Sign in

    Tapestry Inc (TPR)

    New Share Buyback Program

    You might also like

    Tapestry, Inc. is a New York-based company that operates as a house of iconic accessories and lifestyle brands, including Coach, Kate Spade, and Stuart Weitzman. The company is dedicated to innovation and authenticity, offering distinctive products and customer experiences across various channels and geographies . Tapestry's revenue is primarily generated through direct-to-consumer channels, including retail stores and e-commerce, as well as wholesale and licensing businesses .

    1. Coach - A global fashion house known for its accessories and lifestyle collections, contributing significantly to the company's net sales.
    2. Kate Spade - A global lifestyle brand recognized for its colorful and bold designs, playing a major role in the company's offerings.
    3. Stuart Weitzman - A luxury footwear brand that adds to the company's diverse portfolio with its high-end shoe collections.
    NamePositionStart DateShort Bio
    Joanne CrevoiseratChief Executive OfficerOctober 2020Joanne Crevoiserat has been the Chief Executive Officer of Tapestry, Inc. since October 2020, after serving as Interim CEO starting in July 2020. She joined Tapestry as Chief Financial Officer in August 2019. Before her tenure at Tapestry, she was Executive Vice President and Chief Operating Officer at Abercrombie & Fitch Co. .
    David HowardGeneral Counsel and SecretaryJune 2020David Howard has served as General Counsel since June 2020 and as Secretary since August 2020 at Tapestry, Inc. He previously held the position of Senior Vice President, Deputy General Counsel, and Assistant Secretary from August 2018 through May 2020. Mr. Howard joined the company in January 2011 .
    Todd KahnChief Executive Officer and Brand President, CoachApril 2021Todd Kahn has served as Chief Executive Officer and Brand President, Coach since April 2021. He initially took on the role as Interim Chief Executive Officer and Brand President in July 2020 and has been leading the revenue-generating business units of the brand since March 2020. Kahn joined Tapestry in January 2008 .
    Denise KulikowskyChief People OfficerOctober 2023Denise Kulikowsky has served as the Chief People Officer at Tapestry, Inc. since October 2023. Before joining Tapestry, she worked at Party City Holdings Inc. from 2018 to 2023, where she held roles as the Chief Human Resources Officer and then as the Chief People and Administrative Officer .
    Scott RoeChief Financial Officer and Chief Operating OfficerAugust 2022Scott Roe has served as the Chief Financial Officer since joining Tapestry, Inc. in June 2021 and as the Chief Financial Officer and Chief Operating Officer since August 2022. Before joining Tapestry, he was with VF Corporation, where he served as Chief Financial Officer from April 2015 .
    1. Given the district court's preliminary injunction on the Capri acquisition and your subsequent appeal, how will a potential deal break impact your capital allocation priorities, and what specific actions are you planning to enhance shareholder value in that scenario?

    2. With Kate Spade experiencing revenue declines and profit margin expansion primarily driven by cost management, what immediate steps are you taking to reignite top-line growth for the brand and address any execution challenges?

    3. In North America, you reported a 1% sales decline due to a planned decrease in wholesale, which impacted the quarter but is not expected to repeat; can you elaborate on how you plan to drive sequential improvement and achieve modest growth in this region for the rest of the fiscal year?

    4. Despite a 5% revenue decline in Greater China, you've increased top-of-funnel marketing investments in the region; how confident are you in seeing a return on these investments given the challenging market conditions, and what metrics are you using to measure success?

    5. Inventory levels at quarter-end were 9% above the prior year due to higher in-transits; how are you managing the risk of excess inventory, especially entering the holiday season, and what strategies are in place to align inventory levels with consumer demand?

    Program DetailsProgram 1
    Approval DateMay 12, 2022
    End Date/DurationNo specified end date
    Total additional amount$1.50 billion
    Remaining authorization amount$800 million
    DetailsShares repurchased will become authorized but unissued shares, which may be issued in the future for general corporate and other purposes. The company may terminate or limit the program at any time.
    YearAmount Due (millions)Debt TypeInterest Rate% of Total Debt
    2025$500.0 7.050% Senior Notes7.050% 6.8% = ($500.0 / $7,311.7) * 100
    2025$558.3 5.350% EUR Senior Notes5.350% 7.6% = ($558.3 / $7,311.7) * 100
    2026$750.0 7.000% Senior Notes7.000% 10.3% = ($750.0 / $7,311.7) * 100
    2027$396.6 4.125% Senior Notes4.125% 5.4% = ($396.6 / $7,311.7) * 100
    2027$558.3 5.375% EUR Senior Notes5.375% 7.6% = ($558.3 / $7,311.7) * 100
    2028$1,000.0 7.350% Senior Notes7.350% 13.7% = ($1,000.0 / $7,311.7) * 100
    2030$1,000.0 7.700% Senior Notes7.700% 13.7% = ($1,000.0 / $7,311.7) * 100
    2031$558.3 5.875% EUR Senior Notes5.875% 7.6% = ($558.3 / $7,311.7) * 100
    2032$500.0 3.050% Senior Notes3.050% 6.8% = ($500.0 / $7,311.7) * 100
    2033$1,250.0 7.850% Senior Notes7.850% 17.1% = ($1,250.0 / $7,311.7) * 100
    NameStart DateEnd DateReason for Change
    Deloitte & Touche LLP2002 PresentCurrent auditor

    Recent developments and announcements about TPR.

    Financial Actions

      Debt Issuance

      ·
      Dec 11, 2024, 9:44 PM

      Tapestry, Inc. has recently created a direct financial obligation by issuing $750,000,000 aggregate principal amount of 5.100% senior unsecured notes due 2030 and $750,000,000 aggregate principal amount of 5.500% senior unsecured notes due 2035. These notes were issued under an Indenture dated December 11, 2024, with U.S. Bank Trust Company, National Association, as the trustee. The issuance of these notes represents a significant financial obligation for Tapestry, Inc., which could impact the company's balance sheet and financial health by increasing its liabilities and interest expenses. The covenants in the Indenture limit the company's ability to create certain liens, enter into sale and leaseback transactions, and merge or consolidate, which could affect its operational flexibility .

      New Share Buyback Program

      ·
      Dec 11, 2024, 9:44 PM

      Tapestry, Inc. has announced a new buyback program as part of its financial strategy. The company has closed a $1.5 billion senior unsecured notes offering, which includes $750 million of 5.100% senior notes due 2030 and $750 million of 5.500% senior notes due 2035. The proceeds from this offering, along with cash on hand, will be used to repay outstanding loans and borrowings under its credit facilities, which were utilized to fund share repurchases under the company's accelerated share repurchase agreements .

      New Share Buyback Program

      ·
      Nov 22, 2024, 12:22 PM

      Tapestry, Inc. has announced a $2.0 billion accelerated share repurchase (ASR) program. The company has entered into agreements with Bank of America N.A. and Morgan Stanley & Co. LLC to repurchase shares of its common stock. The ASR program is part of Tapestry's expanded $2.8 billion share repurchase authorization. The company plans to return over 100% of its free cash flow to shareholders in Fiscal 2025 through dividends and share repurchases. An initial delivery of 28.4 million shares is expected on November 26, 2024, representing about 80% of the shares to be repurchased. The final settlement is expected by the first quarter of Fiscal 2026, ending September 27, 2025 .

      Dividend Policy

      ·
      Nov 14, 2024, 12:00 AM

      Tapestry, Inc. (NYSE: TPR) has announced that it will maintain its annual dividend rate of $1.40 per common share for Fiscal 2025. The company is committed to increasing its dividend at least in line with earnings growth over time to achieve a target payout ratio of 35% to 40% .

      New Share Buyback Program

      ·
      Nov 14, 2024, 12:00 AM

      Tapestry, Inc. has announced a new $2 billion share repurchase program. This program allows the company to repurchase shares on the open market, in privately negotiated transactions, or through accelerated share repurchase programs. The company plans to fund these repurchases with a combination of cash on hand and proceeds from debt .

    Legal & Compliance

      Legal Proceedings

      ·
      Nov 22, 2024, 12:22 PM

      Summary of Legal Matter Involving Tapestry, Inc. (TPR):

      Key Parties Involved:

      • Tapestry, Inc.: The company involved in the legal proceedings.
      • Bank of America, N.A.: Acts as the Administrative Agent.
      • BofA Securities, Inc. and Morgan Stanley Senior Funding, Inc.: Serve as Joint Bookrunners and Joint Lead Arrangers .

      Nature of the Proceedings:

      • Tapestry, Inc. has entered into a Term Loan Credit Agreement dated November 21, 2024, with various lenders, including Bank of America, N.A. as the Administrative Agent. This agreement outlines the terms and conditions under which the company can borrow funds .
      • The agreement includes various sections detailing the commitments, loans, and borrowings, as well as the responsibilities and rights of the lenders and the company .

      Potential Financial or Operational Consequences:

      • The agreement includes provisions for indemnification, where Tapestry, Inc. is required to indemnify the Administrative Agent and each Lender against certain losses, claims, damages, and liabilities .
      • There are also clauses related to the maintenance of properties and insurance, compliance with laws, and the payment of obligations, which, if not adhered to, could result in a Material Adverse Effect on the company .
      • The agreement specifies conditions under which lenders can request compensation or require the company to pay additional amounts, which could impact Tapestry's financial obligations .

      Overall, the legal matter involves a complex financial arrangement that could have significant financial and operational implications for Tapestry, Inc. if the terms are not met or if certain adverse events occur.

      Note: This summary is based on the current legal documents and agreements as of November 21, 2024, and does not account for any future changes or developments in the legal proceedings.