Tapestry Sales Climb to $7.01B, Coach Drives Growth Amid Stuart Weitzman Divestiture

TL;DR

**Tapestry is streamlining its portfolio by shedding Stuart Weitzman, betting big on Coach's continued dominance and a focused luxury strategy to drive future growth.**

AI Summary

Tapestry, Inc. (TPR) reported total net sales of $7.01 billion for fiscal year 2025, an increase from $6.67 billion in fiscal 2024. The Coach brand was the primary revenue driver, accounting for 79.9% of total net sales with $5.60 billion, up from $5.10 billion in fiscal 2024. Kate Spade contributed 17.1% of total net sales, reaching $1.20 billion, a decrease from $1.33 billion in fiscal 2024. The Stuart Weitzman segment, which represented 3.0% of total net sales with $215.1 million, was divested on August 4, 2025, to Caleres, Inc. The company's direct-to-consumer (DTC) business generated approximately 86% of total net sales, while wholesale accounted for 13% and licensing royalties for 1%. Tapestry's 2025 growth strategy, 'future speed,' focused on building customer relationships, fueling fashion innovation, delivering compelling omni-channel experiences, and powering global growth, particularly in North America and China. The company will present its latest long-term growth strategy in September 2025.

Why It Matters

Tapestry's fiscal 2025 performance, marked by a 5.1% increase in total net sales to $7.01 billion, demonstrates the resilience and brand power of Coach, which significantly offset declines in Kate Spade. The strategic divestiture of Stuart Weitzman to Caleres, Inc. allows Tapestry to sharpen its focus on its core luxury brands, potentially improving profitability and resource allocation. For investors, this signals a more streamlined operation, while employees and customers of Stuart Weitzman will transition to a new owner. In a competitive luxury market, this move could strengthen Tapestry's position against rivals by concentrating efforts on its most successful segments and leveraging its omni-channel and global growth strategies.

Risk Assessment

Risk Level: medium — The risk level is medium due to the declining sales trends in both Kate Spade and Stuart Weitzman segments, with Kate Spade's net sales falling from $1.42 billion in fiscal 2023 to $1.20 billion in fiscal 2025, and Stuart Weitzman's from $281.6 million to $215.1 million over the same period. While Coach shows strong growth, the reliance on one brand for 79.9% of total net sales creates concentration risk. The company also faces general risks like international trade disputes, economic conditions, and the ability to respond to changing fashion trends, as highlighted in the 'Special Note on Forward-Looking Information'.

Analyst Insight

Investors should closely monitor Tapestry's upcoming long-term growth strategy presentation in September 2025 for clarity on how the company plans to revitalize Kate Spade and sustain Coach's momentum post-Stuart Weitzman divestiture. Evaluate the impact of the divestiture on the company's debt obligations and cash flow, and assess whether the focused strategy can translate into improved overall profitability and market share in the competitive luxury accessories sector.

Financial Highlights

revenue

$7.01B

revenue Growth

+5.1%

Revenue Breakdown

Key Numbers

• $7.01B — Total Net Sales (Increased from $6.67 billion in fiscal 2024, representing a 5.1% growth.)
• $5.60B — Coach Net Sales (Represented 79.9% of total net sales in fiscal 2025, up from $5.10 billion in fiscal 2024.)
• $1.20B — Kate Spade Net Sales (Represented 17.1% of total net sales in fiscal 2025, down from $1.33 billion in fiscal 2024.)
• $215.1M — Stuart Weitzman Net Sales (Represented 3.0% of total net sales in fiscal 2025, down from $241.5 million in fiscal 2024, prior to its divestiture.)
• 86% — Direct-to-Consumer (DTC) Revenue (Percentage of total net sales in fiscal 2025, highlighting a strong direct customer relationship.)
• 13% — Wholesale Revenue (Percentage of total net sales in fiscal 2025.)
• 1% — Licensing Royalties (Percentage of Tapestry's total net sales in fiscal 2025.)
• 1,371 — Total Tapestry Store Count (As of fiscal 2025, a decrease from 1,402 in fiscal 2024.)
• $13.59B — Aggregate Market Value of Common Stock (Held by non-affiliates as of December 27, 2024.)
• 208,123,628 — Shares of Common Stock Outstanding (As of August 1, 2025.)

Key Players & Entities

• Tapestry, Inc. (company) — registrant
• Coach (company) — reportable segment, 79.9% of total net sales
• Kate Spade (company) — reportable segment, 17.1% of total net sales
• Stuart Weitzman (company) — reportable segment, 3.0% of total net sales, divested
• Caleres, Inc. (company) — purchaser of Stuart Weitzman Business
• New York Stock Exchange (regulator) — exchange where Common Stock is registered
• Luxottica (company) — Coach Eyewear licensing partner
• Movado (company) — Coach Watches licensing partner
• Interparfums (company) — Coach Fragrance and Kate Spade Fragrance licensing partner
• Safilo (company) — Kate Spade Eyewear licensing partner

FAQ

Risk Factors

• Dependence on Key Brands [high — market]: Tapestry's revenue is heavily reliant on its Coach brand, which accounted for 79.9% of total net sales in fiscal 2025. A significant decline in the popularity or performance of Coach could materially impact the company's financial results.
• Performance of Kate Spade [medium — market]: The Kate Spade brand experienced a revenue decrease of 9.8% in fiscal 2025, contributing only 17.1% of total net sales. Continued underperformance of this segment poses a risk to overall company growth.
• Divestiture of Stuart Weitzman [medium — operational]: The divestiture of the Stuart Weitzman segment, which represented 3.0% of net sales, indicates strategic shifts and potential challenges in integrating or managing all brands effectively. The company is transitioning away from this segment.
• Direct-to-Consumer (DTC) Dominance [high — operational]: With 86% of net sales generated through DTC channels, Tapestry is highly exposed to shifts in consumer purchasing behavior, e-commerce trends, and the operational costs associated with managing a large direct sales network.
• Global Economic Conditions [medium — financial]: The company operates globally and is subject to fluctuations in foreign currency exchange rates and the economic health of key markets like North America and China. Adverse economic conditions could reduce consumer spending on discretionary items.
• Supply Chain Disruptions [medium — operational]: As a global company, Tapestry is susceptible to disruptions in its supply chain, including manufacturing, logistics, and inventory management, which could impact product availability and sales.
• Cybersecurity Threats [medium — regulatory]: The company's reliance on digital platforms for DTC sales and operations makes it vulnerable to cybersecurity threats, data breaches, and other technology-related risks that could damage its reputation and incur significant costs.
• Intellectual Property and Brand Reputation [medium — legal]: Maintaining the integrity and reputation of its iconic brands (Coach, Kate Spade) is crucial. Infringement of intellectual property or damage to brand image could negatively affect sales and market position.

Industry Context

Tapestry operates in the highly competitive global accessories and lifestyle brand market, dominated by established luxury houses and emerging direct-to-consumer brands. Key trends include a growing emphasis on sustainability, personalized customer experiences, and the increasing importance of digital channels. The market is sensitive to economic cycles and evolving consumer preferences for brand authenticity and value.

Regulatory Implications

Tapestry faces regulatory scrutiny related to consumer protection, data privacy (especially concerning its large DTC operations), and international trade compliance. Changes in import/export regulations or tariffs in key markets like China could impact its global supply chain and profitability.

What Investors Should Do

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Key Dates

• 2025-08-04: Divestiture of Stuart Weitzman — Marks a strategic shift for Tapestry, reducing its brand portfolio and potentially refocusing resources on Coach and Kate Spade.
• 2025-09: Presentation of Latest Long-Term Growth Strategy — Investors will look for updated strategic priorities, financial targets, and growth drivers following the divestiture and in light of current market conditions.
• 2024-12-27: Aggregate Market Value of Common Stock — Indicates the market's valuation of the company as of a specific date, providing context for investor sentiment.
• 2025-08-01: Shares of Common Stock Outstanding — Key figure for calculating earnings per share and understanding the company's capital structure.

Glossary

Direct-to-Consumer (DTC)

Sales channels where the company sells its products directly to end consumers, bypassing intermediaries like wholesalers or retailers. This includes company-owned stores and e-commerce websites. (Represents the vast majority (86%) of Tapestry's revenue, indicating a strong focus on customer relationships and brand control.)

Wholesale

Sales of products to third-party retailers or distributors who then sell to the end consumer. (Accounts for 13% of Tapestry's revenue, representing a traditional sales channel that complements DTC.)

Licensing Royalties

Revenue earned by Tapestry from granting other companies the right to use its brand names or trademarks on their products. (Represents a small portion (1%) of revenue, suggesting limited reliance on this model compared to direct sales.)

Divested

To sell off or dispose of a part of a business or a subsidiary. (The Stuart Weitzman segment was divested, indicating a strategic change in Tapestry's brand portfolio.)

Fiscal Year

A 12-month period that a company uses for accounting purposes. Tapestry's fiscal year typically ends around June 30th. (Used to define the periods for which financial results are reported (e.g., fiscal 2025 vs. fiscal 2024).)

Reportable Segments

Components of a business for which separate financial information is available and regularly reviewed by the chief operating decision-maker to assess performance and allocate resources. (Tapestry's reportable segments are Coach, Kate Spade, and previously Stuart Weitzman.)

Unallocated Corporate Expenses

Costs incurred at the corporate level that are not directly attributable to any specific business segment and are therefore not allocated to them. (These expenses impact the company's overall profitability but are not broken down by brand in segment reporting.)

Year-Over-Year Comparison

Tapestry, Inc. reported a 5.1% increase in total net sales for fiscal 2025, reaching $7.01 billion, up from $6.67 billion in fiscal 2024. This growth was primarily driven by the Coach brand, which saw a significant revenue increase. However, the Kate Spade brand experienced a revenue decline, and the Stuart Weitzman segment, prior to its divestiture, also saw a decrease in sales. The company continues to emphasize its Direct-to-Consumer (DTC) channel, which remains the dominant revenue source at 86% of total sales.

Key Financial Figures

• $744.5 m — -related activities in fiscal 2025 were $744.5 million, representing nearly 11% of net s
• $616.8 million — ng nearly 11% of net sales, compared to $616.8 million in fiscal 2024, representing over 9% of

Filing Documents

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, Items 10 – 14

Part III, Items 10 – 14 TAPESTRY, INC. TABLE OF CONTENTS Page Number PART I Item 1.

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 14 Item 1B. Unresolved Staff Comments 27 Item 1C. Cybersecurity 27 Item 2.

Properties

Properties 29 Item 3.

Legal Proceedings

Legal Proceedings 29 Item 4. Mine Safety Disclosures 29 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 30 Item 6. Reserved 31 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 32 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 50 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 51 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 52 Item 9A.

Controls and Procedures

Controls and Procedures 52 Item 9B. Other Information 52 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 52 PART III Item 10. Directors, Executive Officers and Corporate Governance 53 Item 11.

Executive Compensation

Executive Compensation 53 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 53 Item 13. Certain Relationships and Related Transactions, and Director Independence 53 Item 14. Principal Accounting Fees and Services 53 PART IV Item 15. Exhibits and Financial Statement Schedules 54 Item 16. Form 10-K Summary 57

Signatures

Signatures 58 i SPECIAL NOTE ON FORWARD-LOOKING INFORMATION This document, and the documents incorporated by reference in this document, our press releases and oral statements made from time to time by us or on our behalf, may contain certain "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are based on management's current expectations, that involve risks and uncertainties that could cause our actual results to differ materially from our current expectations. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as "may," "can," "if," "continue," "project," "assumption," "should," "expect," "confidence," "goals," "trends," "anticipate," "intend," "estimate," "on track," "future," "well positioned to," "plan," "potential," "position," "deliver," "believe," "seek," "see," "will," "would," "uncertain," "achieve," "strategic," "growth," "target," "guidance," "forecast," "outlook," "commit," "innovation," "drive," "leverage," "generate," "enhance," "effort," "progress," "we can stretch what's possible," similar expressions, and variations or negatives of these words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Such statements involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of Tapestry, Inc. and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Tapestry, Inc. assumes no obligation to revise or update any such forward-looking statements for any

BUSINESS

ITEM 1. BUSINESS Tapestry, Inc. (the "Company") is a house of iconic accessories and lifestyle brands. Our global house of brands unites the magic of Coach and kate spade new york. 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. 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. Individually, our brands are iconic. Together, we can stretch what's possible. OUR BRANDS The Company has three reportable segments: Coach - Coach is a global fashion house of accessories and lifestyle collections, founded in New York City in 1941. Inspired by the vision of Expressive Luxury and the inclusive and courageous spirit of its hometown, the brand makes beautiful things, crafted to last – for you to be yourself in. Coach has built a legacy of craftsmanship and a community that champions the courage to be real. Coach includes global sales of primarily Coach brand products to customers through our direct-to-consumer ("DTC"), wholesale and licensing businesses. This segment represented 79.9% of total net sales in fiscal 2025. Kate Spade - Since its launch in 1993 with a collection of six essential handbags, kate spade new york has always been colorful, bold and optimistic. Today, it is a global lifestyle brand that designs extraordinary things for the everyday, delivering seasonal collections of handbags, ready-to-wear, jewelry, footwear, gifts, home dcor and more. Known for its rich heritage and unique brand DNA, kate spade new york offers a distinctive point of view and celebrates communities of women around the globe who live their perfectly imperfect lifestyles. Kate Spade includes global sales of primarily kate spade new york brand products to customers through our DTC, wholesale and licen