Tapestry, Inc.
|
(Exact name of registrant as specified in its charter)
|
Maryland
|
1-16153
|
52-2242751
|
||
(State of Incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
10 Hudson Yards, New York, NY 10001
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(Address of principal executive offices) (Zip Code)
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(212) 946-8400
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(Registrant’s telephone number, including area code)
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☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
☐
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
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Common Stock, $0.01 par value
|
TPR
|
New York Stock Exchange
|
Item 2.02 |
Results of Operations and Financial Condition.
|
Item 9.01 |
Financial Statements and Exhibits.
|
99.1 |
Text of Press Release, dated May 8, 2025
|
Dated: May 8, 2025
|
|||
TAPESTRY, INC.
|
|||
By:
|
/s/ David E. Howard
|
||
David E. Howard
|
|||
General Counsel and Secretary
|
Text of Press Release, dated May 8,
2025
|
• |
Delivered Revenue of $1.6 Billion, an Increase of 7% Versus Prior Year (+8% Constant Currency) Fueled by Coach Brand Growth of 13% (+15% Constant Currency)
|
• |
Drove 140 Basis Points of Gross Margin Expansion Versus Prior Year
|
• |
Achieved GAAP Diluted EPS of $0.95, up 60% Versus Prior Year, and non-GAAP Diluted EPS of $1.03, an Increase of 27% Versus Prior Year
|
• |
Remain On Track to Return Over $2 Billion to Shareholders in Fiscal Year 2025
|
• |
Raised Fiscal Year 2025 Revenue, Earnings, and Cash Flow Outlook
|
|
• |
Acquired over 1.2 million new customers in North America, an
increase versus prior year, driven by a growing number of Gen Z and Millennial consumers, which represented approximately two-thirds of these new customers.
|
|
• |
Achieved 8% revenue growth versus prior year on a constant currency basis, outperforming
expectations, highlighted by constant currency gains in North America (+9%), Europe (+35%), and total APAC (+4%); led by 15% constant
currency revenue growth at Coach;
|
|
• |
Grew diluted EPS by 27% to $1.03 on a non-GAAP basis, which
was more than $0.15 ahead of the Company’s outlook, including a $0.05 benefit related to an expense timing shift into the fiscal fourth quarter.
|
|
• |
Increased direct-to-consumer revenue by 9% on a constant currency basis, which included a
mid-teens percentage increase in Digital revenue and a mid-single digit gain in global brick and mortar sales, with strong and increasing profitability across channels, powered by a blend of
creativity and Tapestry’s data and analytics capabilities.
|
|
• |
Drove strong handbag revenue growth and a mid-teens percentage rate AUR gain at Coach reflecting compelling innovation and broad-based traction across the leathergoods offering;
|
|
• |
Expanded gross and non-GAAP operating margins by 140 basis points, reflecting the Company’s operational outperformance and discipline, which continued to fund incremental investments in brand marketing;
|
|
• |
Leveraged Tapestry’s agile and globally scaled supply chain to deliver innovation and value to
consumers, underpinning the Company’s accelerated growth, margin expansion, and diligent inventory management.
|
|
• |
Dividend: The Company’s Board of Directors declared a
quarterly cash dividend of $0.35 per common share payable on June 23, 2025 to shareholders of record as of the close of business on June 6, 2025. In Fiscal 2025, as previously announced, Tapestry expects to maintain its annual dividend
rate of $1.40 per common share.
|
|
• |
Share Repurchases: As previously announced, in November, the
Company executed a $2 billion Accelerated Share Repurchase program (‘ASR’), which remained underway during the fiscal third quarter. In addition to the ASR program, the Company has $800 million remaining under its previous share
repurchase authorization.
|
|
• |
Net sales totaled $1.58 billion, representing 7% growth
versus prior year or 8% growth on a constant currency basis. FX represented a headwind of approximately 150 basis points in the quarter due to the appreciation of the U.S. Dollar.
|
|
• |
Gross profit totaled $1.21 billion, while gross margin was
76.1%, driven by operational improvements of approximately 140 basis points. This compared to prior year gross profit of $1.11 billion, representing a gross margin of 74.7%.
|
|
• |
SG&A expenses totaled $952 million and represented 60.1%
of sales on a GAAP basis. On a non-GAAP basis, SG&A expenses totaled $929 million and represented 58.6% of sales. In the prior year period, SG&A expenses totaled $903 million and represented 60.9% of sales on a GAAP basis and
totaled $868 million and represented 58.6% of sales on a non-GAAP basis.
|
|
• |
Operating income was $254 million on a GAAP basis, while
operating margin was 16.0%. On a non-GAAP basis, operating income was $277 million, while operating margin was 17.5%. This compares to GAAP operating income of $204 million and a 13.8% operating margin and non-GAAP operating income of
$239 million and a 16.1% operating margin in the prior year period.
|
|
• |
Net interest expense was $15 million, compared to prior
year net interest expense of $32 million on a GAAP basis and net interest income of $1 million on a non-GAAP basis.
|
|
• |
Other income was $1 million compared to other expense of $3
million in the prior year.
|
|
• |
Net income was $203 million, with earnings per diluted
share of $0.95 on a GAAP basis. On a non-GAAP basis, net income was $220 million, with earnings per diluted share of $1.03. In the prior year period, net income was $139 million, with earnings per diluted share of $0.60 on a GAAP
basis. On a non-GAAP basis, net income in the prior year was $190 million, with earnings per diluted share of $0.81. The tax rate for the quarter was 14.9% on a GAAP basis and 16.4% on a non-GAAP basis. In the prior year period, the
tax rate was 17.7% on a GAAP basis and 19.9% on a non-GAAP basis.
|
% Change
|
||||||||||||
Quarter Ended
March 29, 2025
|
Reported
|
Constant Currency
|
||||||||||
Brand
|
||||||||||||
Coach
|
1,293.5
|
13
|
%
|
15
|
%
|
|||||||
Kate Spade
|
244.9
|
(13
|
)%
|
(12
|
)%
|
|||||||
Stuart Weitzman
|
46.2
|
(18
|
)%
|
(17
|
)%
|
|||||||
Region
|
||||||||||||
North America
|
951.7
|
9
|
%
|
9
|
%
|
|||||||
Greater China (1)
|
278.9
|
3
|
%
|
5
|
%
|
|||||||
Japan
|
138.2
|
(8
|
)%
|
(2
|
)%
|
|||||||
Other Asia (2)
|
93.9
|
11
|
%
|
14
|
%
|
|||||||
Europe
|
92.9
|
32
|
%
|
35
|
%
|
|||||||
Other (3)
|
29.0
|
(9
|
)%
|
(9
|
)%
|
|||||||
Tapestry
|
1,584.6
|
7
|
%
|
8
|
%
|
|
• |
Cash, cash equivalents and short-term investments totaled
$1.1 billion and total borrowings outstanding were $2.7 billion, representing net debt of
$1.6 billion. The Company’s leverage ratio, based on gross debt to adjusted EBITDA, was 1.6x as of the end of the fiscal quarter. In addition, subsequent to quarter-end, Tapestry repaid its April 2025 bonds at maturity, totaling $303
million, as anticipated.
|
|
• |
Inventory was $874 million, as expected, which excluded $87
million of Stuart Weitzman inventory classified as Assets held for sale. This compared to the prior year’s total ending inventory of $824 million.
|
|
• |
Cash flow from operating activities for the fiscal third
quarter was an inflow of $144 million compared to an inflow $98 million in the prior year. On a year-to-date basis, cash flow from operating activities was an
inflow of $770 million compared to an inflow of approximately $1.0 billion in the prior year. Adjusted free cash flow for the fiscal third quarter was an inflow of $135 million compared to an inflow of $22 million in the prior year. On a year-to-date basis, adjusted free cash flow was an inflow of approximately
$1.1 billion compared to an inflow of $946 million in the prior year.
|
|
• |
CapEx and implementation costs related to Cloud Computing
for the fiscal third quarter was $36 million versus $29 million a year ago. On a year-to-date basis, CapEx and implementation costs related to Cloud Computing was $105 million versus $88 million a year ago.
|
|
• |
Revenue of approximately $6.95 billion, representing growth
of 4% versus prior year on a reported basis, including an expected currency headwind of nearly 50 basis points. This is ahead of prior guidance of approximately 3% growth versus prior year;
|
|
• |
Operating margin expansion of approximately 100 basis points
versus prior year, consistent with prior guidance;
|
|
• |
Net interest expense of approximately $25 million as
compared to prior guidance of $35 million;
|
|
• |
Tax rate of approximately 17.5% versus prior guidance of
approximately 17% to 18%;
|
|
• |
Weighted average diluted share count of approximately 223
million shares, consistent with prior guidance;
|
|
• |
Earnings per diluted share in the area of $5.00,
representing a high-teens percentage growth rate compared to the prior year, and exceeding the Company’s prior guidance of $4.85 to $4.90;
|
|
• |
Adjusted free cash flow of approximately $1.3 billion, ahead
of the prior guidance of $1.2 billion.
|
|
• |
Embeds the expectation for tariffs on goods imported into the United States in accordance with the latest trade policies as of April 10, 2025. This includes an anticipated additional 145% tariff on
imports from China and an additional 10% tariff on all other global imports. These tariffs are expected to have an immaterial impact on Fiscal 2025 results due to the timing of sell-throughs and in-transits;
|
|
• |
Embeds foreign currency exchange rates using spot rates at the time of forecast;
|
|
• |
Embeds no material worsening of inflationary pressures or consumer confidence;
|
|
• |
Excludes one-time transaction costs associated with the pending sale of Stuart Weitzman, which is expected to be completed during the summer of 2025, subject to customary closing conditions. The
Fiscal 2025 outlook continues to incorporate the brand’s operations through the end of the fiscal year;
|
|
• |
Excludes non-recurring costs associated with the Company’s organizational efficiency efforts, and
|
|
• |
Excludes the net interest and earnings impact related to the terminated acquisition of Capri Holdings Limited.
|
(unaudited)
|
(unaudited)
|
|||||||||||||||
Quarter Ended
|
Nine Months Ended
|
|||||||||||||||
March 29, 2025
|
March 30, 2024
|
March 29, 2025
|
March 30, 2024
|
|||||||||||||
Net sales
|
$
|
1,584.6
|
$
|
1,482.4
|
$
|
5,287.5
|
$
|
5,080.1
|
||||||||
Cost of sales
|
378.8
|
375.0
|
1,313.7
|
1,381.8
|
||||||||||||
Gross profit
|
1,205.8
|
1,107.4
|
3,973.8
|
3,698.3
|
||||||||||||
Selling, general and administrative expenses
|
952.1
|
903.1
|
2,975.3
|
2,793.2
|
||||||||||||
Operating income (loss)
|
253.7
|
204.3
|
998.5
|
905.1
|
||||||||||||
Loss on extinguishment of debt
|
—
|
—
|
120.1
|
—
|
||||||||||||
Interest expense, net
|
15.4
|
32.0
|
70.6
|
94.5
|
||||||||||||
Other expense (income)
|
(0.8
|
)
|
2.8
|
(2.3
|
)
|
(0.5
|
)
|
|||||||||
Income (loss) before provision for income taxes
|
239.1
|
169.5
|
810.1
|
811.1
|
||||||||||||
Provision (benefit) for income taxes
|
35.8
|
30.1
|
109.8
|
154.4
|
||||||||||||
Net income (loss)
|
$
|
203.3
|
$
|
139.4
|
$
|
700.3
|
$
|
656.7
|
||||||||
Net income (loss) per share:
|
||||||||||||||||
Basic
|
$
|
0.98
|
$
|
0.61
|
$
|
3.19
|
$
|
2.87
|
||||||||
Diluted
|
$
|
0.95
|
$
|
0.60
|
$
|
3.12
|
$
|
2.82
|
||||||||
Shares used in computing net income (loss) per share:
|
||||||||||||||||
Basic
|
207.3
|
229.5
|
219.5
|
229.0
|
||||||||||||
Diluted
|
213.9
|
234.2
|
224.8
|
232.8
|
|
QUARTER ENDED
|
|||||||||||||||
|
March 29, 2025
|
March 30, 2024
|
% Change
|
Constant Currency %
Change
|
||||||||||||
|
||||||||||||||||
Coach
|
$
|
1,293.5
|
$
|
1,145.6
|
13
|
%
|
15
|
%
|
||||||||
Kate Spade
|
244.9
|
280.7
|
(13
|
)%
|
(12
|
)%
|
||||||||||
Stuart Weitzman
|
46.2
|
56.1
|
(18
|
)%
|
(17
|
)%
|
||||||||||
Total Tapestry
|
$
|
1,584.6
|
$
|
1,482.4
|
7
|
%
|
8
|
%
|
NINE MONTHS ENDED
|
||||||||||||||||
|
March 29, 2025
|
March 30, 2024
|
% Change
|
Constant Currency %
Change
|
||||||||||||
|
||||||||||||||||
Coach
|
$
|
4,173.4
|
$
|
3,844.9
|
9
|
%
|
9
|
%
|
||||||||
Kate Spade
|
944.5
|
1,044.3
|
(10
|
)%
|
(9
|
)%
|
||||||||||
Stuart Weitzman
|
169.6
|
190.9
|
(11
|
)%
|
(11
|
)%
|
||||||||||
Total Tapestry
|
$
|
5,287.5
|
$
|
5,080.1
|
4
|
%
|
5
|
%
|
|
For the Quarter Ended March 29, 2025
|
For the Nine Months Ended March 29, 2025
|
||||||||||||||||||||||||||||||
|
Items Affecting Comparability
|
Items Affecting Comparability
|
||||||||||||||||||||||||||||||
|
GAAP Basis
(As Reported) |
Acquisition and
Divestiture Costs (*)
|
Organizational
Efficiency Costs (**)
|
Non-GAAP Basis
(Excluding Items) |
GAAP Basis
(As Reported) |
Acquisition and
Divestiture Costs (*)
|
Organizational
Efficiency Costs (**)
|
Non-GAAP Basis
(Excluding Items) |
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Gross Profit
|
||||||||||||||||||||||||||||||||
Coach
|
1,018.5
|
—
|
—
|
1,018.5
|
3,252.9
|
—
|
—
|
3,252.9
|
||||||||||||||||||||||||
Kate Spade
|
163.2
|
—
|
—
|
163.2
|
626.4
|
—
|
—
|
626.4
|
||||||||||||||||||||||||
Stuart Weitzman
|
24.1
|
—
|
—
|
24.1
|
94.5
|
—
|
—
|
94.5
|
||||||||||||||||||||||||
Gross profit
|
$
|
1,205.8
|
$
|
—
|
$
|
—
|
$
|
1,205.8
|
$
|
3,973.8
|
$
|
—
|
$
|
—
|
$
|
3,973.8
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
SG&A expenses
|
||||||||||||||||||||||||||||||||
Coach
|
598.4
|
—
|
—
|
598.4
|
1,825.3
|
—
|
—
|
1,825.3
|
||||||||||||||||||||||||
Kate Spade
|
163.2
|
—
|
2.8
|
160.4
|
531.4
|
—
|
2.8
|
528.6
|
||||||||||||||||||||||||
Stuart Weitzman
|
29.7
|
0.6
|
—
|
29.1
|
108.5
|
0.6
|
—
|
107.9
|
||||||||||||||||||||||||
Corporate
|
160.8
|
18.0
|
2.2
|
140.6
|
510.1
|
106.8
|
2.2
|
401.1
|
||||||||||||||||||||||||
SG&A expenses
|
$
|
952.1
|
$
|
18.6
|
$
|
5.0
|
$
|
928.5
|
$
|
2,975.3
|
$
|
107.4
|
$
|
5.0
|
$
|
2,862.9
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Operating income (loss)
|
||||||||||||||||||||||||||||||||
Coach
|
420.1
|
—
|
—
|
420.1
|
1,427.6
|
—
|
—
|
1,427.6
|
||||||||||||||||||||||||
Kate Spade
|
—
|
—
|
(2.8
|
)
|
2.8
|
95.0
|
—
|
(2.8
|
)
|
97.8
|
||||||||||||||||||||||
Stuart Weitzman
|
(5.6
|
)
|
(0.6
|
)
|
—
|
(5.0
|
)
|
(14.0
|
)
|
(0.6
|
)
|
—
|
(13.4
|
)
|
||||||||||||||||||
Corporate
|
(160.8
|
)
|
(18.0
|
)
|
(2.2
|
)
|
(140.6
|
)
|
(510.1
|
)
|
(106.8
|
)
|
(2.2
|
)
|
(401.1
|
)
|
||||||||||||||||
Operating income (loss)
|
$
|
253.7
|
$
|
(18.6
|
)
|
$
|
(5.0
|
)
|
$
|
277.3
|
$
|
998.5
|
$
|
(107.4
|
)
|
$
|
(5.0
|
)
|
$
|
1,110.9
|
||||||||||||
|
||||||||||||||||||||||||||||||||
Loss on extinguishment of debt
|
—
|
—
|
—
|
—
|
120.1
|
119.4
|
—
|
0.7
|
||||||||||||||||||||||||
Interest expense, net
|
15.4
|
—
|
—
|
15.4
|
70.6
|
60.2
|
—
|
10.4
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Provision for income taxes
|
35.8
|
(5.7
|
)
|
(1.4
|
)
|
42.9
|
109.8
|
(79.3
|
)
|
(1.4
|
)
|
190.5
|
||||||||||||||||||||
Net income (loss)
|
$
|
203.3
|
$
|
(12.9
|
)
|
$
|
(3.6
|
)
|
$
|
219.8
|
$
|
700.3
|
$
|
(207.7
|
)
|
$
|
(3.6
|
)
|
$
|
911.6
|
||||||||||||
Net income (loss) per diluted common share
|
$
|
0.95
|
$
|
(0.06
|
)
|
$
|
(0.02
|
)
|
$
|
1.03
|
$
|
3.12
|
$
|
(0.91
|
)
|
$
|
(0.02
|
)
|
$
|
4.05
|
For the Quarter Ended March 30, 2024
|
For the Nine Months Ended March 30, 2024
|
|||||||||||||||||||||||
Items Affecting Comparability
|
Items Affecting Comparability
|
|||||||||||||||||||||||
|
GAAP Basis
(As Reported) |
Acquisition Costs (*)
|
Non-GAAP Basis
(Excluding Items) |
GAAP Basis
(As Reported) |
Acquisition Costs (*)
|
Non-GAAP Basis
(Excluding Items) |
||||||||||||||||||
|
||||||||||||||||||||||||
Gross Profit
|
||||||||||||||||||||||||
Coach
|
891.3
|
—
|
891.3
|
2,906.4
|
—
|
2,906.4
|
||||||||||||||||||
Kate Spade
|
183.6
|
—
|
183.6
|
676.9
|
—
|
676.9
|
||||||||||||||||||
Stuart Weitzman
|
32.5
|
—
|
32.5
|
115.0
|
—
|
115.0
|
||||||||||||||||||
Gross profit
|
$
|
1,107.4
|
$
|
—
|
$
|
1,107.4
|
$
|
3,698.3
|
$
|
—
|
$
|
3,698.3
|
||||||||||||
|
||||||||||||||||||||||||
SG&A expenses
|
||||||||||||||||||||||||
Coach
|
528.6
|
—
|
528.6
|
1,644.1
|
—
|
1,644.1
|
||||||||||||||||||
Kate Spade
|
173.6
|
—
|
173.6
|
568.2
|
—
|
568.2
|
||||||||||||||||||
Stuart Weitzman
|
37.2
|
—
|
37.2
|
126.9
|
—
|
126.9
|
||||||||||||||||||
Corporate
|
163.7
|
35.0
|
128.7
|
454.0
|
82.9
|
371.1
|
||||||||||||||||||
SG&A expenses
|
$
|
903.1
|
$
|
35.0
|
$
|
868.1
|
$
|
2,793.2
|
$
|
82.9
|
$
|
2,710.3
|
||||||||||||
|
||||||||||||||||||||||||
Operating income (loss)
|
||||||||||||||||||||||||
Coach
|
362.7
|
—
|
362.7
|
1,262.3
|
—
|
1,262.3
|
||||||||||||||||||
Kate Spade
|
10.0
|
—
|
10.0
|
108.7
|
—
|
108.7
|
||||||||||||||||||
Stuart Weitzman
|
(4.7
|
)
|
—
|
(4.7
|
)
|
(11.9
|
)
|
—
|
(11.9
|
)
|
||||||||||||||
Corporate
|
(163.7
|
)
|
(35.0
|
)
|
(128.7
|
)
|
(454.0
|
)
|
(82.9
|
)
|
(371.1
|
)
|
||||||||||||
Operating income (loss)
|
$
|
204.3
|
$
|
(35.0
|
)
|
$
|
239.3
|
$
|
905.1
|
$
|
(82.9
|
)
|
$
|
988.0
|
||||||||||
|
||||||||||||||||||||||||
Interest expense, net
|
32.0
|
32.9
|
(0.9
|
)
|
94.5
|
83.7
|
10.8
|
|||||||||||||||||
|
||||||||||||||||||||||||
Provision for income taxes
|
30.1
|
(17.2
|
)
|
47.3
|
154.4
|
(40.2
|
)
|
194.6
|
||||||||||||||||
Net income (loss)
|
$
|
139.4
|
$
|
(50.7
|
)
|
$
|
190.1
|
$
|
656.7
|
$
|
(126.4
|
)
|
$
|
783.1
|
||||||||||
Net income (loss) per diluted common share
|
$
|
0.60
|
$
|
(0.21
|
)
|
$
|
0.81
|
$
|
2.82
|
$
|
(0.54
|
)
|
$
|
3.36
|
|
(unaudited)
|
(audited)
|
||||||
|
March 29, 2025
|
June 29, 2024
|
||||||
ASSETS
|
||||||||
Cash, cash equivalents and short-term investments
|
$
|
1,057.0
|
$
|
7,203.8
|
||||
Receivables
|
255.8
|
228.2
|
||||||
Inventories
|
873.5
|
824.8
|
||||||
Other current assets
|
501.4
|
546.9
|
||||||
Assets held for sale
|
173.7
|
—
|
||||||
Total current assets
|
2,861.4
|
8,803.7
|
||||||
Property and equipment, net
|
485.2
|
514.7
|
||||||
Operating lease right-of-use assets
|
1,231.8
|
1,314.4
|
||||||
Other assets
|
2,727.8
|
2,763.5
|
||||||
Total assets
|
$
|
7,306.2
|
$
|
13,396.3
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Accounts payable
|
$
|
393.3
|
$
|
452.2
|
||||
Accrued liabilities
|
584.4
|
656.3
|
||||||
Current portion of operating lease liabilities
|
280.6
|
299.7
|
||||||
Current debt
|
319.9
|
303.4
|
||||||
Liabilities held for sale
|
49.7
|
—
|
||||||
Total current liabilities
|
1,627.9
|
1,711.6
|
||||||
Long-term debt
|
2,377.1
|
6,937.2
|
||||||
Long-term operating lease liabilities
|
1,130.1
|
1,224.2
|
||||||
Other liabilities
|
677.3
|
626.4
|
||||||
Stockholders’ equity
|
1,493.8
|
2,896.9
|
||||||
Total liabilities and stockholders’ equity
|
$
|
7,306.2
|
$
|
13,396.3
|
|
(unaudited)
|
(unaudited)
|
||||||
|
March 29, 2025
|
March 30, 2024
|
||||||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
||||||||
Net income (loss)
|
$
|
700.3
|
$
|
656.7
|
||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization
|
119.8
|
125.8
|
||||||
Loss on extinguishment of debt
|
120.1
|
—
|
||||||
Amortization of cloud computing arrangements
|
43.6
|
41.1
|
||||||
Other non-cash items
|
48.6
|
100.7
|
||||||
Changes in operating assets and liabilities
|
(262.6
|
)
|
75.3
|
|||||
Net cash provided by (used in) operating activities
|
769.8
|
999.6
|
||||||
|
||||||||
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
||||||||
Purchases of investments
|
(1,886.1
|
)
|
(1,126.0
|
)
|
||||
Proceeds from maturities and sales of investments
|
2,921.7
|
702.6
|
||||||
Purchases of property and equipment
|
(87.4
|
)
|
(62.7
|
)
|
||||
Net cash provided by (used in) investing activities
|
948.2
|
(486.1
|
)
|
|||||
|
||||||||
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
||||||||
Payment of dividends
|
(226.5
|
)
|
(240.9
|
)
|
||||
Repurchase of common stock
|
(1,665.3
|
)
|
—
|
|||||
Share repurchase not yet settled
|
(350.0
|
)
|
—
|
|||||
Proceeds from issuance of debt, net of discount
|
2,248.1
|
6,089.5
|
||||||
Payment of debt extinguishment costs
|
(63.5
|
)
|
—
|
|||||
Repayment of debt
|
(6,859.9
|
)
|
(18.8
|
)
|
||||
Other items
|
108.7
|
(96.2
|
)
|
|||||
Net cash provided by (used in) financing activities
|
(6,808.4
|
)
|
5,733.6
|
|||||
Effect of exchange rate on cash and cash equivalents
|
15.4
|
1.9
|
||||||
|
||||||||
Net (decrease) increase in cash and cash equivalents, including cash classified within assets held for
sale
|
(5,075.0
|
)
|
6,249.0
|
|||||
Less: net (decrease) increase in cash classified within current assets held for sale
|
(29.3
|
)
|
—
|
|||||
Net (decrease) increase in cash and cash equivalents
|
(5,104.3
|
)
|
6,249.0
|
|||||
Cash and cash equivalents at beginning of period
|
$
|
6,142.0
|
$
|
726.1
|
||||
Cash and cash equivalents at end of period
|
$
|
1,037.7
|
$
|
6,975.1
|
|
Quarter Ended
|
Nine Months Ended
|
||||||||||||||
|
March 29, 2025
|
March 30, 2024
|
March 29, 2025
|
March 30, 2024
|
||||||||||||
Net cash provided by (used in) operating activities (GAAP)
|
$
|
144.3
|
$
|
97.8
|
$
|
769.8
|
$
|
999.6
|
||||||||
Purchases of property and equipment
|
(30.9
|
)
|
(19.0
|
)
|
(87.4
|
)
|
(62.7
|
)
|
||||||||
Items affecting comparability - Acquisition and Divestiture Costs
|
18.6
|
67.9
|
287.0
|
166.6
|
||||||||||||
Items affecting comparability - Organizational Efficiency Costs
|
5.0
|
—
|
5.0
|
—
|
||||||||||||
Changes in operating assets and liabilities of items affecting comparability
|
||||||||||||||||
Accrued liabilities
|
(1.7
|
)
|
(112.8
|
)
|
97.6
|
(168.7
|
)
|
|||||||||
Other assets
|
—
|
(2.4
|
)
|
(11.9
|
)
|
11.6
|
||||||||||
Other liabilities
|
—
|
(10.0
|
)
|
—
|
—
|
|||||||||||
Accounts payable
|
(0.7
|
)
|
—
|
6.4
|
—
|
|||||||||||
Adjusted Free Cash Flow (Non-GAAP) (*)
|
$
|
134.6
|
$
|
21.5
|
$
|
1,066.5
|
$
|
946.4
|
|
TTM
|
|||||||||||||||||||
|
June 29, 2024
|
September 28, 2024
|
December 28, 2024
|
March 29, 2025
|
March 29, 2025
|
|||||||||||||||
Net Income (Loss) - (GAAP)
|
$
|
159.3
|
$
|
186.6
|
$
|
310.4
|
$
|
203.3
|
$
|
859.6
|
||||||||||
Adjusted for:
|
||||||||||||||||||||
Interest expense, net
|
30.5
|
30.7
|
24.5
|
15.4
|
101.1
|
|||||||||||||||
Loss on extinguishment of debt
|
—
|
—
|
120.1
|
—
|
120.1
|
|||||||||||||||
Provision for income taxes
|
41.5
|
39.1
|
34.9
|
35.8
|
151.3
|
|||||||||||||||
Depreciation and amortization
|
48.2
|
40.9
|
40.9
|
38.0
|
168.0
|
|||||||||||||||
Cloud computing amortization
|
14.0
|
14.0
|
14.6
|
15.0
|
57.6
|
|||||||||||||||
Share-based compensation expense
|
20.1
|
19.1
|
21.8
|
24.2
|
85.2
|
|||||||||||||||
Items affecting comparability - Acquisition and Divestiture Costs
|
27.0
|
33.4
|
55.4
|
18.6
|
134.4
|
|||||||||||||||
Items affecting comparability - Organizational Efficiency Costs
|
—
|
—
|
—
|
5.0
|
5.0
|
|||||||||||||||
Adjusted EBITDA (NON-GAAP) (*)
|
$
|
340.6
|
$
|
363.8
|
$
|
622.6
|
$
|
355.3
|
$
|
1,682.3
|
||||||||||
|
||||||||||||||||||||
Total Debt (**) as of March 29, 2025
|
$
|
2,697.0
|
||||||||||||||||||
Leverage Ratio (***) as of March 29, 2025
|
1.6
|
|
As of
|
As of
|
||||||||||||||
Directly-Operated Store Count:
|
December 28, 2024
|
Openings
|
(Closures)
|
March 29, 2025
|
||||||||||||
Coach
|
||||||||||||||||
North America
|
325
|
—
|
(1
|
)
|
324
|
|||||||||||
International
|
597
|
9
|
(7
|
)
|
599
|
|||||||||||
|
||||||||||||||||
Kate Spade
|
||||||||||||||||
North America
|
197
|
1
|
(6
|
)
|
192
|
|||||||||||
International
|
182
|
3
|
(10
|
)
|
175
|
|||||||||||
|
||||||||||||||||
Stuart Weitzman
|
||||||||||||||||
North America
|
34
|
—
|
(5
|
)
|
29
|
|||||||||||
International
|
58
|
1
|
(2
|
)
|
57
|
As of
|
As of
|
|||||||||||||||
Directly-Operated Store Count:
|
June 29, 2024
|
Openings
|
(Closures)
|
March 29, 2025
|
||||||||||||
Coach
|
||||||||||||||||
North America
|
324
|
2
|
(2
|
)
|
324
|
|||||||||||
International
|
606
|
22
|
(29
|
)
|
599
|
|||||||||||
|
||||||||||||||||
Kate Spade
|
||||||||||||||||
North America
|
197
|
4
|
(9
|
)
|
192
|
|||||||||||
International
|
181
|
11
|
(17
|
)
|
175
|
|||||||||||
|
||||||||||||||||
Stuart Weitzman
|
||||||||||||||||
North America
|
34
|
—
|
(5
|
)
|
29
|
|||||||||||
International
|
60
|
3
|
(6
|
)
|
57
|