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Tapestry 8-K Report, Financial Results (Aug 14, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed August 14, 2025
Period End
August 14, 2025
Security
TPR
In the 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. Material agreement8-K · Sep ’17Sep ’17
  2. Restructuring8-K · Aug ’20Aug ’20
  3. Leadership change8-K · Aug ’22Aug ’22
  4. Leadership change8-K · Aug ’24Aug ’24

01—Abstract

Summary

Summary of the 8-K filed August 14, 2025. Cited figures are marked; the original filing is the authoritative source.

Tapestry, Inc. (NYSE: TPR) reported fiscal 2025 fourth-quarter and full-year results for the periods ended June 28, 2025, as furnished in Exhibit 99.1 to this Form 8-K.

Fourth-quarter net sales rose 8% to $1.72 billiona, led by a 14% gain at Coach, while full-year net sales reached a record $7.01 billion, up 5%, with Coach up 10%. GAAP results were heavily affected by $855 million in impairment charges on the Kate Spade indefinite-lived brand intangible asset and goodwill. GAAP net loss for the quarter was $517 million (diluted EPS of ($2.49)), while non-GAAP quarterly diluted EPS was $1.04.

For the full year, GAAP diluted EPS was $0.82b and non-GAAP diluted EPS was $5.10, and the company stated it exceeded its non-GAAP EPS outlook. The company returned $2.3 billion to shareholders in fiscal 2025 through dividends and share repurchases, and its Board approved a 14% dividend increase to a quarterly rate of $0.40 per share (anticipated annual rate of $1.60). Year-end cash, cash equivalents and short-term investments were $1.12 billion against total borrowings of $2.39 billion, with a stated leverage ratio of 1.4x.

Full-year cash flow from operating activities was $1.22 billionc and adjusted free cash flow was $1.35 billion. For fiscal 2026, Tapestry initiated non-GAAP guidance calling for revenue approaching $7.2 billion, EPS of $5.30 to $5.45 (4% to 7% growth), and adjusted free cash flow approaching $1.3 billion.

The outlook includes an approximately 230 basis point tariff and duty headwind, or $160 milliond, and excludes Stuart Weitzman, which the company sold and which closed on August 4, 2025. An Investor Day is scheduled for September 10, 2025.

02—Key points

Key Highlights

  1. Q4 FY2025 net sales of $1.72 billion, up 8% reported and in constant currency; Coach up 14% (13% constant currency), while Kate Spade fell 13%.
  2. FY2025 net sales of $7.01 billion, up 5%; GAAP operating income of $415 million versus non-GAAP operating income of $1.40 billion.
  3. $855 million impairment on Kate Spade indefinite-lived brand intangible asset and goodwill drove the Q4 GAAP net loss of $517 million, or ($2.49) per diluted share.
  4. Full-year non-GAAP diluted EPS of $5.10 versus GAAP diluted EPS of $0.82; the company says it achieved the EPS target set at its Investor Day three years ago.
  5. Returned $2.3 billion to shareholders in FY2025; Board approved a 14% dividend increase to $0.40 quarterly, and the company expects $800 million of buybacks in fiscal 2026 plus an estimated ~$200 million final ASR settlement payment.
  6. FY2026 outlook: revenue approaching $7.2 billion, non-GAAP EPS of $5.30 to $5.45, and adjusted free cash flow approaching $1.3 billion, including a tariff and duty headwind of approximately $160 million.
  7. Year-end total borrowings of $2.39 billion, net debt of $1.27 billion, and a leverage ratio of 1.4x; the Capri merger-related debt was redeemed after the merger agreement was terminated.

03—Questions

Frequently Asked Questions

  1. Why did Tapestry report a large GAAP net loss in the fourth quarter?

    The company recorded $855 million in impairment charges on the Kate Spade indefinite-lived brand intangible asset and goodwill, reflecting a decline in current and future expected cash flows that included an estimated impact of tariff and trade policy cost increases. Together with organizational efficiency costs and acquisition and divestiture costs, these items decreased quarterly pre-tax income by $872 million and net income by $740 million, or $3.53 per diluted share.

  2. How did the core brands perform in fiscal 2025?

    Coach was the primary growth driver, with fourth-quarter revenue up 14% (13% constant currency) to $1,425.1 million and full-year revenue up 10% to $5,598.5 million. Kate Spade declined 13% in the quarter and 10% for the year, and Stuart Weitzman declined 10% in the quarter and 11% for the year.

  3. What is the outlook for fiscal 2026?

    Tapestry expects revenue approaching $7.2 billion, representing low-single-digit growth on a reported basis, and non-GAAP EPS of $5.30 to $5.45, representing 4% to 7% growth. Operating margin is expected to rise by more than 250 basis points of underlying expansion, offset by a roughly 230 basis point tariff and duty headwind. The outlook excludes Stuart Weitzman, which closed its sale on August 4, 2025.

  4. How is Tapestry returning capital and what is its balance sheet position?

    Tapestry returned $2.3 billion through dividends and share repurchases in fiscal 2025 and approved a 14% dividend increase to $0.40 per quarter, for an anticipated annual rate of $1.60. It expects $800 million of share repurchases in fiscal 2026 and an estimated approximately $200 million ASR settlement payment in fiscal 2026 Q1. At year-end, it had $1.12 billion in cash and short-term investments, $2.39 billion in total borrowings, and a 1.4x leverage ratio.

  5. What upcoming events should investors watch?

    Tapestry plans to host an Investor Day on September 10, 2025 to discuss long-term strategic initiatives and its financial outlook, and expects to report fiscal 2026 first-quarter results on November 6, 2025.

04—Continue

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