The company is moving forward with the acquisition of Capri Holdings Limited for $8.50 billion, despite a lawsuit filed by the Federal Trade Commission seeking to block the deal. This indicates a strong commitment to the acquisition strategy.

The company's 2025 growth strategy, 'futurespeed', emphasizes building lasting customer relationships, fueling fashion innovation, delivering omni-channel experiences, and powering global growth, particularly in North America and China.

Coach net sales increased by 2.7%, while Kate Spade and Stuart Weitzman saw decreases of 6.0% and 14.2%, respectively. This highlights the Coach brand's strength and the challenges faced by the other brands in the portfolio.

Selling, general, and administrative (SG&A) expenses increased by 5.8%, outpacing revenue growth and partially offsetting the benefits of improved gross margins. This suggests potential inefficiencies in operational spending.

The company continues to invest in digital platforms and omni-channel experiences to meet customers where they shop, indicating a focus on adapting to changing consumer behavior.

The company utilizes a supply chain finance (SCF) program to improve working capital efficiency, indicating proactive management of supplier relationships and payment terms.

The Federal Trade Commission (FTC) has filed a lawsuit to block the Capri Acquisition, creating significant uncertainty about the deal's completion and potential financial implications.

The company has incurred substantial indebtedness to finance the Capri Acquisition, which could limit its ability to engage in additional transactions or incur additional debt.

The company's global sourcing activities are subject to risks such as continued disruptions or delays in shipments, loss or disruption of key manufacturing or fulfillment sites, and imposition of additional duties, taxes and other charges or restrictions on imports or exports.

The company faces intense competition from many other brands in the product lines and markets that it participates, which include the Company's wholesale customers. Competition is based on a number of factors, including, without limitation, the following.

The success of the business depends on the ability to retain the value of the brands and to respond to changing fashion and retail trends in a timely manner.

Each of the brands are unique and independent, while sharing a commitment to innovation and authenticity defined by distinctive products and differentiated customer experiences across business channels and geographies.

The business may be materially impacted if fulfillment centers face significant interruptions and operations.

The business may be subject to increased costs due to excess inventories and a decline in profitability as a result of increasing pressure on margins if demand for products is misjudged.

The business is subject to the risks inherent in global sourcing activities.

The business depends on digital technologies for the successful operation of the business, including corporate email communications to and from employees, customers, stores and vendors, the design, manufacture and distribution of finished goods, digital and local marketing and clienteling efforts, data analytics, collection, use and retention of customer data, employee, vendor and partner information, the processing of credit card transactions, online e-commerce activities and interaction with the public in the social media space.

Computer system disruption and cyber security threats, including a personal data or security breach, could damage the relationships with customers, harm the reputation, expose to litigation and adversely affect the business.

The Company is continuously enhancing the cybersecurity framework in response to the ongoing incidents and threats that are faced.

The company suspended its share repurchase activity in connection with the Merger Agreement with Capri.

The dividend program requires the use of a significant portion of cash flow. The ability to pay dividends will depend on the ability to generate sufficient cash flows from operations in the future.

The company has incurred a substantial amount of indebtedness, which could restrict the ability to engage in additional transactions or incur additional indebtedness.

Increased scrutiny from investors and others regarding ESG initiatives, including matters of significance relating to sustainability, could result in additional costs or risks and adversely impact reputation.

Stakeholders, including consumers, employees and investors, have increasingly focused on corporate responsibility practices of companies.

The Company is subject to risks associated with climate change and other environmental impacts and increased focus by stakeholders on climate change, could negatively affect business and operations.

Economic conditions, such as an economic recession, downturn, periods of inflation or uncertainty, could materially adversely affect financial condition, results of operations and consumer purchases of discretionary items.

The Company faces risks associated with operating in international markets.

The Company faces risks associated with potential changes to international trade agreements and the imposition of additional duties on importing products.