Tapestry, Inc.

The Beneish M-Score of -2.717 is below the -1.78 threshold and is labeled not in the elevated zone, so this screen does not flag fiscal 2025 for a closer manipulation read. The Beneish model compares receivables, margins, asset quality and accruals across years, and a score outside the elevated zone is a screening result, not an audit conclusion. The Altman Z″-Score of 0.66 falls in the distress zone under its label, which is below 1.10. This model weighs balance sheet and profitability ratios, and the reading is consistent with the sharp drop in equity from $2.9 billion to $857.8 million after the impairments. Readers may want to look at this score alongside liabilities, which fell from $10.5 billion to $5.72 billion, because a distress reading does not by itself predict default. The Piotroski F-Score shows 7 of 9 computable signals, a checklist of profitability, leverage and efficiency tests, and the Company passed most of them even though fiscal 2025 net income fell. The operating cash flow to net income ratio of 6.64 is high because non-cash impairment charges reduced net income while operating cash flow stayed near $1.22 billion. The 10-K tariff disclosures covering manufacturing in Vietnam, Cambodia, the Philippines, India and mainland China, along with the Kate Spade store and international expansion plans named in the 10-Q, are the operating items readers may want to track next. The 10-Q also reports disclosure controls as effective, and it refers legal matters to Note 14 without detail in the excerpt provided.

Catalyst.Revenue rose 5.1% to $7.01 billion in fiscal 2025, up from $6.67 billion in fiscal 2024, and the annual report ties the business to tariff and trade-policy uncertainty. Operating cash flow was $1.22 billion, close to the $1.26 billion reported for fiscal 2024. Management's discussion centers on Kate Spade, where the filing names store fleet productivity, international expansion, promotional activity and the reception of new collections as the factors that will determine whether its future cash flows hold up. The 10-Q for the third quarter of fiscal 2026 shows the Company repurchased 1,050,767 shares under its $3.00 billion program, leaving $2,188.6 million available as of March 28, 2026.

Hidden risk.The largest item a casual reader could miss is the $854.8 million of fourth-quarter fiscal 2025 impairments: $244.1 million against Kate Spade goodwill and $610.7 million against its indefinite-lived brand intangible. The 10-Q warns that an interim or annual test could produce further impairment if fiscal 2026 profitability falls short of expectations. Separately, the 10-K risk factors state that most products are imported and that tariffs could force the Company to absorb costs or pass them to consumers. Total assets fell from $13.4 billion to $6.58 billion and long-term debt from $7 billion to $2.4 billion, but the excerpts provided do not explain those balance-sheet changes.