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TPR · Tapestry

50 filings

10-Q

TPR 10-Q Quarterly Reports

Tapestry - 50 quarterly reports

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

TPR filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 145 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Dec ’17Dec ’17
  2. Restructuring8-K · Apr ’20Apr ’20
  3. Material agreement8-K · Dec ’21Dec ’21
  4. Leadership change8-K · Sep ’25Sep ’25
  1. 2026-Q3

    Tapestry Quarterly Report for Q3 Ended Mar 28, 2026

    Tapestry, Inc. (TPR) reported third-quarter fiscal 2026 results for the 13 weeks ended March 28, 2026, with net sales of $1.92 billion, up 21.2% or $336.0 million from $1.58 billion a year earlier. Coach drove the growth, with net sales up 31.5% to $1.70 billion, while Kate Spade net sales fell 10.3% to $219.6 million. Operating income rose to $427.5 million from $253.7 million, and net income increased 69.1% to $343.8 million, or $1.65 per diluted share. The company attributed the quarter's results in part to the Stuart Weitzman Business divestiture completed on August 4, 2025, for a final purchase price of $109.1 million. Excluding items affecting comparability, diluted EPS was $1.66 versus $1.03 a year earlier. For the first nine months of fiscal 2026, net sales rose 15.9% to $6.13 billion and net income rose 68.5% to $1.18 billion, or $5.58 per diluted share. Net cash provided by operating activities was $1.46 billion, compared with $769.8 million a year earlier. Share repurchases totaled $1.25 billion in the nine-month cash flow statement, and the company had $2.19 billion of remaining authorization under its 2026 Share Repurchase Program as of March 28, 2026. Balance sheet items to note include cash and cash equivalents of $1.05 billion, long-term debt of $2.38 billion, no borrowings under the $2.00 billion revolving credit facility, and total stockholders' equity of $682.4 million, down from $857.8 million at June 28, 2025. The filing also cites tariff-related gross margin pressure of approximately 180 basis points in the quarter and approximately 150 basis points for the nine months, and a securities class action that was dismissed without prejudice on March 31, 2026 and subsequently amended on April 30, 2026.

    May 7, 2026
  2. 2026-Q2

    Tapestry Quarterly Report for Q2 Ended Dec 27, 2025

    Tapestry, Inc. (TPR) reported net sales of $2.50 billion for the second quarter of fiscal 2026 ended December 27, 2025, up 14.0% or $307.0 million from $2.20 billion a year earlier. Coach net sales rose 25.3% to $2.14 billion, while Kate Spade net sales fell 13.6% to $360.0 million. Stuart Weitzman, sold to Caleres, Inc. on August 4, 2025, contributed no sales in the quarter. Operating income rose $223.6 million to $716.4 million, with operating margin of 28.6% versus 22.4%. Net income was $561.3 million, or $2.68 per diluted share, compared with $310.4 million, or $1.38 per diluted share, in the prior-year quarter, which included $197.6 million of pre-tax Capri Acquisition-related expenses. On a non-GAAP basis, excluding items affecting comparability, diluted EPS was $2.69 versus $2.00. The filing notes that tariffs and the removal of the de minimis exemption reduced gross margin by approximately 190 basis points in the quarter and 140 basis points for the six months. Kate Spade's operating margin fell to 4.5% from 16.4%, driven by higher tariffs, unfavorable channel mix and higher marketing spend. For the six months, operating cash flow was $1.19 billion, and the company repurchased $900.0 million of common stock, leaving $2.34 billion of authorization under the 2026 Share Repurchase Program. Cash and cash equivalents were $1.05 billion against $2.38 billion of long-term debt, and total stockholders' equity was $551.2 million. The company introduced its 2028 growth strategy, Amplify, in the first quarter of fiscal 2026. Management states that cash flows, credit lines and on-hand cash will provide adequate funds for fiscal 2026 and beyond. The company also disclosed a securities class action, filed in the District of Delaware, related to the terminated Capri Acquisition, and says it intends to defend itself vigorously.

    Feb 5, 2026
  3. 2026-Q1

    Tapestry Quarterly Report for Q1 Ended Sep 27, 2025

    Tapestry, Inc. (TPR) reported first-quarter fiscal 2026 results for the 13 weeks ended September 27, 2025, with net sales of $1,704.6 million, up 13.1% or $197.1 million from $1,507.5 million a year earlier. Coach drove the growth, with net sales up 22.1% to $1.43 billion, while Kate Spade net sales declined 8.1% to $260.2 million. Gross margin rose to 76.3% from 75.3%, and operating income increased to $328.2 million from $252.0 million. Net income was $274.8 million, or $1.28 per diluted share, versus $0.79 a year earlier. Excluding items affecting comparability, which the company identified as Stuart Weitzman divestiture costs and organizational efficiency costs, net income was $297.1 million, or $1.38 per diluted share. The balance sheet shifted toward shareholder returns and a smaller portfolio. The company completed the sale of the Stuart Weitzman Business to Caleres, Inc. on August 4, 2025, for total cash consideration of $105.0 million, and repurchased $500.0 million of common stock during the quarter under its share repurchase programs, with a further $195.7 million cash settlement completing the prior accelerated share repurchase agreement. Cash and cash equivalents fell to $719.5 million from $1,100.0 million, and total stockholders' equity declined to $399.5 million from $857.8 million. Commercial paper borrowings of $240.0 million were outstanding at quarter-end under a new $2.00 billion Commercial Paper Program supported by the Amended Revolving Credit Facility, which had no borrowings outstanding. Management reported that tariffs and the removal of the de minimis exemption reduced gross margin by approximately 70 basis points in the quarter. The company introduced its 2028 growth strategy, called Amplify, and expects fiscal 2026 capital expenditures and cloud computing costs of approximately $200.0 million. The filing also discloses two putative securities class actions related to the terminated Capri Acquisition, which the company intends to vigorously defend.

    Nov 6, 2025
  4. 2025-Q3

    Tapestry Quarterly Report for Q3 Ended Mar 29, 2025

    Tapestry, Inc. (TPR) reported net sales of $1,584.6 million for the third quarter of fiscal 2025 (ended March 29, 2025), up from $1,482.4 million a year earlier, and net income of $203.3 million, up from $139.4 million. Diluted EPS was $0.95 versus $0.60. Operating income rose to $253.7 million from $204.3 million, with gross profit of $1,205.8 million and SG&A of $952.1 million. For the first nine months of fiscal 2025, net sales were $5,287.5 million and net income was $700.3 million, after a $120.1 million loss on extinguishment of debt tied to the terminated Capri Acquisition. Coach was the main driver, with segment net sales of $1,293.5 million in the quarter. Kate Spade net sales were $244.9 million and Stuart Weitzman net sales were $46.2 million, both declining. The balance sheet changed substantially over the period. Cash and cash equivalents fell to $1,037.7 million from $6,142.0 million at June 29, 2024, and long-term debt declined to $2,377.1 million from $6,937.2 million. Financing outflows included $1,665.3 million of share repurchases in the nine months, plus $350.0 million of repurchases not yet settled, and $6,859.9 million of debt repayment. Total stockholders' equity fell to $1,493.8 million from $2,896.9 million. The company also agreed on February 16, 2025 to sell the Stuart Weitzman Business to Caleres, Inc. for $105.0 million in cash, subject to adjustments, with closing expected in the summer of 2025. Management's outlook notes that tariffs announced in the second half of fiscal 2025 are not expected to have a meaningful negative impact on fiscal 2025 results, but could have a material negative impact on fiscal 2026 and beyond depending on trade negotiations. The company also disclosed two putative securities class actions filed in December 2024 and January 2025 relating to the terminated Capri Acquisition, which it intends to defend vigorously.

    May 8, 2025
  5. 2025-Q2

    Tapestry Quarterly Report for Q2 Ended Dec 28, 2024

    Tapestry, Inc. (TPR) reported net sales of $2,195.4 million for the second quarter of fiscal 2025 (ended December 28, 2024), up 5.3% or $110.9 million from $2,084.5 million a year earlier, with growth led by Coach (net sales up 10.9% to $1,709.3 million). Gross margin rose 280 basis points to 74.4%, attributed primarily to net pricing improvements, and operating income increased 10.1% to $492.8 million. Reported net income declined 3.7% to $310.4 million, or $1.38 per diluted share, because of $197.6 million in pre-tax acquisition-related charges tied to the terminated Capri Holdings acquisition, including a $120.1 million loss on extinguishment of debt. Excluding these items, the company reported net income of $450.2 million, or $2.00 per diluted share. The balance sheet changed substantially during the period. Cash and cash equivalents fell to $983.4 million from $6,142.0 million at June 29, 2024, and long-term debt declined to $2,377.4 million from $6,937.2 million, as the company redeemed the Capri Acquisition Senior Notes on November 25, 2024 and repaid other borrowings. Total stockholders' equity dropped to $1,336.5 million from $2,896.9 million, reflecting share repurchases. Tapestry executed a $2.00 billion accelerated share repurchase, receiving an initial delivery of 28,363,766 shares at $56.41 per share, and the company issued $1.50 billion of new senior unsecured notes due 2030 and 2035 in December 2024. For the first six months of fiscal 2025, net cash provided by operating activities was $625.5 million, compared with $901.8 million a year earlier. The company also disclosed that the Capri merger was terminated on November 13, 2024, that two putative securities class actions were filed in December 2024 and January 2025 relating to the proposed acquisition, and that the company intends to vigorously defend them.

    Feb 6, 2025
  6. 2025-Q1

    Tapestry Quarterly Report for Q1 Ended Sep 28, 2024

    Tapestry, Inc. reported first-quarter fiscal 2025 results (13 weeks ended September 28, 2024) with net sales of $1,507.5 million, essentially flat versus $1,513.2 million a year earlier (down $5.7 million, or 0.4%). Excluding currency effects, net sales were even year over year. Coach net sales rose 1.1% to $1,170.6 million, while Kate Spade fell 6.6% to $283.2 million and Stuart Weitzman rose 2.1% to $53.7 million. Gross margin expanded 280 basis points to 75.3%, driven by net pricing improvements, lower freight costs and favorable currency impacts. However, SG&A rose 4.5% to $882.9 million, leaving operating income roughly unchanged at $252.0 million and net income down 4.3% to $186.6 million, or $0.79 per diluted share. The quarter was dominated by the pending acquisition of Capri Holdings Limited for $57.00 per share in cash, with an expected enterprise value of approximately $8.50 billion. The Company has received all required regulatory approvals except in the United States, where the FTC sued to block the deal. On October 24, 2024, the court granted the FTC's request for a preliminary injunction pending an administrative trial scheduled for December 9, 2024, and the Company and Capri filed a notice of appeal on October 28, 2024. Acquisition costs were $70.8 million pre-tax in the quarter, reducing net income by $55.0 million, or $0.23 per diluted share. Excluding these items, adjusted diluted EPS would have been $1.02 versus $0.93 a year earlier. The balance sheet holds substantial liquidity to fund the deal. Cash and cash equivalents were $6,462.9 million and short-term investments were $842.3 million, while total debt, including current debt, was $7,311.7 million on a carrying basis. The Company issued $6.10 billion of senior notes in November 2023 to finance the acquisition and must redeem them at 101% of principal if the deal does not close by February 10, 2025 or is terminated. Cash flow from operations was $119.5 million, and the Company paid $81.4 million in dividends with no share repurchases during the quarter.

    Nov 7, 2024
  7. 2024-Q3

    Tapestry Quarterly Report for Q3 Ended Mar 30, 2024

    Tapestry, Inc. reported third-quarter fiscal 2024 results (quarter ended March 30, 2024) with net sales of $1.48 billion, down 1.8% from $1.51 billion a year earlier, and net income of $139.4 million, or $0.60 per diluted share, versus $186.7 million, or $0.78, in the prior-year quarter. Excluding $67.9 million of pre-tax acquisition costs tied to the proposed Capri Holdings Limited acquisition, the filing states net income was $190.1 million, or $0.81 per diluted share. Gross margin rose 190 basis points to 74.7%, driven by lower freight costs, favorable currency translation and net pricing improvements, while SG&A rose to 60.9% of sales from 57.8%. For the first nine months of fiscal 2024, net sales were $5.08 billion, up 0.8%, and net income was $656.7 million, or $2.82 per diluted share. Cash and cash equivalents rose to $6.98 billion at March 30, 2024, from $726.1 million at July 1, 2023, primarily reflecting $6.1 billion of senior unsecured notes issued to fund the Capri acquisition. Total long-term debt, net, increased to $7.67 billion from $1.64 billion. The proposed $57.00-per-share cash acquisition of Capri, with an expected enterprise value of approximately $8.5 billion, has received regulatory approval in all countries except the United States, and on April 22, 2024 the FTC filed a complaint seeking to enjoin the deal, which the company says is without merit and will defend vigorously. The company also disclosed that it suspended share repurchases in August 2023 in connection with the Capri acquisition and repurchased no shares in the first nine months of fiscal 2024, leaving $800.0 million available under its 2022 repurchase program. Dividends of $0.35 per share were declared in each quarter of the period.

    May 9, 2024
  8. 2024-Q2

    Tapestry Quarterly Report for Q2 Ended Dec 30, 2023

    Tapestry, Inc. (TPR) reported second-quarter fiscal 2024 results for the three months ended December 30, 2023, with net sales of $2,084.5 million, up 2.9% or $59.1 million from $2,025.4 million a year earlier, and net income of $322.3 million, or $1.39 per diluted share, versus $329.9 million, or $1.36 per diluted share. Operating income rose 7.0% to $447.6 million, but results include $72.4 million of pre-tax acquisition costs tied to the proposed Capri Holdings Limited acquisition, which the filing says would be purchased for $57.00 per share in cash, for an enterprise value of about $8.5 billion, with closing expected during calendar 2024. Excluding items affecting comparability, the filing reports net income of $376.7 million and $1.63 per diluted share. The balance sheet changed substantially during the quarter. Cash and cash equivalents rose to $6,833.1 million from $726.1 million, and long-term debt, net, increased to $7,714.4 million from $1,635.8 million, reflected in $4.5 billion of U.S. dollar senior notes and EUR 1.5 billion of euro senior notes issued in November 2023 to fund the acquisition. Net cash from operating activities for the six months was $901.8 million, compared with $462.4 million a year earlier. The company suspended share repurchases in August 2023 in connection with the Capri transaction and repurchased no shares in the first half of fiscal 2024. For the six months ended December 30, 2023, net sales were $3,597.7 million (up 1.9%), operating income was $700.8 million, and diluted EPS was $2.23. Coach drove growth, with net sales up 6.4% in the quarter, while Kate Spade net sales declined 6.1%. The company says its gross margin expanded to 71.6% in the quarter, largely from lower freight costs and pricing improvements.

    Feb 8, 2024
  9. 2024-Q1

    Tapestry Quarterly Report for Q1 Ended Sep 30, 2023

    Tapestry, Inc. (TPR) reported first-quarter fiscal 2024 results for the three months ended September 30, 2023. Net sales were $1,513.2 million, up 0.4% or $6.7 million from $1,506.5 million a year earlier, with the company stating that excluding foreign currency, net sales increased 1.7% or $25.8 million. Gross profit rose 4.1% to $1,097.7 million, and gross margin expanded to 72.5% from 70.0%, driven mainly by lower freight costs and net pricing improvements. SG&A expenses rose 5.5% to $844.5 million, and operating income was essentially flat at $253.2 million, versus $254.3 million a year earlier. Net income was $195.0 million, or $0.84 per diluted share, compared with $195.3 million, or $0.79 per diluted share, a year earlier. Excluding $26.3 million of pre-tax Capri Acquisition costs, the company reported non-GAAP diluted EPS of $0.93. The filing is dominated by the proposed acquisition of Capri Holdings Limited, agreed August 10, 2023 for $57.00 per share in cash, with an enterprise value the filing states is expected to be approximately $8.5 billion and a closing expected during calendar 2024. Capri's shareholders approved the merger on October 25, 2023. To fund it, Tapestry has secured a bridge facility of up to $6.6 billion (reduced from $8.0 billion), $1.40 billion of new term loans, and a revolving facility increased from $1.25 billion to $2.0 billion. No borrowings were outstanding under these facilities at quarter-end. Share repurchases were suspended in August 2023 and none occurred during the quarter. At September 30, 2023, cash and cash equivalents were $622.1 million, against long-term debt of $1,629.9 million net. Operating cash flow was $75.3 million, compared with a use of $170.4 million a year earlier, and capital expenditures were $20.9 million. The company paid $80.2 million in dividends. Management stated it believes cash flows, credit lines and on-hand cash will be adequate to fund operations and debt service for fiscal 2024 and beyond.

    Nov 9, 2023
  10. 2023-Q3

    Tapestry Quarterly Report for Q3 Ended Apr 1, 2023

    Tapestry, Inc. (TPR) reported results for the third quarter of fiscal 2023, ended April 1, 2023. Net sales rose 5.0% to $1.51 billion, or 8.7% excluding currency effects, led by Coach, whose net sales increased 6.7% to $1.14 billion. Gross margin expanded to 72.8% from 69.9%, supported by lower freight costs and pricing, and operating income increased 33.6% to $226.3 million. Net income was $186.7 million, or $0.78 per diluted share, versus $0.46 a year earlier. Kate Spade net sales declined 1.4% to $297.2 million with operating income down to $8.0 million, and Stuart Weitzman net sales rose 7.3% to $68.3 million. For the first nine months of fiscal 2023, net sales were $5.04 billion, down 0.4%, while net income was $711.9 million, or $2.93 per diluted share. Operating cash flow was $574.8 million, and the company repurchased $502.0 million of common stock and paid $214.2 million in dividends during the period. Cash and cash equivalents stood at $637.2 million at quarter end, with $1.25 billion of revolving credit capacity undrawn, and total long-term debt, net, of $1.64 billion. Management noted that a stronger U.S. dollar reduced net sales by $188.5 million over the nine months and that Greater China trends improved after December 2022. Management intends to repurchase approximately $700.0 million of stock in fiscal 2023, with $1.00 billion remaining under the 2022 authorization as of April 1, 2023. The company also expects fiscal 2023 capital expenditures and cloud computing costs of about $280.0 million, and it flagged the forthcoming CAMT and GloBE minimum-tax regimes as uncertain in their effect on its tax rate.

    May 11, 2023
  11. 2023-Q2

    Tapestry Quarterly Report for Q2 Ended Dec 31, 2022

    Tapestry, Inc. (TPR) reported its second-quarter fiscal 2023 results for the three months ended December 31, 2022, with net sales of $2,025.4 million, down from $2,141.2 million a year earlier, and net income of $329.9 million, compared with $317.9 million in the prior-year quarter. Diluted EPS was $1.36 versus $1.15. Excluding items affecting comparability in the prior-year quarter, the filing states that net income decreased 10.3% to $329.9 million, reflecting lower operating income. Operating income fell 9.6% to $418.2 million, with operating margin at 20.6% versus 21.6%. Coach remained the largest contributor with net sales of $1,449.7 million, while Stuart Weitzman saw a sharp decline in net sales (down 26.2% to $85.4 million) and operating income of just $0.7 million. Management attributed weakness in Greater China to Covid-19 disruptions. For the first six months of fiscal 2023, net sales were $3,531.9 million (down 2.5%) and net income was $525.2 million (down 3.6%). Gross margin improved in the second quarter to 68.6% from 68.1%, supported by lower freight costs, while SG&A rose to 47.9% of net sales from 46.5%. Cash flow from operations for the six months was $462.4 million, and the company repurchased $300.0 million of common stock and paid $144.2 million in dividends. Cash and cash equivalents stood at $830.2 million at December 31, 2022, against $1,681.2 million of outstanding indebtedness, with $1.25 billion of revolving credit availability undrawn. The company stated it intends to repurchase approximately $700.0 million of stock in fiscal 2023 and expects fiscal 2023 capital expenditures and cloud computing costs of approximately $300.0 million. Management noted that the U.S. dollar appreciation had a negative effect on net sales of $80.6 million for the quarter and $135.7 million for the six months.

    Feb 9, 2023
  12. 2023-Q2

    Tapestry Quarterly Report for Q2 Ended Oct 1, 2022

    Tapestry, Inc. reported first-quarter fiscal 2023 results (quarter ended October 1, 2022) with net sales of $1,506.5 million, up 1.7% or $25.6 million from $1,480.9 million a year earlier. Excluding the effects of foreign currency, net sales increased 5.4%, or $80.7 million. Coach net sales rose 0.4% to $1,119.3 million, Kate Spade rose 7.5% to $321.9 million, and Stuart Weitzman fell 1.9% to $65.3 million. Profitability declined: gross margin fell to 70.0% from 72.2%, driven by approximately 130 basis points of incremental freight costs and about 70 basis points of unfavorable currency translation. Operating income decreased 13.8% to $254.3 million, and net income decreased 13.9% to $195.3 million, or $0.79 per diluted share versus $0.80 a year earlier. Cash flow was weak in the quarter. Net cash used in operating activities was $170.4 million, compared with cash provided of $21.8 million a year earlier, largely due to a $181.9 million inventory build and $111.6 million increase in other assets. Cash and cash equivalents fell to $526.5 million from $789.8 million at July 2, 2022. Tapestry returned capital through $94.9 million of share repurchases and $72.7 million of dividends, and it repurchased $100 million of stock in the quarter. The company intends to repurchase approximately $700.0 million of stock in fiscal 2023 and has $1.40 billion remaining under its 2022 authorization. Management cites an increasingly challenging, volatile macroeconomic environment, including inflation, a strengthening U.S. dollar, supply chain disruption, and Covid-19 effects, particularly in Greater China. The company also states that the Inflation Reduction Act of 2022, effective in fiscal 2024, could affect its tax rate, though the impact is currently unclear.

    Nov 10, 2022
  13. 2022-Q3

    Tapestry Quarterly Report for Q3 Ended Apr 2, 2022

    Tapestry, Inc. reported third-quarter fiscal 2022 (ended April 2, 2022) net sales of $1,437.5 million, up 12.9% from $1,273.3 million a year earlier, with operating income of $169.5 million versus $116.7 million and net income of $122.7 million, or $0.46 per diluted share. For the first nine months, net sales rose 22.5% to $5,059.6 million and net income was $667.5 million, or $2.42 per diluted share, which includes a $53.7 million loss on extinguishment of debt tied to a $500 million partial tender of its 2027 and 2025 Senior Notes. Gross margin for the quarter was 69.9%, down from 71.6%, mainly reflecting higher inbound freight costs, and the company incurred $142.6 million of incremental freight costs in the nine months to keep product flowing. Balance sheet and capital returns were significant during the period. Cash and cash equivalents fell to $806.0 million from $2,007.7 million at fiscal year-end 2021, primarily because the company repurchased $1,249.8 million of common stock and paid $202.8 million in dividends during the nine months. Total debt, net, was $1,589.8 million including current debt, after the company issued $500.0 million of 3.050% Senior Notes due 2032. Subsequent to quarter-end, the Board authorized an additional $1.50 billion share repurchase program, and the company refinanced its $900.0 million revolving credit facility into a $1.25 billion facility plus a $500.0 million term loan. Management continues to cite Covid-19 disruptions, most notably in Greater China, along with supply chain and logistics challenges, and expects these to persist through fiscal 2022 and into fiscal 2023. The company stated it remains on track to realize $300 million of gross run-rate savings under its Acceleration Program in fiscal 2022, with total pre-tax program charges expected at approximately $215 million to $220 million.

    May 12, 2022
  14. 2022-Q3

    Tapestry Quarterly Report for Q3 Ended Jan 1, 2022

    Tapestry, Inc. reported net sales of $2.14 billion for the second quarter of fiscal 2022 (ended January 1, 2022), up 27.0% or $455.8 million from the prior-year quarter. Coach net sales rose 24.5% to $1.53 billion, Kate Spade rose 33.3% to $500.4 million, and Stuart Weitzman rose 37.0% to $115.8 million. Gross margin declined to 68.1% from 69.6%, which the company attributed largely to higher inbound freight costs. Operating income increased 18.9% to $462.8 million, and net income increased 2.2% to $317.9 million, or $1.15 per diluted share. Results were affected by a $53.7 million loss on extinguishment of debt and $13.3 million of Acceleration Program charges. Excluding these items, diluted earnings per share were $1.33. For the first six months of fiscal 2022, net sales were $3.62 billion, up 26.8%, and net income was $544.8 million, flat with the prior-year period's $542.7 million. Cash and cash equivalents fell to $1,257.4 million from $2,007.7 million at July 3, 2021, reflecting $750.0 million of share repurchases, $137.5 million of dividend payments, and $502.3 million of investment purchases. The company issued $500.0 million of 3.050% senior notes due 2032 and used the proceeds, together with other funds, to tender for $500 million of its 2027 and 2025 senior notes. Net cash provided by operating activities was $668.1 million, compared with $746.3 million a year earlier. The filing states that Covid-19 has materially adversely affected operations, cash flow, and liquidity, and that supply chain and freight challenges are expected to persist through fiscal 2022. The company remains on track to realize $300 million of gross run-rate savings in fiscal 2022 under its Acceleration Program, with total pre-tax program charges expected to be approximately $215 million to $220 million.

    Feb 10, 2022
  15. 2022-Q2

    Tapestry Quarterly Report for Q2 Ended Oct 2, 2021

    Tapestry, Inc. (TPR) reported net sales of $1,480.9 million for the first quarter of fiscal 2022 (ended October 2, 2021), up 26.3% or $308.7 million from $1,172.2 million in the prior-year quarter. Gross profit rose to $1,068.7 million, with gross margin of 72.2% versus 70.8%. Operating income increased 45.9% to $295.0 million, while net income declined 2.1% to $226.9 million, or $0.80 per diluted share, compared with $0.83 a year earlier. The company notes that excluding Acceleration Program charges of $12.1 million, operating income rose 34.2% to $307.1 million and non-GAAP net income increased 46.2% to $235.1 million, with the prior-year comparison also excluding a CARES Act tax impact. Coach drove the results, with net sales of $1,114.9 million (up 27.4%) and operating income of $365.7 million, at a 32.8% operating margin. Kate Spade net sales rose 24.5% to $299.5 million, and Stuart Weitzman net sales rose 17.9% to $66.5 million, though Stuart Weitzman posted an operating loss of $1.5 million. Management cites higher e-commerce and North American store sales and reduced promotional activity, while noting ongoing Covid-19 disruptions, Vietnam manufacturing capacity constraints, and elevated freight costs. Cash and cash equivalents fell to $1,252.6 million from $2,007.7 million, largely because of $402.9 million in investment purchases, $250.0 million in share repurchases, and $69.6 million in dividends. Operating cash flow was $21.8 million, down from $90.0 million. Total debt was $1,591.4 million on a net basis at quarter-end, including $400.0 million of 3.000% notes due 2022 now classified as current. Subsequent to quarter-end, the Board authorized an additional $1.00 billion share repurchase program, incremental to the $350.0 million remaining under the existing authorization.

    Nov 12, 2021
  16. 2021-Q3

    Tapestry Quarterly Report for Q3 Ended Mar 27, 2021

    Tapestry, Inc. (TPR) reported its third quarter of fiscal 2021, ended March 27, 2021. Net sales rose 18.7% to $1,273.3 million from $1,072.7 million, with Coach up 24.7% to $963.5 million. Gross margin reached 71.6% versus 57.4% a year earlier, and operating income was $116.7 million compared with an operating loss of $685.5 million in the prior-year quarter, which included $653.9 million of items affecting comparability. Net income was $91.7 million, or $0.32 per diluted share. Excluding items affecting comparability, operating income was $182.9 million and diluted EPS was $0.51. For the first nine months, net sales declined 2.7% to $4,130.9 million, but operating income improved to $708.3 million from an operating loss of $270.8 million, and net income was $634.4 million, or $2.25 per diluted share. Cash and cash equivalents rose to $1,651.7 million at March 27, 2021, and the $700 million drawn on the Revolving Credit Facility in fiscal 2020 was fully repaid. No shares were repurchased in the quarter, and $600 million remained available under the repurchase program, though buybacks are restricted during the Covenant Relief Period. The filing states that the Covid-19 pandemic has had and is expected to continue to have a material adverse impact on the business for the foreseeable future. Management also notes the Acceleration Program now carries total expected pre-tax charges of approximately $205 to $220 million and is expected to be substantially complete by the end of fiscal 2022, and that the Revolving Credit Facility is subject to a $700 million minimum liquidity covenant and a maximum net leverage ratio of 4.0 to 1.0 during the Covenant Relief Period.

    May 6, 2021
  17. 2021-Q2

    Tapestry Quarterly Report for Q2 Ended Dec 26, 2020

    Tapestry, Inc. (TPR) reported results for the second quarter of fiscal 2021, ended December 26, 2020. Net sales fell 7.2% to $1,685.4 million from $1,816.0 million a year earlier, with Coach at $1,225.3 million, Kate Spade at $375.6 million and Stuart Weitzman at $84.5 million. Operating income rose 7.3% to $389.4 million, and net income increased 4.1% to $311.0 million, or $1.11 per diluted share. Operating margin was 23.1% versus 20.0% a year earlier. Excluding items affecting comparability, including Acceleration Program charges of $21.7 million, operating income was $411.1 million and diluted EPS was $1.15. For the first six months, net sales declined 10.0% to $2,857.6 million, while operating income rose 42.7% to $591.6 million and net income rose 70.3% to $542.7 million. Cash and cash equivalents increased to $1,642.6 million, and operating cash flow was $746.3 million. The company repaid $500 million of its $700 million revolving credit borrowing during the quarter and the remaining $200 million on January 25, 2021. The filing states that Covid-19 has had and is expected to continue to have a material adverse impact on the business. The dividend and share repurchases remain suspended during the Covenant Relief Period under the credit agreement amendment, which requires $700 million of minimum available liquidity through October 2, 2021. The Acceleration Program, a multi-year growth plan, is expected to involve total pre-tax charges of approximately $185 to $200 million, with the company targeting $300 million in gross run-rate savings, including $200 million in fiscal 2021. The filing also discloses a putative class action (Butler v. Leavitt) relating to the 2017 Kate Spade acquisition, which the company is vigorously disputing, and states that the outcome cannot be predicted or reasonably estimated.

    Feb 4, 2021
  18. 2021-Q1

    Tapestry Quarterly Report for Q1 Ended Sep 26, 2020

    Tapestry, Inc. (TPR) reported its first-quarter fiscal 2021 results for the three months ended September 26, 2020. Net sales fell 13.7% to $1.17 billion from $1.36 billion, driven by Covid-19 store closures and lower wholesale demand, with Coach down 9.4%, Kate Spade down 21.3% and Stuart Weitzman down 34.8%. Despite the sales decline, operating income rose to $202.2 million from $51.6 million, as SG&A fell 27.2% to $628.0 million, largely through Acceleration Program actions. Net income was $231.7 million, or $0.83 per diluted share, versus $20.0 million, or $0.07, a year earlier. The results include a $91.7 million tax benefit from the CARES Act net operating loss carryback; excluding items affecting comparability, diluted EPS was $0.58. Liquidity remains a focus. Cash and cash equivalents were $1.51 billion at quarter end, while $700.0 million was drawn on the $900 million Revolving Credit Facility, and the company repaid $150 million of that balance on October 30, 2020. The Amendment to the credit facility requires maintaining $700 million of available liquidity through October 2, 2021, and a maximum net leverage ratio of 4.0 to 1.0 during the Covenant Relief Period. Dividends and share repurchases remain suspended, and the company does not expect to repurchase shares during the Covenant Relief Period. Management stated that Covid-19 has had and is expected to continue to have a material adverse impact on the business, while the Acceleration Program is expected to bring total pre-tax charges of approximately $185 to $200 million and gross run-rate savings of $300 million.

    Nov 4, 2020
  19. 2020-Q3

    Tapestry Quarterly Report for Q3 Ended Mar 28, 2020

    Tapestry, Inc. (TPR) reported a net loss of $677.1 million, or $2.45 per diluted share, for the third quarter of fiscal 2020 ended March 28, 2020, compared with net income of $117.4 million, or $0.40 per diluted share, a year earlier. Net sales fell 19.4% to $1,072.7 million, with Coach, Kate Spade and Stuart Weitzman all declining as the Covid-19 pandemic closed the majority of the company's stores in North America, Europe and many in Asia Pacific. The loss was driven primarily by $267.0 million and $210.7 million impairments to the Stuart Weitzman indefinite-lived brand and goodwill, respectively, along with $104.0 million of inventory reserve increases and other store impairments. For the nine months, net sales were $4,246.6 million and the company reported a net loss of $358.3 million. The filing describes the pandemic as having a material adverse impact on the business for the foreseeable future. To reinforce liquidity, Tapestry borrowed $700 million under its $900 million Revolving Credit Facility on March 30, 2020, suspended its quarterly dividend and all share repurchases, and is taking cost actions including terminating 2,100 part-time store associates and reducing capital expenditures. The company disclosed that it may not maintain compliance with the leverage ratio covenant of the Revolving Credit Facility if the borrowing is not repaid before the end of the fourth quarter of fiscal 2020, and it is actively seeking an amendment from lenders with no assurance of success. Cash and cash equivalents were $742.6 million at March 28, 2020, and the company expects to incur $55-$70 million in pre-tax charges from workforce reduction actions. Investors should weigh the severity of the near-term disruption against the company's stated liquidity position and the uncertainty around covenant compliance and the duration of store closures, which the filing states are highly uncertain and cannot be predicted.

    May 6, 2020
  20. 2020-Q2

    Tapestry Quarterly Report for Q2 Ended Dec 28, 2019

    Tapestry, Inc. (TPR) reported results for the second quarter of fiscal 2020, ended December 28, 2019. Net sales rose 0.8% to $1.82 billion ($1,816.0 million), gross margin was 66.6% versus 66.8%, and operating income fell 3.6% to $363.1 million. Net income increased 17.2% to $298.8 million, or $1.08 per diluted share, but the filing notes that excluding non-GAAP charges net income decreased 2.1% to $303.5 million. For the six months, net sales declined 0.3% to $3.17 billion and operating income fell 23.0% to $414.7 million, with $75.6 million of impairment charges and $119.5 million of SG&A non-GAAP adjustments included in the GAAP results. Kate Spade drove much of the profit decline, with operating income down 23.1% in the quarter, while Coach operating income rose 2.3%. The balance sheet changed significantly with the adoption of ASC 842, as operating lease right-of-use assets of $1.996 billion and operating lease liabilities of $2.231 billion were recorded. Cash and cash equivalents were $896.9 million at quarter end, and the company repurchased $300.0 million of common stock in the six months, leaving $600 million of availability under its repurchase program. The company also entered a new $900.0 million revolving credit facility with no borrowings outstanding at quarter end. The most important investor issue is the coronavirus outbreak, which the filing says has caused the closure of the majority of stores on mainland China. The company estimates a negative impact of approximately $200-250 million on net sales and $0.35-$0.45 on diluted net income per share for the second half of fiscal 2020, and the filing states the disruption is expected to have a material adverse impact on results. The CEO transition in September 2019 and ongoing Stuart Weitzman operational challenges also remain relevant to the outlook.

    Feb 6, 2020
  21. 2020-Q1

    Tapestry Quarterly Report for Q1 Ended Sep 28, 2019

    Tapestry, Inc. (TPR) reported results for the first quarter of fiscal 2020, the 13 weeks ended September 28, 2019. Net sales decreased 1.7% or $23.3 million to $1.36 billion, with Coach net sales up 0.5% to $965.9 million, while Kate Spade fell 6.1% to $305.5 million and Stuart Weitzman fell 9.0% to $86.5 million. Operating income declined 68.2% to $51.6 million, and net income fell to $20.0 million, or $0.07 per diluted share, from $122.3 million, or $0.42, a year earlier. The filing attributes the decline mainly to $75.6 million of impairment charges on store assets, $14.5 million of ERP implementation costs and $24.8 million of organization-related and integration costs, along with higher SG&A and other expense. Excluding these items, the company reports operating income of $166.5 million and net income of $113.9 million, or $0.40 per diluted share. The balance sheet changed significantly due to the adoption of ASC 842 lease accounting, which added operating lease right-of-use assets of $2,057.1 million and operating lease liabilities of $2,294.3 million in total. Cash and cash equivalents fell to $522.1 million from $969.2 million at June 29, 2019, largely because of $267.0 million in share repurchases and $96.8 million in dividend payments. Total stockholders' equity declined to $3,086.9 million, reflecting the repurchase of 11.9 million shares for $300.0 million and a $48.9 million cumulative-effect adjustment to retained earnings from the lease standard. Operating cash flow was a modest $5.7 million, and capital expenditures were $71.9 million. Management highlighted several ongoing pressures: Stuart Weitzman's supply chain challenges, a 16% decline in comparable store sales at Kate Spade, Hong Kong protests affecting Coach, and tariffs and trade tensions. The company also disclosed that Victor Luis departed as CEO effective September 3, 2019, and that Jide Zeitlin, Chairman of the Board, was named CEO. Management expects fiscal 2020 capital expenditures of approximately $300 million and estimates $10-15 million of remaining pre-tax integration charges. Subsequent to quarter-end, on October 24, 2019, the company replaced its $900.0 million revolving credit facility with a new $900.0 million facility maturing in October 2024.

    Nov 7, 2019
  22. 2019-Q3

    Tapestry Quarterly Report for Q3 Ended Mar 30, 2019

    Tapestry, Inc. (TPR) reported its third-quarter fiscal 2019 results for the quarter ended March 30, 2019. Net sales rose 0.7% to $1,331.4 million, with Coach net sales of $965.0 million, Kate Spade of $281.1 million and Stuart Weitzman of $85.3 million. Operating income fell 33.4% to $105.8 million, and operating margin declined to 7.9% from 12.0%. Net income decreased to $117.4 million, or $0.40 per diluted share, from $140.3 million, or $0.48 per diluted share. The company cited $20.6 million of integration and acquisition costs and $14.7 million of ERP implementation costs in the quarter, and a $24.9 million benefit from tax legislation. Excluding these items, operating income declined 23.3% to $141.1 million. For the first nine months of fiscal 2019, net sales increased 2.7% to $4.51 billion and net income rose to $494.5 million, or $1.70 per diluted share, from $185.8 million. Gross margin expanded to 67.7% from 64.8%, although SG&A expenses rose on higher Corporate costs. Operating cash flow was $602.2 million, and cash and cash equivalents ended the period at $1,075.3 million, with short-term investments of $262.0 million. Total debt was $1,617.0 million before discounts. Stuart Weitzman posted an operating loss for the nine months, and management noted continued pressure from trailing supply chain challenges and softer North American reseller demand in China-related channels. Subsequent to quarter-end, on May 9, 2019, the board authorized a share repurchase of up to $1.00 billion of common stock. The company also disclosed an expected $25-35 million in pre-tax integration charges for the remainder of fiscal 2019 and capital expenditures of $300 to $325 million for the year.

    May 9, 2019
  23. 2019-Q2

    Tapestry Quarterly Report for Q2 Ended Dec 29, 2018

    Tapestry, Inc. (TPR) reported results for the second quarter of fiscal 2019, ended December 29, 2018. Net sales rose 0.9% to $1.80 billion, driven by Coach and Stuart Weitzman, partially offset by Kate Spade. GAAP operating income increased 9.9% to $380.7 million and GAAP net income was $254.8 million, or $0.88 per diluted share, compared with $63.2 million, or $0.22 per diluted share, a year earlier. The prior-year quarter included large integration charges and a tax legislation charge, so GAAP comparisons are distorted. On a non-GAAP basis, the filing states operating income decreased 2.2% to $402.3 million and net income per diluted share was flat at $1.07. For the six months, net sales increased 3.5% to $3.18 billion and GAAP net income was $377.1 million, or $1.29 per diluted share. Cash flow from operations was $599.0 million. Cash and short-term investments totaled $1.50 billion at quarter end, against $1.60 billion of senior notes and no revolver borrowings. The company paid $194.9 million in dividends in the first half and had no share repurchases in the quarter, with zero remaining availability under its repurchase program. Management highlighted several headwinds: Stuart Weitzman's operating income fell sharply on higher SG&A and lower gross margin, Kate Spade comparable store sales declined 11% in the quarter, and the company expects $45-55 million of further pre-tax integration charges in fiscal 2019. It also disclosed $248.1 million of remaining Transition Tax payments through fiscal 2025 and expects fiscal 2019 capital expenditures of $300 to $325 million.

    Feb 7, 2019
  24. 2019-Q1

    Tapestry Quarterly Report for Q1 Ended Sep 29, 2018

    Tapestry, Inc. (TPR) reported first-quarter fiscal 2019 results for the three months ended September 29, 2018. Net sales rose to $1,381.2 million from $1,288.9 million a year earlier, and the company swung to net income of $122.3 million, or $0.42 per diluted share, from a net loss of $17.7 million, or $0.06 per diluted share, in the prior-year period. Operating income was $157.7 million versus an operating loss of $21.8 million. The prior-year quarter included $187.5 million of integration and acquisition costs tied mainly to Kate Spade. Excluding non-GAAP items, which in the current quarter totaled $23.5 million at the operating income level, operating income was $181.2 million versus $168.8 million, and diluted EPS was $0.48 versus $0.42. Segment results were mixed. Coach net sales rose 4.0% to $960.7 million with operating income of $230.9 million. Kate Spade net sales rose 21.1% to $325.4 million, helped by non-comparable store sales and the consolidation of Kate Spade joint ventures in mainland China, while comparable store sales declined 5%. Stuart Weitzman net sales fell 1.3% to $95.1 million and posted an operating loss of $18.4 million, which management attributed to supply chain production delays and the cost of new stores. Management expects Stuart Weitzman sales growth in the second quarter of fiscal 2019. Liquidity remained substantial. Cash and cash equivalents were $904.7 million and short-term investments $158.5 million at quarter end, with $900.0 million undrawn under the revolving credit facility. Total long-term debt, net, was $1,600.5 million. Operating cash flow was negative $19.3 million, and the company paid $97.2 million in dividends. Management noted that about 64% of cash and short-term investments were held outside the United States, and that $240 million of the Transition Tax is expected to be paid from fiscal 2019 through fiscal 2025.

    Nov 8, 2018
  25. 2018-Q3

    Tapestry Quarterly Report for Q3 Ended Mar 31, 2018

    Tapestry, Inc. (TPR) reported results for the third quarter of fiscal 2018 (ended March 31, 2018). Net sales rose 32.9% to $1.32 billion, driven primarily by the July 2017 acquisition of Kate Spade & Company, while Coach net sales grew 5.9% to $969.3 million and Stuart Weitzman net sales rose 4.8% to $83.8 million. Reported operating income increased 5.1% to $159.0 million, but operating margin declined to 12.0% from 15.2%, and net income rose to $140.3 million, or $0.48 per diluted share. Excluding integration, acquisition, restructuring and tax-legislation items, the company reported diluted EPS of $0.54 versus $0.46 a year earlier. For the first nine months of fiscal 2018, net sales increased 31.1% to $4.40 billion, but reported net income fell to $185.8 million from $439.3 million, reflecting $271.3 million of integration and acquisition costs and a $190.0 million net impact from the Tax Legislation, including a $304.3 million Transition Tax charge. Excluding these items, nine-month diluted EPS was $2.03 versus $1.66. Kate Spade's operating loss for the nine months was $85.8 million on a reported basis, while Coach's operating income was $800.4 million. Balance sheet and liquidity changed significantly: cash and cash equivalents fell to $1.03 billion from $2.67 billion, total debt (long-term, net) rose to $1.60 billion, and goodwill and intangible assets increased substantially following the acquisition. The company expects approximately $315 million of Transition Tax expense for fiscal 2018 and estimates $20-30 million of additional pre-tax integration charges for the remainder of the year. Management notes Stuart Weitzman faced supply chain challenges that are expected to weigh on results through the Fall/Winter season.

    May 9, 2018
  26. 2018-Q2

    Tapestry Quarterly Report for Q2 Ended Dec 30, 2017

    Tapestry, Inc. (TPR) reported results for the second quarter of fiscal 2018 (ended December 30, 2017), its first quarter-end following the July 11, 2017 acquisition of Kate Spade & Company for approximately $2.4 billion. Net sales rose 35.1% to $1.79 billion ($1,785.0 million), driven by the Kate Spade acquisition and growth at Coach and Stuart Weitzman. Reported net income fell to $63.2 million ($0.22 per diluted share) from $199.7 million ($0.71), primarily because of a $296.5 million Transition Tax charge and $194.2 million of total tax-legislation impacts recorded in the quarter, along with $61.4 million of integration and acquisition costs. The filing states the company's effective tax rate was 80.5% for the quarter, versus 21.3% excluding non-GAAP adjustments. Excluding the items the company identifies as non-GAAP adjustments, net income increased 45.1% to $306.2 million ($1.07 per diluted share), and operating income rose to $411.3 million from $294.3 million. The Coach segment grew net sales 2.2% to $1.23 billion with operating income up 6.6%, while Kate Spade contributed $434.7 million of net sales and an operating loss is not reported for the quarter (operating income was $45.3 million, or $92.0 million excluding non-GAAP adjustments). Stuart Weitzman net sales rose 2.1% to $120.7 million. Balance sheet and liquidity changed substantially. Cash and cash equivalents declined to $2,065.0 million from $2,672.9 million, goodwill rose to $1,400.8 million and intangible assets to $1,746.9 million, and total debt including current portion stood at $2.69 billion ($800.6 million current, $1,887.5 million long-term). Subsequent to quarter end, the company repaid the $800.0 million Six-Month Term Loan on January 10, 2018 and the $300.0 million Three-Year Term Loan on January 24, 2018. The company repurchased no shares in the quarter and had zero remaining availability under its stock repurchase program.

    Feb 7, 2018
  27. 2018-Q1

    Tapestry Quarterly Report for Q1 Ended Sep 30, 2017

    Tapestry, Inc. (formerly Coach, Inc.) reported a first quarter of fiscal 2018 ended September 30, 2017, marked by the July 11, 2017 acquisition of Kate Spade & Company for $18.50 per share, a total purchase price of $2.40 billion. Net sales rose 24.2% to $1.29 billion, driven by the Kate Spade acquisition, while the company posted a net loss of $17.7 million, or $0.06 per diluted share, versus net income of $117.4 million a year earlier. The loss reflects $187.5 million of integration and acquisition costs and $3.1 million of Operational Efficiency Plan charges. Excluding these items, net income was $119.7 million, or $0.42 per diluted share, which the filing reports as a 6.6% decrease from $0.45 in the prior year. Segment results show Coach net sales down 2.8% to $923.7 million with operating margin falling to 21.5%, while Kate Spade contributed $268.8 million in net sales and an operating loss of $134.9 million, or $21.3 million of operating income excluding non-GAAP items. Stuart Weitzman net sales increased 10.1% to $96.4 million. Cash and cash equivalents fell to $1.37 billion from $2.67 billion, and total debt rose to $2.69 billion, including $1.1 billion of term loans used to fund the acquisition. Operating cash flow was negative $103.8 million, driven by a $156.0 million inventory build ahead of the holiday season. The company expects approximately $80 million of additional pre-tax integration charges for the remainder of fiscal 2018, of which about $35 million are non-cash, and forecasts fiscal 2018 capital expenditures of approximately $325 million. Management describes global consumer retail traffic as relatively weak and promotional, and the filing notes that Coach comparable store sales declined 2.4% and Kate Spade comparable store sales declined 9.4%.

    Nov 9, 2017
  28. 2017-Q3

    Tapestry Quarterly Report for Q3 Ended Apr 1, 2017

    Coach, Inc. (now Tapestry, Inc.) reported third-quarter fiscal 2017 results for the period ended April 1, 2017, with net sales of $995.2 million, down 3.7% from $1,033.1 million a year earlier, driven by lower Coach brand sales. Operating income rose 12.5% to $151.1 million and net income rose 8.7% to $122.2 million, helped by lower SG&A expenses and gross margin gains, though diluted EPS of $0.43 included Operational Efficiency Plan and acquisition-related charges. For the first nine months, net sales increased 0.5% to $3.35 billion and net income increased 15.9% to $439.3 million. The balance sheet strengthened over the period, with cash and cash equivalents of $1,394.5 million versus $859.0 million at July 2, 2016, and total debt reduced to $591.8 million (long-term, net) from $861.2 million, after the $270.0 million term loan was repaid and the Hudson Yards investment was sold for $680.6 million in investing cash flows. Cash from operations was $530.0 million for the nine months, and the company paid $283.2 million in dividends. Subsequent to quarter-end, on May 7, 2017, the company agreed to acquire Kate Spade & Company at $18.50 per share, an expected purchase price of approximately $2.4 billion, with a bridge facility commitment of up to $2.1 billion to help finance the deal. The transaction is expected to close in the third quarter of calendar 2017.

    May 10, 2017
  29. 2017-Q2

    Tapestry Quarterly Report for Q2 Ended Dec 31, 2016

    Coach, Inc. (now Tapestry, Inc.) reported results for the second quarter of fiscal 2017, the three months ended December 31, 2016. Net sales rose 3.8% to $1,321.7 million from $1,273.8 million, with gross profit up 5.5% to $906.2 million and gross margin of 68.6%. Operating income increased 6.3% to $277.4 million, and net income rose 17.4% to $199.7 million, or $0.71 per diluted share versus $0.61 a year earlier. The filing states that Operational Efficiency Plan and Acquisition-Related Costs reduced net income by $11.5 million, or $0.04 per diluted share, in the quarter. Excluding non-GAAP items, net income increased 12.0% to $211.2 million and diluted EPS increased 10.6% to $0.75. For the first six months of fiscal 2017, net sales increased 2.4% to $2,359.3 million and net income increased 19.0% to $317.1 million, or $1.13 per diluted share. Stuart Weitzman net sales grew 13.3% to $205.8 million, while Coach brand net sales rose 1.5% to $2.15 billion. North America net sales declined 0.2% for the six months, reflecting the company's planned reduction of wholesale doors, with about 25% of doors to be closed from fiscal 2016 year-end levels by the end of fiscal 2017. The balance sheet strengthened over the period. Cash and cash equivalents rose to $1,309.7 million from $859.0 million at July 2, 2016, helped by the $680.6 million Hudson Yards investment sale and $126.0 million from the sale of the former headquarters. Long-term debt fell to $591.6 million after the $285.0 million term loan repayment. The company paid $188.5 million in dividends during the six months, and it did not repurchase any shares in the quarter, with zero availability remaining under its stock repurchase program.

    Feb 8, 2017
  30. 2017-Q2

    Tapestry Quarterly Report for Q2 Ended Oct 1, 2016

    Coach, Inc. filed this Form 10-Q for the first quarter of fiscal 2017, ended October 1, 2016. Net sales rose 0.7% to $1,037.6 million, and gross profit increased 2.6% to $714.7 million. SG&A expenses decreased 1.1% to $548.8 million, and operating income increased 17.3% to $165.9 million. Net income increased 21.7% to $117.4 million, and diluted EPS was $0.42, up from $0.35. Results include $10.9 million of non-GAAP adjustments to operating income, mainly from the Operational Efficiency Plan and Stuart Weitzman acquisition-related costs. Excluding these items, operating income increased 7.1% to $176.8 million. The balance sheet and cash flows were shaped by the August 2016 sale of the company's Hudson Yards investments, which generated $680.6 million in investing cash inflows. Cash and cash equivalents rose to $1,000.0 million from $859.0 million at fiscal year-end. The company also repaid $285.0 million of debt, including the term loan, leaving $600.0 million of 4.250% Senior Notes outstanding. Operating cash flow was negative at $(38.1) million, compared with $8.0 million a year earlier, mainly due to changes in accrued liabilities and inventory build. The company entered a 20-year lease for its new global headquarters at 10 Hudson Yards, with a total commitment of approximately $1.05 billion. The filing also reports that North America net sales fell 2.8% as the company closed wholesale doors, while International net sales rose 7.2% and Stuart Weitzman net sales were flat at $87.5 million. The company repurchased no shares during the quarter and had no remaining availability under its stock repurchase program.

    Nov 9, 2016
  31. 2016-Q3

    Tapestry Quarterly Report for Q3 Ended Mar 26, 2016

    Coach, Inc. (now Tapestry, Inc.) reported net sales of $1,033.1 million for the third quarter of fiscal 2016 ended March 26, 2016, up 11.2% from $929.3 million a year earlier, driven primarily by a $79.2 million contribution from Stuart Weitzman, which was acquired in the fourth quarter of fiscal 2015. Excluding foreign currency effects, net sales rose 12.6%. Net income increased 27.6% to $112.5 million, or $0.40 per diluted share, mainly due to a $19.4 million lower provision for income taxes, while operating income rose 8.3% to $134.3 million. Excluding Transformation Plan and acquisition charges, net income per diluted share was $0.44, up 22.8%. For the first nine months of fiscal 2016, net sales increased 4.7% to $3,337.2 million, but net income decreased 3.0% to $379.0 million and diluted EPS fell 3.7% to $1.36. Operating income declined 7.3% to $536.7 million, with North America operating income down 14.8% on lower gross margin and net store closures. Cash flow from operations fell to $509.2 million from $750.8 million, and cash and cash equivalents ended at $821.6 million. Cash and short-term investments were supplemented by $567.9 million of long-term investments, while the company carried $892.5 million of total debt. The company disclosed a new Operational Efficiency Plan announced April 26, 2016, with expected pre-tax charges of approximately $65-$80 million, mostly in fiscal 2016 fourth quarter and substantially complete by the end of fiscal 2017. The Transformation Plan has life-to-date charges of $313.3 million against an expected aggregate of about $325 million. The company also has a continuing investment in the Hudson Yards joint venture, with $438.3 million invested to date and about $93 million more expected.

    May 4, 2016
  32. 2016-Q2

    Tapestry Quarterly Report for Q2 Ended Dec 26, 2015

    Coach, Inc. (now Tapestry, Inc.) reported net sales of $1.27 billion for the second quarter of fiscal 2016 (13 weeks ended December 26, 2015), up 4.5% from $1.22 billion a year earlier, driven primarily by a $94.0 million contribution from Stuart Weitzman, which was acquired in the fourth quarter of fiscal 2015. Net income declined 7.3% to $170.1 million, and diluted EPS fell to $0.61 from $0.66. Operating income decreased 5.2% to $261.0 million, with North America net sales down 6.8% to $731.0 million and North America operating income down 16.2% to $248.2 million, while International net sales rose 4.0% to $437.3 million. For the first six months of fiscal 2016, net sales were $2.30 billion and net income was $266.5 million, or $0.96 per diluted share, compared with $302.6 million and $1.09 per diluted share a year earlier. Net cash provided by operating activities fell to $310.0 million from $583.6 million, while purchases of investments of $450.5 million and purchases of property and equipment of $175.5 million drove net cash used in investing activities of $545.7 million. Cash and cash equivalents declined to $843.8 million at December 26, 2015 from $1,291.8 million at June 27, 2015. The company stated it repurchased no shares in the quarter and had zero availability remaining under its stock repurchase program. The Transformation Plan, announced in fiscal 2014, carries an expected aggregate pre-tax charge of about $325 million, with $303.9 million incurred to date and roughly $20 million of additional charges expected in fiscal 2016. The company also expects around $30 million of pre-tax acquisition-related charges for Stuart Weitzman in fiscal 2016. Investors should also note the Hudson Yards joint venture, in which the company has invested $406.8 million and expects to invest approximately $123 million more, along with total debt of $896.2 million, including $600.0 million of 4.250% senior notes due 2025.

    Feb 3, 2016
  33. 2016-Q1

    Tapestry Quarterly Report for Q1 Ended Sep 26, 2015

    Coach, Inc. (now Tapestry, Inc.) reported first-quarter fiscal 2016 results for the three months ended September 26, 2015, with net sales of $1.03 billion, down 0.8% from $1.04 billion a year earlier, and net income of $96.4 million, or $0.35 per diluted share, versus $119.1 million, or $0.43, in the prior-year quarter. Excluding Transformation Plan charges and Stuart Weitzman acquisition-related items, net income decreased 22.4% to $113.1 million. Operating income fell 21.4% to $141.4 million, and the company attributes the decline primarily to the North America business, where net sales decreased 11.5% to $561.0 million, partly offset by an $87.5 million contribution from the Stuart Weitzman brand acquired in May 2015. Excluding foreign currency, total net sales increased 3.2%, with International sales up 5.6% on that basis. Cash and cash equivalents fell to $966.0 million from $1,291.8 million at June 27, 2015, reflecting $220.4 million of net cash used in investing activities, including $51.4 million invested in the Hudson Yards joint venture and $69.5 million in capital expenditures, plus $110.7 million in financing outflows, mainly $93.3 million of dividends. Net cash provided by operating activities was $8.0 million, compared with $138.9 million a year earlier, driven by changes in operating assets and liabilities. The company did not repurchase any shares during the quarter and had zero availability remaining under its stock repurchase program. Total debt was $900.0 million at period end, and the company expects total pre-tax Transformation Plan charges of about $325 million, with roughly $35 million more expected in fiscal 2016.

    Nov 4, 2015
  34. 2015-Q3

    Tapestry Quarterly Report for Q3 Ended Mar 28, 2015

    Coach, Inc. (now Tapestry, Inc.) filed this Form 10-Q for the third quarter of fiscal 2015, ended March 28, 2015. Net sales declined 15.5% to $929.3 million, and net income fell 53.8% to $88.1 million, or $0.32 per diluted share. The decline was driven mainly by the North America segment, where net sales fell 23.9% to $493.2 million. Operating income dropped 52.8% to $124.0 million, and results include $22.5 million of pre-tax charges under the company's multi-year Transformation Plan. Excluding those charges, the filing reports net income of $100.2 million, a 47.4% decrease. For the first nine months of fiscal 2015, net sales were $3.19 billion, down 13.1%, and net income was $390.7 million, down 44.7%. The company's balance sheet strengthened over the period: cash and cash equivalents rose to $1,782.0 million from $591.9 million at June 28, 2014. This was supported by a $600.0 million 4.250% senior notes issuance due 2025 and a $300.0 million term loan under the amended credit agreement. Total debt stood at $900.0 million at quarter-end. The company did not repurchase shares in the first nine months of fiscal 2015, and $836.7 million remained under its repurchase program. Subsequent to quarter-end, on May 4, 2015, Coach completed the acquisition of Stuart Weitzman for approximately $530 million in cash, subject to adjustments, plus a potential earnout of up to $44 million. The company expects about $100 million of additional pre-tax Transformation Plan charges through fiscal 2016.

    May 6, 2015
  35. 2015-Q2

    Tapestry Quarterly Report for Q2 Ended Dec 27, 2014

    Coach, Inc. (now Tapestry, Inc.) reported second-quarter fiscal 2015 results for the three months ended December 27, 2014, with net sales of $1.22 billion, down 14.1% from $1.42 billion a year earlier. Net income fell 38.3% to $183.5 million, and diluted EPS was $0.66 versus $1.06. Excluding $23.6 million of pretax charges tied to the Transformation Plan and acquisition-related costs, the company states that net income decreased 32.7% and diluted EPS decreased 31.5%. The decline was driven mainly by North America, where net sales fell 20.2% to $784.6 million and comparable store sales decreased $197.9 million, or 22%, largely due to lower traffic. The filing attributes part of the weakness to the company's decision to limit access to its outlet Internet sales site. For the first six months of fiscal 2015, net sales were $2.26 billion (down 12.1%), net income was $302.6 million (down 41.3%), and diluted EPS was $1.09. International sales grew 1.5% to $801.5 million, while North America declined 19.5%. The company's Transformation Plan, announced in the fourth quarter of fiscal 2014, carries total expected pretax charges of $250 million to $300 million, with an additional $60 million to $110 million still expected. Management states that execution remains on plan. Balance sheet liquidity is solid: cash and cash equivalents were $836.3 million at December 27, 2014, and the company had $20.0 million drawn on its $700.0 million revolving credit facility. The company also repurchased no shares in the first half of fiscal 2015 and had $836.7 million remaining under its repurchase program. On January 5, 2015, the company agreed to acquire Stuart Weitzman Intermediate LLC from Stuart Weitzman Topco LLC for approximately $530 million in cash, plus an earnout of up to $14.7 million annually over three years, capped at $44 million in total. Closing is expected in the fourth quarter of fiscal 2015, and the company intends to fund it with cash on hand, its credit facility, and potentially other financing.

    Feb 4, 2015
  36. 2015-Q1

    Tapestry Quarterly Report for Q1 Ended Sep 27, 2014

    Coach, Inc. reported first-quarter fiscal 2015 results (quarter ended September 27, 2014) with net sales of $1.04 billion, down 9.7% from $1.15 billion, and net income of $119.1 million, or $0.43 per diluted share, versus $217.9 million, or $0.77 per diluted share, a year earlier. The filing attributes the sales decline primarily to lower North America sales, with North America net sales down 18.6% to $633.7 million, partially offset by International net sales up 4.4% to $381.0 million. Results include $37.1 million of pretax charges ($26.7 million after tax, or $0.10 per diluted share) under the multi-year Transformation Plan announced in the fourth quarter of fiscal 2014. Management states that the Company expects total Transformation Plan pretax charges of approximately $250 million to $300 million, with approximately $80.0 million to $130.0 million of additional charges still to come, primarily in the remainder of fiscal 2015. Operating income fell 44.1% to $179.8 million, and operating margin declined to 17.3% from 27.9%. Gross margin decreased to 68.9% from 71.8%, and SG&A expenses rose $30.6 million to $535.6 million, which the filing attributes largely to higher administrative costs. Excluding Transformation Plan items, management reports operating income of $216.9 million and net income of $145.8 million, or $0.53 per diluted share. Balance sheet and liquidity remained solid. Cash and cash equivalents rose to $660.9 million from $591.9 million, and total stockholders' equity was $2.44 billion. Borrowings under the $700.0 million JP Morgan revolving facility stood at $170.0 million, and the Company did not repurchase shares in the quarter, leaving $836.7 million remaining under its stock repurchase program. The Company also disclosed ongoing investment in the Hudson Yards joint venture, with approximately $320.0 million of further investment expected, substantially by the end of fiscal 2016.

    Nov 6, 2014
  37. 2014-Q3

    Tapestry Quarterly Report for Q3 Ended Mar 29, 2014

    Coach, Inc. (now Tapestry, Inc.) reported its third-quarter fiscal 2014 results for the quarter ended March 29, 2014, with net sales of $1.10 billion, down 7.4% from $1.19 billion a year earlier, and net income of $190.7 million, or $0.68 per diluted share, versus $238.9 million, or $0.84 per diluted share. Gross margin fell to 71.1% from 74.1%, and operating income declined 24.6% to $262.7 million. The decline was driven primarily by North America, where net sales fell 18.2% to $647.9 million on lower comparable store sales of 21.4%, attributed to decreased store traffic, intensified competition, and a highly promotional environment. International net sales rose 14.4% to $440.6 million, led by double-digit growth in Asia. For the first nine months of fiscal 2014, net sales were $3.67 billion (down 4.7%), net income was $706.1 million, and diluted EPS was $2.51, compared with $2.84 a year earlier. Operating cash flow decreased to $669.3 million from $1.04 billion, and cash and cash equivalents fell by $599.3 million, partly because the company moved cash into short- and long-term investments. The company drew $210 million on its $700 million JP Morgan revolving credit facility, repurchased $524.9 million of stock during the nine months, and had $836.7 million remaining under its $1.5 billion repurchase authorization. It also acquired the remaining 50% of its European joint venture and committed roughly $370 million to the Hudson Yards office tower joint venture through fiscal 2016. Management stated that it is transforming the company from an international accessories business into a global lifestyle brand, and that long-term growth can be realized through its transformational efforts over time. Management also disclosed that its guidance for full-year fiscal 2014 capital expenditures is between $250 and $260 million.

    May 6, 2014
  38. 2014-Q2

    Tapestry Quarterly Report for Q2 Ended Dec 28, 2013

    Coach, Inc. (now Tapestry, Inc.) reported net sales of $1.42 billion for the second quarter of fiscal 2014 (quarter ended December 28, 2013), down 5.6% from $1.50 billion a year earlier, with net income of $297.4 million and diluted EPS of $1.06, versus $1.23 in the prior-year quarter. The decline was driven by North America, where net sales fell 8.6% and comparable store sales decreased 13.6%, partly offset by International net sales growth of 1.7% (11.3% excluding currency effects). Gross margin compressed to 69.2% from 72.2%, mainly on increased promotional activity in North America's factory channel and unfavorable foreign currency in International, while SG&A fell 2.2%. For the first six months of fiscal 2014, net sales were $2.57 billion (down 3.6%), net income was $515.3 million, and diluted EPS was $1.82 versus $2.00. Operating cash flow declined to $564.5 million from $830.0 million, and cash and cash equivalents fell to $568.2 million from $1,062.8 million at June 29, 2013, as the company shifted cash into short- and long-term investments (total investments of $686.8 million). The company repurchased $349.9 million of stock in the first half and had $1.0 billion remaining under its repurchase program, and it paid $189.8 million in dividends. Management cited intensified competition, a promotional environment, and reduced in-store traffic, and said it expects full-year fiscal 2014 capital expenditures of about $280 million.

    Feb 5, 2014
  39. 2014-Q1

    Tapestry Quarterly Report for Q1 Ended Sep 28, 2013

    Coach, Inc. (now Tapestry, Inc.) filed this Form 10-Q for the first quarter of fiscal 2014, ended September 28, 2013. Net sales declined 0.9% to $1.15 billion, while constant-currency total net sales grew 2.4%. North America sales fell 0.8% to $778.3 million, with comparable store sales down 6.8%, while International sales declined 0.7% to $365.0 million on a reported basis but rose 9.3% on a constant-currency basis. Operating income decreased 3.0% to $321.6 million, and net income decreased 1.6% to $217.9 million. Diluted earnings per share were stable at $0.77. Gross margin fell to 71.8% from 72.8%, which the company attributed to increased promotional activity and channel mix. The balance sheet shows cash and cash equivalents of $714.6 million, down from $1,062.8 million at June 29, 2013, reflecting $165.8 million of purchases related to an offshore investment portfolio and $175.0 million of share repurchases. Inventories rose to $637.2 million from $524.7 million. Coach sold the Reed Krakoff business on August 30, 2013, acquired 100% ownership of its European joint venture on July 1, 2013, and drew $150 million on its $700 million JP Morgan revolving credit facility after quarter end. The company expects fiscal 2014 capital expenditures of approximately $280 million and has $1.19 billion remaining under its $1.5 billion repurchase program. Management stated that intensified competition, the promotional environment and the macroeconomic environment have created a challenging retail market, and that it is transforming Coach from an international accessories business into a global lifestyle brand. The filing reports no material changes to risk factors from the fiscal 2013 Form 10-K.

    Nov 6, 2013
  40. 2013-Q3

    Tapestry Quarterly Report for Q3 Ended Mar 30, 2013

    Coach, Inc. (now Tapestry, Inc.) reported results for the third quarter of fiscal 2013 (quarter ended March 30, 2013). Net sales rose 7.1% to $1,187.6 million, operating income rose 3.3% to $348.5 million, and net income rose 6.2% to $238.9 million, with diluted earnings per share up 9.5% to $0.84. For the nine months, net sales increased 6.8% to $3.85 billion, operating income increased 4.0% to $1.21 billion, and net income increased 3.3% to $813.1 million. Operating margin declined to 29.3% in the quarter from 30.4% a year earlier, as higher promotional activity offset gains in gross margin (74.1% versus 73.8%) and SG&A rose 10.6% to $531.7 million. By segment, North America sales grew 7.4% to $792.5 million in the quarter, with comparable store sales up 1%, while International sales rose 6.4% to $381.5 million, with China continuing to post double-digit comparable store sales growth. Cash and cash equivalents stood at $876.4 million at quarter end, and the company generated $1,039.4 million of operating cash flow in the nine months. It returned capital through $339.7 million in dividend payments and $400.0 million of share repurchases, leaving $1,361.6 million remaining under its $1.5 billion repurchase authorization. The company also amended its JP Morgan revolving credit facility to $700.0 million, with no borrowings outstanding at quarter end. The filing highlights a planned new corporate headquarters in Manhattan's Hudson Yards, developed through a joint venture with Related Companies, L.P. The company expects to invest approximately $750 million over three years, with a fiscal 2013 investment range of $115 million to $125 million, and occupancy expected in 2015.

    May 7, 2013
  41. 2013-Q2

    Tapestry Quarterly Report for Q2 Ended Dec 29, 2012

    Coach, Inc. (now Tapestry, Inc.) reported net sales of $1,503.8 million for the second quarter of fiscal 2013 (quarter ended December 29, 2012), up 3.8% from $1,448.6 million a year earlier. Operating income rose 5.1% to $526.6 million, and net income increased 1.5% to $352.8 million, with diluted EPS of $1.23 versus $1.18. North America sales rose 0.6% to $1,076.1 million, with comparable store sales down 2.2%, while International sales grew 11.8% to $411.1 million, led by double-digit China comparable store sales growth and the acquired Korea and Malaysia businesses. For the six months ended December 29, 2012, net sales were $2,665.1 million (up 6.6%), operating income was $858.3 million (up 4.3%), and net income was $574.1 million (up 2.1%). Cash and cash equivalents declined to $858.7 million from $917.2 million at June 30, 2012, reflecting $400.0 million of share repurchases, $255.5 million of dividend payments, $117.1 million of capital expenditures and $99.4 million invested in corporate debt securities. Operating cash flow was $830.0 million. The company had no outstanding borrowings under its $400 million JP Morgan revolving credit facility, and $1,361.6 million remained under its $1.5 billion stock repurchase program authorized in October 2012. The filing states that management believes cash flow from operations and cash on hand will be adequate for working capital, planned capital expenditures (expected to be approximately $250 million for fiscal 2013), dividends and the repurchase program. It also notes that the company reports no material changes to risk factors from its fiscal 2012 Form 10-K.

    Feb 5, 2013
  42. 2013-Q1

    Tapestry Quarterly Report for Q1 Ended Sep 30, 2012

    Coach, Inc. (now Tapestry, Inc.) reported net sales of $1.16 billion for the first quarter of fiscal 2013 ended September 29, 2012, up 10.6% from $1.05 billion a year earlier. Operating income rose 3.0% to $331.7 million, but operating margin declined to 28.6% from 30.7%, as selling, general and administrative expenses grew 16.0% to $513.5 million, reflecting investment in international businesses and the Korea, Malaysia and Taiwan acquisitions. Net income increased 3.0% to $221.4 million, and diluted earnings per share rose 5.7% to $0.77. Growth was led by International, where sales rose 15.4% to $361.8 million, driven by new and expanded stores, double-digit China comparable store sales growth and the acquired Korea and Malaysia businesses. North America sales grew 7.6% to $784.2 million, with comparable store sales up 5.5%. Cash and cash equivalents fell $156.5 million to $760.8 million, as operating cash flow of $202.2 million was outweighed by $101.7 million in investing outflows, including $45.4 million for acquisitions, and $257.7 million in financing outflows, including $175.0 million of share repurchases and $85.8 million of dividends. After the quarter, the Board authorized a new $1.5 billion stock repurchase program running through June 2015, and the company expects fiscal 2013 capital expenditures of approximately $250 million. The company reports no material changes to its risk factors from its fiscal 2012 Form 10-K and a $400 million JP Morgan revolving credit facility with no outstanding borrowings.

    Nov 7, 2012
  43. 2012-Q3

    Tapestry Quarterly Report for Q3 Ended Mar 31, 2012

    Coach, Inc. (now Tapestry, Inc.) reported strong third-quarter fiscal 2012 results for the quarter ended March 31, 2012. Net sales rose 16.6% to $1.11 billion, gross profit increased 18.3% to $818.1 million, and operating income grew 33.0% to $337.5 million. Net income was $225.0 million, or $0.77 per diluted share, up 24.3% from $0.62 a year earlier. Direct-to-Consumer sales increased 17.6% to $983.9 million, while Indirect sales rose 9.9% to $125.1 million. For the first nine months, net sales increased 15.4% to $3.61 billion and net income increased 16.1% to $787.5 million. Balance sheet and cash flow were solid. Cash and cash equivalents were $929.7 million at March 31, 2012, up from $699.8 million at July 2, 2011, and the company had no outstanding borrowings under its Bank of America revolving facility. Net cash provided by operating activities was $938.9 million for the nine months. During the nine months the company repurchased $531.0 million of common stock and paid $195.6 million in dividends, leaving $430.6 million remaining under its stock repurchase program. The company acquired its domestic retail businesses in Singapore and Taiwan for an aggregate $53.2 million net of cash acquired, and it agreed in April 2012 to acquire its Korea distributor, with the Malaysia business to be assumed in July 2012. Management expects fiscal 2012 capital expenditures of approximately $200 million and plans to open about 15 new retail stores and 25 factory outlets in North America. Management believes cash on hand and operating cash flow will be adequate for working capital, capital expenditures, dividends and the repurchase program. The filing also includes a non-GAAP reconciliation that excludes a $20.3 million charitable contribution and a $12.4 million tax benefit from first-nine-month fiscal 2012 results.

    May 9, 2012
  44. 2012-Q2

    Tapestry Quarterly Report for Q2 Ended Dec 31, 2011

    Coach, Inc. (now Tapestry, Inc.) reported strong results for the second quarter of fiscal 2012 ended December 31, 2011. Net sales rose 14.6% to $1.45 billion, and net income increased 14.5% to $347.5 million, or $1.18 per diluted share, up 18.1%. Direct-to-consumer sales grew 16.8% to $1.28 billion, while Indirect sales were flat at $166.0 million. Operating income increased 10.5% to $500.9 million, though operating margin declined to 34.6% from 35.9%. Excluding $20.3 million of items affecting comparability, related to a charitable contribution to the Coach Foundation, operating income rose 15.0% to $521.2 million. The quarter's diluted EPS benefited from a lower effective tax rate of 30.38%, driven by a deferred tax revaluation tied to Japan's corporate tax law change and a transfer pricing agreement. For the first six months of fiscal 2012, net sales increased 14.8% to $2.50 billion and net income rose 14.3% to $562.5 million. Net cash provided by operating activities was $836.1 million, compared with $585.2 million a year earlier. As of December 31, 2011, cash and cash equivalents totaled $1.09 billion, and long-term debt was $23.2 million, with the company described as essentially debt-free. The company repurchased $359.0 million of common stock in the first six months and paid $130.6 million in dividends, and $602.6 million remained under its $1.5 billion repurchase program running through June 2013. Management continues to pursue growth through expanded North American and Chinese distribution, Men's product expansion, Japan store growth, and digital initiatives, and expects capital expenditures of approximately $200 million for fiscal 2012. The filing also notes that the company acquired its domestic retail businesses in Singapore (July 2011) and Taiwan (January 2012), and that its Hong Kong Depositary Receipts began trading on The Stock Exchange of Hong Kong under the symbol 6388.

    Feb 8, 2012
  45. 2012-Q2

    Tapestry Quarterly Report for Q2 Ended Oct 1, 2011

    Coach, Inc. reported a strong first quarter of fiscal 2012 (quarter ended October 1, 2011). Net sales rose 15.2% to $1,050.4 million from $911.7 million, and operating income increased 12.7% to $322.0 million. Diluted earnings per share increased 15.8% to $0.73, and net income reached $215.0 million versus $188.9 million a year earlier. Direct-to-Consumer sales grew 17.1% to $910.3 million, while Indirect sales rose 4.2% to $140.1 million. Comparable store sales in North America increased 9.2%. Gross margin narrowed to 72.8% from 74.2%, and operating margin declined to 30.7% from 31.3%, as selling, general and administrative expenses grew 13.4%. The balance sheet remained strong, with cash and cash equivalents of $845.7 million at October 1, 2011, up from $699.8 million at July 2, 2011. Inventories rose to $519.6 million from $421.8 million, reflecting holiday season build. Operating cash flow was $225.0 million, compared with $177.5 million in the prior-year quarter. The company repurchased 1.067 million shares for $59.0 million and paid $65.3 million in dividends. Approximately $902.6 million remained under the $1.5 billion repurchase program authorized in January 2011, which runs through June 2013. Management stated it expects about 15 net new retail stores, 25 factory outlets, and roughly 30 new China locations in fiscal 2012, with capital expenditures of approximately $200 million. The company also agreed in October 2011 to acquire its domestic retail business in Taiwan from its distributor, with the transition expected in early January 2012. The filing reports no material changes to risk factors and describes its Bank of America revolving facility as undrawn.

    Nov 9, 2011
  46. 2011-Q3

    Tapestry Quarterly Report for Q3 Ended Apr 2, 2011

    Coach, Inc. reported its third quarter of fiscal 2011 (quarter ended April 2, 2011) with net sales of $950.7 million, up 14.5% from $830.7 million a year earlier, and net income of $186.0 million, up 18.0% from $157.6 million. Diluted earnings per share rose 22.8% to $0.62. For the first nine months of fiscal 2011, net sales were $3,126.8 million, up 17.7%, and net income was $678.3 million, up 25.8%. The filing attributes growth primarily to Direct-to-Consumer sales in North America and China, with North American comparable store sales up 10.3% in the quarter. Gross margin declined to 72.8% from 74.1%, and operating margin fell to 26.7% from 30.0%, while the company notes that excluding $25.7 million of items affecting comparability, third-quarter operating income rose 12.2% to $279.5 million. The balance sheet remained strong, with cash and cash equivalents of $812.7 million at April 2, 2011, up from $596.5 million at July 3, 2010, and long-term debt of $23.5 million. Net cash provided by operating activities was $812.6 million for the nine months. The company repurchased $717.4 million of common stock during the nine months and completed its $1.0 billion program during the quarter, while a new program authorizes up to $1.5 billion through June 2013 and $1.3 billion remained available at quarter end. In April 2011, the Board raised the expected annual dividend rate to $0.90 per share beginning with the July 2011 payment. Management cited risks including the March 2011 earthquake and tsunami in Japan, which it estimated reduced Japan sales by approximately $20 million and earnings per share by about two and a half cents in the quarter. Management also noted that consumers in North America and Japan remain cautious. The company reported no material changes to risk factors from its fiscal 2010 Form 10-K.

    May 11, 2011
  47. 2011-Q3

    Tapestry Quarterly Report for Q3 Ended Jan 1, 2011

    Coach, Inc. (now Tapestry, Inc.) reported strong second-quarter fiscal 2011 results for the quarter ended January 1, 2011. Net sales rose 18.7% to $1,264.5 million from $1,065.0 million, and operating income increased 19.0% to $453.3 million. Diluted earnings per share increased 32.8% to $1.00, and net income was $303.4 million compared with $241.0 million a year earlier. Direct-to-Consumer sales grew 17.4% to $1.10 billion, with North American comparable store sales up 12.6%, while Indirect (wholesale and licensing) sales rose 28.4% to $168.3 million. Gross margin held at 72.4% for the quarter, and selling, general and administrative expenses were 36.5% of net sales versus 36.6% a year earlier. For the first six months of fiscal 2011, net sales were $2.18 billion, up 19.1%, and net income was $492.3 million. Operating cash flow was $585.2 million, compared with $604.2 million in the prior-year period, and the decline was attributed mainly to working capital changes in accrued liabilities and inventories. The company repurchased 10.5 million shares for $525.0 million during the six months and ended the quarter with $784.2 million in cash and cash equivalents. In January 2011, the Board authorized a new $1.5 billion share repurchase program, and the company described its balance sheet as essentially debt-free, with long-term debt of $24.3 million including the current portion. The filing also notes that the company changed its accounting for interest and penalties on uncertain tax positions, moving them into the provision for income taxes. This change was applied retrospectively and had no effect on net income. Management described the macroeconomic environment as improving but still challenging, with consumers in North America and Japan remaining cautious.

    Feb 9, 2011
  48. 2011-Q2

    Tapestry Quarterly Report for Q2 Ended Oct 2, 2010

    Coach, Inc. reported strong first-quarter fiscal 2011 results for the quarter ended October 2, 2010. Net sales rose 19.7% to $911.7 million, led by Direct-to-Consumer sales, which increased 18.6% to $775.5 million, and Indirect sales, which increased 26.7% to $136.2 million. Operating income increased 28.0% to $285.7 million, with operating margin rising to 31.3% from 29.3%, mainly due to gross margin improvement to 74.2% from 72.3%. Net income was $188.9 million, up from $140.8 million, and diluted earnings per share increased 43.0% to $0.63. The filing notes that the effective tax rate fell to 33.75% from 37.43%, which also contributed to the earnings increase. The balance sheet remained strong, with cash and cash equivalents of $621.4 million and short-term investments of $90.6 million at October 2, 2010. Inventories rose to $458.9 million from $363.3 million at fiscal year-end, reflecting holiday season build, and operating cash flow was $177.5 million compared with $240.5 million a year earlier, mainly due to working capital changes. During the quarter the company repurchased 3.6 million shares for $137.5 million and paid $44.8 million in dividends. As of October 2, 2010, $422.1 million remained under the $1.0 billion repurchase program that runs through June 2012. Management describes the company as essentially debt-free and says it expects fiscal 2011 capital expenditures of approximately $150 million. The filing states that consumers in North America and Japan remain cautious, and it highlights growth plans centered on North American stores, Men's, and China, where the company opened eight new locations in the quarter. The filing reports no material changes to risk factors from the fiscal 2010 Form 10-K.

    Nov 8, 2010
  49. 2010-Q3

    Tapestry Quarterly Report for Q3 Ended Mar 27, 2010

    Coach, Inc. (now Tapestry, Inc.) reported its third quarter of fiscal 2010, ended March 27, 2010, with net sales of $830.7 million, up 12.3% from $739.9 million a year earlier. Operating income rose 34.4% to $249.1 million and net income increased 37.2% to $157.6 million. Diluted earnings per share were $0.50, up 40.5% from $0.36. Gross margin improved to 74.1% from 71.0%, driven primarily by lower manufacturing costs and product mix. For the first nine months, net sales were $2.66 billion, up 8.3%, and net income was $539.4 million, versus $477.6 million a year earlier. Direct-to-Consumer sales rose 14.5% to $726.2 million, with North American comparable store sales up 5.1%, while the Indirect wholesale segment declined 1.3% to $104.5 million as the company controlled shipments into U.S. department stores. Coach China posted double-digit comparable store growth. Cash flow from operations for the nine months was $809.4 million, and the company repurchased $700.0 million of common stock during the period, leaving $9.6 million under the existing program. Cash and short-term investments totaled $907.7 million at quarter end, and the company reported no borrowings under its Bank of America revolving facility. Subsequent to quarter end, in April 2010, the Board increased the expected annual dividend to $0.60 per share starting with the July 2010 payment and authorized a new $1.0 billion share repurchase program. Management stated that it expects fiscal 2010 capital expenditures of approximately $90 million to $100 million and that current resources are adequate for its working capital, capital expenditure, dividend, debt and repurchase needs.

    May 5, 2010
  50. 2010-Q2

    Tapestry Quarterly Report for Q2 Ended Dec 26, 2009

    Coach, Inc. reported its second quarter of fiscal 2010, ended December 26, 2009, with net sales of $1,065.0 million, up 10.9% from $960.3 million a year earlier, and net income of $241.0 million, up 11.1%. Diluted earnings per share rose 12.4% to $0.75. Direct-to-Consumer sales increased 14.2% to $933.9 million, while Indirect sales decreased 8.1% to $131.1 million, driven primarily by a 12.7% decline in U.S. wholesale as the company controlled shipments into U.S. department stores. Operating income increased 9.3% to $380.8 million, though operating margin slipped to 35.8% from 36.3%, mainly due to higher administrative expenses. For the first six months of fiscal 2010, net sales rose 6.6% to $1,826.4 million and net income was $381.8 million. Net cash provided by operating activities was $604.2 million, compared with $332.0 million a year earlier, largely reflecting working capital changes in inventory and accrued liabilities. The company repurchased 8.6 million shares for $300.0 million during the six months and had $409.6 million remaining under its $1.0 billion repurchase program, which runs through June 2010. Cash and cash equivalents stood at $1,103.2 million at December 26, 2009, and the company reported no outstanding borrowings under its Bank of America revolving facility. Management described the retail environment as very challenging, with consumers in North America and Japan still cautious, but pointed to continued store expansion in North America, China and Japan. The company expects fiscal 2010 capital expenditures of approximately $110 million and plans to open about 20 new retail stores in North America, 15 locations in China and seven in Japan. The filing also notes a quarterly dividend of $0.075 per share paid in the period and an unchanged set of risk factors from the prior 10-K.

    Feb 3, 2010