10 unchanged sentences
Changes in Internal Control over Financial Reporting
−Removed: There were no changes in the Company’s internal control over financial reporting during the fourth quarter of 2025 that were identified in connection with management’s evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Securities Exchange Act of 1934, as amended, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
+Added: During the fourth quarter of fiscal 2026, the Company implemented a new human resources management and payroll accounting system, which resulted in an update to certain related internal controls.
+Added: Other than the human resources management and payroll accounting system implementation noted above, there were no changes in the Company’s internal control over financial reporting during the fourth quarter of fiscal 2026 that were identified in connection with management’s evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Securities Exchange Act of 1934, as amended, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
OTHER INFORMATION
31 unchanged sentences
Exhibit Description
−Removed: 3.1 Articles of Incorporation, dated June 1, 2000, which is incorporated herein by reference from Exhibit 3.1 of to the Registrant's Registration Statement on Form S-1 filed on June 16, 2000
+Added: 3.1 Articles of Incorporation, dated June 1, 2000, which is incorporated herein by reference from Exhibit 3.1 to the Registrant's Registration Statement on Form S-1 filed on June 16, 2000
3.2 Articles Supplementary of Coach, Inc., dated May 3, 2001, which is incorporated herein by reference from Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed on May 9, 2001
9 unchanged sentences
Bank National Association, as trustee, which is incorporated by reference from Exhibit 4.2 to the Registrant's Current Report on Form 8-K, filed on June 20, 2017
−Removed: Exhibit Description
4.4 Form of 4.125% senior unsecured notes due 2027 (included in the Third Supplemental Indenture), which is incorporated by reference from Exhibit 4.4 to the Registrant's Current Report on Form 8-K, filed on June 20, 2017
11 unchanged sentences
4.12 Description of Securities, which is incorporated by reference from Exhibit 4.9 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended June 27, 2020
−Removed: 10.1† Coach, Inc.
−Removed: Non-Qualified Deferred Compensation Plan for Outside Directors, which is incorporated by reference from Exhibit 10.14 to t he Registrant’s Annual Report on Form 10-K for the fiscal year ended June 28, 2003
10.1† Amended and Restated Tapestry, Inc.
2 unchanged sentences
2010 Stock Incentive Plan, which is incorporated by reference from Appendix A to the Registrant’s Definitive Proxy Statement for the 2010 Annual Meeting of Stockholders, filed on September 24, 2010
−Removed: 10.4† Coach, Inc.
−Removed: 2010 Stock Incentive Plan, which is incorporated by reference from Appendix A to the Registrant’s Definitive Proxy Statement for the 2010 Annual Meeting of Stockholders, filed on September 24, 2010
10.3† Amendment to the Coach, Inc.
8 unchanged sentences
Amended and Restated 2010 Stock Incentive Plan (Amended and Restated as of September 23, 2016), which is incorporated herein by reference from Appendix B to the Registrant's Definitive Proxy Statement for the 2016 Annual Meeting of the Stockholders, filed on September 30, 2016
+Added: 10.8† Coach, Inc.
Amended and Restated 2010 Stock Incentive Plan (Amended and Restated as of September 20, 2017), which is incorporated herein by reference from Appendix B to the Registrant's Definitive Proxy Statement for the 2017 Annual Meeting of the Stockholders, filed on September 29, 2017
2 unchanged sentences
10.10*† Form of Stock Option Grant Notice and Agreement under the Tapestry, Inc.
−Removed: 2018 Stock Incentive Plan, which is incorporated herein by reference from Exhibit 10.14 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended June 29, 2019
−Removed: Exhibit Description
+Added: 2018 Stock Incentive Plan
10.11*† Form of Restricted Stock Unit Award Grant Notice and Agreement under the Tapestry, Inc.
−Removed: 2018 Stock Incentive Plan, which is incorporated herein by reference from Exhibit 10.15 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended June 29, 2019
+Added: 2018 Stock Incentive Plan
10.12*† Form of Performance Restricted Stock Unit Agreement Grant Notice and Agreement under the Tapestry, Inc.
−Removed: 2018 Stock Incentive Plan, which is incorporated herein by reference from Exhibit 10.16 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended June 29, 2019
+Added: 2018 Stock Incentive Plan
10.13† Form of Stock Option Grant Notice and Agreement for Outside Directors under the Tapestry, Inc.
16 unchanged sentences
2018 Stock Incentive Plan, which is incorporated herein by reference from Appendix B to the Registrant's Definitive Proxy Statement for the 2019 Annual Meeting of Stockholders, filed on September 27, 2019
−Removed: 10.25 Credit Agreement, dated as of October 24, 2019, by and among the Registr ant , Bank of America, N.A.
−Removed: as Administrative Agent, JPMorgan Chase Bank, N.A.
−Removed: and HSBC Bank USA, N.A., as Co-Syndication Agents, and the other lenders party thereto, incorporated by reference from Exhibit 10.4 to the Registrant 's Quarterly Report on Form 10-Q filed on November 7, 2019
−Removed: 10.26 Amendment No.
−Removed: 1, dated May 19, 2020, to the Credit Agreement, dated as of October 24, 2019 by and among the Registr ant , Bank of America, N.A.
−Removed: as Administrative Agent, JPMorgan Chase Bank, N.A.
−Removed: and HSBC Bank USA, N.A., as Co-Syndication Agents, and the other lenders party thereto, which is incorporated herein by reference from Exhibit 10.37 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended June 27, 2020
10.23† Second Amended and Restated Tapestry Inc.
4 unchanged sentences
10.27† Letter Agreement, dated April 26, 2021, between the Registrant and Scott Roe, incorporated by reference from Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q
−Removed: 10.32 Waiver, dated August 11, 2021, to the Credit Agreement, dated as of October 24, 2019 by and among t h e Registra nt, Tapestry, Inc., Bank of America, N.A.
−Removed: as Administrative Agent, JPMorgan Chase Bank, N.A.
−Removed: and HSBC Bank USA, N.A., as Co-Syndication Agents, and the other lenders party thereto, which is incorporated herein by reference from Exhibit 10.44 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended July 3, 2021
−Removed: Exhibit Description
−Removed: 10.33 Credit Agreement dated as of May 11, 2022, among the Registran t, the foreign subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto, and Bank of America, N.A.
−Removed: as administrative agent, incorporated by reference from Exhibit 1.1 to the Registrant’s Current Report on Form 8-K filed on May 12, 2022
10.28† Letter Agreement, dated August 4, 2022, between the Registrant and Scott Roe, incorporated by reference from Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed on August 4, 2022
−Removed: 10.35*† Letter Agreement, dated August 11, 2023, between the Registrant and Denise Kulikowsky
−Removed: 10.36 Amendment No.
−Removed: 1, dated as of August 30, 2023, to the Credit Agreement, dated as of May 11, 2022, among the Registrant , the lenders party thereto and Bank of America, N.A., as administrative agent, which is incorporated herein by reference from Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on November 9, 2023
+Added: 10.29† Letter Agreement, dated August 11, 2023, between the Registrant and Denise Kulikowsky , incorporated by reference from Exhibit 10.35 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended June 28, 2025, filed August 14, 2025
10.30 Termination Agreement, dated November 13, 2024, by and among the Registrant, Sunrise Merger Sub, Inc.
and Capri Holdings Limited, incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on November 14, 2024
−Removed: 10.38 Term Loan Credit Agreement dated November 21, 2024 by and among the Registrant , Bank of America, N.A., as administrative agent, BofA Securities, Inc.
−Removed: and Morgan Stanley Senior Lending, Inc., as joint lead arrangers and the lenders party thereto, incorporated herein by reference from Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed on November 22, 2024
10.31 Form of ASR Agreement, incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on November 22, 2024
−Removed: 10.40 Amendment No.
−Removed: 2, dated as of December 20, 2024, to the Credit Agreement, dated as of May 11, 2022 (as amended by Amendment No.
−Removed: 1, dated as of August 30, 2023) among the Registrant , the lenders party thereto and Bank of America, N.A., as administrative agent, which is incorporated herein by reference from Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q filed on February 6, 2025
−Removed: 10.41 Credit Agreement dated as of May 22, 2025, among the Registr ant , the foreign subsidiary borrowers from time to time party thereto, the lenders party thereto, and Bank of America, N.A., as administrative agent, which is incorporated herein by reference from Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed on May 23, 2025
−Removed: 19.1 Insider Trading Policies and Procedures of the Registrant, which is inc orporated by reference from Exhibit 19.1 to the Registr ant 's Annual Report on Form 10-K filed on Au gust 15 , 2024
−Removed: 21.1* List of Subsidiaries of the Regist rant
+Added: 10.32 Credit Agreement dated as of May 22, 2025, among the Registrant, the foreign subsidiary borrowers from time to time party thereto, the lenders party thereto, and Bank of America, N.A., as administrative agent, which is incorporated herein by reference from Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed on May 23, 2025
+Added: 19.1 Insider Trading Policies and Procedures of the Registrant, which is incorporated by reference from Exhibit 19.1 to the Registrant's Annual Report on Form 10-K filed on August 15, 2024
+Added: 21.1* List of Subsidiaries of the Registrant
23.1* Consent of Deloitte & Touche LLP
3 unchanged sentences
32.2* Section 1350 Certification of the Registrant's Chief Financial Officer
−Removed: 97.1 Clawback Policy of the Registrant .
−Removed: which is incorporated by reference from Exhibit 97.1 to the Registrant’s Annual Report on Form 10-K filed on August 15, 2024
+Added: 97.1 Clawback Policy of the Registrant , which is incorporated by reference from Exhibit 97.1 to the Registrant’s Annual Report on Form 10-K filed on August 15, 2024
101.INS* Inline XBRL Instance Document
25 unchanged sentences
/s/ Anne Gates Independent Chair, Board of Directors
−Removed: Bilbrey Director
/s/ Darrell Cavens Director
9 unchanged sentences
/s/ Pam Lifford Director
+Added: /s/ Matt Madrigal Director
+Added: Matt Madrigal
/s/ Annabelle Yu Long Director
39 unchanged sentences
Changes in these assumptions could have a significant impact on either the fair values, the amount of any impairment charge, or both.
−Removed: For the year ended June 28, 2025, the Company recorded impairment charges of $244.1 million and $610.7 million related to Kate Spade Reporting Unit and Kate Spade indefinite-lived brand intangible, respectively.
−Removed: Given the significant judgments made by management to estimate the fair value of the Kate Spade operations used in both the brand's goodwill and indefinite-lived brand intangible fair value analyses, and the difference between their fair values and carrying values, performing auditing procedures to evaluate the reasonableness of management’s judgments regarding the business and valuation assumptions utilized in the valuation model, particularly the forecasts of future cash flows and growth rates and the selection of the discount rate, and market multiples required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.
+Added: As of the year ended June 27, 2026, the Kate Spade goodwill and indefinite-lived brand intangible assets had carrying amounts of $381.9 million and $699.1 million, respectively.
+Added: Given the significant judgments made by management to estimate the fair value of the Kate Spade operations used in both goodwill and indefinite-lived brand intangible fair value analyses, and the difference between their fair values and carrying values, performing auditing procedures to evaluate the reasonableness of management’s judgments regarding the business and valuation assumptions utilized in the valuation model, particularly the forecasts of future cash flows and growth rates and the selection of the discount rate, and market multiples required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.
How the Critical Audit Matter Was Addressed in the Audit
−Removed: Our audit procedures related to the forecasts, discount rates, and market multiples used by management to estimate the fair value of the Reporting Unit included the following, among others:
+Added: Our audit procedures related to the forecasts, discount rates, and market multiples used by management to estimate the fair values of the Kate Spade reporting unit and indefinite-lived brand intangible asset included the following, among others:
• We tested the effectiveness of management’s controls over Kate Spade’s goodwill and indefinite-lived brand intangible asset impairment evaluations, including controls over the forecasts of future Kate Spade revenue and profit margin, the selection of the discount rate and market multiples.
6 unchanged sentences
◦ Evaluating whether the forecasts were consistent with evidence obtained in other areas of the audit.
−Removed: • With the assistance of our fair value specialists, we evaluated the reasonableness valuation approaches for the Kate Spade Reporting Unit and the Kate Spade indefinite-lived brand intangible asset:
+Added: • With the assistance of our fair value specialists, we evaluated the reasonableness of the valuation approaches for the Kate Spade reporting unit and the Kate Spade indefinite-lived brand intangible asset:
◦ Testing the inputs underlying the determination of the discount rate and testing the mathematical accuracy of the calculation;
1 unchanged sentence
◦ Evaluating the reasonableness of the selected methodology to value the Kate Spade indefinite-lived brand intangible;
−Removed: ◦ Evaluating the reasonableness of the selected guideline public companies as well as benchmarking the selected multiples against these guidelines public companies;
+Added: ◦ Evaluating the reasonableness of the selected guideline public companies as well as benchmarking the selected multiples against these guideline public companies;
◦ Testing the source information underlying the determination of the market multiples;
1 unchanged sentence
◦ Evaluating the implied equity premium and the market value of equity
−Removed: • We evaluated the reasonableness of the inputs and the mathematical accuracy of the calculation used to calculate the impairment recorded.
/s/ Deloitte & Touche LLP
79 unchanged sentences
2026 June 28,
+Added: 2025 June 29,
(millions, except per share data)
9 unchanged sentences
Income (loss) before provision for income taxes 1,860.6 216.1 1,011.9
−Removed: Provision for income taxes 32.9 195.9 207.1
+Added: Provision (benefit) for income taxes 332.9 32.9 195.9
Net income (loss) $ 1,527.7 $ 183.2 $ 816.0
10 unchanged sentences
2026 June 28,
+Added: 2025 June 29,
Net income (loss) $ 1,527.7 $ 183.2 $ 816.0
3 unchanged sentences
Foreign currency translation adjustments 24.9 ( 58.3 ) 22.0
+Added: Other ( 0.1 ) — —
Other comprehensive income (loss), net of tax 42.6 ( 115.3 ) 44.0
8 unchanged sentences
Other comprehensive income (loss) — — — — 44.0 44.0
−Removed: Shares issued, pursuant to stock-based compensation arrangements, net of shares withheld for taxes 4.0 0.1 ( 16.8 ) — — ( 16.7 )
+Added: Shares issued, pursuant to share-based compensation arrangements, net of shares withheld for taxes 2.8 — ( 5.4 ) — — ( 5.4 )
Share-based compensation — — 85.9 — — 85.9
2 unchanged sentences
— — — ( 321.4 ) — ( 321.4 )
−Removed: Balance at July 1, 2023 227.4 2.3 3,682.2 ( 1,216.8 ) ( 189.9 ) 2,277.8
+Added: Balance at June 29, 2024 230.2 2.3 3,762.7 ( 722.2 ) ( 145.9 ) 2,896.9
Net income (loss) — — — 183.2 — 183.2
Other comprehensive income (loss) — — — — ( 115.3 ) ( 115.3 )
−Removed: Shares issued, pursuant to stock-based compensation arrangements, net of shares withheld for taxes 2.8 — ( 5.4 ) — — ( 5.4 )
+Added: Shares issued, pursuant to share-based compensation arrangements, net of shares withheld for taxes 6.3 — 119.6 — — 119.6
Share-based compensation — — 91.4 — — 91.4
5 unchanged sentences
Other comprehensive income (loss) — — — — 42.6 42.6
−Removed: Shares issued, pursuant to stock-based compensation arrangements, net of shares withheld for taxes 6.3 — 119.6 — 119.6
+Added: Shares issued, pursuant to share-based compensation arrangements, net of shares withheld for taxes 3.8 — 37.3 — 37.3
Share-based compensation — — 107.4 — — 107.4
8 unchanged sentences
2026 June 28,
+Added: 2025 June 29,
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES
2 unchanged sentences
Depreciation and amortization 160.8 162.9 174.0
+Added: Amortization of cloud computing arrangements 56.4 62.0 55.0
Impairment charges — 854.8 —
2 unchanged sentences
Share-based compensation 104.5 87.3 85.9
−Removed: Amortization of cloud computing arrangements 62.0 55.0 42.0
Deferred income taxes 50.8 ( 139.8 ) 2.5
13 unchanged sentences
Purchases of property and equipment ( 166.0 ) ( 122.7 ) ( 108.9 )
+Added: Proceeds from sale of business, net of cash divested 109.1 — —
Settlement of net investment hedge — — 103.7
7 unchanged sentences
Payment of debt extinguishment costs — ( 63.5 ) —
−Removed: Proceeds from share-based awards 156.1 27.3 38.8
Repayment of debt — ( 7,163.3 ) ( 468.8 )
+Added: Proceeds from share-based awards 118.9 156.1 27.3
Taxes paid to net settle share-based awards ( 81.6 ) ( 36.5 ) ( 32.7 )
4 unchanged sentences
Effect of exchange rate changes on cash and cash equivalents ( 24.6 ) 26.3 ( 12.2 )
−Removed: Net (decrease) increase in cash and cash equivalents, including cash classified within assets held for sale ( 5,018.3 ) 5,415.9 ( 63.7 )
−Removed: net (decrease) increase in cash classified within current assets held for sale ( 23.7 ) — —
−Removed: Net (decrease) increase in cash and cash equivalents ( 5,042.0 ) 5,415.9 ( 63.7 )
+Added: Net increase (decrease) in cash and cash equivalents, including cash classified within assets held for sale ( 125.3 ) ( 5,018.3 ) 5,415.9
+Added: net increase (decrease) in cash classified within current assets held for sale — ( 23.7 ) —
+Added: Net increase (decrease) in cash and cash equivalents ( 125.3 ) ( 5,042.0 ) 5,415.9
Cash and cash equivalents at beginning of year 1,100.0 6,142.0 726.1
9 unchanged sentences
Tapestry, Inc.
−Removed: (the "Company") is a house of iconic accessories and lifestyle brands.
−Removed: Our global house of brands unites the magic of Coach and kate spade new york.
−Removed: Each of our brands are unique and independent, while sharing a commitment to innovation and authenticity defined by distinctive products and differentiated customer experiences across channels and geographies.
−Removed: We use our collective strengths to move our customers and empower our communities, to make the fashion industry more sustainable, and to harness the power of an inclusive culture.
−Removed: Individually, our brands are iconic.
−Removed: Together, we can stretch what’s possible.
−Removed: The Coach, Kate Spade and Stuart Weitzman segments include global sales of products to customers through our direct-to-consumer ("DTC"), wholesale and licensing businesses.
−Removed: On February 16, 2025, the Company entered into a sale and purchase agreement (the “Purchase Agreement”) with Caleres, Inc.
−Removed: (the “Purchaser”) to sell the Stuart Weitzman Business (defined below).
−Removed: The sale was completed on August 4, 2025.
−Removed: Refer to Note 5, "Acquisitions and Divestitures," and Note 21, "Subsequent Events," for further information.
+Added: (the "Company") is a global house of iconic accessories and lifestyle brands uniting the magic of Coach and kate spade new york.
+Added: Together, we stretch what’s possible – advancing brands further than they could go alone, expanding their reach to new geographies and generations.
+Added: Inspired by our consumers, we create experiences and products that build lasting brand love and elevate everyday life.
+Added: The Coach and Kate Spade segments include global sales of products to customers through our direct-to-consumer ("DTC"), wholesale and licensing businesses.
+Added: On August 4, 2025, the Company completed the previously announced sale of the Stuart Weitzman Business (defined below).
+Added: Refer to Note 5, "Acquisitions and Divestitures," for further information.
BASIS OF PRESENTATION AND ORGANIZATION
−Removed: The Company’s fiscal year ends on the Saturday closest to June 30.
+Added: The Company utilizes a 52-53 week fiscal year ending on the Saturday closest to June 30.
Unless otherwise stated, references to years in the financial statements relate to fiscal years.
The fiscal year ended June 27, 2026 (“fiscal 2026”) was a 52-week period.
−Removed: The fiscal year ended June 29, 2024 (“fiscal 2024”) was a 52-week period and the fiscal year ended July 1, 2023 (“fiscal 2023”) was a 52-week period.
−Removed: The fiscal year ending June 27, 2026 (“fiscal 2026”) will be a 52-week period.
+Added: The fiscal year ended June 28, 2025 (“fiscal 2025”) was a 52-week period and the fiscal year ended June 29, 2024 (“fiscal 2024”) was a 52-week period.
+Added: The fiscal year ending July 3, 2027 (“fiscal 2027”) will be a 53-week period.
Use of Estimates
18 unchanged sentences
Share Repurchases
−Removed: The Company accounts for stock repurchases by allocating the repurchase price to common stock and retained earnings.
+Added: The Company accounts for stock repurchases by allocating the repurchase price to Common stock and Retained earnings (accumulated deficit).
Under Maryland law, the Company's state of incorporation, there are no treasury shares.
2 unchanged sentences
The Company may terminate or limit the stock repurchase program at any time.
−Removed: The Company accrues for the shares purchased under the share repurchase plan based on the trade date.
+Added: The Company accounts for the shares purchased under the share repurchase plan based on the trade date.
Purchases of the Company's common stock may be executed through open market purchases including through purchase agreements under Rule 10b5-1, in privately negotiated transactions or in other transactions, including accelerated share repurchase programs.
−Removed: Excise tax on net share repurchases are recorded in Retained earnings as part of Stockholders' Equity.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements
+Added: Excise tax on net share repurchases is recorded in Retained earnings (accumulated deficit) as part of Stockholders' Equity.
SIGNIFICANT ACCOUNTING POLICIES
1 unchanged sentence
Cash and cash equivalents consist of cash balances and highly liquid investments with a maturity of three months or less at the date of purchase.
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements
Short-term investments consist primarily of high-credit quality U.S.
31 unchanged sentences
Maintenance and repair costs are charged to earnings as incurred while expenditures for major renewals and improvements are capitalized.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements
Valuation of Long-Lived Assets
3 unchanged sentences
The Company recorded $ 7.8 million and $ 8.8 million of impairment charges within SG&A expense in the Consolidated Statement of Operations in fiscal 2026 and fiscal 2025, respectively.
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements
In determining future cash flows, the Company takes various factors into account, including the effects of macroeconomic trends such as consumer spending, in-store capital investments, promotional cadence, the level of advertising and changes in merchandising strategy.
15 unchanged sentences
The Company performs its annual impairment assessment of goodwill as well as brand intangibles during the fourth quarter of each fiscal year or if an event occurs that would more likely than not reduce the fair value below its carrying amount.
−Removed: In fiscal 2025, the Company recorded a goodwill impairment charge of $ 244.1 million related to the Kate Spade reporting unit and an intangible impairment charge of $ 610.7 million related to the Kate Spade indefinite-lived brand intangible asset within Impairment of goodwill and intangible assets in the Consolidated Statement of Operations.
The Company determined that there was no impairment in fiscal 2026.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements
+Added: In fiscal 2025, the Company recorded a goodwill impairment charge of $ 244.1 million related to the Kate Spade reporting unit and an intangible impairment charge of $ 610.7 million related to the Kate Spade indefinite-lived brand intangible asset within Impairment of goodwill and intangible assets in the Consolidated Statement of Operations.
Supplier Finance Program
10 unchanged sentences
Obligations outstanding, end of year $ 318.4 $ 272.8
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements
Operating Leases
19 unchanged sentences
As of the end of fiscal 2026 and fiscal 2025, the Company had asset retirement obligations of $ 65.0 million and $ 58.4 million, respectively, primarily classified within Other non-current liabilities in the Company's Consolidated Balance Sheets.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements
Revenue Recognition
−Removed: Revenue is recognized when the Company satisfies its performance obligations by transferring control of promised products or services to its customers, which may be at a point of time or over time.
+Added: Revenue is recognized when the Company satisfies its performance obligations by transferring control of promised products or services to its customers, which may be at a point in time or over time.
Control is transferred when the customer obtains the ability to direct the use of and obtain substantially all of the remaining benefits from the products or services.
9 unchanged sentences
The Company recognizes licensing revenue over time during the contract period in which licensees are granted access to the Company's trademarks.
−Removed: These arrangements require licensees to pay a sales-based royalty and may include a contractually guaranteed minimum royalty amount.
+Added: These arrangements require licensees to pay a sales-based royalty and may include a contractually
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements
+Added: guaranteed minimum royalty amount.
Revenue for contractually guaranteed minimum royalty amounts is recognized ratably over the license year and any excess sales-based royalties are recognized as earned once the minimum royalty threshold is achieved.
5 unchanged sentences
Cost of sales consists of inventory costs and other related costs such as reserves for inventory realizability and shrinkage, damages and replacements.
−Removed: Selling, General and Administrative ("SG&A") Expenses
+Added: Other Selling, General and Administrative ("SG&A") Expenses
Selling expenses include store employee compensation, occupancy costs, depreciation, supply costs, wholesale and retail account administration compensation globally.
7 unchanged sentences
The balance of the Company's transportation-related costs related to its distribution network is included in SG&A expenses rather than in Cost of sales.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements
Advertising costs include expenses related to direct marketing activities, such as digital and other media and production costs.
11 unchanged sentences
The Company estimates the forfeiture rate based on historical experience as well as expected future behavior.
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements
The Company grants performance-based share awards to key executives, the vesting of which is subject to the executive’s continuing employment and the Company's or individual's achievement of certain performance goals.
11 unchanged sentences
Although the Company believes that the estimates and assumptions used are reasonable and legally supportable, the final determination of tax audits could be different than that which is reflected in historical tax provisions and recorded assets and liabilities.
−Removed: Tax authorities periodically audit the Company’s income tax returns, these tax authorities may take a contrary position that could result in a significant impact on the Company's results of operations.
+Added: Tax authorities periodically audit the Company’s income tax returns;
+Added: these tax authorities may take a contrary position that could result in a significant impact on the Company's results of operations.
Significant management judgment is required in determining the effective tax rate, in evaluating tax positions and in determining the net realizable value of deferred tax assets.
Refer to Note 15, "Income Taxes," herein for further discussion on the Company's income taxes.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements
Derivative Instruments
−Removed: The majority of the Company’s purchases of finished goods are denominated in U.S.
−Removed: dollars, which limits the Company’s exposure to the transactional effects of foreign currency exchange rate fluctuations.
−Removed: However, the Company is exposed to foreign currency exchange risk related to its sale of U.S.
−Removed: dollar inventory to foreign operating subsidiaries in local currency, as well as risk related to various cross-currency intercompany loans and payables, and translation risk.
−Removed: The Company is also exposed to foreign currency risk related to changes in the U.S.
−Removed: dollar value of its net investment in foreign subsidiaries.
+Added: The Company is exposed to foreign currency exchange risk related to its sale of inventory, cross-currency intercompany loans and payables, and the remeasurement and translation of foreign operations.
+Added: The Company is also exposed to interest rate risk related to changes in the fair value of the Company's fixed-rate debt.
The Company uses derivative financial instruments to manage these risks.
These derivative transactions are in accordance with the Company’s risk management policies.
−Removed: The Company does not enter into derivative transactions for speculative or trading purposes.
−Removed: The Company records all derivative contracts at fair value on the Consolidated Balance Sheets.
−Removed: The fair values of foreign currency derivatives are based on the forward curves of the specific indices upon which settlement is based and include an adjustment for the counterparty's or Company’s credit risk.
−Removed: Judgment is required of management in developing estimates of fair value.
−Removed: The use of different market assumptions or methodologies could affect the estimated fair value.
−Removed: For cash flow derivative instruments that qualify for hedge accounting, the changes in the fair value of these instruments are recognized as a component of Accumulated other comprehensive income (loss) ("AOCI") until the hedged item is recognized in earnings.
−Removed: For derivative instruments that are designated as a net investment hedge, the changes in the fair value of the instruments are recognized as a component of AOCI and, upon discontinuation of the hedge, remain in AOCI until the net investment is sold or liquidated.
Each derivative instrument entered into by the Company that qualifies for hedge accounting is expected to be highly effective at reducing the risk associated with the exposure being hedged.
−Removed: For each derivative that is designated as a hedge, the Company documents the related risk management objective and strategy, including identification of the hedging instrument, the hedged item and the risk exposure, as well as how hedge effectiveness will be assessed over the term of the instrument.
−Removed: The extent to which a hedging instrument has been and is expected to remain highly effective in achieving offsetting changes in fair value or cash flows is assessed and documented by the Company on at least a quarterly basis.
−Removed: If it is determined that a derivative instrument has not been highly effective and will continue not to be highly effective in hedging the designated exposure, hedge accounting is discontinued and further gains (losses) are recognized in earnings within foreign currency gains (losses) or interest income (expense).
−Removed: Upon discontinuance of hedge accounting, the cumulative change in fair value of cash flow derivatives previously recorded in AOCI is recognized in earnings when the related hedged item affects earnings, consistent with the original hedging strategy, unless the forecasted transaction is no longer probable of occurring, in which case the accumulated amount is immediately recognized in earnings within foreign currency gains (losses) or interest income (expense).
−Removed: For foreign currency derivative instruments which are not designated as hedges, the changes in fair value of the instruments are recorded through earnings.
−Removed: These changes generally offset the revaluation of certain underlying assets and liabilities.
+Added: The Company does not enter into derivative transactions for speculative or trading purposes.
+Added: The Company records all derivative contracts at fair value on the Consolidated Balance Sheets on a gross basis.
As a result of the use of derivative instruments, the Company may be exposed to the risk that the counterparties to such contracts will fail to meet their contractual obligations.
To mitigate this counterparty credit risk, the Company has a policy of only entering into contracts with carefully selected financial institutions based upon an evaluation of their credit ratings, among other factors.
−Removed: The fair values of the Company’s derivative instruments are recorded on its Consolidated Balance Sheets on a gross basis.
+Added: The fair values of the Company’s derivative instruments are based on the forward curves of the specific indices upon which settlement is based and include an adjustment for the counterparty's or Company’s credit risk.
+Added: Judgment is required of management in developing estimates of fair value.
+Added: The use of different market assumptions or methodologies could affect the estimated fair value.
+Added: Cash Flow Hedges
+Added: The Company enters into forward foreign currency exchange contracts primarily to reduce its risks related to exchange rate fluctuations on foreign currency denominated inventory transactions.
+Added: This primarily includes exposure to exchange rate fluctuations in Chinese Renminbi, Japanese Yen, Canadian Dollar and Euro.
+Added: The derivative instrument gains (losses) are initially deferred in accumulated other comprehensive income ("AOCI") and subsequently recognized in the Consolidated Statements of Operations within Cost of sales, when the related inventory is sold to a third-party.
+Added: If it is determined that a derivative instrument has not been highly effective or will continue not to be highly effective in hedging the designated exposure, hedge accounting is discontinued and further gains (losses) are recognized in earnings.
+Added: Upon discontinuance of hedge accounting, amounts previously recorded in AOCI are recognized in earnings when the related hedged
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements
+Added: item affects earnings, unless it is probable that the forecasted transaction will not occur, in which case the accumulated amount is immediately recognized in earnings.
+Added: For cash flow reporting purposes, the Company classifies proceeds received or amounts paid upon the settlement of the cash flow hedging instruments in the same manner as the related item being hedged, primarily within cash from operating activities.
+Added: Net Investment Hedges
+Added: The Company enters into cross-currency swaps and forward foreign currency exchange contracts to reduce its risks related to exchange rate fluctuations on net investments in foreign subsidiaries, including our Euro, Japanese Yen and Chinese Renminbi denominated subsidiaries, against future volatility in the exchange rates between the United States dollar and their local currencies.
+Added: The related gains (losses) are deferred within cumulative translation adjustment (“CTA”) in AOCI until the net investment is sold or liquidated, and current maturity dates range from September 2029 to November 2038.
+Added: The Company assesses net investment hedges under the spot method, resulting in cross-currency basis spread on swaps and the spot to forward rate difference on forward exchanges being excluded from the assessment of hedge effectiveness.
+Added: The portion of change in fair value attributable to excluded components is recorded in AOCI and amortized to earnings within Interest expense, net.
+Added: Upon termination of derivative instruments that are designated as a net investment hedge, the changes in the fair value of the instruments recognized as a component within AOCI remain in CTA until the net investment is sold or liquidated.
+Added: If it is determined that a derivative instrument has not been highly effective or will continue not to be highly effective in hedging the designated exposure, hedge accounting is discontinued and further gains (losses) are recognized in earnings.
+Added: For cash flow reporting purposes, proceeds received or amounts paid upon the settlement of a net investment hedge are included within cash from investing activities, unless the derivative instrument includes an other-than-insignificant financing element, for which these cash flows are primarily classified within cash from financing activities.
+Added: Fair Value Hedges
+Added: The Company enters into cross-currency swaps to reduce its risks related to foreign exchange rate fluctuations associated with certain cross-currency intercompany loans.
+Added: Changes in the fair value of the cross-currency swaps designated as fair value hedges are recognized within Other expense (income) on the Company's Consolidated Statement of Operations, which generally offset the adjustment to the carrying amount of the hedged item.
+Added: The portion of the change in the fair value of designated cross-currency swap contracts attributable to the excluded component is recorded in AOCI and amortized to earnings within Other expense (income).
+Added: If it is determined that a derivative instrument has not been highly effective or will continue not to be highly effective in hedging the designated exposure, any amounts associated with excluded components in AOCI would be reclassified into earnings immediately.
+Added: The Company also enters into interest rate contracts to reduce exposure to changes in the fair value of certain fixed‑rate debt resulting from fluctuations in benchmark interest rates.
+Added: The gains and losses on the interest rate contracts designated as fair value hedges are recognized in the Consolidated Statements of Operations as Interest expense, net and are generally offset by corresponding changes in the fair value of the hedged liabilities.
+Added: If it is determined that a derivative instrument has not been highly effective or will continue not to be highly effective in hedging the designated exposure, the hedged asset or liability is no longer adjusted for changes in fair value and any basis adjustment is amortized to earnings over the remaining term of the hedged item, unless the hedged item is derecognized, in which case the basis adjustment is recognized in earnings immediately.
+Added: Additionally, any amounts associated with excluded components in AOCI are reclassified into earnings in the same manner.
For cash flow reporting purposes, the Company classifies proceeds received or amounts paid upon the settlement of a derivative instrument in the same manner as the related item being hedged, primarily within cash from operating activities.
+Added: Undesignated Hedges
+Added: The Company also enters into forward foreign currency exchange contracts, which are not designated as hedges, to reduce its risks related to exchange rate fluctuations associated with certain cross-currency intercompany loans and payables.
+Added: The changes in the fair value of these instruments are recorded through earnings within Other expense (income) on the Company's Consolidated Statement of Operations, which offset the revaluation of the hedged underlying assets and liabilities.
+Added: For cash flow reporting purposes, the Company classifies proceeds received or amounts paid upon the settlement of a derivative instrument in the same manner as the related item being hedged, primarily within cash from operating activities.
TAPESTRY, INC.
Notes to Consolidated Financial Statements
−Removed: Hedging Portfolio
−Removed: The Company enters into forward currency contracts primarily to reduce its risks related to exchange rate fluctuations on foreign currency denominated inventory transactions, as well as various cross-currency intercompany loans and payables.
−Removed: This primarily includes exposure to exchange rate fluctuations in the Japanese Yen, the Chinese Renminbi and the Canadian Dollar.
−Removed: To the extent its derivative contracts designated as cash flow hedges are highly effective in offsetting changes in the value of the hedged items, the related gains (losses) are initially deferred in AOCI and subsequently recognized in the Consolidated Statements of Operations as part of the cost of the inventory purchases being hedged within Cost of sales, when the related inventory is sold to a third-party.
−Removed: Current maturity dates range from July 2025 to March 2027.
−Removed: Forward foreign currency exchange contracts which are not designated as hedges of intercompany and other contractual obligations are recognized within Other expense (income) on the Company's Consolidated Statement of Operations.
−Removed: The maturity date of most instruments held as of June 28, 2025 range from August 2025 to September 2025, and such contracts are typically renewed upon maturity if the related balance has not been settled.
−Removed: During fiscal 2024, the Company also entered into interest rate derivative contracts to reduce its risks related to changes in the benchmark interest rates on its debt obligations.
−Removed: Any premiums related to these instruments were excluded from the Company's measurement of hedge effectiveness and were amortized over the period between the hedge execution and the contract maturity.
−Removed: The related gains (losses) were initially deferred in AOCI and are subsequently recognized in the Consolidated Statements of Operations as interest income (expense) in the same periods during which the hedged interest payments associated with the Company’s borrowings are recorded in earnings.
−Removed: As of June 28, 2025 and June 29, 2024, there were no interest rate derivative contracts outstanding.
−Removed: The Company also enters into cross-currency swaps to reduce its risks related to exchange rate fluctuations on net investments in foreign subsidiaries, including our net investment in Euro-denominated subsidiaries, Japanese Yen-denominated subsidiaries and Chinese Renminbi subsidiaries against future volatility in the exchange rates between the United States dollar and their local currencies.
−Removed: The related gains (losses) are deferred in AOCI until the net investment is sold or liquidated, and current maturity dates range from November 2027 to March 2035.
Foreign Currency
2 unchanged sentences
dollars using the current exchange rates in effect at the balance sheet date, while revenues and expenses are translated at the weighted-average exchange rates for the period.
−Removed: The resulting translation adjustments are included in the Consolidated Statements of Comprehensive Income as a component of Other comprehensive income (loss) (“OCI”) and in the Consolidated Statements of Equity within AOCI.
+Added: The resulting translation adjustments are included in the Consolidated Statements of Comprehensive Income as a component of Other comprehensive income (loss) (“OCI”) and in the Consolidated Statements of Stockholders’ Equity within AOCI.
The Company recognizes gains and losses on transactions that are denominated in a currency other than the respective entity's functional currency in earnings.
Foreign currency transaction gains and losses also include amounts realized on the settlement of certain intercompany loans with foreign subsidiaries.
+Added: Changes in Laws and Regulations
+Added: During the second half of fiscal 2025, the U.S.
+Added: Government announced tariffs on imports from select countries.
+Added: The majority of the Company's products sold in the U.S.
+Added: are imported from countries in which these tariffs were announced.
+Added: Additionally, during the first quarter of fiscal 2026, the President of the United States issued an executive order removing the de minimis exemption for low value shipments imported into the U.S.
+Added: for all countries beginning August 29, 2025.
+Added: On February 20, 2026, the U.S.
+Added: Supreme Court ruled that tariffs collected under the International Emergency Economic Powers Act ("IEEPA") were invalid.
+Added: Court of International Trade subsequently ordered refunds for qualifying customs entries, including applicable interest.
+Added: Customs and Border Protection established a phased administrative process for submitting refund claims for certain IEEPA tariffs.
+Added: During the fourth quarter of fiscal 2026, the Company received cash refunds related to the previously paid IEEPA tariffs of $ 2.1 million, of which $ 2.0 million was recognized as a reduction to Cost of sales and $ 0.1 million as a reduction to Selling, general and administrative expenses.
+Added: In addition, as of June 27, 2026, the Company applied the loss recovery model and determined that the receipt of the remaining refunds of the previously paid IEEPA tariffs was probable.
+Added: The Company estimates the amount of the probable refund to be $ 114.7 million, of which $ 96.2 million was recognized as a reduction to Cost of sales, $ 9.5 million was recorded as Accrued liabilities and $ 9.0 million was applied as a reduction to tariffs that remained in Inventory.
+Added: The tariff refund receivable was recorded within Other current assets on the Consolidated Balance Sheets as of June 27, 2026.
Recently Adopted Accounting Pronouncements
−Removed: In November 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No.
−Removed: 2023-07, "Segment Reporting (Topic 280):
−Removed: Improvements to Reportable Segment Disclosures", which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.
−Removed: The amendments will require public entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss.
−Removed: The amendments will be effective for the Company's annual reporting periods beginning in fiscal year 2025 and for interim periods beginning in fiscal year 2026, with early adoption permitted, and will be applied retrospectively to all prior periods presented in the financial statements.
−Removed: The Company adopted ASU 2023-07 for fiscal year 2025.
−Removed: The adoption of ASU 2023-07 did not have an impact on the Company's consolidated financial statements other than the new disclosure requirements.
−Removed: Refer to Note 17, "Segment Information", for additional information.
−Removed: Recently Issued Accounting Pronouncements
In December 2023, the FASB issued ASU No.
2 unchanged sentences
The amendments are effective for the Company's annual periods beginning in fiscal year 2026, with early adoption permitted, and should be applied either prospectively or retrospectively.
−Removed: The Company is currently evaluating the ASU to determine its impact on the Company's disclosures.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements
+Added: The Company adopted ASU 2023-09 for fiscal year 2026 and applied its provisions on a prospective basis.
+Added: Other than the enhanced disclosure requirements, ASU 2023-09 did not have an impact on the Company's consolidated financial statements.
+Added: Refer to Note 15, "Income Taxes", for additional information.
+Added: Recently Issued Accounting Pronouncements
In November 2025, the FASB issued ASU No.
+Added: 2025-09, "Derivatives and Hedging (Topic 815):
+Added: Hedge Accounting Improvements," which includes amendments intended to more closely align hedge accounting with the economics of an entity's risk management activities.
+Added: The amendments will be effective for the Company's annual reporting periods beginning in fiscal year 2028 and for interim periods within fiscal year 2028.
+Added: Early adoption is permitted and the amendments should be applied prospectively.
+Added: The Company is currently evaluating the ASU to determine its impact on its consolidated financial statements and notes thereto.
+Added: In September 2025, the FASB issued ASU No.
+Added: 2025-06, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40):
+Added: Targeted Improvements to the Accounting for Internal-Use Software", which modernizes the accounting for the costs of software developed for internal use and clarifies related disclosure requirements.
+Added: The amendments remove all references to software development stages, requiring companies to start capitalizing software costs when (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended.
+Added: The amendments will be effective for the Company's annual reporting periods beginning in fiscal year 2029 and for interim periods within fiscal year 2029.
+Added: Early adoption is permitted.
+Added: The amendments may be applied either prospectively or retrospectively.
+Added: The Company is currently evaluating the ASU to determine its impact on its consolidated financial statements and notes thereto.
+Added: In November 2024, the FASB issued ASU No.
2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):
−Removed: Disaggregation of Income Statement Expenses", which is intended to improve the disclosures about expenses and address requests from investors for more detailed information about the types of costs and expenses included in certain expense captions presented on the income statement.
+Added: Disaggregation of Income Statement Expenses", which is intended to improve
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements
+Added: the disclosures about expenses and address requests from investors for more detailed information about the types of costs and expenses included in certain expense captions presented on the income statement.
The amendments will be effective for the Company's annual reporting periods beginning in fiscal year 2028 and for interim periods beginning in fiscal year 2029, with early adoption permitted.
1 unchanged sentence
The Company is currently evaluating the ASU to determine its impact on the Company's disclosures.
−Removed: The Company recognizes revenue primarily from sales of the products of its brands through our Direct-to-consumer ("DTC") business, which includes our retail stores and e-commerce sites, along with our wholesale business.
+Added: The Company recognizes revenue primarily from sales of the products of its brands through our DTC business, which includes our retail stores and e-commerce sites, along with our wholesale business.
The Company also generates revenue from royalties related to licensing its trademarks, as well as sales in ancillary business channels.
5 unchanged sentences
There are no other contracts with transaction price allocated to remaining performance obligations other than future minimum royalties as discussed above, which are not material.
−Removed: Other practical expedients elected by the Company include (i) assuming no significant financing component exists for any contract with a duration of one year or less, (ii) accounting for shipping and handling as a fulfillment activity within SG&A expense regardless of the timing of the shipment in relation to the transfer of control and (iii) excluding sales and value added tax from the transaction price.
+Added: Other practical expedients elected by the Company include (i) assuming no significant financing component exists for any contract with a duration of one year or less, (ii) accounting for shipping and handling as a fulfillment activity within SG&A expense regardless of the timing of the shipment in relation to the transfer of control and (iii) excluding sales and value-added taxes from the transaction price.
Direct-to-Consumer
5 unchanged sentences
The Company also uses historical information to estimate the amount of gift card balances that will never be redeemed and recognizes that amount as revenue over time in proportion to actual customer redemptions if the Company does not have a legal obligation to remit unredeemed gift cards to any jurisdiction as unclaimed property.
−Removed: Certain of the Company's retail operations use sales incentive programs, such as customer loyalty programs and the issuance of coupons.
−Removed: Loyalty programs provide the customer a material right to acquire additional products and give rise to the Company having a separate performance obligation.
−Removed: Additionally, certain products sold by the Company include an assurance warranty that is not considered a separate performance obligation.
−Removed: These programs are immaterial individually and in the aggregate.
The Company recognizes revenue within the wholesale channel at the time title passes and risk of loss is transferred to customers, which is generally at the point of shipment of products but may occur upon receipt of the shipment by the customer in certain cases.
2 unchanged sentences
Discounts are based on contract terms with the customer, while cooperative advertising allowances and other consideration may be based on contract terms or negotiated on a case-by-case basis.
−Removed: Returns and markdowns generally require approval from the Company and are estimated based on historical trends, current season results and inventory positions at the
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements
−Removed: wholesale locations, current market and economic conditions as well as, in select cases, contractual terms.
+Added: Returns and markdowns generally require approval from the Company and are estimated based on historical trends, current season results and inventory positions at the wholesale locations, current market and economic conditions as well as, in select cases, contractual terms.
The Company's historical estimates of these variable amounts have not differed materially from actual results.
2 unchanged sentences
Revenue for contractually guaranteed minimum royalty amounts is recognized ratably over the license year and any excess sales-based royalties are recognized as earned once the minimum royalty threshold is achieved.
−Removed: Payments from the customer are generally due quarterly in an amount based on the licensee's sales of goods bearing the licensed trademarks during the period, which may differ from the amount of revenue recorded during the period thereby generating a contract asset or liability.
+Added: Payments from the customer are generally due quarterly in an amount based on the licensee's sales of goods bearing the licensed trademarks during the period, which may differ from the amount of revenue recorded during the period thereby
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements
+Added: generating a contract asset or liability.
Contract assets and liabilities and contract costs related to the licensing arrangements are immaterial as the licensing business represents approximately 1 % of total net sales in the fiscal year ended June 27, 2026.
17 unchanged sentences
(1) Greater China includes mainland China, Taiwan, Hong Kong SAR, and Macao SAR.
−Removed: (2) Other Asia includes Japan, Malaysia, Australia, South Korea, Singapore, and other countries primarily within Asia.
+Added: (2) Other Asia includes Japan, Australia, Malaysia, South Korea, Singapore, and other countries primarily within Asia.
(3) Other sales primarily represents sales in Europe and the Middle East as well as royalties earned from the Company's licensing partners.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements
Deferred Revenue
3 unchanged sentences
For the fiscal year ended June 27, 2026, net sales of $ 10.9 million were recognized from amounts recorded as deferred revenue as of June 28, 2025.
−Removed: For the fiscal year ended June 29, 2024, net sales of $ 27.7 million were recognized from amounts recorded as deferred revenue as of July 1, 2023.
+Added: For the fiscal year ended June 28, 2025, net sales of $ 24.2 million were recognized from amounts recorded as deferred revenue as of June 29, 2024.
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements
ACQUISITIONS AND DIVESTITURES
2 unchanged sentences
(the “Purchaser”) to sell the Stuart Weitzman Business (as defined below).
−Removed: The Purchaser acquired certain assets and liabilities of the Company's global business of designing, manufacturing, promotion, marketing, production, distribution, sales and licensing of Stuart Weitzman branded products (the "Stuart Weitzman Business") for total cash consideration of $ 105.0 million (the "Purchase Price").
−Removed: The Purchase Price is subject to customary adjustments for cash, indebtedness, net working capital and transaction expenses.
The sale was completed on August 4, 2025 (the "Stuart Weitzman Business Divestiture").
−Removed: Refer to Note 21, "Subsequent Events," for further information.
−Removed: In fiscal 2025, the Company determined that certain assets and liabilities related to the Company's Stuart Weitzman Business met the criteria for classification as held for sale.
−Removed: The planned sale of the Stuart Weitzman Business does not represent a strategic shift that will have a major effect on the Company's operations and financial results and therefore does not qualify for presentation as a discontinued operation.
−Removed: The assets and liabilities of the Stuart Weitzman Business are recorded at the lower of their carrying values or estimated fair values, less any costs to sell.
−Removed: In fiscal 2025, the Company incurred total pre-tax charges related to the Stuart Weitzman Business Divestiture of $ 23.7 million primarily due to the loss on remeasurement of the business held for sale, professional fees, share-based compensation expense and store impairment which were recorded in selling, general and administrative ("SG&A") expenses mainly within the Corporate segment on the Consolidated Statements of Operations.
−Removed: As of June 28, 2025, the assets and liabilities relating to the Stuart Weitzman Business are presented in the Consolidated Balance Sheet as Assets held for sale and Liabilities held for sale.
−Removed: Long-lived assets classified as held for sale are not depreciated or amortized.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements
−Removed: The following table presents the major classes of assets and liabilities that were classified as assets and liabilities held for sale, respectively, in the Consolidated Balance Sheets:
−Removed: June 28, 2025
−Removed: Assets held for sale:
−Removed: Cash and cash equivalents $ 23.7
−Removed: Trade accounts receivable, net 10.5
−Removed: Inventories 91.5
−Removed: Prepaid expenses 1.7
−Removed: Other current assets 8.5
−Removed: Property and equipment, net 7.3
−Removed: Operating lease right-of-use assets 25.5
−Removed: Intangible assets 18.2
−Removed: Deferred income taxes 0.1
−Removed: Other assets 2.1
−Removed: Allowance for reduction of assets held for sale (1)
−Removed: Total assets held for sale $ 176.4
−Removed: Liabilities held for sale:
−Removed: Accounts payable $ 8.4
−Removed: Accrued liabilities 11.2
−Removed: Current portion of operating lease liabilities 9.9
−Removed: Long-term operating lease liabilities 17.0
−Removed: Other liabilities 1.7
−Removed: Total liabilities held for sale $ 48.2
−Removed: (1) In connection with the held for sale classification, the Company recognized a $ 12.7 million pre-tax loss on the remeasurement of the assets and liabilities of the Stuart Weitzman Business.
−Removed: This impairment was charged to a contra asset account, Allowance for reduction of assets held for sale, within Total assets held for sale.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements
+Added: The Purchaser acquired certain assets and liabilities of the Company's global business of designing, manufacturing, promotion, marketing, production, distribution, sales and licensing of Stuart Weitzman branded products (the "Stuart Weitzman Business") for a final aggregate purchase price of $ 109.1 million, which included customary adjustments for net working capital and indebtedness.
+Added: As of June 28, 2025, the Company determined that certain assets and liabilities related to the Company's Stuart Weitzman Business should be classified as held for sale.
+Added: The Stuart Weitzman Business Divestiture did not represent a strategic shift that will have a major effect on the Company's operations and financial results and therefore does not qualify for presentation as a discontinued operation.
+Added: The Stuart Weitzman Business Divestiture resulted in a final total pre-tax loss of $ 22.0 million, which represented the amount of the carrying value of the net assets over the amount of consideration received, less costs to sell.
+Added: Of the final total pre-tax loss, $ 3.4 million was recorded during the fiscal year ended June 27, 2026 and $ 18.6 million was recorded during the fiscal year ended June 28, 2025.
+Added: During the fiscal year ended June 27, 2026, the Company incurred total pre-tax charges of $ 10.9 million primarily due to professional fees and severance costs, partially offset by income from the transition services agreement.
+Added: These items were recorded in SG&A expenses mainly within the Corporate segment on the Company's Consolidated Statements of Operations.
Capri Holdings Limited Acquisition
1 unchanged sentence
On April 22, 2024, the FTC filed a complaint against the Company and Capri in the United States District Court for the Southern District of New York seeking to enjoin the consummation of the Capri Acquisition, and on October 24, 2024, the Court issued its Opinion and Order granting the FTC's request for a preliminary injunction of the Merger, pending an administrative trial on the merits which was scheduled to begin on December 9, 2024.
−Removed: On October 28, 2024, the Company and Capri filed a Notice of Appeal with respect to the October 24, 2024 Opinion and Order.
−Removed: On November 6, 2024, the United States Court of Appeals for the Second Circuit entered an order setting an expedited briefing schedule for the appeal of the decision of the United States District Court of the Southern District of New York granting the preliminary injunction of the merger.
−Removed: On November 13, 2024, the Parties entered into a Termination Agreement (the “Termination Agreement”), pursuant to which the Parties agreed to terminate the Merger Agreement, including all schedules and exhibits thereto and all ancillary agreements contemplated thereby or entered pursuant thereto (the “Termination Date”), effective immediately.
+Added: On November 13, 2024, the Parties entered into a Termination Agreement (the “Termination Agreement”), pursuant to which the Parties agreed to terminate the Merger Agreement, including all schedules and exhibits thereto and all ancillary agreements contemplated thereby or entered pursuant thereto, effective immediately.
Pursuant to the Termination Agreement, the Company agreed to reimburse Capri for its expenses in an amount equal to $ 45.1 million in cash on November 14, 2024.
−Removed: The Parties also agreed to release each other from claims, demands, damages, actions, causes of action and liability relating to or arising out of the Merger Agreement and the transactions contemplated therein or thereby.
−Removed: Following termination of the Merger Agreement, the Parties and the FTC filed a stipulation withdrawing the appeal to the United States Court of Appeals for the Second Circuit on November 19, 2024 and the Second Circuit dismissed the appeal on November 20, 2024.
−Removed: The Parties and the FTC also filed a Joint Motion to dismiss the complaint in the administrative trial on November 15, 2024 and the FTC dismissed the complaint on December 4, 2024.
−Removed: In order to finance the Capri Acquisition, on November 27, 2023, the Company issued $ 4.50 billion of senior unsecured notes (the "Capri Acquisition USD Senior Notes") and € 1.50 billion of Euro-denominated senior unsecured notes (the "Capri Acquisition EUR Senior Notes" and, together with the Capri Acquisition USD Senior Notes, the "Capri Acquisition Senior Notes") which, together with the $ 1.40 billion of delayed draw unsecured term loan facilities (the "Capri Acquisition Term Loan Facilities") executed on August 30, 2023, complete the expected financing for the Capri Acquisition.
−Removed: Until the close of the transaction, the Company will maintain the proceeds from the issuance of the Capri Acquisition Senior Notes in Cash and cash equivalents and Short-term investments.
−Removed: Refer to Note 8, "Investments," and Note 11, "Fair Value Measurements," for further detail on our cash equivalents and Short-term investments, and Note 12, "Debt," for further information on our existing debt instruments related to the acquisition.
−Removed: In order to finance the Capri Acquisition, on November 27, 2023, the Company issued $ 4.50 billion of senior unsecured notes (the "Capri Acquisition USD Senior Notes") and € 1.50 billion of Euro-denominated senior unsecured notes (the "Capri Acquisition EUR Senior Notes" and, together with the Capri Acquisition USD Senior Notes, the "Capri Acquisition Senior Notes") which, together with the $ 1.40 billion of delayed draw unsecured term loan facilities (the "Capri Acquisition Term Loan Facilities") executed on August 30, 2023, complete the expected financing for the Capri Acquisition.
−Removed: On November 25, 2024, due to the termination of the Merger Agreement and pursuant to the terms of the indenture governing the Capri Acquisition Senior Notes, as supplemented, the Company redeemed all outstanding Capri Acquisition Senior Notes at a redemption price of 101 % of the aggregate principal amount of such Capri Acquisition Senior Notes, plus accrued and unpaid interest to, but excluding, the date of redemption (such redemption, the “Special Mandatory Redemption”).
+Added: In order to finance the Capri Acquisition, on November 27, 2023, the Company issued $ 4.50 billion of senior unsecured notes and € 1.50 billion of Euro-denominated senior unsecured notes (the "Capri Acquisition Senior Notes") which, together with the $ 1.40 billion of delayed draw unsecured term loan facilities (the "Capri Acquisition Term Loan Facilities") executed on August 30, 2023, completed the expected financing for the Capri Acquisition.
+Added: On November 25, 2024, due to the termination of the Merger Agreement and pursuant to the terms of the indenture governing the Capri Acquisition Senior Notes, as supplemented, the Company redeemed all outstanding Capri Acquisition Senior Notes at a redemption price of 101 % of the aggregate principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption.
In addition, the Capri Acquisition Term Loan Facilities were terminated concurrently with the execution of the Termination Agreement on November 13, 2024.
Refer to Note 12, "Debt," for further information on our debt instruments related to the Capri Acquisition.
−Removed: During fiscal 2025, the Company incurred $ 268.4 million in pre-tax expenses primarily related to Loss on extinguishment of debt as a result of the redemption of the Capri Acquisition Senior Notes recorded within Loss on extinguishment of debt on the Consolidated Statement of Operations, financing-related expenses recorded within Interest expense, net on the Consolidated Statement of Operations, expense reimbursement payment made to Capri recorded within SG&A expenses on the Consolidated Statement of Operations and professional fees recorded within SG&A expenses on the Consolidated Statement of Operations.
−Removed: During fiscal 2024, the Company incurred $ 226.6 million in pre-tax expenses, primarily related to financing-related expenses recorded within Interest expense, net on the Consolidated Statement of Operations and professional fees recorded within SG&A expenses on the Consolidated Statement of Operations.
+Added: There were no expenses incurred during the fiscal year ended June 27, 2026 in conjunction with the Capri Acquisition.
+Added: During the fiscal year ended June 28, 2025, the Company incurred $ 268.4 million in pre-tax expenses primarily related to Loss on extinguishment of debt as a result of the redemption of the Capri Acquisition Senior Notes recorded within Loss on extinguishment of debt on the Consolidated Statement of Operations, financing-related expenses recorded within Interest expense, net on the Consolidated Statement of Operations, expense reimbursement payment made to Capri recorded within SG&A expenses on the Consolidated Statement of Operations and professional fees recorded within SG&A expenses on the Consolidated Statement of Operations.
TAPESTRY, INC.
4 unchanged sentences
Unrealized Gains (Losses) on Available-for-Sale Investments Cumulative Translation Adjustment (2)
−Removed: Balances at July 1, 2023
+Added: Balances at June 29, 2024
$ 57.1 $ ( 0.2 ) $ ( 202.8 ) $ — $ ( 145.9 )
11 unchanged sentences
The amounts reclassified from AOCI are net of tax of $( 1.1 ) million and $( 1.9 ) million as of June 27, 2026 and June 28, 2025, respectively.
−Removed: (2) The ending balances of AOCI related to the fair values of instruments designated as hedges of the Company's net investment in certain foreign operations as included in foreign currency translation adjustments are a loss of $ 114.4 million, net of tax of $ 28.0 million, and a gain of $ 9.9 million, net of tax of $( 6.7 ) million, as of June 28, 2025 and June 29, 2024, respectively.
+Added: (2) The ending balances of AOCI related to the fair values of instruments designated as hedges of the Company's net investment in certain foreign operations as included in foreign currency translation adjustments are a loss of $ 61.2 million, net of tax of $ 5.0 million as of June 27, 2026.
+Added: The ending balance as of June 28, 2025 is a loss of $ 114.4 million, net of tax of $ 28.0 million.
+Added: (3) The ending balance of AOCI relates to excluded components of derivative instruments designated as fair value hedges.
+Added: The ending balance as of June 27, 2026 is a loss of $ 0.1 million, net of tax of $ 0.0 million.
TAPESTRY, INC.
4 unchanged sentences
June 27, 2026 (1)
−Removed: June 29, 2024 July 1, 2023
+Added: June 28, 2025 (1)
+Added: June 29, 2024
Share-based compensation expense $ 107.4 $ 91.4 $ 85.9
Income tax benefit related to share-based compensation expense 22.9 18.7 17.5
−Removed: (1) During fiscal year ended June 28, 2025, the Company incurred $ 2.7 million of share-based compensation expense related to the modification of award terms in connection with the sale of the Stuart Weitzman Business and $ 1.4 million of share-based compensation expense related to its Organizational Efficiency Costs.
−Removed: Refer to Note 5, "Acquisitions and Divestitures" for further information.
+Added: (1) During fiscal years ended June 27, 2026 and June 28, 2025, the Company incurred $ 0.4 million and $ 2.7 million, respectively, of share-based compensation expense related to the modification of award terms in connection with the sale of the Stuart Weitzman Business as well as $ 2.5 million and $ 1.4 million, respectively, of share-based compensation expense related to its Organizational Efficiency Costs.
Stock-Based Plans
7 unchanged sentences
The Company issues new shares upon the exercise of stock options or vesting of share awards.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements
Stock Options
14 unchanged sentences
2026 June 28,
+Added: 2025 June 29,
Expected term (years) 5.0 4.9 5.0
3 unchanged sentences
The expected term of options represents the period of time that the options granted are expected to be outstanding and is based on historical experience.
−Removed: Expected volatility is based on historical volatility of the Company’s stock as well as the implied volatility from publicly traded options on the Company's stock.
+Added: Expected volatility is based on historical volatility of the Company’s stock as well as the
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements
+Added: implied volatility from publicly traded options on the Company's stock.
The risk-free interest rate is based on the zero-coupon U.S.
5 unchanged sentences
At June 27, 2026, $ 15.4 million of total unrecognized compensation cost related to non-vested stock option awards is expected to be recognized over a weighted-average period of 1.3 years.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements
Service-based Restricted Stock Unit Awards (“RSUs”)
24 unchanged sentences
The total fair value of awards that vested during fiscal 2026, fiscal 2025 and fiscal 2024 was $ 46.1 million, $ 13.4 million and $ 0.0 million, respectively.
−Removed: PRSUs are subject to a two-year and three-year cliff vesting contingent on the employee's continuing employment and the Company's achievement of the performance goals established at the beginning of the performance period.
−Removed: The fair value of the PRSU's is based on the price of the Company's common stock on the date of grant.
−Removed: In fiscal 2025, fiscal 2024 and fiscal 2023, the cash tax benefit realized for the tax deductions from all RSUs (service and performance-based) was $ 16.7 million, $ 15.3 million and $ 29.5 million, respectively.
TAPESTRY, INC.
Notes to Consolidated Financial Statements
+Added: PRSUs are subject to a two-year and three-year cliff vesting contingent on the employee's continuing employment and the Company's achievement of the performance goals established at the beginning of the performance period.
+Added: The fair value of the PRSUs is based on the price of the Company's common stock on the date of grant.
+Added: In fiscal 2026, fiscal 2025 and fiscal 2024, the cash tax benefit realized for the tax deductions from all RSUs (service and performance-based) was $ 35.1 million, $ 16.7 million and $ 15.3 million, respectively.
Employee Stock Purchase Plan
4 unchanged sentences
2026 June 28,
+Added: 2025 June 29,
Expected term (years) 0.5 0.5 0.5
14 unchanged sentences
18.2 — 18.2 — — —
−Removed: Total Available-for-sale investments $ — $ — $ — $ 1,043.4 $ — $ 1,043.4
−Removed: Time deposits (1)
+Added: Corporate debt securities – U.S.
65.0 — 65.0 — — —
+Added: Total Available-for-sale investments $ 149.4 $ — $ 149.4 $ — $ — $ —
Other 27.9 — 27.9 19.6 1.4 21.0
2 unchanged sentences
(2) Long-term investments are presented within Other assets on the Consolidated Balance Sheets.
−Removed: The Company recognized a pre-tax gain of $ 2.6 million on available-for-sale investments during the fiscal year ended June 28, 2025.
+Added: The Company recognized a pre-tax gain of $ 0.0 million and $ 2.6 million on available-for-sale investments during the fiscal years ended June 27, 2026 and June 28, 2025, respectively.
These gains are included within Other expense (income) on the Consolidated Statements of Operations.
−Removed: Additionally, the Company has no material unrealized gains on available-for-sale investments as of June 28, 2025 included within Comprehensive income (loss) on the Consolidated Statements of Comprehensive Income (Loss).
−Removed: There were no material gross realized and unrealized gains or losses on available-for-sale investments as of the fiscal year ended June 29, 2024.
+Added: Additionally, the Company had no material unrealized gains or losses on available-for-sale investments as of June 27, 2026 and June 28, 2025 included within Comprehensive income (loss) on the Consolidated Statements of Comprehensive Income (Loss).
TAPESTRY, INC.
18 unchanged sentences
ROU assets, along with any other related long-lived assets, are periodically evaluated for impairment.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: The following table summarizes the ROU assets and lease liabilities recorded on the Company's Consolidated Balance Sheets as of June 28, 2025 and June 29, 2024 :
−Removed: June 28, 2025 June 29, 2024 Location Recorded on the Consolidated Balance Sheets
−Removed: Operating leases $ 1,331.0 $ 1,314.4 Operating lease right-of-use assets
−Removed: Finance leases — 0.6 Property and equipment, net
−Removed: Total lease assets $ 1,331.0 $ 1,315.0
−Removed: Operating leases:
−Removed: Current lease liabilities $ 299.0 $ 299.7 Current portion of operating lease liabilities
−Removed: Long-term lease liabilities 1,205.6 1,224.2 Long-term operating lease liabilities
−Removed: Total operating lease liabilities $ 1,504.6 $ 1,523.9
−Removed: Finance leases:
−Removed: Current lease liabilities $ — $ 1.2 Accrued liabilities
−Removed: Long-term lease liabilities — — Other liabilities
−Removed: Total finance lease liabilities $ — $ 1.2
−Removed: Total lease liabilities $ 1,504.6 $ 1,525.1
−Removed: The following table summarizes the composition of net lease costs, primarily recorded within SG&A expenses on the Company's Consolidated Statement of Operations for the fiscal year ended June 28, 2025 and June 29, 2024 :
+Added: The following table summarizes the composition of net lease costs, primarily recorded within SG&A expenses on the Company's Consolidated Statement of Operations for the fiscal years ended June 27, 2026 and June 28, 2025 :
Fiscal Year Ended
22 unchanged sentences
Right-of-use assets obtained in exchange for operating lease liabilities 413.8 327.7
−Removed: The following table provides a maturity analysis of the Company's lease liabilities recorded on the Consolidated Balance Sheets as of June 28, 2025 :
+Added: The following table provides a maturity analysis of the Company's operating lease liabilities recorded on the Consolidated Balance Sheets as of June 27, 2026 :
June 27, 2026
−Removed: Operating Leases
Fiscal 2027 $ 365.5
4 unchanged sentences
Fiscal 2032 and thereafter 588.6
−Removed: Total lease payments 1,787.7
+Added: Total operating lease payments 1,847.4
imputed interest ( 273.4 )
−Removed: Total lease liabilities $ 1,504.6
+Added: Total operating lease liabilities $ 1,574.0
The future minimum fixed sublease receipts under non-cancelable operating lease agreements as of June 27, 2026 are as follows:
7 unchanged sentences
Total sublease income $ 157.1
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates related to the Company's operating leases and finance leases recorded on the Consolidated Balance Sheets as of June 28, 2025 and June 29, 2024 :
+Added: The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates related to the Company's operating leases recorded on the Consolidated Balance Sheets as of June 27, 2026 and June 28, 2025 :
June 27, 2026 June 28, 2025
−Removed: Weighted average remaining lease term (years):
Operating leases:
−Removed: Finance leases — 0.9
+Added: Weighted average remaining lease term (years) 7.4 7.4
Weighted average discount rate 4.4 % 4.4 %
−Removed: Operating leases 4.4 % 4.4 %
−Removed: Finance leases — % 11.3 %
Additionally, the Company had approximately $ 189.8 million of future payment obligations related to executed lease agreements for which the related lease had not yet commenced as of June 27, 2026.
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements (Continued)
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
2 unchanged sentences
Fair Value Fair Value
−Removed: June 28, 2025 June 29, 2024 Consolidated Balance Sheet Classification June 28, 2025 June 29, 2024 Consolidated Balance Sheet Classification June 28, 2025 June 29, 2024
−Removed: Designated Derivative Hedging Instruments:
−Removed: FC - Inventory purchases (1)
−Removed: $ 735.0 $ 764.6 Other Current Assets $ 6.5 $ 58.2 Accrued Liabilities $ 7.9 $ 2.2
−Removed: Net investment hedges (2)
−Removed: 1,690.0 1,450.0 Other Current Assets & Other Assets (4)
−Removed: 15.6 32.2 Accrued Liabilities & Other Liabilities (5)
−Removed: Total designated hedge instruments $ 2,425.0 $ 2,214.6 $ 22.1 $ 90.4 $ 270.9 $ 141.6
−Removed: Undesignated hedging instruments:
−Removed: FC - Intercompany liabilities and loans (3)
−Removed: 157.0 348.2 Other Current Assets 0.3 0.1 Accrued Liabilities 0.1 2.6
−Removed: Total Hedges $ 2,582.0 $ 2,562.8 $ 22.4 $ 90.5 $ 271.0 $ 144.2
−Removed: (1) Represents forward foreign currency exchange contracts ("FC") designated as derivative instruments in cash flow hedging relationships.
−Removed: (2) Represents cross currency swap foreign exchange contracts ("CCS") and forward foreign exchange contracts ("FC") designated as derivative instruments in net investment hedging relationships.
−Removed: (3) Represents forward foreign currency exchange contracts ("FC") not designated as hedges.
−Removed: (4) As of June 28, 2025, the Company recorded $ 15.6 million within Other Current Assets and $ 0.0 million within Other Assets.
−Removed: As of June 29, 2024, the Company recorded $ 11.6 million within Other Current Assets and $ 20.6 million within Other Assets.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: (5) As of June 28, 2025, the Company recorded $ 6.9 million within Accrued Liabilities and $ 256.1 million within Other Liabilities.
−Removed: As of June 29, 2024, the Company recorded $ 2.2 million within Accrued Liabilities and $ 137.2 million within Other Liabilities.
−Removed: The following tables provides the pretax impact of gains and losses from the Company's designated derivative instruments on its Consolidated Financial Statements for the fiscal years ended June 28, 2025, June 29, 2024 and July 1, 2023:
+Added: June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025
+Added: Designated as cash flow hedges
+Added: Foreign exchange risk (1)
+Added: $ 868.8 $ 735.0 $ 31.1 $ 6.5 $ 8.9 $ 7.9
+Added: Designated as net investment hedges
+Added: Foreign exchange risk (3)
+Added: 1,819.6 1,690.0 71.1 15.6 221.1 263.0
+Added: Designated as fair value hedges
+Added: Foreign exchange risk (2)
+Added: 103.8 — — — 2.4 —
+Added: Interest rate risk (2)
+Added: 375.0 — 1.4 — 3.1 —
+Added: Undesignated hedges
+Added: Foreign exchange risk (1)
+Added: 118.3 157.0 0.1 0.3 — 0.1
+Added: Total $ 3,285.5 $ 2,582.0 $ 103.7 $ 22.4 $ 235.5 $ 271.0
+Added: (1) In Other Current Assets and Accrued Liabilities.
+Added: (2) In Other Assets and Other Liabilities.
+Added: (3) As of June 27, 2026, the Company recorded $ 7.1 million within Other Current Assets, $ 64.0 million within Other Assets, $ 2.1 million within Accrued Liabilities and $ 219.0 million within Other Liabilities.
+Added: As of June 28, 2025, the Company recorded $ 15.6 million within Other Current Assets, $ 0.0 million within Other Assets, $ 6.9 million within Accrued Liabilities and $ 256.1 million within Other Liabilities.
+Added: The following tables provide the pretax impact of gains and losses from the Company's designated derivative instruments on its Consolidated Financial Statements for the fiscal years ended June 27, 2026, June 28, 2025 and June 29, 2024:
Amount of Gain (Loss) Recognized in OCI on Derivatives
Fiscal Year Ended
−Removed: June 28, 2025 June 29, 2024 July 1, 2023
−Removed: Cash flow hedges:
−Removed: Inventory purchases (1)
−Removed: $ ( 19.1 ) $ 59.6 $ 34.7
−Removed: Interest rates (2)
−Removed: Total cash flow hedges $ ( 19.1 ) $ 49.2 $ 34.7
−Removed: Net investment hedges (3)
+Added: June 27, 2026 June 28, 2025 June 29, 2024
+Added: Designated as cash flow hedges
+Added: Foreign exchange risk
$ 41.6 $ ( 19.1 ) $ 59.6
−Removed: Total other ( 141.3 ) 74.3 ( 58.7 )
−Removed: Total hedges $ ( 160.4 ) $ 123.5 $ ( 24.0 )
+Added: Interest rate risk — — ( 10.4 )
+Added: Designated as net investment hedges
+Added: Foreign exchange risk 94.7 ( 141.3 ) 74.3
+Added: Designated as fair value hedges
+Added: Foreign exchange risk ( 0.1 ) — —
+Added: Total $ 136.2 $ ( 160.4 ) $ 123.5
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements (Continued)
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
−Removed: Statement of Operations
−Removed: Classification Fiscal Year Ended
−Removed: June 28, 2025 June 29, 2024 July 1, 2023
−Removed: Cash flow hedges:
−Removed: Inventory purchases (1)
+Added: Statement of Operations Classification Fiscal Year Ended
+Added: June 27, 2026 June 28, 2025 June 29, 2024
+Added: Designated as cash flow hedges
+Added: Foreign exchange risk
Cost of Sales $ 21.1 $ 42.4 $ 36.7
−Removed: Interest rates (2)
−Removed: Other income (expense) ( 0.9 ) ( 9.5 ) —
−Removed: Total cash flow hedges $ 41.5 $ 27.2 $ ( 6.3 )
−Removed: Net investment hedges (3)
+Added: Interest rate risk Other income (expense) — ( 0.9 ) ( 9.5 )
+Added: Designated as net investment hedges
+Added: Foreign exchange risk Interest income (expense) 18.5 17.7 2.8
+Added: Total hedges $ 39.6 $ 59.2 $ 30.0
+Added: Amount of Net Gain (Loss) Recognized in Income
+Added: Statement of Operations Classification Fiscal Year Ended
+Added: June 27, 2026 June 28, 2025 June 29, 2024
+Added: Designated as fair value hedges
+Added: Foreign exchange risk
+Added: Derivative designated as hedging instrument Other income (expense) $ ( 2.3 ) $ — $ —
+Added: Amount excluded from hedge effectiveness Other income (expense) — — —
+Added: Interest rate risk
+Added: Hedged Item Interest income (expense) ( 1.7 ) — —
+Added: Derivative designated as hedging instrument Interest income (expense) 1.7 — —
+Added: Amount excluded from hedge effectiveness Interest income (expense) 0.2 — —
+Added: Designated as net investment hedges
+Added: Foreign exchange risk
+Added: Amount excluded from hedge effectiveness (1)
Interest income (expense) 31.0 28.9 28.7
−Removed: Total other 17.7 2.8 —
Total hedges $ 28.9 $ 28.9 $ 28.7
−Removed: (1) Represents forward foreign currency exchange contracts ("FC") designated as derivative instruments in cash flow hedging relationships.
−Removed: (2) Represents forward interest rate contracts ("IC") designated as derivative instruments in cash flow hedging relationships.
−Removed: (3) Represents cross currency swap contracts ("CCS") and forward foreign exchange contracts ("FC") designated as derivative instruments in net investment hedging relationships, for which the difference between changes in fair value and periodic amortization of excluded components is recorded within AOCI.
−Removed: The Company expects that $ 1.3 million of net derivative gain related to inventory purchases included in Accumulated other comprehensive income at June 28, 2025 will be reclassified into earnings within the next 12 months.
+Added: (1) Includes $ 18.5 million, $ 17.7 million and $ 2.8 million of interest income attributable to excluded components recorded in AOCI and reclassified into income during fiscal 2026, fiscal 2025 and fiscal 2024, respectively.
+Added: The Company expects that $ 16.3 million of net derivative gain related to inventory purchases included in AOCI at June 27, 2026 will be reclassified into earnings within the next 12 months.
This amount will vary due to fluctuations in foreign currency exchange rates.
−Removed: The Company assesses the cross-currency swaps and forward exchange contracts used as net investment hedges under the spot method.
−Removed: This results in the cross-currency basis spread on the cross-currency swaps and the difference between the spot rate and the forward rate of the forward exchange contract being excluded from the assessment of hedge effectiveness, and recorded as incurred as a reduction in interest expense in the Company’s Consolidated Statements of Operations.
−Removed: Accordingly, the Company recorded net interest income of $ 28.9 million and $ 28.7 million during fiscal 2025 and fiscal 2024, respectively.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements (Continued)
FAIR VALUE MEASUREMENTS
4 unchanged sentences
Level 2 inputs include quoted prices for identical assets or liabilities in non-active markets, quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for substantially the full term of the asset or liability.
−Removed: Level 3 — Unobservable inputs reflecting management’s own assumptions about the input used in pricing the asset or liability.
+Added: Level 3 — Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.
The Company does not have any Level 3 investments.
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements (Continued)
The following table shows the fair value measurements of the Company’s financial assets and liabilities at June 27, 2026 and June 28, 2025:
6 unchanged sentences
Short-term investments:
−Removed: Time deposits (2)
Commercial paper (2)
Government securities - U.S.
+Added: Corporate debt securities - U.S.
Other — — 27.9 19.6
6 unchanged sentences
Intercompany loans and payables (3)
+Added: Interest rate hedge instruments (3)
Derivative liabilities:
4 unchanged sentences
Intercompany loans and payables (3)
+Added: Interest rate hedge instruments (3)
(1) Cash equivalents generally consists of money market funds and time deposits with maturities of three months or less at the date of purchase.
1 unchanged sentence
(2) Short-term investments are recorded at fair value, which approximates their carrying value, and are primarily based upon quoted vendor or broker priced securities in active markets.
−Removed: (3) The fair value of these hedges is primarily based on the forward curves of the specific indices upon which settlement is based and includes an adjustment for the counterparty’s or Company’s credit risk.
+Added: (3) The fair value of these derivative instruments is primarily based on the forward curves of the specific indices upon which settlement is based and includes an adjustment for the counterparty’s or Company’s credit risk.
Refer to Note 12, "Debt," for the fair value of the Company's outstanding debt instruments.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements (Continued)
Non-Financial Assets and Liabilities
3 unchanged sentences
Inputs to these fair value measurements included estimates of the amounts and the timing of future discounted cash flows based on historical experience, current trends, market conditions and performance expectations.
+Added: The Company did not record goodwill or brand intangible asset impairment charges during the fiscal year ended June 27, 2026.
During the fiscal year ended June 28, 2025, the Company recorded an impairment of $ 610.7 million to the Kate Spade indefinite-lived brand intangible and an impairment of $ 244.1 million to goodwill pertaining to the Kate Spade reporting unit.
Refer to Note 14, "Goodwill and Other Intangible Assets" for further information.
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements (Continued)
During the fiscal year ended June 27, 2026, the Company recorded $ 7.0 million of impairment charges to reduce the carrying amount of certain store assets within property and equipment, net to their estimated fair values.
1 unchanged sentence
During the fiscal year ended June 27, 2026, the Company recorded $ 0.8 million of impairment charges to reduce the carrying amount of certain operating lease right-of-use assets to their estimated fair values.
−Removed: During the fiscal year ended June 29, 2024, the Company did no t have any impairment charges to reduce the carrying amount of certain operating lease right-of-use assets to their estimated fair values
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements (Continued)
+Added: During the fiscal year ended June 28, 2025, the Company recorded $ 3.0 million of impairment charges to reduce the carrying amount of certain operating lease right-of-use assets to their estimated fair values.
The following table summarizes the components of the Company’s outstanding debt:
1 unchanged sentence
Current Debt:
−Removed: 4.250 % Senior Notes due 2025
China Credit Facility (1)
5 unchanged sentences
5.500 % Senior Notes due 2035
−Removed: 5.100 % Senior Notes due 2030
−Removed: 7.700 % Senior Notes due 2030
−Removed: 3.050 % Senior Notes due 2032
−Removed: 7.850 % Senior Notes due 2033
−Removed: 5.500 % Senior Notes due 2035
−Removed: EUR Senior Notes:
−Removed: 5.350 % EUR Senior Notes due 2025 (2)
−Removed: 5.375 % EUR Senior Notes due 2027 (2)
−Removed: 5.875 % EUR Senior Notes due 2031 (2)
Total long-term debt 2,396.6 2,396.6
Unamortized discount and debt issuance costs on senior notes ( 15.9 ) ( 18.7 )
+Added: Fair value basis adjustment (2)
Total long-term debt, net $ 2,379.0 $ 2,377.9
(1) The amount outstanding under the China Credit Facility includes the impact of changes in the exchange rate of the United States Dollar against the Renminbi.
−Removed: (2) The carrying amounts of the Capri Acquisition EUR Senior Notes include the impact of changes in the exchange rate of the United States Dollar against the Euro.
−Removed: During fiscal 2025, 2024 and 2023 the Company recognized interest expense related to the outstanding debt of $ 271.2 million, $ 369.6 million and $ 72.8 million, respectively.
−Removed: During fiscal 2025 the Company recognized Loss on extinguishment of debt of $ 120.1 million, primarily related to redemption premiums, as well as unamortized debt issuance costs and discounts, as a result of the redemption of the Capri Acquisition USD Senior Notes in the second quarter of fiscal 2025.
−Removed: There was no Loss on extinguishment of debt recognized by the Company during fiscal 2024 and fiscal 2023.
+Added: (2) Basis adjustment relates to the fair value hedge on a portion of the 5.500 % Senior Notes due 2035.
+Added: Refer to Note 10, "Derivative Instruments and Hedging Activities," for further information.
+Added: During fiscal 2026, 2025 and 2024 the Company recognized interest expense related to outstanding debt of $ 119.3 million, $ 271.2 million and $ 369.6 million, respectively.
+Added: During fiscal 2026 and fiscal 2024 there was no Loss on extinguishment of debt recognized by the Company.
+Added: During fiscal 2025 the Company recognized Loss on extinguishment of debt of $ 120.1 million, primarily related to redemption premiums, as well as unamortized debt issuance costs and discounts, as a result of the redemption of the Capri Acquisition Senior Notes in the second quarter of fiscal 2025.
$ 2.00 Billion Revolving Credit Facility
−Removed: On May 22, 2025, the Company announced it entered into a definite agreement to refinance and replace the Company's unsecured revolving facility dated May 11, 2022 ( the "Existing Revolving Credit Facility") with a new revolving credit facility (the "Amended Revolving Credit Facility"), among the Company, as borrower, Bank of America, N.A., as administrative agent (the “Administrative Agent”), and a syndicate of banks and financial institutions (collectively, the “Lenders”), dated as of May 22, 2025.
+Added: On May 22, 2025, the Company entered into a definitive agreement to refinance and replace the Company's unsecured revolving facility dated May 11, 2022 ( the "Existing Revolving Credit Facility") with a new revolving credit facility (the "Amended Revolving Credit Facility"), among the Company, as borrower, Bank of America, N.A., as administrative agent (the “Administrative Agent”), and a syndicate of banks and financial institutions (collectively, the “Lenders”).
Under the Amended Revolving Credit Facility, the Lenders have made available to the Company a $ 2.00 billion unsecured revolving credit facility, including sub-facilities for letters of credit, with a maturity date of May 22, 2030.
7 unchanged sentences
During the second quarter of fiscal 2025, the Company executed $ 1.00 billion of borrowings under the Existing Revolving Credit Facility used to partially fund the share repurchases under the ASR Agreements and for general corporate purposes.
−Removed: Subsequently, on December 11, 2024, the Company issued $ 1.50 billion of senior unsecured notes (as defined below, the 2030 and 2035 Senior Notes) and the funds were partially used to repay the borrowings under the Existing Revolving Credit Facility on December 11, 2024.
+Added: Subsequently, on December 11, 2024, the Company issued $ 1.50 billion of senior unsecured notes (as defined below, the 2030 and 2035 Senior Notes) and the net proceeds were used in part to repay the borrowings under the Existing Revolving Credit Facility on December 11, 2024.
There were no outstanding borrowings on the Amended Revolving Credit Facility as of June 27, 2026.
2 unchanged sentences
and Morgan Stanley Senior Lending, Inc.
−Removed: as joint lead arrangers and joint bookrunners, used to partially fund the share repurchases under the ASR Agreements, and for general corporate purposes.
−Removed: Borrowings under the Term Loan Credit Agreement bear interest at a rate per annum equal to, at the Company's option, (i) an alternative base rate or (ii) a rate based on the forward-looking SOFR term rate administered by CME Group Benchmark Administration Limited (or any successor administrator satisfactory to the administrative agent).
+Added: as joint lead arrangers and joint bookrunners.
+Added: Borrowings under the Term Loan Credit Agreement were used to partially fund the share repurchases under the ASR Agreements, and for general corporate purposes.
+Added: Borrowings under the Term Loan Credit Agreement bear interest at a rate per annum equal to, at the Company's option, (i) an alternate base rate or (ii) a rate based on the forward-looking SOFR term rate administered by CME Group Benchmark Administration Limited (or any successor administrator satisfactory to the administrative agent).
On November 26, 2024, the Company drew down in full the $ 750.0 million loan principal under the Term Loan Credit Agreement.
1 unchanged sentence
Subsequently, the Company repaid the borrowings in two tranches with $ 250.0 million repaid on December 5, 2024 and $ 500.0 million repaid on December 11, 2024.
−Removed: 2030 and 2035 Senior Notes
On December 11, 2024, the Company issued $ 1.50 billion of senior unsecured notes, consisting of $ 750.0 million aggregate principal amount of 5.100 % senior unsecured notes due March 11, 2030 at 99.876 % of par (the “ 5.100 % Senior Notes due 2030”) and $ 750.0 million aggregate principal amount of 5.500 % senior unsecured notes due March 11, 2035 at 99.864 % of par (the “ 5.500 % Senior Notes due 2035”, together with the 5.100 % Senior Notes due 2030, the "2030 and 2035 Senior Notes").
−Removed: The net proceeds of this offering, together with cash on hand, were used to repay the loans outstanding under the Term Loan Credit Agreement and to repay borrowings under the Existing Revolving Credit Facility.
The Company will pay interest semi-annually on the 2030 and 2035 Senior Notes on March 11 and September 11 of each year, commencing on September 11, 2025.
−Removed: Term Loan due 2027
−Removed: On May 11, 2022, pursuant to the Existing Credit Agreement, the Company entered into an unsecured $ 500.0 million Term Loan (the “Term Loan due 2027”) which was scheduled to mature on May 11, 2027.
−Removed: The Term Loan due 2027 amortizes in an amount equal to 5.000 % per annum, with payments made quarterly.
−Removed: Borrowings under the Term Loan due 2027 bear interest at a rate per annum equal to, at the Company’s option, either (i) an alternate base rate or (ii) a term secured overnight financing rate plus, in each case, an applicable margin.
−Removed: The applicable margin will be adjusted by reference to a pricing grid based on the ratio (a) consolidated debt to (b) consolidated EBITDAR.
−Removed: The Company repaid its outstanding borrowings under the Term Loan due 2027 on May 31, 2024.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: 2025, 2027, 2032 Senior Notes
In March 2015, the Company issued $ 600.0 million aggregate principal amount of 4.250 % senior unsecured notes due April 1, 2025 at 99.445 % of par (the " 4.250 % Senior Notes due 2025").
3 unchanged sentences
On April 1, 2025, the Company completed the redemption of $ 303.4 million remaining principal of the 4.250 % Senior Notes due 2025.
+Added: Commercial Paper Program
+Added: On July 24, 2025, the Company entered into a commercial paper borrowing program (the "Commercial Paper Program") that provides for the issuance of up to $ 2.00 billion of unsecured commercial paper notes with maturities up to 365 days.
+Added: Borrowings under the Commercial Paper Program are supported by the Amended Revolving Credit Facility and may be used to support the Company's general corporate needs.
+Added: The aggregate amount of borrowings outstanding under the Commercial Paper Program and Amended Revolving Credit Facility will not exceed $ 2.00 billion.
+Added: As of June 27, 2026, the Company had no borrowings outstanding under the Commercial Paper Program.
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements (Continued)
China Credit Facility
1 unchanged sentence
The China Credit Facility provides the Company with a maximum facility amount of up to RMB 250.0 million (approximately $ 37 million), which includes a loan of up to RMB 85.0 million (approximately $ 13 million), a bank guarantee facility of up to RMB 15.0 million (approximately $ 2 million) and accounts payable financing of up to RMB 150.0 million (approximately $ 22 million).
−Removed: As of June 28, 2025, the Company had RMB 120.0 million ($ 16.7 million) of borrowings outstanding under this facility, which was recorded within Current debt on the Company’s Consolidated Balance Sheets.
+Added: Borrowings under the China Credit Facility bear interest at rates based on the People’s Bank of China Loan Prime Rate plus an applicable margin, as determined at the time of each drawdown.
+Added: As of June 27, 2026, the Company had no borrowings outstanding under the China Credit Facility.
Capri Holdings Limited Acquisition Related Debt Transactions
−Removed: In order to finance the Capri Acquisition, on November 27, 2023, the Company issued $ 4.50 billion Capri Acquisition USD Senior Notes and € 1.50 billion Capri Acquisition EUR Senior Notes which, together with the $ 1.40 billion of delayed draw Capri Acquisition Term Loan Facilities executed on August 30, 2023, complete the expected financing for the Capri Acquisition.
+Added: On November 27, 2023, in order to finance the Capri Acquisition, the Company issued $ 4.50 billion of senior unsecured notes and € 1.50 billion of Euro-denominated senior unsecured notes (the "Capri Acquisition Senior Notes") which, together with the $ 1.40 billion of delayed draw unsecured term loan facilities (the "Capri Acquisition Term Loan Facilities") executed on August 30, 2023, completed the expected financing for the Capri Acquisition.
On November 13, 2024, the Parties entered into a Termination Agreement, pursuant to which it was agreed that the Merger Agreement was terminated, effective immediately.
−Removed: On November 25, 2024, due to the termination of the Merger Agreement and pursuant to the terms of the Indenture, the Company redeemed all outstanding Capri Acquisition Senior Notes at a redemption price of 101 % of the aggregate principal amount of such Capri Acquisition USD Senior Notes and Capri Acquisition EUR Senior Notes, plus accrued and unpaid interest to, but excluding, the date of redemption.
+Added: On November 25, 2024, due to the termination of the Merger Agreement and pursuant to the terms of the Indenture, the Company redeemed all outstanding Capri Acquisition Senior Notes at a redemption price of 101 % of the aggregate principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption.
In addition, the Capri Acquisition Term Loan Credit Agreement was terminated concurrently with the execution of the Termination Agreement on November 13, 2024.
Refer to Note 5, "Acquisitions and Divestitures," for further information.
−Removed: A summary of the Capri Holdings Limited acquisition debt related transactions is as follows:
−Removed: Capri Acquisition Term Loan Facilities
−Removed: On August 30, 2023, the Company entered into a definitive credit agreement (such agreement, the "Capri Acquisition Term Loan Credit Agreement") whereby Bank of America, N.A, as administrative agent, and the other agents party thereto, and a syndicate of banks and financial institutions have committed to lend the Company, subject to the satisfaction or waiver of the conditions set forth in the Capri Acquisition Term Loan Credit Agreement, the Capri Acquisition Term Loan Facilities consisting of a $ 1.05 billion unsecured term loan facility maturing three years after the term loans thereunder are borrowed (the “ Three-Year Term Loan Facility”) and a $ 350.0 million term loan facility maturing five years after the term loans thereunder are borrowed (the “ Five-Year Term Loan Facility”).
−Removed: On November 13, 2024, the Capri Acquisition Term Loan Credit Agreement was terminated concurrently with the execution of the Termination Agreement.
−Removed: Capri Acquisition USD Senior Notes
−Removed: On November 27, 2023, the Company issued $ 4.50 billion aggregate principal amount of the Capri Acquisition USD Senior Notes, consisting of $ 500.0 million aggregate principal amount of 7.050 % senior unsecured notes due November 27, 2025 at 99.890 % of par (the “ 7.050 % Senior Notes due 2025”), $ 750.0 million aggregate principal amount of 7.000 % senior unsecured notes due November 27, 2026 at 99.803 % of par (the “ 7.000 % Senior Notes due 2026”), $ 1.00 billion aggregate principal amount of 7.350 % senior unsecured notes due November 27, 2028 at 99.724 % (the “ 7.350 % Senior Notes due 2028”), $ 1.00 billion aggregate principal amount of 7.700 % Senior Notes due November 27, 2030 at 99.712 % of par (the “ 7.700 % Senior Notes due 2030”) and $ 1.25 billion aggregate principal amount of our 7.850 % Senior Notes due November 27, 2033 at 99.475 % (the “ 7.850 % Senior Notes due 2033”).
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: Due to the termination of the Merger Agreement, on November 25, 2024, the Company redeemed the Capri Acquisition USD Senior Notes with cash on hand at a redemption price equal to 101 % of their principal amount.
−Removed: As a result of the redemption prior to their scheduled maturities, the Company was subject to a redemption premium of $ 45.0 million paid on the Capri Acquisition USD Senior Notes upon such redemption.
−Removed: Additionally, the Company recognized $ 41.2 million of unamortized debt issuance costs and discounts in connection with the redemption.
−Removed: These redemption premiums, as well as unamortized debt issuance costs and discounts, were recorded as a Loss on extinguishment of debt during the second quarter of fiscal 2025.
−Removed: Capri Acquisition EUR Senior Notes
−Removed: On November 27, 2023, the Company issued € 1.50 billion aggregate principal amount of the Capri Acquisition EUR Senior Notes, consisting of € 500.0 million aggregate principal amount of 5.350 % senior unsecured notes due November 27, 2025 at 99.878 % of par (the “ 5.350 % EUR Senior Notes due 2025”), € 500.0 million aggregate principal amount of 5.375 % senior unsecured notes due November 27, 2027 at 99.723 % of par (the 5.375 % EUR Senior Notes due 2027”) and € 500.0 million aggregate principal amount of our 5.875 % senior unsecured notes due November 27, 2031 at 99.248 % of par (the “ 5.875 % EUR Senior Notes due 2031").
−Removed: Due to the termination of the Merger Agreement, on November 25, 2024, the Company redeemed the Capri Acquisition EUR Senior Notes with cash on hand at a redemption price equal to 101 % of their principal amount.
−Removed: As a result of the redemption prior to their scheduled maturities, the Company was subject to a redemption premium of $ 16.2 million paid on the Capri Acquisition EUR Senior Notes upon such redemption.
−Removed: Additionally, the Company recognized $ 13.8 million of unamortized debt issuance costs and discounts in connection with the redemption.
+Added: As a result of the redemption prior to their scheduled maturities, the Company was subject to redemption premiums of $ 61.2 million paid on the Capri Acquisition Senior Notes.
+Added: Additionally, the Company recognized $ 55.0 million of unamortized debt issuance costs and discounts in connection with the redemption of the Capri Acquisition Senior Notes.
These redemption premiums, as well as unamortized debt issuance costs and discounts, were recorded as a Loss on extinguishment of debt during the second quarter of fiscal 2025.
3 unchanged sentences
Under the Amended Revolving Credit Facility, we are required to comply on a quarterly basis with a maximum net leverage ratio of 4.00 :1.00, which may be increased to 4.50 :1.00 following the consummation of a material acquisition, subject to certain limitations set forth in the Amended Revolving Credit Facility.
−Removed: As of June 28, 2025, we were in compliance with these restrictions and covenants, have met such financial ratios and have met all debt payment obligations.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements (Continued)
+Added: As of June 27, 2026, we were in compliance with these restrictions and covenants, met the required financial ratios and satisfied all debt-payment obligations.
Fair Value Considerations
1 unchanged sentence
2026 June 28,
−Removed: USD Senior Notes:
4.125 % Senior Notes due 2027
−Removed: 7.050 % Senior Notes due 2025
−Removed: 7.000 % Senior Notes due 2026
−Removed: 4.125 % Senior Notes due 2027
−Removed: 7.350 % Senior Notes due 2028
−Removed: 5.100 % Senior Notes due 2030
−Removed: 7.700 % Senior Notes due 2030
+Added: $ 394.9 $ 393.0
5.100 % Senior Notes due 2030
1 unchanged sentence
5.500 % Senior Notes due 2035
−Removed: EUR Senior Notes:
−Removed: 5.350 % EUR Senior Notes due 2025 (1)
−Removed: 5.375 % EUR Senior Notes due 2027 (1)
−Removed: 5.875 % EUR Senior Notes due 2031 (1)
−Removed: (1) The fair values of the Capri Acquisition EUR Senior Notes include the impact of changes in the exchange rate of the United States Dollar against the Euro.
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements (Continued)
Debt Maturities
As of June 27, 2026, the debt maturities for the next five fiscal years and thereafter are as follows:
−Removed: Principal (1)
2032 and thereafter 1,250.0
Total $ 2,396.6
−Removed: (1) The amount outstanding under the China Credit Facility includes the impact of changes in the exchange rate of the United States Dollar against the Renminbi.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements (Continued)
COMMITMENTS AND CONTINGENCIES
−Removed: Stuart Weitzman Business Divestiture
−Removed: On February 16, 2025, the Company entered into the Purchase Agreement to sell the Stuart Weitzman Business.
−Removed: The sale was completed on August 4, 2025.
−Removed: Refer to Note 5, "Acquisitions and Divestitures" and Note 21, "Subsequent Events," for further information.
−Removed: Capri Holdings Limited Merger Agreement
−Removed: On August 10, 2023, the Company entered into the Merger Agreement.
−Removed: On November 13, 2024, the Company entered into the Termination Agreement, pursuant to which the Merger Agreement was terminated, effective immediately.
−Removed: The Parties also agreed to release each other from claims, demands, damages, actions, causes of action and liability relating to or arising out of the Merger Agreement and the transactions contemplated therein or thereby.
−Removed: Refer to Note 5, "Acquisitions and Divestitures" for further information.
Letters of Credit
The Company had standby letters of credit, surety bonds and bank guarantees totaling $ 38.1 million and $ 26.5 million outstanding at June 27, 2026 and June 28, 2025, respectively.
−Removed: The agreements, which expire at various dates through calendar 2039, primarily collateralize the Company’s obligation to third parties for duty, leases, insurance claims and materials used in product manufacturing.
+Added: The agreements, which expire at various dates through calendar 2039, primarily collateralize the Company’s obligations to third parties for duties, leases, insurance claims and materials used in product manufacturing.
The Company pays certain fees with respect to letters of credit that are issued.
−Removed: The Company had other contractual cash obligations as of June 28, 2025, including $ 353.0 million related to inventory purchase obligations, $ 34.3 million related to capital expenditure and cloud computing implementation commitments, $ 222.3 million of other purchase obligations, $ 2.41 billion of debt repayments and $ 771.8 million of interest payments on the outstanding debt.
+Added: The Company had other contractual cash obligations as of June 27, 2026, including $ 768.2 million related to inventory purchase obligations, $ 45.2 million related to capital expenditure and cloud computing implementation commitments, $ 268.8 million of other purchase obligations, $ 2.40 billion of debt repayments and $ 640.4 million of interest payments on outstanding debt.
Refer to Note 9, "Leases," for a summary of the Company's future minimum rental payments under non-cancelable leases.
5 unchanged sentences
On July 14, 2025, the Company moved to dismiss the complaint.
+Added: On March 31, 2026, the United States District Court for the District of Delaware dismissed the complaint and claims without prejudice, and on April 30, 2026, the plaintiff shareholders filed an amendment.
+Added: On June 15, 2026, the Company moved to dismiss the amended complaint.
The Company intends to vigorously defend itself in these matters.
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements (Continued)
GOODWILL AND OTHER INTANGIBLE ASSETS
The Company performs its annual impairment assessment of goodwill as well as brand intangibles at the beginning of the fourth quarter of each fiscal year or if an event occurs that would more likely than not reduce the fair value below its carrying amount.
+Added: The Company determined there was no impairment in fiscal 2026 based on the annual assessment and no events occurring that would more likely than not reduce the fair value below its carrying amount.
During the fourth quarter of fiscal 2025, the Company performed its annual goodwill and indefinite-lived intangible assets impairment analysis.
−Removed: The assessment concluded that the fair values of the Kate Spade reporting unit and indefinite-lived brand
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: intangible asset did not exceed their respective carrying values due to a reduction in both current and future expected cash flows, which includes an estimated impact of cost increases due to changes in tariff and trade policies.
−Removed: Accordingly, the Company recorded a goodwill impairment charge of $ 244.1 million related to the Kate Spade reporting unit during the fourth quarter of the fiscal year.
+Added: The assessment concluded that the fair values of the Kate Spade reporting unit and indefinite-lived brand intangible asset did not exceed their respective carrying values due to a reduction in both current and future expected cash flows, which includes an estimated impact of cost increases due to changes in tariff and trade policies.
+Added: Accordingly, during the three months ended June 28, 2025, the Company recorded a goodwill impairment charge of $ 244.1 million related to the Kate Spade reporting unit.
The Company also recorded an impairment charge of $ 610.7 million related to the Kate Spade indefinite-lived brand intangible asset.
−Removed: The goodwill and brand intangible asset impairment charges were recorded within SG&A expenses on the Company's Consolidated Statement of Operations.
−Removed: The estimated fair value of the Company’s reporting units are based on a weighted average of the income and market approaches.
+Added: The goodwill and brand intangible asset impairment charges were recorded within Impairment of goodwill and intangible assets on the Company's Consolidated Statement of Operations.
+Added: The estimated fair values of the Company’s reporting units are based on a weighted average of the income and market approaches.
The income approach is based on estimated discounted future cash flows, while the market approach is based on earnings multiples of selected guideline companies.
1 unchanged sentence
The change in the carrying amount of the Company’s Goodwill by segment is as follows:
−Removed: Coach Kate Spade Stuart Weitzman Total
−Removed: Balance at July 1, 2023 $ 597.5 $ 630.0 $ — $ 1,227.5
−Removed: Foreign exchange impact ( 19.5 ) ( 3.9 ) — ( 23.4 )
+Added: Coach Kate Spade Total
Balance at June 29, 2024 $ 578.0 $ 626.1 $ 1,204.1
2 unchanged sentences
Balance at June 28, 2025 597.5 385.8 983.3
+Added: Foreign exchange impact ( 21.7 ) ( 3.9 ) ( 25.6 )
+Added: Balance at June 27, 2026 $ 575.8 $ 381.9 $ 957.7
Intangible Assets
5 unchanged sentences
Customer relationships $ 45.6 $ ( 28.2 ) $ 17.4 $ 45.6 $ ( 25.1 ) $ 20.5
−Removed: $ 45.6 $ ( 25.1 ) $ 20.5 $ 100.3 $ ( 56.5 ) $ 43.8
Total intangible assets subject to amortization 45.6 ( 28.2 ) 17.4 45.6 ( 25.1 ) 20.5
3 unchanged sentences
Total intangible assets $ 744.7 $ ( 28.2 ) $ 716.5 $ 744.7 $ ( 25.1 ) $ 719.6
−Removed: (1) As of June 28, 2025, $ 18.2 million related to the net carrying value of customer relationships of the Stuart Weitzman Business were reclassified to Assets held for sale in the Company's Condensed Consolidated Balance Sheet.
−Removed: Refer to Note 5, "Acquisitions and Divestitures," for further information.
−Removed: (2) The Company recognized a $ 610.7 million non-cash charge related to the impairment of the Kate Spade indefinite-lived brand intangible asset in fiscal 2025.
−Removed: Amortization expense for the Company’s definite-lived intangible assets was $ 5.2 million and $ 6.5 million for fiscal 2025 and fiscal 2024, respectively.
TAPESTRY, INC.
Notes to Consolidated Financial Statements (Continued)
+Added: (1) Amount is net of accumulated impairment charges of $ 610.7 million as of June 27, 2026 and June 28, 2025 for Kate Spade indefinite-lived brand intangible asset.
+Added: Amortization expense for the Company’s definite-lived intangible assets was $ 3.1 million and $ 5.2 million for fiscal 2026 and fiscal 2025, respectively.
As of June 27, 2026, the expected amortization expense for intangible assets is as follows:
5 unchanged sentences
Fiscal 2031 3.0
−Removed: Fiscal 2031 and thereafter 5.5
−Removed: The expected amortization expense above reflects remaining useful life of approximately 7.0 years for customer relationships.
−Removed: The provisions for income taxes, computed by applying the U.S.
−Removed: statutory rate to income before taxes, as reconciled to the actual provisions were:
−Removed: Fiscal Year Ended
−Removed: June 28, 2025 June 29, 2024 July 1, 2023
−Removed: Amount Percentage Amount Percentage Amount Percentage
−Removed: Income before provision for income taxes:
+Added: Fiscal 2032 2.4
+Added: The expected amortization expense above reflects a remaining useful life of approximately 6.0 years for customer relationships.
+Added: Taxes on Income
+Added: The United States and foreign income before provision for income taxes are as follows:
+Added: Fiscal Years Ended
+Added: 2026 June 28,
+Added: 2025 June 29,
United States (1)
2 unchanged sentences
Total income before provision for income taxes $ 1,860.6 $ 216.1 $ 1,011.9
+Added: (1) The United States jurisdiction includes foreign pre-tax earnings allocated to the Company through its interest in a foreign partnership.
+Added: Current and deferred tax provision (benefit) are as follows:
+Added: Fiscal Year Ended
+Added: June 27, 2026 June 28, 2025 June 29, 2024
+Added: Current Deferred Current Deferred Current Deferred
+Added: Federal $ 121.6 $ 44.2 $ 60.6 $ ( 144.1 ) $ 71.0 $ 14.2
+Added: Foreign 129.8 ( 2.1 ) 88.8 16.3 103.5 ( 14.6 )
+Added: State 30.7 8.7 23.3 ( 12.0 ) 18.9 2.9
+Added: Total current and deferred tax provision (benefit) $ 282.1 $ 50.8 $ 172.7 $ ( 139.8 ) $ 193.4 $ 2.5
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: Tax Rate Reconciliation
+Added: The following table reconciles the provision for income taxes computed by applying the U.S.
+Added: statutory rate to income before taxes to the actual provision for fiscal 2026.
+Added: Refer to Note 3, "Significant Accounting Policies," for information regarding the Company's prospective adoption of ASU 2023-09.
+Added: Fiscal Year Ended
+Added: June 27, 2026
+Added: Amount Percentage
Tax expense at U.S.
statutory rate 390.7 21.0 %
+Added: State and local income taxes (1)
+Added: Effect of cross-border tax laws (2)
+Added: tax on branch income or loss 36.7 2.0
+Added: Other ( 2.2 ) ( 0.1 )
+Added: Foreign tax credits ( 111.3 ) ( 6.0 )
+Added: Other ( 2.0 ) ( 0.1 )
+Added: Non-taxable or non-deductible items
+Added: Share-based compensation ( 22.0 ) ( 1.2 )
+Added: Other 1.5 0.1
+Added: Foreign tax effects
+Added: Effect of rates different than U.S.
+Added: statutory rate ( 124.6 ) ( 6.7 )
+Added: Qualified Domestic Minimum Top-up Tax ("QDMTT") 42.4 2.3
+Added: Other 7.3 0.4
+Added: Other foreign jurisdictions ( 1.9 ) ( 0.1 )
+Added: Changes in unrecognized tax benefits 12.1 0.6
+Added: Other adjustments ( 11.4 ) ( 0.6 )
+Added: Taxes at effective worldwide rates $ 332.9 17.9 %
+Added: (1) For the year ended June 27, 2026, state and local taxes primarily relate to California, New York City, New York, Florida, and Illinois.
+Added: (2) Excludes the impact of foreign tax credits.
+Added: (3) This item represents Global Intangible Low-Taxed Income ("GILTI").
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: In accordance with the disclosure requirements in effect prior to the adoption of ASU 2023-09, the provisions for income taxes computed by applying the U.S.
+Added: statutory rate to income before taxes were reconciled to the actual provisions as follows:
+Added: Fiscal Years Ended
+Added: June 28, 2025 June 29, 2024
+Added: Amount Percentage Amount Percentage
+Added: Tax expense at U.S.
+Added: statutory rate $ 45.3 21.0 % $ 212.5 21.0 %
State taxes, net of federal benefit 5.5 2.5 18.1 1.8
7 unchanged sentences
Taxes at effective worldwide rates $ 32.9 15.2 % $ 195.9 19.4 %
−Removed: (1) The United States jurisdiction includes foreign pre-tax earnings allocated to the Company from its interest in a foreign partnership.
−Removed: (2) This includes the tax related to the Global Intangible Low-Taxed Income ("GILTI").
−Removed: The Company has elected to account for the tax associated with GILTI as a period cost, and accordingly, the Company has not recorded deferred taxes associated with GILTI.
+Added: (1) This includes the tax related to GILTI.
+Added: The Company has elected to account for the tax associated with GILTI as a period cost and, accordingly, has not recorded deferred taxes associated with GILTI.
(2) This item represents the effective tax-rate impact of the Kate Spade goodwill impairment activity recorded in the U.S.
in fiscal 2025.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: Current and deferred tax provision (benefit) was:
+Added: Cash Paid for Taxes
+Added: In connection with the Company’s prospective adoption of ASU 2023-09, cash paid for income taxes, net of refunds, was disaggregated as follows:
Fiscal Year Ended
−Removed: June 28, 2025 June 29, 2024 July 1, 2023
−Removed: Current Deferred Current Deferred Current Deferred
+Added: June 27, 2026
Federal $ 84.6
−Removed: Foreign 88.8 16.3 103.5 ( 14.6 ) 48.0 3.6
−Removed: State 23.3 ( 12.0 ) 18.9 2.9 6.3 12.9
−Removed: Total current and deferred tax provision (benefit) $ 172.7 $ ( 139.8 ) $ 193.4 $ 2.5 $ 165.9 $ 41.2
+Added: State and local 30.3
+Added: Singapore 38.4
+Added: Cash paid for income taxes, net of refunds $ 200.7
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: Deferred Taxes
The components of deferred tax assets and liabilities were:
4 unchanged sentences
Net operating loss 27.0 29.2
−Removed: Other 66.9 44.8
+Added: Prepaid expenses 0.5 —
Inventory 15.4 16.4
7 unchanged sentences
Foreign investments 50.8 38.7
−Removed: Right-of-use 302.7 279.3
+Added: Right-of-use assets 300.7 302.7
Prepaid expenses — 1.2
5 unchanged sentences
Net deferred tax (liabilities) assets $ ( 137.1 ) $ ( 46.0 )
+Added: TAPESTRY, INC.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: Unrecognized Tax Benefits
Significant judgment is required in determining the worldwide provision for income taxes, and there are many transactions for which the ultimate tax outcome is uncertain.
1 unchanged sentence
The Company establishes the provisions based upon management’s assessment of exposure associated with uncertain tax positions.
−Removed: The provisions are analyzed at least quarterly and adjusted as appropriate based on new information or circumstances in accordance with the requirements of ASC 740.
−Removed: TAPESTRY, INC.
−Removed: Notes to Consolidated Financial Statements (Continued)
+Added: The provisions are analyzed at least quarterly.
A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows:
2026 June 28,
+Added: 2025 June 29,
Balance at beginning of fiscal year $ 110.7 $ 115.8 $ 91.8
2 unchanged sentences
Gross increase due to tax positions related to current period 5.1 4.5 6.5
−Removed: Decrease due to lapse of statutes of limitations ( 2.4 ) ( 2.1 ) ( 6.1 )
+Added: Decrease due to lapse of statutes of limitation ( 0.4 ) ( 2.4 ) ( 2.1 )
Decrease due to settlements with taxing authorities ( 1.5 ) ( 7.6 ) —
3 unchanged sentences
As of June 27, 2026 and June 28, 2025, gross interest and penalties payable was $ 34.3 million and $ 26.9 million, respectively, which are included in Other liabilities.
−Removed: During fiscal 2025, fiscal 2024 and fiscal 2023, the Company recognized gross interest and penalty expense of $ 7.1 million, gross interest and penalty expense of $ 9.5 million and gross interest and penalty expense of $ 2.3 million, respectively.
+Added: During fiscal 2026, fiscal 2025 and fiscal 2024, the Company recognized gross interest and penalty expense of $ 7.5 million, $ 7.1 million and $ 9.5 million, respectively.
The Company files income tax returns in the U.S.
1 unchanged sentence
Tax examinations are currently in progress in select foreign and state jurisdictions that are extending the years open under the statutes of limitation.
−Removed: Fiscal years 2018 to present are open to examination in the U.S.
−Removed: federal jurisdiction, fiscal 2019 to present in select state jurisdictions and fiscal 2018 to present in select foreign jurisdictions.
+Added: Fiscal years 2018 through the present are open to examination in the U.S.
+Added: federal jurisdiction, fiscal years 2018 through the present in select state jurisdictions and fiscal years 2019 through the present in select foreign jurisdictions.
The Company is currently under U.S.
−Removed: federal audit for fiscal 2018 to 2020.
+Added: federal audit for fiscal years 2018 through 2020.
The IRS is examining carryback claims to fiscal 2014 through fiscal 2020 as part of Joint Committee procedures for tax refund claims.
The Company anticipates that one or more of these audits may be finalized and certain statutes of limitation may expire in the foreseeable future.
−Removed: However, based on the status of these examinations and the average time typically incurred in finalizing audits with the relevant tax authorities, the Company cannot reasonably estimate the impact these audits may have in the next 12 months, if any, to previously recorded uncertain tax positions.
+Added: However, based on the status of these examinations and the average time typically incurred in finalizing audits with the relevant tax authorities, the Company cannot reasonably estimate the impact these audits may have in the next 12 months, if any, on previously recorded uncertain tax positions.
The Company accrues for certain known and reasonably anticipated income tax obligations after assessing the likely outcome based on the weight of available evidence.
6 unchanged sentences
The state net operating loss carryforwards generally start to expire in fiscal 2027.
−Removed: The majority of the foreign net operating loss can be carried forward indefinitely.
+Added: The majority of the foreign net operating loss carryforwards may be carried forward indefinitely.
Deferred tax assets, including the deferred tax assets recognized on these net operating losses, have been reduced by a valuation allowance of $ 12.0 million as of June 27, 2026 and $ 17.6 million as of June 28, 2025.
1 unchanged sentence
The Company is permanently reinvested with respect to all other earnings.
−Removed: The total estimated amount of unremitted earnings of foreign subsidiaries as of June 28, 2025 and June 29, 2024 was $ 1.33 billion and $ 750.0 million, respectively.
−Removed: The Company intends to distribute $ 1.20 billion of earnings that were previously subject to U.S.
+Added: The total estimated amount of unremitted earnings of foreign subsidiaries as of June 27, 2026 and June 28, 2025 was $ 795.1 million and $ 1.33 billion, respectively.
+Added: The Company intends to distribute $ 686.2 million of earnings that were previously subject to U.S.
federal tax and has recorded a deferred tax liability of $ 1.9 million during fiscal 2026 for U.S.
state taxes and foreign withholding taxes related to the future distribution.
−Removed: Based on the Company's current analysis, there is further unrecognized deferred tax liability of approximately $ 4.0 million to $ 6.0 million on the remaining unremitted earnings.
+Added: Based on the Company's current analysis, there is a further unrecognized deferred tax liability of approximately $ 4 million to $ 6 million on the remaining unremitted earnings.
DEFINED CONTRIBUTION PLAN
4 unchanged sentences
SEGMENT INFORMATION
−Removed: The Company has three reportable segments:
+Added: The Company has two reportable segments:
• Coach - Includes global sales primarily of Coach brand products to customers through our DTC, wholesale and licensing businesses.
• Kate Spade - Includes global sales primarily of kate spade new york brand products to customers through our DTC, wholesale and licensing businesses.
−Removed: • Stuart Weitzman - Includes global sales of Stuart Weitzman brand products primarily through our DTC, wholesale and licensing businesses.
−Removed: On February 16, 2025, the Company entered into the Purchase Agreement to sell the Stuart Weitzman Business.
−Removed: The sale was completed on August 4, 2025.
−Removed: Refer to Note 5, "Acquisitions and Divestitures," and Note 21, "Subsequent Events," for further information.
+Added: On August 4, 2025, the Company completed the sale of the Stuart Weitzman business and, as a result, determined it had two reportable segments on a prospective basis.
+Added: Refer to Note 5, "Acquisitions and Divestitures," for further information.
The Company's chief operating decision maker ("CODM"), who is its Chief Executive Officer, regularly evaluates operating profit of these segments compared to management's expectations in deciding how to allocate resources and assess performance.
Segment operating profit is the gross profit of the segment less direct expenses of the segment.
−Removed: Total expenditures for additions to long-lived assets are not disclosed as this information is not regularly provided to the CODM at the segment level.
+Added: Total expenditures for additions to long-lived assets and assets by segment are not provided to the CODM as such information is not utilized for purposes of assessing performance or allocating resources, and therefore has not been disclosed.
In addition to these reportable segments, the Company has certain corporate expenses that are not directly attributable to its brands ("Unallocated corporate expenses");
1 unchanged sentence
Such costs primarily include certain overhead expenses related to corporate functions as well as certain administration, corporate occupancy, information technology and depreciation costs.
−Removed: On February 16, 2025, the Company entered into a sale and purchase agreement (the “Purchase Agreement”) with Caleres, Inc.
−Removed: (the “Purchaser”) to sell the Stuart Weitzman Business (as defined below).
−Removed: The Purchaser acquired certain assets and liabilities of the Company's global business of designing, manufacturing, promotion, marketing, production, distribution, sales and licensing of Stuart Weitzman branded products (the "Stuart Weitzman Business").
−Removed: The sale was completed on August 4, 2025 (the "Stuart Weitzman Business Divestiture").
−Removed: Refer to Note 5, "Acquisitions and Divestitures," and Note 21, "Subsequent Events," for further information.
TAPESTRY, INC.
1 unchanged sentence
The following table summarizes net sales, significant expenses and operating profit (loss) of each of the Company's segments and reconciliation to the Company's Income (loss) before provision for income taxes for fiscal 2026, fiscal 2025 and fiscal 2024:
−Removed: Coach Kate Spade Stuart Weitzman Total
+Added: Coach Kate Spade Stuart Weitzman (1)
Net sales $ 6,914.7 $ 1,074.9 $ 14.6 $ 8,004.2
28 unchanged sentences
Income (loss) before provision for income taxes $ 1,011.9
+Added: (1) During fiscal 2026, Stuart Weitzman Net sales, Cost of sales and Selling, general and administrative expenses represent results for the period prior to the sale on August 4, 2025.
(2) Significant expense categories that are regularly provided to the CODM, or easily computable from information that is regularly provided to the CODM.
−Removed: SG&A expenses includes Other selling, general and administrative expenses and Impairment of goodwill and intangible assets on the Company's Consolidated Statement of Operations .
+Added: SG&A expenses include Other selling, general and administrative expenses and Impairment of goodwill and intangible assets on the Company's Consolidated Statement of Operations .
(3) Unallocated corporate expenses represent certain corporate expenses that are not directly attributable to a segment.
5 unchanged sentences
June 27, 2026 (3)
+Added: June 28, 2025 (3)
+Added: June 29, 2024
Depreciation and amortization expense (1) :
8 unchanged sentences
$ 172.2 $ 167.4 $ 174.0
−Removed: (1) For the fiscal year ended June 28, 2025, depreciation and amortization expense includes $ 2.7 million of impairment charges in connection with the sale of the Stuart Weitzman Business of which $ 2.1 million was recorded within Unallocated corporate and $ 0.6 million was recorded within the Stuart Weitzman segment.
−Removed: For the fiscal year ended June 28, 2025, depreciation and amortization expense includes $ 1.8 million of costs related to the Company's organizational efficiency efforts recorded within Unallocated corporate.
−Removed: Refer to Note 5, "Acquisitions and Divestitures," for further information.
(1) Depreciation and amortization expense for the segments includes an allocation of expense related to assets which support multiple segments.
(2) Unallocated corporate, which is not a reportable segment, represents certain depreciation and amortization costs that are not directly attributable to a segment.
−Removed: Impairment charges in fiscal 2025 includes $ 854.8 million of brand intangible and goodwill impairment charges for the Kate Spade reportable segment.
−Removed: There were no impairment charges in fiscal 2024 and fiscal 2023.
−Removed: Refer to Note 14, "Goodwill and Other Intangible Assets," for further information.
−Removed: The following table summarizes total assets of each of the Company's segments for fiscal 2025, fiscal 2024, and fiscal 2023:
−Removed: Fiscal Year Ended
−Removed: 2025 June 29,
−Removed: Total assets:
−Removed: Coach $ 2,497.5 $ 2,238.4 $ 2,272.3
−Removed: Kate Spade 1,656.6 2,469.2 2,597.3
−Removed: Stuart Weitzman (1)
−Removed: 176.4 232.6 235.8
−Removed: Total segment assets:
−Removed: 4,330.5 4,940.2 5,105.4
−Removed: Unallocated corporate (2)
−Removed: 2,250.0 8,456.1 2,011.4
−Removed: Total assets:
−Removed: $ 6,580.5 $ 13,396.3 $ 7,116.8
−Removed: (1) As of June 28, 2025, the assets relating to the Stuart Weitzman Business are presented in the Consolidated Balance Sheet as Assets held for sale.
+Added: (3) For the fiscal year ended June 27, 2026, depreciation and amortization expense includes $ 1.4 million of costs related to the Company's distribution network optimization efforts recorded within the Kate Spade segment, $ 0.9 million of impairment charges in connection with the sale of the Stuart Weitzman Business recorded within Unallocated corporate and $ 9.1 million of costs related to the Company's organizational efficiency efforts, of which $ 5.6 million was recorded within Unallocated corporate and $ 3.5 million was recorded within the Kate Spade segment.
+Added: For the fiscal year ended June 28, 2025, depreciation and amortization expense includes $ 2.7 million of impairment charges in connection with the sale of the Stuart Weitzman Business of which $ 2.1 million was recorded within Unallocated corporate and $ 0.6 million was recorded within the Stuart Weitzman segment and $ 1.8 million of costs related to the Company's organizational efficiency efforts, recorded within Unallocated corporate.
Refer to Note 5, "Acquisitions and Divestitures," for further information.
−Removed: (2) Unallocated corporate, which is not a reportable segment, represents certain assets that are not directly attributable to a segment.
+Added: There were no impairment charges in fiscal 2026 or fiscal 2024 for brand intangible assets and goodwill.
+Added: Impairment charges in fiscal 2025 include $ 854.8 million of brand intangible and goodwill impairment charges for the Kate Spade reportable segment.
+Added: Refer to Note 14, "Goodwill and Other Intangible Assets," for further information.
TAPESTRY, INC.
2 unchanged sentences
Fiscal Year Ended
−Removed: June 28, 2025 June 29, 2024 July 1, 2023
+Added: June 27, 2026 June 28, 2025 June 29, 2024
Amount % of Total
16 unchanged sentences
Accessories 2,232.9 27.9 1,809.3 25.8 1,714.9 25.7
−Removed: Footwear 612.8 8.7 624.9 9.4 650.9 9.8
+Added: 471.2 5.9 612.8 8.7 624.9 9.4
Other 688.9 8.6 742.3 10.6 720.5 10.8
Total Tapestry $ 8,004.2 100.0 % $ 7,010.7 100.0 % $ 6,671.2 100.0 %
−Removed: (1) The significant majority of sales for Stuart Weitzman is attributable to footwear and therefore all of Stuart Weitzman net sales are within the Tapestry Footwear category.
+Added: (1) All Stuart Weitzman net sales are included within the Tapestry Footwear category.
+Added: For the year ended June 27, 2026, Stuart Weitzman net sales were for the period prior to the sale on August 4, 2025.
+Added: Refer to Note 5, "Acquisitions and Divestitures," for further information.
TAPESTRY, INC.
16 unchanged sentences
(2) Greater China includes sales in mainland China, Taiwan, Hong Kong SAR, and Macao SAR.
−Removed: (3) Other includes sales in Europe, Canada, Malaysia, Australia, South Korea, Singapore and other countries primarily in Asia as well as royalties earned from the Company's licensing partners.
+Added: (3) Other includes sales in Europe, Canada, Australia, Malaysia, South Korea, Singapore and other countries primarily in Asia as well as royalties earned from the Company's licensing partners.
EARNINGS PER SHARE
4 unchanged sentences
2026 June 28,
+Added: 2025 June 29,
(millions, except per share data)
7 unchanged sentences
Diluted $ 7.27 $ 0.82 $ 3.50
−Removed: At June 28, 2025, there were no options to purchase shares of common stock outstanding but not included in the computation of diluted earnings per share with an exercise price greater than the average market price of the common shares.
+Added: At June 27, 2026 and June 28, 2025, there were no options to purchase shares of common stock outstanding but not included in the computation of diluted earnings per share with an exercise price greater than the average market price of the common shares.
TAPESTRY, INC.
1 unchanged sentence
At June 29, 2024, options to purchase 1.3 million shares of common stock were outstanding but not included in the computation of diluted earnings per share, as these options’ exercise prices, ranging from $ 41.82 to $ 51.38 , were greater than the average market price of the common shares.
−Removed: At July 1, 2023, options to purchase 2.1 million shares of common stock were outstanding but not included in the computation of diluted earnings per share, as these options’ exercise prices, ranging from $ 41.65 to $ 56.39 , were greater than the average market price of the common shares.
Earnings per share amounts have been calculated based on unrounded numbers.
2 unchanged sentences
Performance-based restricted stock unit awards are included in the computation of diluted shares only to the extent that the underlying performance conditions (and any applicable market condition modifiers) (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method.
−Removed: As of June 28, 2025, June 29, 2024 and July 1, 2023, there were approximately 0.7 million, 0.8 million and 2.7 million, respectively, of additional shares issuable upon exercise of anti-dilutive options and contingent vesting of performance-based restricted stock unit awards, which were excluded from the diluted share calculations.
−Removed: RELATED PARTIES
−Removed: The Stuart Weitzman brand owns approximately 50 % of a factory located in Spain, which is involved in the production of Stuart Weitzman inventory.
−Removed: Payments to this factory represented $ 5.7 million, $ 12.3 million and $ 15.2 million in fiscal 2025, fiscal 2024, and fiscal 2023, respectively.
−Removed: Amounts payable to this factory were not material at June 28, 2025 or June 29, 2024.
+Added: As of June 27, 2026, June 28, 2025 and June 29, 2024, there were approximately 0.6 million, 0.7 million and 0.8 million, respectively, of additional shares issuable upon exercise of anti-dilutive options and contingent vesting of performance-based restricted stock unit awards, which were excluded from the diluted share calculations.
SUPPLEMENTAL BALANCE SHEET INFORMATION
12 unchanged sentences
Payroll and employee benefits $ 238.1 $ 224.4
−Removed: Accrued rent 21.7 17.5
−Removed: Accrued interest 56.6 104.7
−Removed: Accrued income taxes 56.8 49.7
Accrued freight 85.1 38.3
3 unchanged sentences
Other liabilities
−Removed: Deferred lease obligation $ 29.6 $ 32.2
Gross unrecognized tax benefit 115.7 110.7
2 unchanged sentences
Total other liabilities $ 536.6 $ 502.5
−Removed: SUBSEQUENT EVENTS
−Removed: Stuart Weitzman Business Divestiture
−Removed: On August 4, 2025, the Company completed the sale of the Stuart Weitzman Business for $ 105.0 million, subject to customary adjustments for cash, indebtedness, net working capital and transaction expenses as set forth in the Purchase Agreement.
−Removed: Refer to Note 5, "Acquisitions and Divestitures," for further information.
−Removed: Stock Repurchase Program
−Removed: As previously disclosed, in November 2024, the Company executed the ASR Agreements to repurchase an aggregate of up to $ 2.00 billion of the Company’s shares of common stock and received an initial delivery of 28,363,766 shares.
−Removed: Under the terms of the ASR Agreements, the Company owes an estimated settlement of approximately $ 200.0 million.
−Removed: The final payment is expected to be made during the first quarter of fiscal 2026.
TAPESTRY, INC.
Schedule II — Valuation and Qualifying Accounts
−Removed: For the Fiscal Years Ended June 28, 2025, June 29, 2024 and July 1, 2023
+Added: For the Fiscal Years Ended June 27, 2026, June 28, 2025 and June 29, 2024
Balance at Beginning
of Year Additions Charged to Costs and Expenses Write-offs/
−Removed: Allowances Taken Balance at
+Added: Allowances Taken Other (1)
Allowance for credit losses $ 6.7 $ 6.1 $ ( 5.7 ) $ ( 1.0 ) $ 6.1
−Removed: $ 6.9 $ 3.6 $ ( 3.8 ) $ 6.7
Allowance for returns 15.7 13.4 ( 6.6 ) ( 7.4 ) 15.1
−Removed: 11.2 17.3 ( 12.8 ) 15.7
Allowance for markdowns 12.2 13.7 ( 11.3 ) ( 4.2 ) 10.4
−Removed: 9.6 17.4 ( 14.8 ) 12.2
Valuation allowance 17.6 — ( 5.6 ) — 12.0
1 unchanged sentence
Allowance for credit losses (2)
+Added: $ 6.9 $ 3.6 $ ( 3.8 ) $ — $ 6.7
Allowance for returns (2)
+Added: 11.2 17.3 ( 12.8 ) — 15.7
Allowance for markdowns (2)
+Added: 9.6 17.4 ( 14.8 ) — 12.2
Valuation allowance 32.1 — ( 14.5 ) — 17.6
5 unchanged sentences
Total $ 66.7 $ 29.6 $ ( 36.5 ) $ — $ 59.8
−Removed: (1) Fiscal 2025 balances at end of year for Allowance for credit losses, Allowance for returns and Allowance for markdowns includes balances for the Stuart Weitzman Business of $ 1.0 million, $ 7.4 million, and $ 4.2 million, respectively, which are presented in the Consolidated Balance Sheet as Assets held for sale as of June 28, 2025.
+Added: (1) Other represents balances related to the Stuart Weitzman Business which was sold on August 4, 2025.
+Added: Refer to Note 5, "Acquisitions and Divestitures," for additional information.
+Added: (2) Fiscal 2025 balances at end of year for Allowance for credit losses, Allowance for returns and Allowance for markdowns include balances for the Stuart Weitzman Business of $ 1.0 million, $ 7.4 million, and $ 4.2 million, respectively, which are presented in the Consolidated Balance Sheet as Assets held for sale as of June 28, 2025.
Refer to Note 5, "Acquisitions and Divestitures," for further information.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.