www.tapestry.com\/investors<\/a>. In addition, investors should continue to review our news releases and filings with the SEC. We use each of these channels of distribution as primary channels for publishing key information to our investors, some of which may contain material and previously non-public information. The Company\u2019s common stock is traded on the New York Stock Exchange under the symbol TPR.<\/p>\nThe information made available in this press release may contain forward-looking statements based on management’s current expectations. Forward-looking statements include, but are not limited to, the statements under \u201cFinancial Outlook,\u201d statements regarding long-term performance, statements regarding the Company\u2019s capital deployment plans, including anticipated annual dividend rates and share repurchase plans, and statements that can be identified by the use of forward-looking terminology such as “may,” \u201ccan,\u201d \u201ccould,\u201d \u201cif,\u201d “continue,” \u201cassumes,\u201d \u201cembed,\u201d \u201ccompound,\u201d \u201ccontribute,\u201d \u201cdiffer,\u201d “should,” “expect,” \u201cconfidence,\u201d \u201cconviction,\u201d \u201ctrends,\u201d \u201canticipate,\u201d “estimate,” \u201cfuture,\u201d \u201cplan,\u201d \u201cpotential,\u201d \u201copportunities,\u201d \u201cahead,\u201d \u201ccreate,\u201d \u201cbuild,\u201d \u201cfuel,\u201d \u201cdeliver,\u201d \u201cignite,\u201d \u201cgrow,\u201d \u201cbelieve,\u201d<\/i>\u201cwill,\u201d \u201cwould,\u201d \u201cuncertain,\u201d<\/i>\u201cachieve,\u201d \u201cstrategic,\u201d \u201cgrowth,\u201d “guidance,” “forecast,” \u201coutlook,\u201d \u201ccommit,\u201d \u201cinnovation,\u201d \u201cdrive,\u201d \u201cleverage,\u201d \u201cgenerate,\u201d \u201ceffort,\u201d \u201capproaching,\u201d \u201cexpanding,\u201d \u201cadvancing,\u201d \u201cdeepening,\u201d \u201creinforce,\u201d \u201cunderpin,\u201d \u201clasting,\u201d \u201celevate,\u201d \u201clong-term,\u201d \u201cdurable growth,\u201d \u201cdurability,\u201d \u201cAmplify strategy,\u201d \u201cwe stretch what\u2019s possible,\u201d similar expressions, and variations or negatives of these words. They include, without limitation, statements regarding future anticipated capital expenditures. Future results may differ materially from management’s current expectations, based upon a number of important factors, including risks and uncertainties such as economic conditions, recession and inflationary measures, the impact of international trade disputes and the risks associated with potential changes to international trade and policy agreements, including the imposition or threat of imposition of new or increased tariffs or retaliatory tariffs implemented by countries where our manufacturers are located as well as the imposition of additional duties on the products we import, risks associated with operating in international markets, including currency fluctuations and changes in economic or political conditions in the markets where we sell or source our products, the ability to anticipate consumer preferences and retain the value of our brands and respond to changing fashion and retail trends in a timely manner, including our ability to execute on our e-commerce and digital strategies, the impact of tax and other legislation, the ability to successfully implement the initiatives under our Amplify strategy, the effect of existing and new competition in the marketplace, our ability to successfully identify and implement any sales, acquisitions or strategic transactions on attractive terms or at all, our ability to achieve intended benefits, cost savings and synergies from acquisitions, our ability to control costs, the effect of seasonal and quarterly fluctuations on our sales or operating results, the risks associated with cyber security threats, privacy or data security breaches, and the development, use, governance and regulation of artificial intelligence technologies, our ability to satisfy our outstanding debt obligations or incur additional indebtedness, the risks associated with climate change and other corporate responsibility issues, our ability to protect against infringement of our trademarks and other proprietary rights, and the impact of pending and potential future legal proceedings, etc. In addition, purchases of shares of the Company\u2019s common stock will be made subject to market conditions and at prevailing market prices. Please refer to the Company\u2019s latest Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission for a complete list of risks and important factors. The Company assumes no obligation to revise or update any such forward-looking statements for any reason, except as required by law.<\/i><\/p>\n
Management utilizes non-GAAP and constant currency measures to conduct and evaluate its business during its regular review of operating results for the periods affected and to make decisions about Company resources and performance. The Company believes presenting these non-GAAP measures, which exclude items affecting comparability, is useful to investors and others in evaluating the Company\u2019s ongoing operating and financial results in a manner that is consistent with management\u2019s evaluation of business performance and in understanding how such results compare with the Company\u2019s historical performance. Additionally, the Company believes presenting these metrics on a constant currency basis will help investors and analysts to understand the effect of significant year-over-year foreign currency exchange rate fluctuations on these performance measures and provide a framework to assess how business is performing and expected to perform excluding these effects.<\/i><\/p>\n
The Company reports information in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). The Company’s management does not, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Further, the non-GAAP measures utilized by the Company may be unique to the Company, as they may be different from non-GAAP measures used by other companies.<\/i><\/p>\n
The Company operates on a global basis and reports financial results in U.S. dollars in accordance with GAAP. Percentage increases\/decreases in net sales for the Company and each segment have been presented both including and excluding currency fluctuation effects from translating foreign-denominated sales into U.S. dollars and compared to the same periods in the prior quarter and fiscal year. The Company calculates constant currency net sales results by translating current period net sales in local currency using the prior year period\u2019s currency conversion rate. Due to the sale of Stuart Weitzman on August 4, 2025, the Company presents pro forma net sales and related growth rates, which exclude Stuart Weitzman\u2019s Net sales from the prior year period.<\/i>In the Summary of Pro Forma Revenue Information table, Greater China includes mainland China, Taiwan, Hong Kong SAR, and Macao SAR. Other Asia includes Australia, South Korea, Malaysia, Singapore, and other countries primarily within Asia.<\/i>Other primarily represents royalties earned from the Company’s licensing partners and sales in the Middle East.<\/i><\/p>\n
The Company presents certain non-GAAP measures, including segment operating income (loss), segment SG&A expenses,<\/i>segment gross profit, SG&A expense ratio, operating margin, Operating Income (loss), Provision for income taxes, Net income (loss) and Net Income (loss) per diluted common share, which exclude items affecting comparability such as Distribution Network Optimization Costs, Acquisition and Divestiture Costs and Organizational Efficiency Costs, as applicable. A reconciliation to the most directly comparable GAAP measures is provided in the tables accompanying this release.<\/i><\/p>\n
The Company also presents Adjusted Free Cash Flow, which is a non-GAAP measure, and is calculated as Net cash provided by (used in) operating activities less Purchases of property and equipment, adjusted for the cash impacts of Items affecting comparability included in operating cash flows related to Distribution Network Optimization Costs, Acquisition and Divestiture Costs and Organizational Efficiency Costs, and Changes in operating assets and liabilities of items affecting comparability. The Company believes that Adjusted Free Cash Flow is an important liquidity measure of the cash that is available after capital expenditures for operational expenses, investment in our business and items affecting comparability. The Company believes that Adjusted Free Cash Flow is useful to investors because it measures the Company\u2019s ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet, invest in future growth and return capital to stockholders.<\/i><\/p>\n
The Company also presents Leverage Ratio, which is a non-GAAP metric, and is calculated as total debt, which includes Current debt and Long-term debt, divided by Adjusted EBITDA for the trailing twelve months. Adjusted EBITDA is calculated as Net Income (Loss), excluding: Interest expense, net; Provision for income taxes; Depreciation and amortization; Cloud Computing amortization; Share-based compensation; and Items affecting comparability including Distribution Network Optimization Costs, Acquisition and Divestiture Costs, Organizational Efficiency Costs and IEEPA tariff refunds. The Company believes that the Leverage Ratio is an important metric to assess the strength of our balance sheet and credit quality and demonstrates our commitment to maintaining an investment-grade credit rating.<\/i><\/p>\n
Schedule 1: Consolidated Statements of Operations<\/i><\/b><\/p>\n\n\nTAPESTRY, INC.<\/span><\/b><\/td>\n<\/tr>\n\nCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS<\/span><\/b><\/td>\n<\/tr>\n\nFor the Quarter Ended September 26, 2026 and September 27, 2025<\/span><\/b><\/td>\n<\/tr>\n\n(in millions, except per share data)<\/span><\/b><\/td>\n<\/tr>\n\n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n(unaudited)<\/b><\/td>\n<\/tr>\n\n | \nQUARTER ENDED<\/b><\/td>\n<\/tr>\n\n | \nSeptember 26, 2026<\/b><\/td>\n | | \nSeptember 27, 2025<\/b><\/td>\n<\/tr>\n\n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Net sales<\/b><\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n1,894<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n1,705<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Cost of sales<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n406<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n404<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Gross profit<\/b><\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1,488<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,301<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Selling, general and administrative expenses<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1,064<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n973<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Operating income (loss)<\/b><\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n424<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n328<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Interest expense, net<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n13<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n13<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Other expense (income)<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(4<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Income (loss) before provision for income taxes<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n411<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n319<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Provision (benefit) for income taxes<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n51<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n44<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Net income (loss)<\/b><\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n360<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n275<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Net income (loss) per share:<\/b><\/td>\n | | \n | \n | <\/tr>\n \n| Basic<\/b><\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n1.81<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n1.32<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Diluted<\/b><\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n1.76<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n1.28<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Shares used in computing net income (loss) per share:<\/td>\n | | \n | \n | <\/tr>\n \n| Basic<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n199.3<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n207.6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Diluted<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n204.5<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n215.5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Schedule 2: Detail to Net Sales<\/i><\/b><\/p>\n\n\nTAPESTRY, INC.<\/span><\/b><\/td>\n<\/tr>\n\nDETAIL TO NET SALES<\/span><\/b><\/td>\n<\/tr>\n\nFor the Quarter Ended September 26, 2026 and September 27, 2025<\/span><\/b><\/td>\n<\/tr>\n\n(in millions)<\/span><\/b><\/td>\n<\/tr>\n\n(unaudited)<\/span><\/b><\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \nQUARTER ENDED<\/b><\/td>\n | | \n | \n | \n | <\/tr>\n \n | \nSeptember 26, 2026<\/b><\/td>\n | | \nSeptember 27, 2025<\/b><\/td>\n | | \n% Change<\/b><\/td>\n | | \nConstant Currency % Change<\/b><\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Coach<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n1,661<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n1,430<\/p>\n<\/td>\n | | \n\n \n16<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n16<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| Kate Spade<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n233<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n260<\/p>\n<\/td>\n | | \n\n \n(10<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | | \n\n \n(10<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| Stuart Weitzman<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n15<\/p>\n<\/td>\n | | \n\n \nNM<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \nNM<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Total Tapestry<\/b><\/td>\n | \n | | | | | | | | | | | | | | |
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