Financial Analysis

"ACQUISITIONS AND DIVESTITURES Stuart Weitzman Business Divestiture On February 16, 2025, the Company entered into a sale and purchase agreement (the Purchase Agreement) with Caleres, Inc. (the Purchaser) to sell the Stuart Weitzman Business (as defined below). The sale was completed on August 4, 2025 (the ""Stuart Weitzman Business Divestiture""). 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""). The Purchase Price is subject to customary adjustments for cash, indebtedness, net working capital and transaction expenses. As of June 28, 2025, the Company classified certain assets and liabilities related to the Company's Stuart Weitzman Business as held for sale. 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 did not qualify for presentation as a discontinued operation. The Stuart Weitzman Business Divestiture resulted in a total pre-tax loss of $22.6 million, which represented the amount of the carrying value of the net assets over the amount of consideration received, less costs to sell. Of the final total pre-tax loss, $4.0 million was recorded during the six months ended December …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"COMMITMENTS AND CONTINGENCIES Letters of Credit The Company had standby letters of credit, surety bonds and bank guarantees totaling $28.2 million and $26.5 million outstanding at December 27, 2025 and June 28, 2025, respectively. 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. The Company pays certain fees with respect to these instruments that are issued. Other The Company had other contractual cash obligations as of December 27, 2025 related to debt repayments. Refer to Note 11, ""Debt,"" for further information. The Company is involved in various routine legal proceedings as both plaintiff and defendant incident to the ordinary course of its business, including proceedings to protect Tapestry's intellectual property rights, litigation instituted by persons alleged to have been injured by advertising claims or upon premises within the Companys control, contract disputes, insurance claims and litigation, including wage and hour litigation, with present or former employees. Although the Company's litigation can result in large monetary awards, such as when a civil jury is allowed to determine compensatory and/or punitive damages, the Company believes that the outcome of all pending legal proceedings in the aggregate will not have a material effect on the Company's business or consolidated financial statements. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT The following table summarizes the components of the Companys outstanding debt: December 27, 2025 June 28, 2025 (millions) Current Debt: China Credit Facility (1) $ 17.1 $ 16.7 Total Current Debt $ 17.1 $ 16.7 Long-Term Debt: 4.125% Senior Notes due 2027 $ 396.6 $ 396.6 5.100% Senior Notes due 2030 750.0 750.0 3.050% Senior Notes due 2032 500.0 500.0 5.500% Senior Notes due 2035 750.0 750.0 Total long-term debt $ 2,396.6 $ 2,396.6 Less: Unamortized discount and debt issuance costs on senior notes (17.3) (18.7) Total long-term debt, net $ 2,379.3 $ 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. During the three and six months ended December 27, 2025 the Company recognized interest expense related to the outstanding debt of $30.9 million and $61.0 million, respectively. During the three and six months ended December 28, 2024 the Company recognized interest expense related to the outstanding debt of $85.8 million and $209.0 million, respectively. During the three and six months ended December 27, 2025, there was no Loss on extinguishment of debt recognized. During the three and six months ended December 28, 2024, 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 t …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Each geography presented includes net sales related to the Company's directly operated channels, global travel retail business and to wholesale customers, including distributors, in locations within the specified geographic area. North America Greater China (1) Other Asia (2) Other (3) Total (millions) Three Months Ended December 27, 2025 Coach $ 1,425.4 $ 333.1 $ 221.5 $ 162.4 $ 2,142.4 Kate Spade 290.0 10.0 32.6 27.4 360.0 Stuart Weitzman Total $ 1,715.4 $ 343.1 $ 254.1 $ 189.8 $ 2,502.4 Three Months Ended December 28, 2024 Coach $ 1,124.9 $ 242.7 $ 218.3 $ 123.4 $ 1,709.3 Kate Spade 341.1 12.0 35.8 27.5 416.4 Stuart Weitzman 47.4 18.1 0.3 3.9 69.7 Total $ 1,513.4 $ 272.8 $ 254.4 $ 154.8 $ 2,195.4 Six Months Ended December 27, 2025 Coach $ 2,294.5 $ 592.8 $ 394.1 $ 290.8 $ 3,572.2 Kate Spade 489.7 19.4 59.0 52.1 620.2 Stuart Weitzman 9.4 2.1 3.1 14.6 Total $ 2,793.6 $ 614.3 $ 453.1 $ 346.0 $ 4,207.0 Six Months Ended December 28, 2024 Coach $ 1,813.9 $ 456.6 $ 392.7 $ 216.7 $ 2,879.9 Kate Spade 560.7 22.5 65.3 51.1 699.6 Stuart Weitzman 87.0 27.8 0.3 8.3 123.4 Total $ 2,461.6 $ 506.9 $ 458.3 $ 276.1 $ 3,702.9 (1) Greater China includes mainland China, Taiwan, Hong Kong SAR and Macao SAR. (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. …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"SHARE-BASED COMPENSATION The following table shows the share-based compensation expense and the related tax benefits recognized in the Company's Condensed Consolidated Statements of Operations for the periods indicated: Three Months Ended Six Months Ended December 27, 2025 (1) December 28, 2024 December 27, 2025 (1) December 28, 2024 (millions) Share-based compensation expense $ 29.6 $ 21.8 $ 53.7 $ 40.9 Income tax benefit related to share-based compensation expense 6.1 4.1 10.6 7.7 (1) During the three and six months ended December 27, 2025, the Company incurred $0.0 million and $0.4 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 $0.6 million and $1.9 million, respectively, of share-based compensation expense related to its Organizational Efficiency Costs. Refer to Note 5, ""Acquisitions and Divestitures"" for further information. Stock Options A summary of stock option activity during the six months ended December 27, 2025 is as follows: Number of Options Outstanding (millions) Outstanding at June 28, 2025 5.2 Granted 0.2 Exercised (0.8) Forfeited or expired Outstanding at December 27, 2025 4.6 The weighted-average grant-date fair value of options granted during the six months ended December 27, 2025 and December 28, 2024 was $36.74 and $12.11, respectively. The fair value of each option grant is estimated on the date of grant using the Black-Schole …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"FAIR VALUE MEASUREMENTS The Company categorizes its assets and liabilities, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. The three levels of the hierarchy are defined as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than quoted prices included in Level 1. 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. Level 3 Unobservable inputs reflecting managements own assumptions about the input used in pricing the asset or liability. The Company does not have any Level 3 investments. The following table shows the fair value measurements of the Companys financial assets and liabilities at December 27, 2025 and June 28, 2025: Level 1 Level 2 December 27, 2025 June 28, 2025 December 27, 2025 June 28, 2025 (millions) Assets: Cash equivalents (1) $ 196.9 $ 225.9 $ $ Short-term investments : Other 24.4 19.6 Long-term investments : Other 1.4 Derivative assets : Inventory-related instruments (2) 20.6 6.5 Net investment hedges (2) 40.6 15.6 Intercompany loans and payables (2) 0.1 0.3 Liabilities: Derivative liabilities : Inventory-related instruments (2) 6.3 7.9 Net investment hedges (2) 195.9 263.0 Intercompan …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The change in the carrying amount of the Companys goodwill by segment is as follows: Coach Kate Spade (1) Total (millions) Balance at June 28, 2025 $ 597.5 $ 385.8 $ 983.3 Foreign exchange impact (14.6) (2.0) (16.6) Balance at December 27, 2025 $ 582.9 $ 383.8 $ 966.7 (1) Amount is net of accumulated impairment charges of $244.1 million as of December 27, 2025 and June 28, 2025. Intangible Assets Intangible assets consist of the following: December 27, 2025 June 28, 2025 Gross Carrying Amount Accum. Amort. Net Gross Carrying Amount Accum. Amort. Net (millions) Intangible assets subject to amortization: Customer relationships $ 45.6 $ (26.7) $ 18.9 $ 45.6 $ (25.1) $ 20.5 Total intangible assets subject to amortization 45.6 (26.7) 18.9 45.6 (25.1) 20.5 Intangible assets not subject to amortization: Trademarks and trade names (1) 699.1 699.1 699.1 699.1 Total intangible assets $ 744.7 $ (26.7) $ 718.0 $ 744.7 $ (25.1) $ 719.6 (1) Amount is net of accumulated impairment charges of $610.7 million as of December 27, 2025 and June 28, 2025 for Kate Spade indefinite-lived brand intangible asset. Amortization expense for the Companys definite-lived intangible assets for the three and six months ended December 27, 2025 was $0.8 million and $1.6 million, respectively. Amortization expense for the Companys definite-lived intangible assets for three and six months ended December 28, 2024 was $1.7 million and $3.3 million, respectively. As of D …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"INCOME TAXESThe Company's effective tax rate for the three and six months ended December 27, 2025 was 19.5% and 17.7%, respectively. The Company's effective tax rate for the three and six months ended December 28, 2024 was 10.1% and 13.0%, respectively. The increase in effective tax rate for the three months ended December27, 2025 as compared to the three months ended December 28, 2024 was primarily attributable to the impact of discrete items compared to the prior year period, geographical mix of earnings and the impact of the Pillar Two Global Anti-Base Erosion Rules (""Pillar Two""). The increase in effective tax rate for the six months ended December27, 2025 as compared to the six months ended December 28, 2024 was primarily attributable to the impact of discrete items compared to the prior year period, geographical mix of earnings and the impact of Pillar Two."

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"Recently Issued Accounting Pronouncements In November 2025, the FASB issued ASU No. 2025-09, ""Derivatives and Hedging (Topic 815): Hedge Accounting Improvements,"" which includes amendments intended to more closely align hedge accounting with the economics of an entity's risk management activities. 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. Early adoption is permitted and the amendments should be applied prospectively. The Company is currently evaluating the ASU to determine its impact on its condensed consolidated financial statements and notes thereto. In September 2025, the FASB issued ASU No. 2025-06, ""Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): 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. 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. 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. Early ado …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"REVENUE 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. The Company also generates revenue from royalties related to licensing its trademarks, as well as sales in ancillary business channels. In all cases, revenue is recognized upon the transfer of control of the promised products or services to the customer, 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. The amount of revenue recognized is the amount of consideration to which the Company expects to be entitled, including estimation of sale terms that may create variability in the consideration. Revenue subject to variability is constrained to an amount which will not result in a significant reversal in future periods when the contingency that creates variability is resolved. The Company has elected a practical expedient not to disclose the remaining performance obligations that are unsatisfied as of the end of the period related to contracts with an original duration of one year or less or variable consideration related to sales-based royalty arrangements. There are no other contracts with transaction price allocated to remaining performance obligations other than future minimum royalties …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"SEGMENT INFORMATION 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. 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. 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""); therefore, they are not allocated to its segments. Such costs primarily include certain overhead expenses related to corporate functions as well as certain administration, corporate occupancy, information technology and depreciation costs. As of August 4, 2025, the Company determined it has two reportable segments on a prospective basis as a result of the sale of the Stuart Weitzman Business. The …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"STOCKHOLDERS' EQUITY Stock Repurchase Program 2026 Share Repurchase Program On September 10, 2025, the Company announced that the Board authorized the Company to repurchase up to $3.00 billion of its outstanding common stock (the ""2026 Share Repurchase Program""), replacing the 2022 Share Repurchase Program which had $561.7 million of remaining authorization. During the three months ended December 27, 2025, the Company repurchased $400.0 million of common stock. During the six months ended December 27, 2025, the Company repurchased $900.0 million of common stock, $238.3 million under the 2022 Share Repurchase Program and $661.7 million under the 2026 Share Repurchase Program. As of December 27, 2025, the Company had $2.34 billion of remaining repurchase authorization under the 2026 Share Repurchase Program. 2025 Share Repurchase Program On November 13, 2024, the Board authorized the Company to repurchase up to $2.00 billion of outstanding shares of its common stock (the ""2025 Share Repurchase Program""). On November 21, 2024, the Company entered into accelerated share repurchase agreements (the ASR Agreements) with Bank of America, N.A. and Morgan Stanley & Co. LLC (the Dealers) to repurchase an aggregate of up to $2.00 billion of the Companys shares of common stock. Under the ASR Agreements, the Company paid $2.00 billion to the Dealers and received an initial delivery of 28,363,766 shares of the Company's common stock on November 26, 2024. Final settlement was based …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing