- Delivered Revenue of $2.1 Billion, Representing 3% Growth
Compared to the Prior Year
- Drove a Gross Margin Increase of 300 Basis Points Versus
Last Year
- Grew Operating Profit by 7% on a Reported Basis and 14% on a
Non-GAAP Basis
- Achieved Diluted EPS of $1.39 on a Reported Basis, Up 3%
Versus Last Year, and $1.63 on a Non-GAAP Basis, Up 20% Versus Last
Year
- Generated Robust Operating and Free Cash Flow of Over $800
Million, Above Prior Year
- Increased EPS Outlook for Fiscal Year 2024
Link to Download Tapestry’s Q2 Earnings Presentation, Including
Brand Highlights
Tapestry, Inc. (NYSE: TPR), a house of iconic accessories and
lifestyle brands consisting of Coach, Kate Spade, and Stuart
Weitzman, today reported results for the fiscal second quarter
ended December 30, 2023.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240208830207/en/
(Photo: Business Wire)
Joanne Crevoiserat, Chief Executive Officer of Tapestry, Inc.,
said, “Our second quarter results exceeded expectations,
highlighting the power of brand building and disciplined execution.
During the key holiday season, our passionate teams delivered for
our customers, fueling brand magic through innovative product,
engaging storytelling, and operational excellence. Importantly, we
drove record revenue and EPS, while advancing our strategic agenda.
Based on these results, we are raising our EPS outlook for the
fiscal year.”
“Moving forward, we have an unwavering commitment to deliver
sustainable growth and shareholder value. We will continue to put
the consumer at the center of everything we do, building our brands
for the future and harnessing our data-driven, customer engagement
platform to enhance creativity, speed, and agility. We are
confident in our vision and our ability to realize it, with
significant runway for long-term growth.”
Tapestry, Inc. Financial &
Strategic Highlights
Throughout the fiscal second quarter, the Company advanced its
strategic priorities to:
Build Lasting Customer Relationships
- Drove customer engagement, acquiring approximately 2.5
million new customers in North America alone, of which about half
were Gen Z and Millennials.
Power Global Growth
- Achieved International revenue growth of 12% at constant
currency, with gains across key regions, including 19% in
Greater China, 6% in Japan, 9% in Other Asia, and 11% in
Europe;
- Delivered North America revenue in-line with the prior
year, while driving gross and operating margin expansion;
- Realized adjusted earnings per diluted share growth of
20%, with each brand contributing to profit increases on a
year-over-year basis;
- Generated robust operating and free cash flow of over $800
million, above prior year, and fueling the Company’s strategic
growth agenda.
Deliver Compelling Omni-Channel Experiences
- Increased Direct-to-Consumer revenue by 4% at constant
currency, including mid-single-digit growth in both stores and
Digital, supported by the Company’s modern data and
analytics platform;
- Maintained strong positioning in Digital, which
represented approximately one-third of revenue;
- Opened new multi-brand Las Vegas fulfillment center,
strengthening Tapestry’s omni-channel capabilities and positioning
the Company to meet the needs of customers in a more sustainable
and efficient manner.
Fuel Fashion Innovation and Product Excellence
- Delivered innovative assortments, including notable
outperformance in new product and branding elements; fueled overall
handbag AUR gains globally, driven by growth at Coach;
- Expanded gross margin by 300 basis points, benefiting
from lower freight expense and operational outperformance, with
each brand driving increases versus prior year;
- Maintained tight inventory control, ending the quarter
with inventory levels 15% below the prior year, reflecting the
Company’s focus on disciplined inventory management.
Overview of Fiscal 2024 Second Quarter
Financial Results
- Net sales totaled $2.08 billion compared to $2.03
billion in the prior year period, representing growth of 3% on both
a reported and constant currency basis. In the second quarter, FX
represented a 40 basis point headwind to top-line growth.
- Gross profit totaled $1.49 billion, while gross margin
was 71.6%, which reflected a benefit of 170 basis points from lower
freight expense, as well as operational improvements. This compared
to prior year gross profit of $1.39 billion, representing a gross
margin of 68.6%.
- SG&A expenses totaled $1.05 billion and represented
50.2% of sales on a reported basis. On a non-GAAP basis, SG&A
expenses totaled $1.02 billion and represented approximately 48.7%
of sales. In the prior year period, SG&A expenses on both a
reported and non-GAAP basis totaled $971 million, representing
47.9% of sales.
- Operating income was $448 million on a reported basis,
while operating margin was 21.5%. On a non-GAAP basis, operating
income was $476 million, while operating margin was 22.8%. This
compares to reported and non-GAAP operating income of $418 million
and a 20.6% operating margin in the prior year period.
- Net interest expense was $49 million on a reported
basis, reflecting the incremental debt incurred related to the
financing of the proposed acquisition of Capri Holdings Limited. On
a non-GAAP basis, net interest expense was $5 million. This
compared to net interest expense of $8 million in the prior year
period on both a reported and non-GAAP basis.
- Other income was $5 million, primarily due to an FX gain
associated with the movement of the U.S. Dollar within the quarter.
This compared to other income of $7 million in the prior year
period primarily related to an FX gain.
- Net income was $322 million, with earnings per diluted
share of $1.39. On a non-GAAP basis, net income was $377 million,
with earnings per diluted share of $1.63. In the prior year period,
net income was $330 million, with earnings per diluted share of
$1.36 on both a reported and non-GAAP basis. On a reported basis,
the tax rate for the quarter was 20.0% or 20.8% on a non-GAAP
basis. In the prior year period, the tax rate was 20.9% on both a
reported and non-GAAP basis.
Balance Sheet and Cash Flow
Highlights
- Cash, cash equivalents and short-term investments
totaled $7.46 billion and total borrowings outstanding were
$7.74 billion.
- Inventory of $825 million was below the prior year’s
ending inventory of $976 million.
- Cash flow from operating activities for the second
fiscal quarter was an inflow of $827 million compared to an inflow
of $633 million in the prior year. On a year-to-date basis, cash
flow from operating activities was an inflow of $902 million
compared to an inflow of $462 million compared to the prior year.
Free cash flow for the second fiscal quarter was an inflow
of $804 million compared to an inflow of approximately $551 million
in the prior year. On a year-to-date basis, free cash flow was an
inflow of $858 million compared to an inflow of approximately $354
million compared to the prior year.
- CapEx and implementation costs related to Cloud
Computing for the second fiscal quarter were $30 million versus
$102 million a year ago. On a year-to-date basis, CapEx and
implementation costs related to Cloud Computing were $59 million
versus $149 million a year ago.
Dividend
The Company’s Board of Directors declared a quarterly cash
dividend of $0.35 per common share payable on March 25, 2024 to
shareholders of record as of the close of business on March 8,
2024.
In the fiscal year, Tapestry continues to expect to return
approximately $325 million to shareholders through dividend
payments for an anticipated annual dividend rate of $1.40 per
share, an increase of 17% from prior year.
Acquisition of Capri Holdings
Limited
On August 10, 2023, Tapestry, Inc. announced a definitive
agreement to acquire Capri Holdings Limited, establishing a
powerful global house of iconic luxury and fashion brands. This
acquisition builds on Tapestry’s core tenets as consumer-centric
brand-builders and disciplined operators, accelerating its
strategic and financial growth agenda. The combination will:
- Expand the Company’s portfolio reach and diversification across
consumer segments, geographies and product categories;
- Leverage Tapestry’s consumer engagement platform to drive
direct-to-consumer opportunity;
- Unlock opportunity for significant cost synergies;
- Generate highly diversified, strong, and consistent cash
flow;
- Power continued progress as a purpose-led, people-centered
company; and,
- Create a path to deliver enhanced total shareholder
returns.
Importantly, this transaction is expected to deliver strong
double-digit EPS accretion on an adjusted basis and compelling
ROIC. At the same time, the Company remains committed to achieving
its stated target of a gross leverage ratio of below 2.5x
debt/adjusted EBITDA within 24 months of transaction close through
rapid debt paydown given the combined entity’s strong cash flow
generation.
Since the prior quarter-end, the Company has made incremental
progress towards transaction close:
- Tapestry continues to work toward receiving required regulatory
approvals. As publicly announced by the regulator in January 2024,
the State Administration for Market Regulation in China approved
the transaction. Tapestry remains confident in the ability to
complete the transaction, with a close expected in calendar 2024,
consistent with prior expectations.
- In November 2023, the Company issued $6.1 billion in USD and
EUR bonds, garnering high-quality interest from global fixed income
investors; achieved all-in debt interest rate of 6.5%, including
Tapestry’s existing debt, consistent with the Company’s
expectations.
- Integration planning efforts continue to move forward with
expected run-rate cost synergies of over $200 million to be
achieved within three years of closing.
Non-GAAP Reconciliation
During the second fiscal quarter of 2024, Tapestry recorded
certain items that decreased the Company’s pre-tax income by $72
million, net income by $54 million, and earnings per diluted share
by approximately $0.24. These items relate to costs associated with
the acquisition of Capri Holdings Limited, primarily financing
charges and professional fees.
Please refer to Financial Schedules 3 and 4 included herein for
a detailed reconciliation of the Company’s reported GAAP to
non-GAAP results.
Financial Outlook
Tapestry now expects the following for Fiscal 2024, which
replaces all previous guidance and is provided on a non-GAAP
basis:
- Revenue of approximately $6.7 billion, representing an
increase in the area of 1% on a reported basis and 2% on a constant
currency basis;
- Net interest expense of approximately $20 million;
- Tax rate of approximately 20%;
- Weighted average diluted share count of approximately
233 million shares;
- Earnings per diluted share of $4.20 to $4.25,
representing 8% to 9% growth compared to the prior year;
- Free cash flow of approximately $1.1 billion, excluding
deal-related costs.
Please note this outlook assumes the following:
- No revenue or earnings contribution or deal-related costs
related to the proposed acquisition of Capri Holdings Limited,
which is expected to close in calendar 2024;
- No further appreciation of the U.S. Dollar; information
provided based on spot rates at the time of forecast;
- A gradual recovery in Greater China;
- No material worsening of inflationary pressures or consumer
confidence; and
- No benefit from the potential reinstatement of the Generalized
System of Preferences (“GSP”).
Given the dynamic nature of these and other external factors,
financial results could differ materially from the outlook
provided.
Financial Outlook - Non-GAAP Adjustments:
The Company is not able to provide a full reconciliation of the
non-GAAP financial measures to GAAP presented in this release and
on the Company’s conference call because certain material items
that impact these measures, such as the timing and exact amount of
acquisition, financing, purchase accounting and integration-related
charges and Company costs associated with the acquisition of Capri
Holdings Limited have not yet occurred and cannot be reasonably
estimated at this time. Accordingly, a reconciliation of the
Company’s non-GAAP financial measure guidance to the corresponding
GAAP measure is not available without unreasonable effort.
Conference Call Details
The Company will host a conference call to review these results
at 8:00 a.m. (ET) today, February 8, 2024. Interested parties may
listen to the conference call via live webcast by accessing
www.tapestry.com/investors or calling 1-866-847-4217 or
1-203-518-9845 and providing the Conference ID 4693119. A telephone
replay will be available starting at 12:00 p.m. (ET) today for a
period of five business days. To access the telephone replay, call
1-800-283-4641 or 1-402-220-0851. A webcast replay of the earnings
conference call will also be available for five business days on
the Tapestry website. In addition, presentation slides have been
posted to the Company’s website at www.tapestry.com/investors.
Upcoming Events
The Company expects to report Fiscal 2024 third quarter results
on Thursday, May 9, 2024.
To receive notification of future announcements, please register
at www.tapestry.com/investors ("Subscribe to E-Mail Alerts").
About Tapestry, Inc.
Our global house of brands unites the magic of Coach, kate spade
new york and Stuart Weitzman. 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
build a company that’s equitable, inclusive, and diverse.
Individually, our brands are iconic. Together, we can stretch
what’s possible. To learn more about Tapestry, please visit
www.tapestry.com. For important news and information regarding
Tapestry, visit the Investor Relations section of our website at
www.tapestry.com/investors. In addition, investors should continue
to review our news releases and filings with the SEC. We use each
of these channels of distribution as primary channels for
publishing key information to our investors, some of which may
contain material and previously non-public information. The
Company’s common stock is traded on the New York Stock Exchange
under the symbol TPR.
This information to be made available in this press release may
contain forward-looking statements based on management's current
expectations. Forward-looking statements include, but are not
limited to, the statements under “Financial Outlook,” statements
regarding long term performance, statements regarding the Company’s
capital deployment plans, including anticipated annual dividend
rates and share repurchase plans, and statements that can be
identified by the use of forward-looking terminology such as "may,"
"will," “can,” "should," "expect," “expectation,” “potential,”
"intend," "estimate," "continue," "project," "guidance,"
"forecast," “outlook,” “commit,” "anticipate," “goal,”
“leveraging,” “sharpening,” transforming,” “creating,”
accelerating,” “enhancing,” “innovation,” “drive,” “targeting,”
“assume,” “plan,” “progress,” “confident,” “future,” “uncertain,”
“on track,” “achieve,” “strategic,” “growth,” “view,” “vision,” “we
can stretch what’s possible,” or comparable terms. Future results
may differ materially from management's current expectations, based
upon a number of important factors, including risks and
uncertainties such as the impact of economic conditions, recession
and inflationary measures, the impact of the Covid-19 pandemic,
risks associated with operating in international markets and our
global sourcing activities, the ability to anticipate consumer
preferences and retain the value of our brands, including our
ability to execute on our e-commerce and digital strategies, the
ability to successfully implement the initiatives under our 2025
growth strategy, the effect of existing and new competition in the
marketplace, our ability to control costs, the effect of seasonal
and quarterly fluctuations on our sales or operating results; the
risk of cybersecurity threats and privacy or data security
breaches, our ability to protect against infringement of our
trademarks and other proprietary rights, the impact of tax and
other legislation, the risks associated with potential changes to
international trade agreements and the imposition of additional
duties on importing our products, our ability to achieve intended
benefits, cost savings and synergies from acquisitions including
our proposed acquisition of Capri Holdings Limited (“Capri”), the
anticipated impact of the proposed acquisition of Capri on the
combined company’s business and future financial and operating
results, the anticipated closing date for the proposed acquisition
of Capri, the satisfaction of the conditions precedent to
consummation of the proposed acquisition of Capri, including the
ability to secure regulatory approvals on the terms expected, at
all or in a timely manner, the impact of pending and potential
future legal proceedings, and the risks associated with climate
change and other corporate responsibility issues, etc. In addition,
purchases of shares of the Company’s common stock will be made
subject to market conditions and at prevailing market prices.
Please refer to the Company’s latest Annual Report on Form 10-K and
its other filings with the Securities and Exchange Commission for a
complete list of risks and important factors. The Company assumes
no obligation to revise or update any such forward-looking
statements for any reason, except as required by law.
Schedule 1: Consolidated Statement of Operations
TAPESTRY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
For the Quarter and Six Months Ended
December 30, 2023 and December 31, 2022 (in millions, except per share data)
(unaudited) (unaudited) QUARTER ENDED SIX
MONTHS ENDED December 30, 2023 December 31, 2022
December 30, 2023 December 31, 2022 Net
sales
$
2,084.5
$
2,025.4
$
3,597.7
$
3,531.9
Cost of sales
591.3
636.1
1,006.8
1,088.0
Gross profit
1,493.2
1,389.3
2,590.9
2,443.9
Selling, general and administrative expenses
1,045.6
971.1
1,890.1
1,771.4
Operating income (loss)
447.6
418.2
700.8
672.5
Interest expense, net
49.2
7.9
62.5
15.3
Other expense (income)
(4.7
)
(6.6
)
(3.3
)
4.1
Income (loss) before provision for income taxes
403.1
416.9
641.6
653.1
Provision (benefit) for income taxes
80.8
87.0
124.3
127.9
Net income (loss)
$
322.3
$
329.9
$
517.3
$
525.2
Net income (loss) per share: Basic
$
1.41
$
1.38
$
2.26
$
2.19
Diluted
$
1.39
$
1.36
$
2.23
$
2.14
Shares used in computing net income (loss) per share: Basic
229.3
239.3
228.7
240.3
Diluted
231.7
243.3
232.0
245.0
Schedule 2: Detail to Net Sales
TAPESTRY, INC. DETAIL TO NET SALES For the Quarter and Six Months Ended December 30, 2023
and December 31, 2022 (in
millions) (unaudited) QUARTER ENDED
December 30, 2023 December 31, 2022 % Change vs.
FY23 Constant Currency % Change FY23 Coach
$
1,541.9
$
1,449.7
6
%
7
%
Kate Spade
460.4
490.3
(6
)%
(6
)%
Stuart Weitzman
82.2
85.4
(4
)%
(3
)%
Total Tapestry
$
2,084.5
$
2,025.4
3
%
3
%
SIX MONTHS ENDED December 30, 2023
December 31, 2022 % Change vs. FY23 Constant
Currency % Change FY23 Coach
$
2,699.3
$
2,569.0
5
%
6
%
Kate Spade
763.6
812.2
(6
)%
(6
)%
Stuart Weitzman
134.8
150.7
(11
)%
(10
)%
Total Tapestry
$
3,597.7
$
3,531.9
2
%
3
%
Schedules 3 & 4: Consolidated Segment Data and GAAP to
Non-GAAP Reconciliation
CONSOLIDATED SEGMENT DATA, AND
GAAP TO NON-GAAP RECONCILIATION
(in millions, except per share
data) (unaudited)
For the Quarter Ended December 30, 2023 For the
Six Months Ended December 30, 2023 Items Affecting
Comparability Items Affecting Comparability GAAP
Basis(As Reported) Acquisition Costs Non-GAAP
Basis(Excluding Items) GAAP Basis(As Reported)
Acquisition Costs Non-GAAP Basis(Excluding Items)
Gross profit Coach
1,147.5
—
1,147.5
2,015.1
—
2,015.1
Kate Spade
294.4
—
294.4
493.3
—
493.3
Stuart Weitzman
51.3
—
51.3
82.5
—
82.5
Gross profit
$
1,493.2
$
—
$
1,493.2
$
2,590.9
$
—
$
2,590.9
SG&A expenses Coach
619.2
—
619.2
1,115.5
—
1,115.5
Kate Spade
222.3
—
222.3
394.6
—
394.6
Stuart Weitzman
49.9
—
49.9
89.7
—
89.7
Corporate
154.2
28.3
125.9
290.3
47.9
242.4
SG&A expenses
$
1,045.6
$
28.3
$
1,017.3
$
1,890.1
$
47.9
$
1,842.2
Operating income (loss) Coach
528.3
—
528.3
899.6
—
899.6
Kate Spade
72.1
—
72.1
98.7
—
98.7
Stuart Weitzman
1.4
—
1.4
(7.2
)
—
(7.2
)
Corporate
(154.2
)
(28.3
)
(125.9
)
(290.3
)
(47.9
)
(242.4
)
Operating income (loss)
$
447.6
$
(28.3
)
475.9
$
700.8
$
(47.9
)
748.7
Interest expense, net
49.2
44.1
5.1
62.5
50.8
11.7
Provision for income taxes
80.8
(18.0
)
98.8
124.3
(23.0
)
147.3
Net income (loss)
$
322.3
$
(54.4
)
$
376.7
$
517.3
$
(75.7
)
$
593.0
Net income (loss) per diluted common share
$
1.39
$
(0.24
)
$
1.63
$
2.23
$
(0.33
)
$
2.56
TAPESTRY, INC. CONSOLIDATED SEGMENT DATA, AND GAAP TO NON-GAAP RECONCILIATION
(in millions, except per share
data) (unaudited)
For the Quarter Ended December 31, 2022 For the
Six Months Ended December 31, 2022 GAAP Basis(As
Reported)(1) GAAP Basis(As Reported)(1) Gross
profit Coach
1,035.3
1,844.2
Kate Spade
302.1
509.9
Stuart Weitzman
51.9
89.8
Gross profit
$
1,389.3
$
2,443.9
SG&A expenses Coach
582.1
1,051.8
Kate Spade
233.1
417.7
Stuart Weitzman
51.2
94.2
Corporate
104.7
207.7
SG&A expenses
$
971.1
$
1,771.4
Operating income (loss) Coach
453.2
792.4
Kate Spade
69.0
92.2
Stuart Weitzman
0.7
(4.4
)
Corporate
(104.7
)
(207.7
)
Operating income (loss)
$
418.2
$
672.5
Provision for income taxes
87.0
127.9
Net income (loss)
$
329.9
$
525.2
Net income (loss) per diluted common share
$
1.36
$
2.14
(1) There were no items affecting comparability in the
second quarter and first six months of fiscal year 2023
Management utilizes non-GAAP and constant currency measures to
conduct and evaluate its business during its regular review of
operating results for the periods affected and to make decisions
about Company resources and performance. The Company believes
presenting these non-GAAP measures, which exclude items that are
not comparable from period to period, is useful to investors and
others in evaluating the Company’s ongoing operating and financial
results in a manner that is consistent with management’s evaluation
of business performance and understanding how such results compare
with the Company’s historical performance. Additionally, the
Company believes presenting these metrics on a constant currency
basis will help investors and analysts to understand the effect of
significant year-over-year foreign currency exchange rate
fluctuations on these performance measures and provide a framework
to assess how business is performing and expected to perform
excluding these effects.
The Company reports information in accordance with U.S.
Generally Accepted Accounting Principles ("GAAP"). The Company's
management does not, nor does it suggest that investors should,
consider non-GAAP financial measures in isolation from, or as a
substitute for, financial information prepared in accordance with
GAAP. Further, the non-GAAP measures utilized by the Company may be
unique to the Company, as they may be different from non-GAAP
measures used by other companies.
The Company operates on a global basis and reports financial
results in U.S. dollars in accordance with GAAP. Percentage
increases/decreases in net sales for the Company and each segment
have been presented both including and excluding currency
fluctuation effects from translating foreign-denominated sales into
U.S. dollars and compared to the same periods in the prior quarter
and fiscal year. The Company calculates constant currency net sales
results by translating current period net sales in local currency
using the prior year period’s currency conversion rate.
The segment operating income and supplemental segment SG&A
expenses presented in the Consolidated Segment Data, and GAAP to
non-GAAP Reconciliation Table above, as well as SG&A expense
ratio, and operating margin, are considered non-GAAP measures.
These measures have been presented both including and excluding
acquisition costs for the second quarter and first six months of
fiscal year 2024. In addition, segment Operating Income (loss), Net
income (loss), and Net Income (loss) per diluted common share, have
been presented both including and excluding acquisition costs for
the second quarter and first six months of fiscal year 2024.
There were no items affecting comparability for the second
quarter and first six months of fiscal year 2023.
The Company also presents free cash flow, which is a non-GAAP
measure, Free cash flow is calculated by taking the “Net cash flows
provided by (used in) operating activities” less “Purchases of
property and equipment” from the Condensed Consolidated Statement
of Cash Flows. The Company believes that free cash flow is an
important liquidity measure of the cash that is available after
capital expenditures for operational expenses and investment in our
business. The Company believes that free cash flow is useful to
investors because it measures the Company’s ability to generate or
use cash. Once our business needs and obligations are met, cash can
be used to maintain a strong balance sheet, invest in future growth
and return capital to stockholders. Adjusted EBITDA is calculated
as Net Income, excluding, Interest expense, Provision for income
taxes, Depreciation and amortization, Cloud computing amortization
costs, Share-based compensation and Items affecting comparability
including Acquisition and Integration costs.
Schedule 5: Condensed Consolidated Balance Sheets
TAPESTRY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
At December 30, 2023 and July 1,
2023 (in millions)
(unaudited) (audited) December 30, 2023
July 1, 2023 ASSETS Cash, cash equivalents and
short-term investments
$
7,462.3
$
741.5
Receivables
245.6
211.5
Inventories
824.9
919.5
Other current assets
509.7
491.0
Total current assets
9,042.5
2,363.5
Property and equipment, net
539.2
564.5
Operating lease right-of-use assets
1,371.0
1,378.7
Other assets
2,862.7
2,810.1
Total assets
$
13,815.4
$
7,116.8
LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable
$
462.9
$
416.9
Accrued liabilities
654.1
547.1
Current portion of operating lease liabilities
305.6
297.5
Current debt
25.0
25.0
Total current liabilities
1,447.6
1,286.5
Long-term debt
7,714.4
1,635.8
Long-term operating lease liabilities
1,294.7
1,333.7
Other liabilities
698.9
583.0
Stockholders' equity
2,659.8
2,277.8
Total liabilities and stockholders' equity
$
13,815.4
$
7,116.8
Schedule 6: Condensed Consolidated Statement of Cash
Flows
TAPESTRY, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the Six Months Ended December 30, 2023
and December 31, 2022 (in
millions) (unaudited) (unaudited)
December 30, 2023 December 31, 2022 CASH FLOWS
PROVIDED BY (USED IN) OPERATING ACTIVITIES Net income (loss)
$
517.3
$
525.2
Adjustments to reconcile net income to net cash provided by (used
in) operating activities: Depreciation and amortization
85.8
88.6
Other non-cash items
121.0
30.1
Changes in operating assets and liabilities
177.7
(181.5
)
Net cash provided by (used in) operating activities
901.8
462.4
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES
Purchases of property and equipment
(43.7
)
(108.8
)
Purchases of investments
(611.3
)
(4.3
)
Other items
—
193.7
Net cash provided by (used in) investing activities
(655.0
)
80.6
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES
Payment of dividends
(160.4
)
(144.2
)
Repurchase of common stock
—
(300.0
)
Proceeds from issuance of debt, net of discount
6,089.5
—
Other items
(119.9
)
(60.5
)
Net cash provided by (used in) financing activities
5,809.2
(504.7
)
Effect of exchange rate on cash and cash equivalents
51.0
2.1
Net (decrease) increase in cash and cash equivalents
6,107.0
40.4
Cash and cash equivalents at beginning of period
$
726.1
$
789.8
Cash and cash equivalents at end of period
$
6,833.1
$
830.2
Schedules 7 & 8: Store Count by Brand
TAPESTRY, INC. STORE COUNT At
September 30, 2023 and December 30, 2023 (unaudited) As of As of
Directly-Operated Store Count:
September 30, 2023
Openings (Closures) December
30, 2023 Coach North
America
330
2
(1)
331
International
604
10
(1)
613
Kate Spade North America
204
1
—
205
International
192
3
(1)
194
Stuart Weitzman North
America
36
2
—
38
International
61
2
(2)
61
TAPESTRY, INC. STORE COUNT At July
1, 2023 and December 30, 2023 (unaudited) As of As of
Directly-Operated Store Count:
July 1, 2023 Openings (Closures) December
30, 2023 Coach North
America
330
2
(1)
331
International
609
13
(9)
613
Kate Spade North America
205
1
(1)
205
International
192
5
(3)
194
Stuart Weitzman North
America
36
2
—
38
International
57
7
(3)
61
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240208830207/en/
Tapestry, Inc. Media: Andrea Shaw Resnick Chief Communications
Officer 212/629-2618 aresnick@tapestry.com Analysts and Investors:
Christina Colone Global Head of Investor Relations 212/946-7252
ccolone@tapestry.com Kelsey Mueller 212/946-8183 Investor Relations
kmueller@tapestry.com
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