Tapestry Inc - TPR STOCK NEWS

Tapestry (NYSE: TPR), owner of Coach, Kate Spade, and Stuart Weitzman brands, has announced a public offering of senior unsecured notes. The company plans to use the proceeds, along with available cash, to repay outstanding term loan debt and revolving credit facility borrowings that were previously used for share repurchases under accelerated share repurchase agreements. BofA Securities, Morgan Stanley, and J.P. Morgan are serving as joint lead book-running managers for the offering.

Tapestry (NYSE: TPR) has announced $2.0 billion Accelerated Share Repurchase (ASR) agreements with Bank of America and Morgan Stanley. The company will receive an initial delivery of 28.4 million shares on November 26, 2024, representing about 80% of expected shares. The ASR is funded through a $750 million term loan, $1.0 billion from revolving credit, and $250 million cash. Tapestry expects to return over 100% of free cash flow to shareholders in Fiscal 2025 through dividends and repurchases. The final settlement is expected by Q1 Fiscal 2026. An additional $800 million remains available for future repurchases.

Tapestry (NYSE: TPR) and Capri Holdings have mutually agreed to terminate their merger agreement, citing uncertainty in the legal process and unlikely resolution by February 2025. In response, Tapestry announced a new $2 billion share repurchase authorization, including a planned Accelerated Share Repurchase program. The company will maintain its annual dividend rate of $1.40 per share in Fiscal 2025 and redeem $6.1 billion in acquisition-related senior notes. Tapestry agreed to reimburse Capri's transaction expenses of approximately $45 million. The company reaffirmed its Fiscal 2025 outlook and emphasized its commitment to organic growth and shareholder value creation.

Tapestry Inc. (NYSE: TPR) reported strong fiscal 2025 first quarter results, outperforming expectations with revenue of $1.51 billion, in line with the previous year. The company achieved record non-GAAP diluted EPS of $1.02 and a significant gross margin expansion of 280 basis points. Coach brand showed growth while Kate Spade saw a 7% decline. The company demonstrated strong international performance, particularly in Europe (+27%), despite a slight decrease in APAC (-2%). Based on these results, Tapestry raised its fiscal 2025 outlook, now expecting revenue over $6.75 billion and EPS of $4.50 to $4.55.

Coach's SVP of Global Marketing and Sustainability, Joon Silverstein, delivered a TED Talk about Coachtopia's innovative approach to waste management in fashion. The talk focused on how Coachtopia, launched in 2023, aims to advance a circular fashion system through their Made Circular™ principles. Using the Alter/Ego collection as an example, Silverstein discussed their journey toward circularity, emphasizing progress over perfection. The initiative focuses on lowering carbon footprints compared to conventional manufacturing methods and collaborating with industry partners to eliminate waste and reduce emissions across their supply chain.

kate spade new york and The Boris Lawrence Henson Foundation (BLHF) announced the expansion of their SheCare Wellness Pods program to Bennett College in Greensboro, North Carolina. This marks the third installation following successful launches at Alabama State University and Hampton University in 2023. The new pod, opened on October 22, 2024, will uniquely serve both Bennett College students and neighboring North Carolina A&T State University students, as well as local women's community groups. The location was chosen following student protests demanding improved mental health services. The pod features a custom mural by local artist Alyse Watt and Bennett College students, designed to promote wellness and women's strength.

Tapestry highlights employee development through the story of Samantha Lanzerotti, Senior Regional Visual Manager at kate spade new york. During her 11-year tenure, Lanzerotti has expanded her role and explored different business areas. The company emphasizes its commitment to talent development and providing equal growth opportunities across the enterprise, encouraging employees to explore roles beyond their current functions.

Sandeep Seth, Chief Marketing Officer of Coach and Chief Growth Officer of Tapestry, has been recognized in the Campaign US CMO 50. Seth earned this distinction for his consumer-centric approach and success in developing purpose-led marketing strategies that effectively engage Gen Z consumers. His recognition highlights his expertise in global brand-building and innovative marketing approaches that have strengthened Tapestry's brand positioning.

Tapestry (NYSE: TPR) has responded to a U.S. District Court ruling that granted the FTC's request for a preliminary injunction regarding its proposed acquisition of Capri Holdings (NYSE: CPRI). The company expressed disappointment with the decision, stating it believes the ruling is incorrect on both legal and factual grounds. Tapestry, which owns Coach, kate spade new york, and Stuart Weitzman brands, argues that the industry is highly competitive, dynamic, and fragmented. The company has announced its intention to appeal the decision in accordance with the merger agreement terms.