01—Abstract
Summary
Summary of the 10-K filed August 14, 2025. Cited figures are marked; the original filing is the authoritative source.
Tapestry, Inc. reported fiscal 2025 net sales of $7.01 billiona, up 5.1% from $6.67 billion, with Coach driving growth.
Coach net sales rose 9.9% to $5.60 billionb, 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 millionc 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 billiond 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.
02—Key points
Key Highlights
- Net sales rose 5.1% to $7.01 billion in fiscal 2025, with Coach net sales up 9.9% to $5.60 billion and Coach operating margin at 33.5%.
- Kate Spade recorded $854.8 million of impairment charges, including $244.1 million of goodwill and $610.7 million of indefinite-lived brand intangible assets, resulting in an operating loss of $769.2 million for the segment.
- Reported operating income fell to $415.0 million (5.9% margin) from $1.14 billion (17.1% margin); excluding items affecting comparability, operating income was $1.40 billion.
- Reported diluted EPS was $0.82 versus $3.50 in fiscal 2024; excluding items affecting comparability, diluted EPS was $5.10 versus $4.29.
- Cash and cash equivalents decreased to $1.10 billion from $6.14 billion after $7.16 billion of debt repayment and a $2.00 billion accelerated share repurchase; total debt was approximately $2.39 billion.
- Stuart Weitzman was sold to Caleres, Inc. for $105.0 million, completed August 4, 2025, after the terminated Capri Acquisition led to $268.4 million of pre-tax acquisition and divestiture costs in fiscal 2025.
- Management estimates a tariff and trade policy impact of approximately 230 basis points to fiscal 2026 operating margin after mitigating actions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Tapestry kept $0.03.
- Revenue$7.01B100.0%
- Cost of revenue−$1.72B24.6%
- Gross profit$5.29B75.4%
- Operating costs−$4.87B69.5%
- Operating income$415.0M5.9%
- Interest, other & tax−$232.0M3.3%
- Net income$183.0M2.6%
Where FY2025 revenue went
$7.01B- SG&A: $4.02B, 57% of revenue
- Cost of revenue: $1.72B, 25% of revenue
- Other operating costs: $854.8M, 12% of revenue
- Net income: $183.0M, 2.6% of revenue
- Interest, other & tax: $232.0M, 3.3% of revenue
Kept 2.6% as net incomeNet income $183.0M · 2.6%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed August 14, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $7.01B$6.67B | +5.1% |
| Cost of Revenue | $1.72B$1.78B | −3.4% |
| Gross Profit | $5.29B$4.89B | +8.2% |
| SG&A Expenses | $4.02B$3.75B | +7.2% |
| Operating Income | $415.00M$1.14B | −63.6% |
| Interest Expense | $271.20M$369.60M | −26.6% |
| Net Income | $183.00M$816.00M | −77.6% |
| EPS (Basic) | $0.84$3.56 | −76.4% |
| EPS (Diluted) | $0.82$3.50 | −76.6% |
| Shares Outstanding (Basic) | 216.80M229.20M | −5.4% |
| Shares Outstanding (Diluted) | 222.50M233.20M | −4.6% |
05—Questions
Frequently Asked Questions
Why did reported profit fall so sharply in fiscal 2025 despite higher net sales?
Net sales rose 5.1% to $7.01 billion, but SG&A expenses increased to $4.87 billion, including $854.8 million of impairment charges for Kate Spade goodwill and an indefinite-lived brand intangible asset. Operating income fell to $415.0 million from $1.14 billion, and net income fell to $183.2 million from $816.0 million. The filing also reports $984.5 million of total items affecting comparability, which management excludes in its non-GAAP measures.
How did each brand perform in fiscal 2025?
Coach net sales rose 9.9% to $5.60 billion, with operating income up 13.6% to $1.88 billion. Kate Spade net sales fell 10.3% to $1.20 billion and posted an operating loss of $769.2 million, which includes impairment charges; excluding those items, its operating income was $91.3 million. Stuart Weitzman net sales fell 10.9% to $215.1 million, with an operating loss of $15.4 million.
What happened to the company's debt and cash position?
Cash and cash equivalents declined to $1.10 billion from $6.14 billion. The company repaid $7.16 billion of debt, mainly the Capri Acquisition Senior Notes redeemed after the merger was terminated, and issued $1.50 billion of 5.100% notes due 2030 and 5.500% notes due 2035. Long-term debt was $2.38 billion at year-end, and the company had $2.00 billion of availability under its amended revolving credit facility with no borrowings outstanding.
What capital return actions did the company take?
In November 2024 the company entered accelerated share repurchase agreements to repurchase up to $2.00 billion of common stock, paying the full amount to the dealers. The company paid dividends of $0.35 per quarter, totaling $299.3 million in fiscal 2025. As of June 28, 2025, $800.0 million remained available under the 2022 share repurchase program, and no shares were repurchased in the fourth quarter.
What are the main risks and outlook items the company highlights?
The filing highlights tariff and trade policy changes, with the company estimating a projected impact of approximately 230 basis points to fiscal 2026 operating margin after mitigating actions. Other risks include international operations, with approximately 40.0% of net sales from outside the United States, reliance on fulfillment and sourcing networks, cybersecurity threats, and sensitivity to discretionary consumer spending. The company also noted it expects the One Big Beautiful Bill Act to not have a material impact on its financial statements.
06—Continue