TAPESTRY, INC.

Tapestry, Inc. is a global house of iconic accessories and lifestyle brands uniting Coach and kate spade new york. The company operates in the premium accessories and lifestyle fashion industry, competing on the basis of style, price, customer service, quality, brand prestige and recognition. The industry is highly competitive, with many brands in the product lines and markets the company participates in, and over the last decade these brands have grown, encouraging the entry of new competitors as well as increasing competition from existing competitors.

Primary competitors are not individually named in the filing, but the company faces intense competition from many other brands in the product lines and markets it participates in, including the company's wholesale customers. Competitive advantages cited include the recognition and acceptance of the company's brands by consumers and the power of its information technology platform. The Coach segment represented 86.4% ¹ of total net sales in fiscal 2026, while Kate Spade represented 13.4% ² of total net sales.

The company generates revenue through direct-to-consumer (DTC) channels, wholesale, and licensing businesses. DTC revenues were approximately 87% ³ of total net sales in fiscal 2026. Wholesale represented approximately 12% ⁴ of total net sales for fiscal 2026. Licensing royalties currently comprise approximately 1% ⁵ of Tapestry's total net sales. The DTC business includes retail and outlet stores, brand e-commerce sites, and concession shop-in-shops.

The Coach segment is a global fashion house of accessories and lifestyle collections, founded in New York City in 1941. Coach includes global sales of primarily Coach brand products through DTC, wholesale and licensing businesses. For fiscal 2026, Coach net sales were $6,914.7 million ⁶, with handbags contributing $4,016.3 million ⁷ (58.1% ⁸ of segment net sales), accessories $1,991.8 million ⁹ (28.8% ¹⁰), footwear $408.5 million ¹¹ (5.9% ¹²), and other $498.1 million ¹³ (7.2% ¹⁴). Coach operated 973 ¹⁵ stores globally as of fiscal 2026, with 336 ¹⁶ in North America and 637 ¹⁷ internationally.

The Kate Spade segment is a global lifestyle brand that designs handbags, ready-to-wear, jewelry, footwear, gifts, home décor and more. For fiscal 2026, Kate Spade net sales were $1,074.9 million ¹⁸, with handbags contributing $594.9 million ¹⁹ (55.3% ²⁰ of segment net sales), accessories $241.1 million ²¹ (22.4% ²²), footwear $48.1 million ²³ (4.5% ²⁴), and other $190.8 million ²⁵ (17.8% ²⁶). Kate Spade operated 326 ²⁷ stores globally as of fiscal 2026, with 178 ²⁸ in North America and 148 ²⁹ internationally. On August 4, 2025, the company completed the sale of the Stuart Weitzman business; for fiscal 2026, Stuart Weitzman net sales were $14.6 million ³⁰, representing 0.2% ³¹ of total net sales.

In the first quarter of fiscal 2026, the company introduced its 2028 growth strategy (Amplify), focusing on four key pillars: building emotional connections with consumers, fueling fashion innovation and product excellence, delivering compelling experiences to drive global growth, and igniting the power of our people. During fiscal 2026, the company paid approximately $117 million ³² in IEEPA tariffs and received cash refunds of $2.1 million ³³ in the fourth quarter, with a probable remaining refund of $114.7 million ³⁴ recorded as a receivable. The company repurchased shares during the period, and as of July 31, 2026, had 199,391,678 ³⁵ shares of common stock outstanding. The aggregate market value of common stock held by non-affiliates as of December 26, 2025 was approximately $26.53 billion ³⁶.

For fiscal 2026, total net sales were $8,004.2 million ³⁷, compared to $7,010.7 million ³⁸ in fiscal 2025 and $6,671.2 million ³⁹ in fiscal 2024. Total expenses attributable to marketing-related activities in fiscal 2026 were $962.5 million ⁴⁰, representing 12% ⁴¹ of net sales, compared to $744.5 million ⁴² in fiscal 2025, representing nearly 11% ⁴³ of net sales. The company employed approximately 20,600 ⁴⁴ employees globally as of June 27, 2026, with approximately 16,800 ⁴⁵ working in retail locations, of which 8,000 ⁴⁶ were part-time employees.

The company's Amplify growth strategy, introduced in the first quarter of fiscal 2026, focuses on building emotional connections with consumers, with an emphasis on Gen Z consumers entering the market to build brand love and lifetime value. The strategy also aims to sustain growth in North America and accelerate momentum in international markets, prioritizing Greater China and Europe. The company is investing in brand-building and consumer engagement initiatives designed to reinforce each brand's positioning, deepen emotional connections with consumers, and support long-term customer acquisition.

The company aims to lead with handbags and leathergoods with targeted lifestyle expansion in footwear as part of its Amplify strategy. The company continues to invest in data and analytics tools to gain a deeper understanding of customer behavior, empowering teams to respond to changes in consumer preferences and demand as well as scale opportunities across brands with greater speed and efficiency. During fiscal 2026, the company continued to advance its artificial intelligence including predictive, generative and agentic models, as well as machine learning across key areas such as data analytics, planning, marketing, customer acquisition, personalization, pricing and product creation.The company's merchandising teams are committed to managing the product life cycle to maximize sales and profitability across all business channels. The company continues to evaluate new manufacturing sources and geographies to deliver high quality products at competitive costs and to mitigate the impact of manufacturing in inflationary markets.

As part of Distribution Network Optimization efforts, the company is transitioning from its Ohio fulfillment center to a third-party facility in Pennsylvania, which is expected to be completed in the first half of fiscal 2027. The company is continually enhancing its digital technology platforms to elevate e-commerce capabilities, strengthen DTC functionalities, and deliver a seamless overall omni-channel experience leveraging modern and cloud-based technologies. The company utilizes a cloud-based digital platform integrating critical components including customer shopping sites, Order Management Systems, Point of Sale systems, Customer Services, Enterprise Resource Planning systems, and product management systems.

The filing does not provide specific R&D spending levels, capital expenditure plans, share repurchase authorization amounts, or dividend policy figures for the upcoming period.

The company faces risks associated with potential changes to international trade and policy agreements and the imposition of additional tariffs on importing products. During fiscal 2026, the primary manufacturers of Coach products were located in Vietnam, Cambodia, the Philippines and India, and the primary manufacturers of Kate Spade products were located in Vietnam, Cambodia, the Philippines, and Bangladesh. The company paid approximately $117 million ⁴⁷ in IEEPA tariffs. Following the U.S. Supreme Court's decision on February 20, 2026, the U.S. Administration announced a 10% global tariff under Section 122 of the Trade Act of 1974 effective February 24, 2026, for up to 150 days, which expired on July 24, 2026. On July 23, 2026, the U.S. Administration announced new tariff rates ranging from 10% ⁴⁸ to 12.5% ⁴⁹ on most imports from certain countries under Section 301 investigations.

The company operates on a global basis, with approximately 41.3% ⁵⁰ of net sales coming from operations outside of the United States for fiscal year 2026. The company is subject to risks associated with international operations, including political or economic instability, changes in exchange rates for foreign currencies, changes in tourist shopping patterns particularly of the Chinese consumer, and geopolitical instability such as the uncertainty in U.S.-China relations.

The company faces material risk from changes to international trade policies and tariffs, having paid approximately $117 million ⁵¹ in IEEPA tariffs during fiscal 2026, with new Section 301 tariffs ranging from 10% ⁵² to 12.5% ⁵³ imposed on most imports from certain countries effective July 23, 2026. The company's global sourcing concentration creates risk, as primary manufacturers of Coach products are located in Vietnam, Cambodia, the Philippines and India, and Kate Spade products in Vietnam, Cambodia, the Philippines and Bangladesh, exposing the company to potential disruptions or increased costs from trade disputes or restrictions against these countries. With approximately 41.3% ⁵⁴ of net sales from outside the United States, the company is exposed to foreign currency fluctuations, political instability, and changing consumer behavior, particularly that of the Chinese consumer. The company's success depends on retaining brand value and responding to rapidly changing fashion trends and consumer preferences, with any misstep in product quality, design, marketing, or excessive discounting potentially harming brand image. The company also faces intense competition from many other brands, with failure to compete effectively or keep pace with changing consumer preferences and technology potentially adversely affecting growth and profitability.

Management's message emphasizes the introduction of the 2028 growth strategy, Amplify, which focuses on four key pillars: building emotional connections with consumers, fueling fashion innovation and product excellence, delivering compelling experiences to drive global growth, and igniting the power of our people. The strategic priorities for the period ahead include driving new customer acquisition with a focus on Gen Z consumers, leading with handbags and leathergoods with targeted lifestyle expansion in footwear, sustaining growth in North America and accelerating momentum in international markets prioritizing Greater China and Europe, and future-proofing growth by continuing to develop a consumer-obsessed culture that is agile and always looking forward.