry issued $4.50 billion of U.S. dollar senior notes and EUR 1.50 billion of euro notes in November 2023 to finance it, and cash and cash equivalents rose to $6.14 billion at year-end, while total debt reached roughly $7.24 billion. The Federal Trade Commission filed a preliminary injunction action on April 22, 2024 to block the deal, and the company says it has received approvals everywhere except the United States and intends to defend the lawsuit vigorously. If the acquisition is not completed by February 10, 2025 (or a later mutually agreed date), the acquisition notes must be redeemed at 101% of principal. The company suspended share repurchases in August 2023 and paid dividends of $1.40 per share, or $321 million, during fiscal 2024. Operating cash flow was $1.26 billion, up from $975.2 million, and the company's futurespeed 2025 growth strategy continues to prioritize lasting customer relationships, product innovation, omni-channel experiences and global growth. Direct-to-consumer revenues were approximately 87% of net sales and wholesale approximately 12%. Store count declined by 27 to 1,402 locations.
Aug 15, 2024
2023
Tapestry Annual Report, Year Ended Jul 1, 2023
Tapestry, Inc. (NYSE: TPR) reported fiscal 2023 (52 weeks ended July 1, 2023) net sales of $6.66 billion, down 0.4% or $23.6 million from $6.68 billion in fiscal 2022, while net income rose to $936.0 million from $856.3 million and diluted EPS increased to $3.88 from $3.17. Growth came from the Coach brand, whose net sales rose 0.8% to $4.96 billion (4.5% excluding currency effects), offset by declines at Kate Spade (down 1.8% to $1.42 billion) and Stuart Weitzman (down 11.4% to $281.6 million). Gross margin expanded 120 basis points to 70.8%, primarily from lower freight costs and net pricing improvements, but SG&A rose to 53.1% of net sales, leaving operating margin flat at 17.6%. Operating income was $1.17 billion. The company ended the year with cash and cash equivalents of $726.1 million and consolidated indebtedness of about $1.67 billion. Cash from operations was $975.2 million, and capital expenditures were $184.2 million. Tapestry repurchased $700 million of stock and paid $283.3 million in dividends. Management introduced its 2025 growth strategy, "futurespeed," in fiscal 2023. After the fiscal year end, on August 10, 2023, Tapestry agreed to acquire Capri Holdings Limited for $57.00 per share in cash, an expected total purchase price of about $8.5 billion, with closing expected during calendar 2024. The acquisition is supported by a $8.0 billion bridge loan commitment, and completion is subject to Capri shareholder approval and antitrust clearances. Investors should weigh the proposed deal's potential leverage and integration risks alongside the company's strong cash generation and shareholder returns.
Aug 17, 2023
2022
Tapestry Annual Report, Year Ended Jul 2, 2022
Tapestry, Inc. (TPR) reported fiscal 2022 (52 weeks ended July 2, 2022) net sales of $6.68 billion, up 16.3% from $5.75 billion in fiscal 2021, which included a 53rd week contributing $92.7 million. Gross margin declined to 69.6% from 71.0%, driven largely by higher inbound freight costs. Operating income rose to $1.18 billion (17.6% of net sales) from $968.0 million, and net income increased to $856.3 million, or $3.17 per diluted share, from $834.2 million, or $2.95 per diluted share. Excluding items affecting comparability, primarily Acceleration Program costs and a debt extinguishment charge, diluted EPS was $3.47. Coach generated 73.6% of net sales, Kate Spade 21.6% and Stuart Weitzman 4.8%. The company's cash position declined sharply. Cash and cash equivalents fell to $789.8 million from $2,007.7 million, as operating cash flow of $853.2 million was outweighed by $1.60 billion of share repurchases, $900.0 million of debt repayment, and $264.4 million of dividends. Total indebtedness was $1.70 billion at year-end, and the company replaced its $900.0 million revolver with a $1.25 billion revolving credit facility and a $500.0 million term loan. The company also issued $500.0 million of 3.050% senior notes due 2032 and repurchased 42.0 million shares. It expects to repurchase approximately $700.0 million of stock in fiscal 2023. Management cites Covid-19 disruptions, most notably in Greater China, supply chain and freight pressures, and the Acceleration Program, which achieved approximately $300 million of annual gross run-rate expense savings in fiscal 2022 and is not expected to generate further expenses in fiscal 2023. Digital revenue reached $2 billion, or 30% of total sales. The filing also notes that the Inflation Reduction Act of 2022 was signed on August 16, 2022, with its impact on the company's tax rate still unclear.
Aug 18, 2022
2021
Tapestry Annual Report, Year Ended Jul 3, 2021
Tapestry, Inc. (TPR) reported fiscal 2021, a 53-week year ended July 3, 2021, with net sales of $5.75 billion, up 15.8% or $784.9 million from $4.96 billion in fiscal 2020. Gross margin rose to 71.0% from 65.3%, and operating income was $968.0 million, compared with an operating loss of $550.8 million in fiscal 2020, which included $1.17 billion of impairment charges... The 53rd week contributed incremental net revenues of $92.7 million. Net income was $834.2 million, or $2.95 per diluted share, versus a net loss of $652.1 million, or $(2.34) per share, in fiscal 2020. Results were helped by a $95.0 million CARES Act tax benefit, most notably from an NOL carryback claim. Excluding items affecting comparability, net income was $841.1 million, or $2.97 per diluted share. Coach generated $4.25 billion of net sales, or 74.0% of the total, with segment operating income of $1.31 billion. Kate Spade had $1.21 billion of net sales and operating income of $108.5 million, and Stuart Weitzman had $283.2 million of net sales and an operating loss of $8.6 million. Under the Acceleration Program, the company achieved approximately $200 million of gross run-rate expense savings in fiscal 2021 and remains on track for $300 million. It expects total pre-tax charges of approximately $205 to $220 million under the program, which is expected to be substantially complete by the end of fiscal 2022. Liquidity improved substantially. Cash and cash equivalents rose to $2,007.7 million from $1,426.3 million, and the company repaid the $700 million drawn on its revolving credit facility during fiscal 2021. Total debt was $1.6 billion, and the revolver had $900 million of capacity. The company reinstated its shareholder return program, declared a quarterly dividend of $0.25 per share payable September 27, 2021, and intends to repurchase approximately $500.0 million of stock in fiscal 2022.
Aug 19, 2021
2020
Tapestry Annual Report, Year Ended Jun 27, 2020
Tapestry, Inc. (TPR) reported fiscal 2020 (52 weeks ended June 27, 2020) net sales of $4.96 billion, down 17.7% from $6.03 billion in fiscal 2019, as the Covid-19 pandemic closed most directly operated stores and reduced wholesale shipments. The company swung to a GAAP operating loss of $550.8 million and a net loss of $652.1 million, or $(2.34) per diluted share, compared with net income of $643.4 million in fiscal 2019. The result includes $477.7 million in impairment of goodwill and intangible assets, largely for the Stuart Weitzman brand, which was fully impaired ($210.7 million goodwill and $267.0 million brand intangible). Excluding items affecting comparability, the company reports adjusted net income of $271.2 million, or $0.97 per diluted share. Gross margin was 65.3%, versus 67.3% in fiscal 2019. The balance sheet shows total debt of $2.30 billion, including a $700 million draw on a $900 million revolving credit facility taken as a precaution in March 2020. Cash and cash equivalents were $1.43 billion at year-end. Under Amendment No. 1 to the credit facility, the company must maintain at least $700 million of available liquidity through October 2, 2021, and the amendment restricts share buybacks and cash dividends during the Covenant Relief Period. The quarterly dividend and share repurchase program were suspended. Management is running a multi-year Acceleration Program, with total pre-tax charges expected at $185 to $200 million and about $300 million in gross run-rate expense savings, including $200 million projected for fiscal 2021. Leadership also changed during the period. Jide Zeitlin resigned as Chairman and CEO effective July 20, 2020, and Joanne Crevoiserat became Interim CEO. Investors should weigh the near-term earnings pressure, the reliance on the revolver, and the execution risk of the restructuring against the company's portfolio of three brands and its operating cash flow of $407.0 million in fiscal 2020.
Aug 13, 2020
2019
Tapestry Annual Report, Year Ended Jun 29, 2019
Tapestry, Inc. (NYSE: TPR) reported fiscal 2019 (52 weeks ended June 29, 2019) net sales of $6.03 billion, up 2.5% or $147.1 million from $5.88 billion in fiscal 2018. Gross margin rose to 67.3% from 65.5%, and operating income increased 21.4% to $814.1 million. Net income was $643.4 million, or $2.21 per diluted share, compared with $397.5 million, or $1.38 per diluted share, in fiscal 2018. The prior year included larger integration and acquisition charges tied to the Kate Spade acquisition, and the company reports non-GAAP net income of $748.7 million, or $2.57 per diluted share, down 2.2% from $2.63 in fiscal 2018 excluding those items. Coach generated $4.27 billion of net sales (70.9% of the total), Kate Spade $1.37 billion (22.7%), and Stuart Weitzman $389.4 million (6.4%). Stuart Weitzman posted an operating loss of $51.2 million amid supply chain challenges, while Kate Spade's operating income rose to $165.7 million. Cash and cash equivalents ended the year at $969.2 million, against total debt of about $1.6 billion and an undrawn $900 million revolving credit facility. Management cited a more promotional retail environment, softer global traffic, U.S.-China tariff increases, and Brexit uncertainty as risks for fiscal 2020, and the Board authorized a $1.00 billion share repurchase program in May 2019, of which $100.0 million was used in fiscal 2019.
Aug 15, 2019
2018
Tapestry Annual Report, Year Ended Jun 30, 2018
Tapestry, Inc. (NYSE: TPR), formerly Coach, Inc., reported fiscal 2018 (ended June 30, 2018) net sales of $5.88 billion, up 31.0% from $4.49 billion in fiscal 2017, driven mainly by the July 2017 acquisition of Kate Spade & Company for $2.40 billion. Net income fell 32.7% to $397.5 million ($1.38 per diluted share) from $591.0 million, largely due to $301.6 million of integration and acquisition charges and $178.2 million of tax legislation impacts. Excluding non-GAAP items, net income rose 24.7% to $759.9 million ($2.63 per diluted share), and operating income rose 22.1% to $991.9 million. The company now has three reportable segments: Coach (72% of fiscal 2018 net sales, operating income of $1.08 billion), Kate Spade (22% of net sales, operating loss of $61.9 million, or $158.3 million excluding charges), and Stuart Weitzman (6% of net sales, operating loss of $2.6 million after production delays and supply chain challenges). Gross margin declined to 65.5% from 68.6%, and SG&A rose to 54.1% of net sales from 51.1%. Balance sheet and cash flow changes were significant: cash and cash equivalents fell to $1.24 billion from $2.67 billion after the acquisition, total debt was $1.60 billion, and operating cash flow rose to $996.7 million. The company expects a Transition Tax payment of about $266 million payable over eight years, and it plans fiscal 2019 capital expenditures of $300 to $325 million.
Aug 16, 2018
2017
Tapestry Annual Report, Year Ended Jul 1, 2017
Coach, Inc. (now Tapestry, Inc.) reported fiscal 2017 (52 weeks ended July 1, 2017) net sales of $4.49 billion, essentially flat versus $4.49 billion in fiscal 2016, which included a 53rd week contributing $84.4 million. Operating income rose 20.5% to $787.4 million and net income rose 28.3% to $591.0 million, or $2.09 per diluted share. Excluding non-GAAP items, operating income increased 4.6% to $812.6 million and diluted EPS rose 9.1% to $2.15. Coach brand net sales declined 0.8% to $4.11 billion, with North America down 2.0% to $2.35 billion and International up 0.7% to $1.72 billion. Stuart Weitzman net sales grew 8.4% to $373.6 million. The most significant development was the July 11, 2017 acquisition of Kate Spade & Company for $18.50 per share in cash, approximately $2.4 billion, funded by senior notes, term loans and cash on hand. Total indebtedness at fiscal year-end was $1.6 billion, and the company borrowed $1.1 billion in term loans after year-end. Cash and cash equivalents rose to $2.67 billion at July 1, 2017, up from $859.0 million, largely due to the sale of the Hudson Yards investment for $680.6 million and proceeds from $997.2 million of senior notes issued in fiscal 2017. Management plans to close about 10 North America retail stores in fiscal 2018 and expects $150 to $200 million of Kate Spade integration costs in fiscal 2018. The company remains focused on its Operational Efficiency Plan, with remaining charges of $10 to $15 million expected in fiscal 2018, and on expanding the Coach brand internationally. Quarterly dividends of $0.3375 per share were maintained, totaling $1.35 per share for the year.
Aug 18, 2017
2016
Tapestry Annual Report, Year Ended Jul 2, 2016
Coach, Inc. (now Tapestry, Inc.) reported fiscal 2016 (a 53-week year ended July 2, 2016) net sales of $4.49 billion, up from $4.19 billion in fiscal 2015, driven mainly by the full-year inclusion of the Stuart Weitzman brand, which was acquired on May 4, 2015, and by growth in the International segment. Gross margin declined to 67.9% from 69.4%, and operating income rose to $653.5 million from $618.0 million. Net income increased to $460.5 million, or $1.65 per diluted share, from $402.4 million, or $1.45, with the increase largely attributable to a lower tax provision. Excluding non-GAAP charges related to the Transformation Plan, Operational Efficiency Plan and acquisition costs, diluted EPS was $1.98 versus $1.92 in the prior year. North America net sales declined 2.9% to $2.40 billion, reflecting lower comparable store sales, a net closure of 30 retail stores, and promotional pressure in outlet and wholesale channels, with North America operating income down 10.1%. International net sales rose 5.1% to $1.70 billion, led by Europe and Greater China. The company is pursuing an Operational Efficiency Plan announced April 26, 2016, with expected pre-tax charges of $65 to $80 million, and is closing about 25% of North America wholesale doors over the next year. Cash and cash equivalents fell to $859.0 million, operating cash flow was $758.6 million, and capital expenditures rose to $396.4 million, partly tied to the new Hudson Yards headquarters. After fiscal year-end, on August 1, 2016, the company sold its interest in 10 Hudson Yards for approximately $707 million net of developer amounts and leased back about 694,000 square feet for 20 years. It also prepaid approximately $285 million of Term Loan borrowings on August 3, 2016.
Aug 19, 2016
2015
Tapestry Annual Report, Year Ended Jun 27, 2015
Coach, Inc. (now Tapestry, Inc.) reported fiscal 2015 (52 weeks ended June 27, 2015) net sales of $4.19 billion, down 12.8% from $4.81 billion in fiscal 2014, with net income of $402.4 million ($1.45 per diluted share) versus $781.3 million ($2.79) a year earlier. Excluding $145.9 million of Transformation Plan charges and $24.6 million of Stuart Weitzman acquisition-related charges, net income was $531.2 million ($1.92 per diluted share), a decrease of 38.9% from the prior year on an adjusted basis. The decline was driven mainly by North America, where net sales fell 20.4% to $2.47 billion as comparable store sales dropped 22% amid lower promotional activity, while International net sales fell 1.3% to $1.62 billion. Gross margin rose to 69.4% from 68.6%, but SG&A expenses rose 5.2% to $2.29 billion, reducing operating income 44.8% to $618.0 million. The company acquired Stuart Weitzman on May 4, 2015 for $531.1 million in cash, which contributed $43.0 million in net sales within the Other segment. To fund the acquisition and related investments, Coach issued $600.0 million of 4.250% senior notes due 2025 and drew a $300.0 million term loan, leaving total debt of $890.4 million at year end versus $140.5 million a year earlier. Cash, cash equivalents and investments rose to $1.93 billion, and the company did not repurchase any shares in fiscal 2015 after the repurchase program expired in June 2015. The company continues its multi-year Transformation Plan, with aggregate pre-tax charges expected to total about $325 million and roughly $50 million of additional charges expected in fiscal 2016, alongside planned closure of approximately 15-20 North America retail stores in fiscal 2016.
Aug 14, 2015
2014
Tapestry Annual Report, Year Ended Jun 28, 2014
Coach, Inc. (now Tapestry, Inc.) reported fiscal 2014 (ended June 28, 2014) net sales of $4.81 billion, down 5.3% from $5.08 billion in fiscal 2013, with net income of $781.3 million ($2.79 per diluted share) versus $1.03 billion ($3.61 per diluted share) a year earlier. The decline was driven by North America, where net sales fell 10.9% to $3.10 billion on lower comparable store sales of $460.5 million (down 15%), largely due to lower traffic. International net sales rose 5.5% to $1.64 billion, and operating income fell 26.5% to $1.12 billion, with operating margin dropping to 23.3% from 30.0%. The company announced a multi-year Transformation Plan in the fourth quarter of fiscal 2014, which included $131.5 million of pretax charges in fiscal 2014 (affecting comparability by $0.31 per diluted share), about $500 million in store and wholesale capital improvements, closure of approximately 70 North American stores in fiscal 2015, roughly $50 million in incremental advertising, and a scale-back of promotions. The company expects an additional $120 million to $170 million of pretax Transformation Plan charges, primarily in fiscal 2015. Balance sheet and cash flow changed notably: cash and cash equivalents fell to $591.9 million from $1.06 billion, $140.0 million was drawn on the $700 million JP Morgan revolving facility, and operating cash flow declined to $985.4 million from $1.41 billion. The company paid $1.35 per share in dividends declared for the year and repurchased $524.9 million of stock, leaving $836.7 million remaining under its repurchase program. Coach also committed to invest about $350 million in the Hudson Yards joint venture for its new headquarters, with occupancy expected in fiscal 2016.
Aug 15, 2014
2013
Tapestry Annual Report, Year Ended Jun 29, 2013
Coach, Inc. reported fiscal 2013 (52 weeks ended June 29, 2013) net sales of $5.08 billion, up 6.6% from $4.76 billion in fiscal 2012. North America sales rose 4.9% to $3.48 billion, with comparable store sales up 0.3%. International sales rose 9.9% to $1.54 billion, driven by new and acquired stores and strong comparable store growth in Asia, partly offset by weak sales in Japan and a negative yen translation impact of $82.2 million. Operating income increased 0.8% to $1.52 billion, and operating margin declined to 30.0% from 31.7%, largely reflecting SG&A growth of 11.2% to $2.17 billion. Net income decreased 0.4% to $1.03 billion, and diluted EPS rose 2.3% to $3.61. Excluding restructuring and transformation charges of $53.2 million in fiscal 2013, non-GAAP diluted EPS was $3.73. The company is in the midst of a transformation from an international accessories business into a global lifestyle brand, anchored in accessories, with focus on men's, footwear and outerwear, international expansion, and digital growth. Restructuring charges relate primarily to the strategic reassessment of the Reed Krakoff business, which is being sold to an investment group led by Mr. Krakoff, and to streamlining the organization and reassessing the store fleet. The company ended the year with $1.33 billion in cash, cash equivalents and investments, no outstanding revolving borrowings, and a $700 million JP Morgan revolving facility. It also declared a 12.5% dividend increase to an expected annual rate of $1.35 per share and expanded its share repurchase authorization to $1.5 billion through June 2015, with $1.36 billion remaining at year-end. Investors should also note the approximately $440 million expected investment in the Hudson Yards joint venture for the new corporate headquarters over three years, with $130 million to $160 million estimated in fiscal 2014, as well as the July 2013 acquisition of Hackett Limited's 50% interest in the European joint venture. Management also announced the departures of Mike Tucci and Jerry Stritzke in August 2013 and the appointment of Stuart Vevers as Executive Creative Director.
Aug 22, 2013
2012
Tapestry Annual Report, Year Ended Jun 30, 2012
Coach, Inc. (now Tapestry, Inc.) reported fiscal 2012 (year ended June 30, 2012) net sales of $4.76 billion, up 14.5% from $4.16 billion in fiscal 2011, with net income of $1.04 billion and diluted earnings per share of $3.53, up 20.9%. Gross margin was 72.8% and operating margin was 31.7%. Direct-to-Consumer sales rose 16.1% to $4.23 billion and represented 88.8% of net sales, while the Indirect segment rose 3.8% to $531.5 million. Comparable store sales in North American stores increased 6.6%. Excluding items affecting comparability, primarily charitable foundation contributions, operating income rose 16.6% to $1.55 billion. The company ended the year with cash and cash equivalents of $917.2 million, no outstanding borrowings under its $400 million JP Morgan revolving credit facility, and stockholders' equity of $1.99 billion. It repurchased $700 million of common stock during the year and paid dividends of $260.3 million in cash. The quarterly dividend was raised 33% to an expected annual rate of $1.20 per share starting with the July 2, 2012 payment. Management plans to open about 10 net new North American retail stores and 18 factory outlets in fiscal 2013, roughly 30 new locations in China, and about 13 net new locations in Japan, with capital expenditures expected to be about $250 million. The filing highlights risks including weak consumer discretionary spending in recessionary periods, the execution of international expansion (including the take-over of retail operations in Taiwan, Malaysia and South Korea), intense competition, counterfeiting, global sourcing cost pressures, and dependence on the holiday season in the second fiscal quarter. The company also notes it is dual-listed, with Hong Kong Depositary Receipts trading on the Hong Kong Stock Exchange since December 2011.
Aug 22, 2012
2011
Tapestry Annual Report, Year Ended Jul 2, 2011
Coach, Inc. (now Tapestry, Inc.) reported fiscal 2011 net sales of $4.16 billion, up 15.3% from $3.61 billion in fiscal 2010, with net income of $880.8 million and diluted earnings per share of $2.92, up 25.5% from $2.33. Operating income rose 13.5% to $1.30 billion, although operating margin declined to 31.4% from 31.9% as gross margin eased to 72.7% from 73.0%. Direct-to-Consumer sales reached $3.62 billion (87.1% of net sales), led by North American stores, where comparable store sales rose 10.6%. Indirect sales were $536.6 million, up 18.8%. The company continued its store expansion. It ended fiscal 2011 with 723 Coach-operated stores, including 345 North American retail stores, 143 North American factory stores, 169 Coach Japan locations and 66 Coach China locations. For fiscal 2012, it plans about 15 net new North American retail stores, 25 factory outlets and about 30 new mainland China locations. It also expects capital expenditures of about $200 million. Cash returns to shareholders were significant. Coach repurchased about $1.10 billion of common stock in fiscal 2011 and approved a new $1.5 billion program in January 2011, with $961.6 million remaining at year end. The Board raised the quarterly dividend to an expected annual rate of $0.90 per share starting with the July 2011 payment. Operating cash flow was $1.03 billion, and the company reported long-term debt of $23.4 million, which it describes as an essentially debt-free balance sheet. The filing also notes that the March 2011 earthquake and tsunami in Japan reduced sales by about $20 million in the third quarter and about $26 million in the fourth quarter.
Aug 19, 2011
2010
Tapestry Annual Report, Year Ended Jul 3, 2010
Coach, Inc. (now Tapestry, Inc.) reported fiscal 2010, a 53-week year ended July 3, 2010, with net sales of $3.61 billion, up 11.7% from $3.23 billion in fiscal 2009. Direct-to-Consumer sales rose 15.7% to $3.16 billion and represented approximately 87% of net sales, while the Indirect segment declined 10.3% to $451.8 million, driven by a 18.2% decrease in U.S. wholesale as the company controlled shipments into department stores. Operating income rose 18.3% to $1.15 billion, and operating margin increased to 31.9% from 30.1%, reflecting gross margin expansion to 73.0% from 71.9%. Diluted earnings per share rose 21.5% to $2.33, and net income was $734.9 million. The company ended the year with cash, cash equivalents and investments of $702.4 million and described its balance sheet as essentially debt-free, with long-term debt of $24.2 million. Net cash from operating activities was $990.9 million. Coach spent $1.15 billion repurchasing common stock and paid $94.3 million in dividends during the year. In April 2010 the Board approved a new $1.0 billion repurchase program running through June 2012, with $559.6 million remaining at year-end, and raised the expected annual dividend rate to $0.60 per share from $0.30. Management plans continued growth through North American and China store expansion, with about 10 new North American retail stores and about 30 new mainland China locations planned for fiscal 2011, and capital expenditures of approximately $150 million expected for that year. The company also noted that it is taking control of its Singapore and Malaysia retail operations and forming a European joint venture. Management cited a challenging retail environment in North America and Japan, with consumers still cautious.
Aug 25, 2010
2009
Tapestry Annual Report, Year Ended Jun 27, 2009
Coach, Inc. reported fiscal 2009 (ended June 27, 2009) net sales of $3.23 billion, up 1.6% from $3.18 billion in fiscal 2008, while operating income fell 15.3% to $971.9 million and diluted earnings per share fell 11.9% to $1.91. Gross margin declined to 71.9% from 75.7%, driven by promotional activity in North American factory stores, channel mix, a sharper pricing initiative on handbags and women's accessories, and higher average unit cost. Selling, general and administrative expenses rose 7.2% to $1.35 billion, with selling expenses up mainly on North American stores, Coach China and Coach Japan. The Direct-to-Consumer segment grew 6.6% to $2.73 billion and represented about 84% of net sales, while the Indirect wholesale segment fell 19.2% to $503.6 million as the company reduced shipments into U.S. department stores to manage customer inventory. North American comparable store sales declined 6.8%. During the year Coach acquired its domestic retail businesses in Hong Kong, Macau and mainland China from its former distributor, ImagineX, and bought its New York corporate headquarters building for $126.3 million. The balance sheet remained strong, with stockholders' equity of $1.70 billion, cash and cash equivalents of $800.4 million, and long-term debt of $25.1 million. The company repurchased 20.2 million shares during fiscal 2009 and initiated a quarterly cash dividend of $0.075 per share, with an expected annual rate of $0.30. The filing states that management expects to open about 20 new North American retail stores and about 10 Japan locations in fiscal 2010.
Aug 19, 2009
2008
Tapestry Annual Report, Year Ended Jun 28, 2008
Coach, Inc. (now Tapestry, Inc.) reported fiscal 2008 (ended June 28, 2008) net sales of $3,180,757 thousand, up 21.8% from $2,612,456 thousand in fiscal 2007, and income from continuing operations of $783,039 thousand, up 23.0%. Diluted earnings per share from continuing operations were $2.17, up 28.8%. Results include one-time items that netted to a $41.0 million gain in the fourth quarter, including a $20.0 million initial contribution to the Coach Foundation and a $50.0 million tax benefit primarily from a favorable tax return examination settlement. Excluding these items, diluted EPS from continuing operations was $2.06, up 21.9%. Gross margin declined to 75.7% from 77.4%, and operating margin fell to 36.1% from 38.0%, as management attributed the gross margin change to promotional activities in Coach-operated North American stores, currency translation and channel mix. The Direct-to-Consumer segment generated approximately 80% of fiscal 2008 net sales, with North American stores, Coach Japan and the Internet contributing about 59%, 19% and 2%, respectively. Coach operated 297 North American retail stores, 102 factory stores and 149 Coach Japan locations at year-end. Management's stated growth strategies include adding about 40 North American retail stores per year, reaching about 500 stores in North America, and acquiring the Greater China retail businesses from its distributor ImagineX in fiscal 2009. The company repurchased 39.7 million shares for $1.34 billion in cash during fiscal 2008, leaving $163.4 million available under its $1.0 billion program expiring June 2009. Cash, cash equivalents and investments totaled $706.9 million at year-end, down from $1,185.8 million, and the company had no borrowings under its $100 million revolving credit facility.
Aug 21, 2008
2007
Tapestry Annual Report, Year Ended Jun 30, 2007
Coach, Inc. (now Tapestry, Inc.) reported fiscal 2007 (ended June 30, 2007) net sales of $2,612.5 million, up 28.4% from $2,035.1 million in fiscal 2006. Operating income rose 39.0% to $993.4 million, and operating margin expanded to 38.0% from 35.1%. Income from continuing operations increased 37.2% to $636.5 million, and diluted earnings per share from continuing operations rose 41.3% to $1.69. Net income was $663.7 million, or $1.76 per diluted share, including $27.1 million from discontinued operations related to the corporate accounts business, which the company exited in March 2007. Growth was driven by the Direct-to-Consumer segment, which generated $2,101.8 million in net sales (about 80% of total) and rose 30.5%. North American comparable store sales increased 22.3%, and the company opened 41 new retail stores, bringing the total to 259. The Indirect segment grew 20.3% to $510.7 million, with U.S. wholesale net sales up 31%. Handbags accounted for 64% of net sales in fiscal 2007. The balance sheet strengthened considerably, with cash, cash equivalents and investments of $1,185.8 million at year-end, up from $537.6 million, and stockholders' equity rising to $1,910.4 million from $1,188.7 million. Operating cash flow was $779.1 million. The company repurchased $150.0 million of stock during fiscal 2007 and had $500 million remaining under its October 2006 authorization. Management plans capital expenditures of about $200 million for fiscal 2008, including roughly 40 new North American retail stores and 15 to 20 new Japanese locations.
Aug 23, 2007
2006
Tapestry Annual Report, Year Ended Jul 1, 2006
Coach, Inc. reported a strong fiscal 2006 (year ended July 1, 2006). Net sales rose 23.4% to $2.11 billion from $1.71 billion, and net income rose 37.8% to $494.3 million, or $1.27 per diluted share, compared with $358.6 million, or $0.92 per share, a year earlier. Gross margin improved to 77.6% from 76.6%, and operating income increased 33.5% to $764.6 million. The Direct-to-Consumer segment, which includes North American stores, Coach Japan, the Internet and catalogs, generated $1.61 billion in net sales, up 23.2%, while the Indirect segment (wholesale and business-to-business) generated $500.8 million, up 24.3%. The company continued to expand its store base, ending fiscal 2006 with 218 North American retail stores, 86 factory stores and 118 Coach Japan locations. Management plans to add at least 35 new U.S. retail and factory stores and at least 15 net new Japanese locations in fiscal 2007, with capital expenditures expected to be about $150 million. Coach repurchased 19.1 million shares at an average cost of $31.50 during the year and had approximately $150 million remaining under its stock repurchase program at year end. The company held $537.6 million in cash, cash equivalents and investments and reported no outstanding borrowings under its Bank of America revolving facility. The filing identifies key risks including dependence on successful new product introductions, intense competition, international operations (about 25% of net sales from outside the U.S.), discretionary luxury spending during economic downturns, and global sourcing exposure. Coach has never paid cash dividends, and management stated that its internal control over financial reporting was effective as of July 1, 2006.
Aug 25, 2006
2005
Tapestry Annual Report, Year Ended Jul 2, 2005
Coach, Inc. (now Tapestry, Inc.) reported fiscal 2005 (year ended July 2, 2005) net sales of $1,710.4 million, up 29.5% from $1,321.1 million in fiscal 2004, and operating income of $621.8 million, up 39.9%. Net income rose 48.5% to $388.7 million, or $1.00 per diluted share. Gross margin expanded to 76.6% from 74.9%, which the company attributed to channel mix, product mix and sourcing cost initiatives. Direct-to-consumer channels represented approximately 55% of total net sales, and indirect channels approximately 45%. The company expanded its store base, opening 19 North American retail stores and seven factory stores during the year, and ended the year with 193 retail stores and 82 factory stores in North America. On July 1, 2005, Coach completed the purchase of Sumitomo Corporation's 50% interest in Coach Japan, Inc. for $228.4 million plus undistributed profits and paid-in capital of $72.9 million, making Coach Japan a wholly owned consolidated subsidiary. Cash and short-term and long-term investments remained substantial, while the company repurchased 11.0 million shares at an average cost of $24.09 and had approximately $250 million remaining under its May 2005 repurchase program. Coach reported stockholders' equity of $1,032.8 million at July 2, 2005, up from $782.3 million a year earlier, and total assets of $1,347.1 million. The company stated that it has never declared or paid cash dividends on its common stock, and its management concluded that internal control over financial reporting was effective as of July 2, 2005.
Sep 9, 2005
2004
Tapestry Annual Report, Year Ended Jul 3, 2004
Coach, Inc. (now Tapestry, Inc.) reported fiscal 2004, its 53-week year ended July 3, 2004, with net sales of $1,321.1 million, up 38.6% from $953.2 million in fiscal 2003. Operating income rose to $444.5 million from $243.8 million, an 82.3% increase, and net income reached $261.7 million, or $1.36 per diluted share, compared with $146.6 million in fiscal 2003. Gross margin expanded to 74.9% from 71.1%, which the company attributed to channel mix, product mix and sourcing cost initiatives. Direct-to-consumer sales represented approximately 55% of net sales and indirect channels approximately 45%, with Coach Japan, Inc. a consolidated joint venture contributing $278.0 million of net sales. The balance sheet strengthened considerably, with stockholders' equity rising to $782.3 million from $426.9 million and cash and cash equivalents of $262.7 million, plus $301.7 million of short- and long-term investments. The company had no borrowings under its $100 million Fleet revolving credit facility at fiscal year-end. Management plans to open approximately 100 North American retail stores over the next four to five years, bringing the base to over 275 stores, and expects to continue driving gross margin improvement. The company also disclosed a $200 million increase to its stock repurchase program in August 2004, bringing the total authorization to $380 million, with approximately $210 million expended as of September 4, 2004. The filing notes risks including dependence on discretionary luxury spending, foreign exchange exposure tied to Coach Japan, reliance on independent manufacturers, and intense competition. It also describes a poison pill rights plan and Maryland anti-takeover provisions, and states that Coach has never paid cash dividends.
Sep 16, 2004
2003
Tapestry Annual Report, Year Ended Jun 28, 2003
Coach, Inc. (now Tapestry, Inc.) reported fiscal 2003 (year ended June 28, 2003) net sales of $953.2 million, up 32.5% from $719.4 million in fiscal 2002, and operating income of $243.8 million, up 82.4% from $133.6 million. Net income rose 70.8% to $146.6 million, and diluted EPS was $1.58 versus $0.94. Gross margin expanded to 71.1% from 67.2%, driven by product mix, sourcing initiatives and channel mix. Direct-to-consumer sales represented approximately 59% of total sales, while the indirect channel, including Coach Japan, contributed about 41%. The company operated 156 U.S. retail stores and 76 U.S. factory stores at year-end, plus 93 Coach Japan locations, and planned to open at least 20 new U.S. retail stores per year in each of the next two years. Coach Japan, a 50% joint venture with Sumitomo Corporation that is consolidated, drove much of the indirect growth, with Coach Japan net sales up $89.4 million. All fiscal 2003 product requirements were sourced from independent manufacturers. Balance sheet strength improved: cash and cash equivalents rose to $229.2 million, stockholders' equity reached $426.9 million, and the Fleet revolving facility had no outstanding borrowings at year-end. The company repurchased 1.9 million shares at an average cost of $25.89 and had about $120 million remaining under its repurchase program. The board also authorized a two-for-one stock split to be distributed October 1, 2003, and the filing notes that the company has never paid cash dividends.
Sep 18, 2003
2002
Tapestry Annual Report, Year Ended Jun 29, 2002
Coach, Inc. (now Tapestry, Inc.) reported fiscal 2002 results for the year ended June 29, 2002, with net sales of $719.4 million, up 19.8% from $600.5 million in fiscal 2001. Operating income rose 31.4% to $133.6 million, and net income increased 34.0% to $85.8 million, or $0.94 per diluted share after the two-for-one stock split in July 2002. Excluding reorganization costs, operating income was $137.0 million, or 19.0% of net sales. Gross margin expanded to 67.2% from 63.6%, driven mainly by the consolidation of Coach Japan and product mix shifts, while selling, general and administrative expenses rose to 48.1% of net sales from 45.9%. The direct-to-consumer channel generated about 62% of total net sales, with 138 U.S. retail stores and 74 factory stores at year end. The indirect channel, which includes the Coach Japan joint venture with Sumitomo Corporation, grew 30.5% to $272.3 million, largely due to the shift from wholesale to retail pricing in Japan following the acquisitions of P.D.C. Co. Ltd. and J. Osawa's distribution rights. Coach Japan operated 85 locations in Japan at year end. Balance sheet strength improved, with cash and cash equivalents of $94.0 million at June 29, 2002, up from $3.7 million, stockholders' equity of $260.4 million, and the Fleet revolving credit facility fully repaid from operating cash flow. The company authorized an $80 million stock repurchase program in September 2001 and had spent approximately $60 million of it as of August 30, 2002. The filing also notes the company expects its effective tax rate to rise to approximately 37% in fiscal 2003 after the shutdown of its Lares, Puerto Rico, facility.
Sep 20, 2002