01—Abstract
Summary
Summary of the 10-K filed August 13, 2026. Cited figures are marked; the original filing is the authoritative source.
Tapestry, Inc. (NYSE: TPR) reported fiscal 2026 (52 weeks ended June 27, 2026) net sales of $8.00 billiona, 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 billionb (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 millionc, 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 billiond, 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.
02—Key points
Key Highlights
- Net sales rose 14.2% to $8.00 billion in fiscal 2026; Coach net sales increased 23.5% to $6.91 billion, while Kate Spade net sales decreased 10.2% to $1.07 billion.
- Operating income was $1.91 billion (23.9% of net sales) versus $415.0 million in fiscal 2025, which included $854.8 million of Kate Spade impairment charges; non-GAAP operating income was $1.87 billion.
- Diluted EPS was $7.27 on a GAAP basis versus $0.82 in fiscal 2025; excluding items affecting comparability, diluted EPS was $7.05 versus $5.10.
- Gross margin increased 240 basis points to 77.8%, with the company citing net pricing improvements and favorable brand mix, partially offset by higher tariffs.
- The company completed the $109.1 million sale of Stuart Weitzman on August 4, 2025 and introduced its 2028 growth strategy, Amplify.
- Returned capital through $1.55 billion of share repurchases and $326.1 million of dividends; $1.89 billion remained under the 2026 Share Repurchase Program as of June 27, 2026.
- Consolidated debt was approximately $2.38 billion, and stockholders' equity was $692.1 million; a $114.7 million IEEPA tariff refund receivable was recorded, with collection timing dependent on the CBP and U.S. Treasury process.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2026, Tapestry kept $0.19.
- Revenue$8.00B100.0%
- Cost of revenue−$1.78B22.2%
- Gross profit$6.23B77.8%
- Operating costs−$4.31B53.9%
- Operating income$1.91B23.9%
- Interest, other & tax−$386.4M4.8%
- Net income$1.53B19.1%
Where FY2026 revenue went
$8.00B- SG&A: $4.31B, 54% of revenue
- Cost of revenue: $1.78B, 22% of revenue
- Net income: $1.53B, 19% of revenue
- Interest, other & tax: $386.4M, 4.8% of revenue
Kept 19% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2026filed August 13, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $8.00B$7.01B | +14.2% |
| Cost of Revenue | $1.78B$1.72B | +3.1% |
| Gross Profit | $6.23B$5.29B | +17.8% |
| SG&A Expenses | $4.31B$4.02B | +7.4% |
| Operating Income | $1.91B$415.00M | +361.3% |
| Interest Expense | $119.30M$271.20M | −56.0% |
| Net Income | $1.53B$183.00M | +735.0% |
| EPS (Basic) | $7.49$0.84 | +791.7% |
| EPS (Diluted) | $7.27$0.82 | +786.6% |
| Shares Outstanding (Basic) | 204.00M216.80M | −5.9% |
| Shares Outstanding (Diluted) | 210.20M222.50M | −5.5% |
05—Questions
Frequently Asked Questions
What drove Tapestry's sharp increase in profitability in fiscal 2026?
Net income rose to $1.53 billion from $183.2 million, largely because fiscal 2025 included $854.8 million of Kate Spade impairment charges and a $120.1 million loss on extinguishment of debt. Operating results were also supported by Coach's net sales growth of 23.5% and a 240 basis point gross margin improvement, and the company recorded a $98.3 million net pre-tax benefit from IEEPA tariff refunds in fiscal 2026.
How is Kate Spade performing?
Kate Spade net sales declined 10.2% to $1.07 billion, and it recorded an operating loss of $10.0 million in fiscal 2026 compared with an operating loss of $769.2 million in fiscal 2025. Excluding items affecting comparability, Kate Spade's operating loss was $27.2 million, and its gross margin decreased 370 basis points to 63.0%, mainly due to higher tariffs and unfavorable channel mix.
What is the status of tariff-related refunds and risks?
The Company paid approximately $117 million in IEEPA tariffs, received $2.1 million in cash refunds in the fourth quarter, and recorded a $114.7 million probable refund receivable as of June 27, 2026. Collection timing depends on the CBP and U.S. Treasury refund process. The filing also notes that a 10% Section 122 tariff expired on July 24, 2026, that the CIT ruled those tariffs invalid on May 7, 2026 (under appeal), and that new Section 301 tariff rates of 10% to 12.5% take effect upon that expiration.
How much debt does Tapestry carry and what are its key terms?
Consolidated debt was approximately $2.38 billion as of June 27, 2026, consisting of senior unsecured notes with a $2.40 billion principal balance. The $2.00 billion Amended Revolving Credit Facility, which matures May 22, 2030, had no borrowings outstanding, and the company must maintain a maximum net leverage ratio of 4.00:1.00 (increasable to 4.50:1.00 after a material acquisition). The company was in compliance with these covenants as of June 27, 2026.
What is the company's capital return plan?
In fiscal 2026 Tapestry paid a quarterly dividend of $0.40 per share, or $1.60 annually, totaling $326.1 million, and repurchased $1.35 billion of common stock under the 2022 and 2026 programs (the cash flow statement shows $1.55 billion of repurchases). The Board authorized up to $3.00 billion of repurchases on September 10, 2025, and $1.89 billion remained available as of June 27, 2026.
06—Continue