Tapestry, Inc. Reports Fiscal 2026 Third Quarter Results and Raises Full Year Outlook

Tapestry, Inc. Reports Fiscal 2026 Third Quarter Results and Raises Full Year Outlook NEW YORK--( BUSINESS WIRE)--Tapestry, Inc. (NYSE: TPR), a house of iconic accessories and lifestyle brands, consisting of Coach and kate spade new york, today reported results for the fiscal third quarter ended March 28, 2026.

Joanne Crevoiserat, Chief Executive Officer of Tapestry, Inc., commented:

“Our third quarter outperformance reflects the compounding benefits of our Amplify strategy, as we bring creativity, craftsmanship, and value to more consumers around the world. With disciplined execution and the consumer at the center of everything we do, we are translating insights into action at scale, fueling meaningful growth, expanding margins, and enduring brand desire. From this position of strength, we move confidently into the future with significant opportunity ahead. We are raising our outlook for the fiscal year, underscoring the power of Tapestry and our commitment to driving durable growth and long-term shareholder value.”

Tapestry, Inc. Fiscal 2026 Third Quarter Financial Highlights (Unaudited) – in USD millions except per share data

1,920.6

1,584.6

21%

19%

1,920.6

1,538.4

25%

23%

1,476.5

1,205.8

22%

76.9%

76.1%

80 bps

1,476.5

1,205.8

22%

76.9%

76.1%

80 bps

427.5

253.7

69%

22.3%

16.0%

630 bps

430.1

277.3

55%

22.4%

17.5%

490 bps

1.65

0.95

74%

1.66

1.03

62%

Summary of Pro Forma Revenue Information (Unaudited) – in USD millions

1,701.0

31%

29%

219.6

(10)%

(11)%

1,101.7

20%

432.2

61%

55%

123.9

(10)%

116.3

24%

16%

118.6

31%

21%

27.9

(3)%

1,920.6

25%

23%

Tapestry, Inc. Fiscal 2026 Third Quarter Strategic Highlights

Tapestry advanced its Amplify growth strategy, which is focused on four key pillars that underpin durable growth:

This strategy is driving the Company’s results today and continues to expand its competitive advantages into the future.

Highlights from the fiscal third quarter included:

Overall, Tapestry delivered double-digit top and bottom-line increases in the quarter, demonstrating the Company’s structural advantages and drivers of sustainable growth and value creation.

Shareholder Return Programs

Given Tapestry’s strong operational results, robust balance sheet, significant free cash flow generation, and outlook for growth, the Company now expects to return $1.6 billion, which is approximately 100 percent of its anticipated adjusted free cash flow, to shareholders through dividends and share repurchases in Fiscal 2026. This represents an increase from its previous outlook of $1.5 billion. Programs include:

Non-GAAP Reconciliation

During the fiscal third quarter of 2026, Tapestry recorded certain items that decreased the Company’s operating income by $3 million, net income by $2 million, and earnings per diluted share by $0.01.

Please note that the divestiture of Stuart Weitzman was completed on August 4, 2025. The brand’s results for the period under ownership in Fiscal 2026 are included in fiscal 2026 first quarter GAAP and year-to-date results and excluded from year-to-date non-GAAP results.

Please refer to the Financial Schedules included herein for a full reconciliation of the Company’s reported GAAP to non-GAAP results.

Overview of Fiscal 2026 Third Quarter Financial Results

Balance Sheet and Cash Flow Highlights

Financial Outlook

Tapestry is raising its Fiscal 2026 outlook, incorporating the Company’s fiscal third quarter outperformance as well as an increased outlook for the fiscal fourth quarter. The following outlook is provided on a non-GAAP basis:

Please note this outlook:

Given the dynamic nature of these and other external factors, financial results could differ materially from the outlook provided.

Financial Outlook - Non-GAAP Adjustments:

The Company is not able to provide a full reconciliation of the non-GAAP financial measures to GAAP presented in this release and on the Company’s conference call because certain material items that impact these measures have not yet occurred and cannot be reasonably estimated at this time. Accordingly, a reconciliation of the Company’s non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.

Conference Call Details

The Company will host a conference call to review these results at 8:00 a.m. (ET) today, May 7, 2026. Interested parties may listen to the conference call via live webcast by accessing www.tapestry.com/investors or calling 1-866-847-4217 or 1-203-518-9845 and providing the Conference ID 3533756. A telephone replay will be available starting at 12:00 p.m. (ET) today for a period of five business days. To access the telephone replay, call 1-800-283-4641 or 1-402-220-0851. A webcast replay of the earnings conference call will also be available for five business days on the Tapestry website. In addition, presentation slides have been posted to the Company’s website at www.tapestry.com/investors.

Upcoming Events

The Company expects to report fiscal 2026 fourth quarter and full year results on Thursday, August 13, 2026.

To receive notification of future announcements, please register at www.tapestry.com/investors ("Subscribe to E-Mail Alerts").

About Tapestry, Inc.

Our global house of iconic accessories and lifestyle brands unites the magic of Coach and kate spade new york. Together, we stretch what’s possible – advancing brands further than they could go alone, expanding their reach to new geographies and generations. Inspired by our consumers, we create experiences and products that build lasting brand love and elevate everyday life. To learn more about Tapestry, please visit www.tapestry.com. For important news and information regarding Tapestry, visit the Investor Relations section of our website at www.tapestry.com/investors. 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’s common stock is traded on the New York Stock Exchange under the symbol TPR.

This 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 “Financial Outlook,” statements regarding long-term performance, statements regarding the Company’s 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," “can,” “if,” "continue," “assumes,” "should," "expect," “confidently,” “trends,” “anticipate,” "intend," "estimate," “on track,” “future,” “plan,” “potential,” “position,” “create,” “build,” “fuel,” “deliver,” “ignite,” “grow,” “believe,” “will,” “uncertain,” “achieve,” “strategic,” “growth,” "guidance," "forecast," “outlook,” “commitment,” “innovation,” “drive,” “leverage,” “generate,” “effort,” “approaching,” “expanding,” “enduring,” “opportunity,” “long-term,” “durable growth” “Amplify strategy,” “we stretch what’s possible,” 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 the impact of international trade disputes and the risks associated with potential changes to international trade 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, economic conditions, recession and inflationary measures, 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 2028 Amplify growth 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, including our sale of the Stuart Weitzman Business, 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 risk of cybersecurity threats and privacy or data security breaches, 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’s common stock will be made subject to market conditions and at prevailing market prices. Please refer to the Company’s 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.

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 that are not comparable from period to period, is useful to investors and others in evaluating the Company’s ongoing operating and financial results in a manner that is consistent with management’s evaluation of business performance and understanding how such results compare with the Company’s 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.

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.

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’s currency conversion rate. Due to the sale of Stuart Weitzman on August 4, 2025, the Company presents Pro forma sales and related growth rates, which exclude Stuart Weitzman’s Net sales from both the current and prior year periods. In the Summary of Pro Forma Revenue Information table, Greater China includes mainland China, Taiwan, Hong Kong SAR, and Macao SAR. Other Asia includes Malaysia, Australia, South Korea, Singapore, and other countries primarily within Asia. Other primarily represents royalties earned from the Company's licensing partners and sales in the Middle East.

The Company presents certain non-GAAP measures, including segment operating income (loss), segment SG&A expenses, SG&A expense ratio, operating margin, Operating Income (loss), Loss on extinguishment of debt, Interest expense, Other expense (income), Provision for income taxes, Net income (loss) and Net Income (loss) per diluted common share, which exclude items affecting comparability such as 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.

The Company also presents Adjusted Free Cash Flow, which is a non-GAAP measure, and is calculated by taking Net cash provided by (used in) operating activities less Purchases of property and equipment, plus Items affecting comparability of Acquisition and Divestiture Costs and Organizational Efficiency Costs, to the extent they were cash in nature and recorded through SG&A, 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’s 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.

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 the trailing twelve months Adjusted EBITDA. 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 Acquisition and Divestiture Costs, Organizational Efficiency Costs and Impairment. The Company believes that the Leverage Ratio is an important metric to assess the strength of our balance sheet and credit quality and as a metric showing our commitment to our Investment Grade rating.

Schedule 1: Consolidated Statements of Operations

1,920.6

1,584.6

6,127.6

5,287.5

444.1

378.8

1,462.2

1,313.7

1,476.5

1,205.8

4,665.4

3,973.8

1,049.0

952.1

3,193.3

2,975.3

427.5

253.7

1,472.1

998.5

—

120.1

13.1

15.4

43.3

70.6

(1.6

)

(0.8

)

(3.0

)

(2.3

)

416.0

239.1

1,431.8

810.1

72.2

35.8

251.9

109.8

343.8

203.3

1,179.9

700.3

1.70

0.98

5.76

3.19

1.65

0.95

5.58

3.12

202.5

207.3

204.9

219.5

208.3

213.9

211.3

224.8

Schedule 2: Detail to Net Sales

1,701.0

1,293.5

31%

29%

219.6

244.9

(10)%

(11)%

—

46.2

1,920.6

1,584.6

21%

19%

1,920.6

1,538.4

25%

23%

5,273.2

4,173.4

26%

25%

839.8

944.5

(11)%

(12)%

14.6

169.6

(91)%

6,127.6

5,287.5

16%

15%

6,113.0

5,117.9

19%

Schedules 3 & 4: Consolidated Segment Data and GAAP to Non-GAAP Reconciliation

1,339.0

—

1,339.0

4,134.0

—

4,134.0

137.5

—

137.5

523.7

—

523.7

—

7.7

—

1,476.5

—

1,476.5

4,665.4

7.7

—

4,657.7

743.8

—

0.1

743.7

2,204.9

—

1.3

2,203.6

158.2

—

158.2

522.5

—

0.5

522.0

—

8.7

—

147.0

(3.0

)

5.5

144.5

457.2

9.9

19.0

428.3

1,049.0

(3.0

)

5.6

1,046.4

3,193.3

18.6

20.8

3,153.9

595.2

—

(0.1

)

595.3

1,929.1

—

(1.3

)

1,930.4

(20.7

)

—

(20.7

)

1.2

—

(0.5

)

1.7

—

(1.0

)

(1.0

)

—

(147.0

)

3.0

(5.5

)

(144.5

)

(457.2

)

(9.9

)

(19.0

)

(428.3

)

427.5

3.0

(5.6

)

430.1

1,472.1

(10.9

)

(20.8

)

1,503.8

13.1

—

13.1

43.3

(0.1

)

—

43.4

(1.6

)

—

(1.6

)

(3.0

)

0.1

—

(3.1

)

72.2

0.5

(0.9

)

72.6

251.9

(0.8

)

(3.0

)

255.7

343.8

2.5

(4.7

)

346.0

1,179.9

(10.1

)

(17.8

)

1,207.8

1.65

0.01

(0.02

)

1.66

5.58

(0.05

)

(0.09

)

5.72

1,018.5

—

1,018.5

3,252.9

—

3,252.9

163.2

—

163.2

626.4

—

626.4

24.1

—

24.1

94.5

—

94.5

1,205.8

—

1,205.8

3,973.8

—

3,973.8

598.4

—

598.4

1,825.3

—

1,825.3

163.2

—

2.8

160.4

531.4

—

2.8

528.6

29.7

0.6

—

29.1

108.5

0.6

—

107.9

160.8

18.0

2.2

140.6

510.1

106.8

2.2

401.1

952.1

18.6

5.0

928.5

2,975.3

107.4

5.0

2,862.9

420.1

—

420.1

1,427.6

—

1,427.6

—

(2.8

)

2.8

95.0

—

(2.8

)

97.8

(5.6

)

(0.6

)

—

(5.0

)

(14.0

)

(0.6

)

—

(13.4

)

(160.8

)

(18.0

)

(2.2

)

(140.6

)

(510.1

)

(106.8

)

(2.2

)

(401.1

)

253.7

(18.6

)

(5.0

)

277.3

998.5

(107.4

)

(5.0

)

1,110.9

—

120.1

119.4

—

0.7

Interest expense, net

15.4

—

15.4

70.6

60.2

—

10.4

35.8

(5.7

)

(1.4

)

42.9

109.8

(79.3

)

(1.4

)

190.5

203.3

(12.9

)

(3.6

)

219.8

700.3

(207.7

)

(3.6

)

911.6

0.95

(0.06

)

(0.02

)

1.03

3.12

(0.91

)

(0.02

)

4.05

Schedule 5: Condensed Consolidated Balance Sheets

1,068.6

1,119.6

305.0

239.3

843.9

860.7

499.8

509.6

—

176.4

2,717.3

2,905.6

492.7

489.5

1,384.8

1,331.0

1,871.9

1,854.4

6,466.7

6,580.5

499.7

456.1

666.0

736.9

310.3

299.0

—

16.7

—

48.2

1,476.0

1,556.9

2,377.1

2,377.9

1,235.8

1,205.6

695.4

582.3

682.4

857.8

6,466.7

6,580.5

Schedule 6: Condensed Consolidated Statement of Cash Flows

1,179.9

700.3

115.6

119.8

—

120.1

43.0

43.6

160.0

48.6

(42.2

)

(262.6

)

1,456.3

769.8

(112.8

)

(87.4

)

(9.3

)

(1,886.1

)

109.1

—

2.6

2,921.7

(10.4

)

948.2

(245.6

)

(226.5

)

(1,251.9

)

(1,665.3

)

—

(350.0

)

—

2,248.1

—

(63.5

)

—

(6,859.9

)

12.2

108.7

(1,485.3

)

(6,808.4

)

(14.1

)

15.4

(53.5

)

(5,075.0

)

—

(29.3

)

(53.5

)

(5,104.3

)

1,100.0

6,142.0

1,046.5

1,037.7

Schedule 7: Adjusted Free Cash Flow GAAP to Non-GAAP Reconciliation

262.6

144.3

1,456.3

769.8

(36.8

)

(30.9

)

(112.8

)

(87.4

)

(0.8

)

2.3

12.8

151.3

3.0

4.3

12.9

4.3

0.5

(1.7

)

1.9

97.6

—

(11.9

)

—

(0.7

)

—

6.4

228.5

117.6

1,371.1

930.1

Adjusted Free Cash Flow is calculated by taking Net cash provided by (used in) operating activities less Purchases of property and equipment, plus Items affecting comparability of Acquisition and Divestiture Costs and Organizational Efficiency Costs, to the extent they were cash in nature and recorded through SG&A, and Changes in operating assets and liabilities of items affecting comparability.

Schedule 8: Adjusted EBITDA and Leverage Ratio GAAP to Non-GAAP Reconciliation

(517.1

)

274.8

561.3

343.8

662.8

14.8

12.8

17.4

13.1

58.1

(76.9

)

43.9

135.8

72.2

175.0

43.1

37.2

39.0

39.4

158.7

18.4

14.4

14.1

14.5

61.4

22.2

22.4

29.0

27.6

101.2

5.1

14.7

(0.8

)

(3.0

)

16.0

12.2

11.0

4.2

5.6

33.0

854.8

—

854.8

376.6

431.2

800.0

513.2

2,121.0

2,377.1

1.1

Schedule 9: Store Count by Brand

330

(4)

330

619

(2)

625

188

—

(8)

180

165

—

(10)

155

324

(6)

330

607

(13)

625

189

—

(9)

180

171

(21)

155