Slide 1: Tapestry
tapestry COACH | kate spade | STUART WEITZMAN
Slide 2: Forward-looking statements
This presentation contains certain “forward-looking statements" based on current expect: 1g statements, include, but are not tlie to, the information provided on the slide entitled “Fiscal 2019 Outlook”, as well as statements at can ibe identified by the ust iene r pauses: “forecast,” outlook “antic
Slide 3: Defined by inclusivity rather than exclusivity
DEFINED BY INCLUSIVITY RATHER THAN EXCLUSIVITY, we are a global house of brands that embraces the exploration of individuality. We believe that true luxury is a freedom of expression that ignites confidence and authenticity. Approachable and inviting, we celebrate brands that create joy every day fo
Slide 4: CEO quote: a different kind of company
“We're a different kind of company. We have a collection of brands that have very specific and unique identities. All of our brands are based on great design, quality and craftsmanship. At the end of the day, all of our teams are focused on providing tremendous value for customers.” VICTOR LUIS, CEO
Slide 5: Tapestry: Optimistic, Innovative, Inclusive
tapestry OPTIMISTIC INNOVATIVE INCLUSIVE
Slide 6: Leadership Team
LEADERSHIP TEAM
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Slide 8: Fiscal 2019 Strategic Priorities
FISCAL 2019 STRATEGIC PRIORITIES FOCUS ON execution HARNESS sie FUEL DRIVE INVEST in POWER wo BRAND GLOBAL piCtTAL MULTIBRAND INNOVATION GROWTH pare + Capture full benefit of * Accelerate product + Maximize the + Develop industry- multi-brand structure newness across. opportunity with the leading ca
Slide 9: FY19 Second Quarter Results
FY19 SECOND QUARTER RESULTS Delivered growth in sales and gross profit at Tapestry, successfully anniversarying the strong holiday results of the prior year. Drove continued positive global comparable store sales at Coach led by international markets and e-commerce platforms. Experienced softness in
Slide 10: FY19 Second Quarter: Financial Overview
FY19 SECOND QUARTER: FINANCIAL OVERVIEW DELIVERED TOPLINE GROWTH AND EXPECTED SYNERGIES, WHILE MAKING STRATEGIC BRAND AND COMPANY INVESTMENTS tapestry ‘Note: Non-GAAP Financials. Non-GAAP reconciliation in Appendix.
Slide 11: FY19 First Half: Financial Overview
FY19 FIRST HALF: FINANCIAL OVERVIEW DELIVERED TOPLINE GROWTH AND EXPECTED SYNERGIES, WHILE MAKING STRATEGIC BRAND AND COMPANY INVESTMENTS tapestry ‘Note: Non-GAAP Financials. Non-GAAP reconciliation in Appendix.
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Slide 13: Fiscal 2018 Milestones
FISCAL 2018 MILESTONES Successfully completed the acquisition of Kate Spade and evolved into a true house of brands, establishing Tapestry as our new corporate identity. Strengthened our executive and creative leadership across our brands with a clear focus on executing our strategic vision. Brought
Slide 14: FY18 Financial Overview: Revenue
FY18 FINANCIAL OVERVIEW: REVENUE STRONG RESULTS DRIVEN BY KATE SPADE ACQUISITION AND ORGANIC GROWTH FY18 FY17 G +31% GROWTH >>>
Slide 15: FY18 Financial Overview: Operating Income
FY18 FINANCIAL OVERVIEW: OPERATING INCOME STRONG RESULTS DRIVEN BY KATE SPADE ACQUISITION AND ORGANIC GROWTH
Slide 16: FY18 Financial Overview: Earnings per Diluted Share
FY18 FINANCIAL OVERVIEW: EARNINGS PER DILUTED SHARE STRONG RESULTS DRIVEN BY KATE SPADE ACQUISITION AND ORGANIC GROWTH
Slide 17: Opportunity in the global premium handbag and accessories market
OPPORTUNITY ACROSS BRANDS IN THE ATTRACTIVE AND GROWING GLOBAL PREMIUM HANDBAG AND ACCESSORIES, FOOTWEAR AND OUTERWEAR MARKET FY18 FY17 +7% GROWTH add ‘Source: k itor, Public Fil ‘NPD and Yano. tapestry Note: Growth noted is constant currency.
Slide 18: ~70 countries, continents
~70;COUNTRIES 6 CONTINENTS
Slide 19: 1,400+ directly operated locations
1;400+ DIRECTLY OPERATED LOCATIONS
Slide 20: Brand Overview
OVERVIE by 3RAND
Slide 21: Coach
bates COACH NEW YORK
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Slide 23: Coach CEO quote
®. “For over 75 years, Coach has been part of the American landscape. As we write our next chapter, we’re building on our heritage of craftsmanship and confident New York style to deliver a complete lifestyle brand for modern lives.” JOSHUA SCHULMAN, CEO & BRAND PRESIDENT, COACH
Slide 24: Our Vision
OUR VISION Coach inspires the dreamer in all of us, connecting our modern lives with the spint of the open road. ae.
Slide 25: Coach annual revenue, stores and employees
$4.22B ANNUAL REVENUE 987 DIRECTLY OPERATED STORES 13,500 EMPLOYEES
Slide 26: Coach Fiscal 2018 Milestones
COACH FISCAL 2018 MILESTONES Successfully reinvigorated the $300-$400 handbag price segment. Stuart Vevers created new expression of Signature and the customer immediately embraced his iteration of this brand icon. Grew categories outside of Women’s bags and small leathergoods— notably footwear, rea
Slide 27: Coach Product & Geographic Breakdown
COACH PRODUCT & GEOGRAPHIC BREAKDOWN DIVERSIFIED ACROSS PRODUCT CATEGORIES AND GEOGRAPHIES Other Lifestyle Categories 8% ae, As of FYIB.
Slide 28: Coach Fiscal 2019 Strategic Priorities
COACH FISCAL 2019 STRATEGIC PRIORITIES FUEL DIGITAL Wee ees BEYOND UNIVERSAL CUNO AEE ene INNOVATION BAGS ‘APPEAL IN PERSONALIZE GROWTH MARKETING CASCADE DRIVE GROWTH AUTHORITY & MODERNIZE,
Slide 29: Kate Spade
& kate spade NEW YORK
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Slide 31: Kate Spade CEO quote
“Kate Spade has tremendous opportunity across product categories, channels and geographies. We are leveraging the brand’s global potential, bringing its unique and empowering feminine positioning to women around the world.” ANNA BAKST, CEO & BRAND PRESIDENT, KATE SPADE
Slide 32: Our Vision
OUR VISION A globally admired aspirational life & style brand, delivering brand-enhancing profitable growth, where people — our customers and teams — are at the center of everything we do.
Slide 33: Kate Spade annual revenue, stores and employees
2 ANNUAL REVENUE DIRECTLY OPERATED STORES EMPLOYEES As of FYIS. “, aaa agstets or Be a Mt Bo Be a a tit,
Slide 34: Kate Spade Fiscal 2018 Milestones
KATE SPADE FISCAL 2018 MILESTONES Built the foundation to support global growth with significant progress integrating the brand onto the Tapestry platform. Executed strategies to ensure long-term brand relevance, including the deliberate pullback in promotional flash and disposition sales. Strengthe
Slide 35: Kate Spade Product & Geographic Breakdown
KATE SPADE PRODUCT & GEOGRAPHIC BREAKDOWN OPPORTUNITY TO EXPAND INTERNATIONALLY AND DEVELOP CLEAR GLOBAL POSITIONING INTERNATIONAL 17% WOMEN'S HANDBAG 55% ® As of FYB,
Slide 36: Kate Spade Fiscal 2019 Strategic Priorities
KATE SPADE FISCAL 2019 STRATEGIC PRIORITIES EXPAND r LAUNCH CREAT GLOBALLY: EXCEPTIONAL LIFESTYLE IMMERSIVE THINK GLOBAL, AND INSPIRI FOCUSED CHANNEL LEVERAGE TAPESTRY ACT LOCAL PRODUCTS BRANDING EXPERIENCES
Slide 37: Stuart Weitzman
STUART WEITZMAN
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Slide 39: Stuart Weitzman CEO quote
“Stuart Weitzman footwear has long represented quality, style and the beautiful combination of form and fit. We are building on this foundation as we evolve into a global, multi-channel and multi-category fashion brand.” ERALDO POLETTO, CEO & BRAND PRESIDENT, STUART WEITZMAN
Slide 40: Our Vision
OUR VISION STUART WEITZMAN IS ON A JOURNEY TO EVOLVE INTO A GLOBAL MULTI-CATEGORY ACCESSORIES BRAND. LOOKING FORWARD, THE BRAND WILL PRODUCE INNOVATIVE ACCESSORIES BASED ON A FOUNDATION OF WARDROBE ESSENTIALS THAT FOSTER AN EMOTIONAL CONNECTION WITH WOMEN OF ALL AGES. THE GOAL IS TO ESTABLISH STUART
Slide 41: Stuart Weitzman annual revenue, stores and employees
$374M ANNUAL REVENUE 103 DIRECTLY OPERATED STORES 940 EMPLOYEES
Slide 42: Stuart Weitzman Fiscal 2018 Milestones
STUART WEITZMAN FISCAL 2018 MILESTONES ACQUIRED STUART WEITZMAN NORTHERN CHINA BUSINESS FROM DISTRIBUTOR PARTNER. APPOINTED ERALDO POLETTO, CEO & BRAND PRESIDENT, EDMUNDO CASTILLO, HEAD OF PRODUCT DESIGN, AND FRANCESCA BERTONCINI, HEAD MERCHANT, TO EXECUTE THE LONG-TERM VISION. GAINED TRACTION IN EV
Slide 43: Stuart Weitzman Fiscal 2019 Strategic Pillars
STUART WEITZMAN FISCAL 2019 STRATEGIC PILLARS RESET SUPPLY CHAIN ORGANIZATION & PROCESS MAINTAIN BOOT & SANDAL AUTHORITY WHILE EXPANDING OUR FOOTWEAR EXPRESSION EXPAND GLOBALLY, WITH FOCUS ON CHINA GROW BEYOND FOOTWEAR: ESTABLISH HANDBAG BUSINESS DRIVE CONSUMER DESIRE & ELEVATE RELATIONSHIP WITH THE
Slide 44: Stuart Weitzman Product & Geographic Breakdown
STUART WEITZMAN PRODUCT & GEOGRAPHIC BREAKDOWN OPPORTUNITY TO EXPAND THE BRAND INTERNATIONALLY AND ACROSS CATEGORIES HANDBAGS & OTHER 2% FOOTWEAR NORTH AMERICA 98% 64% MUSES AS Of YTB
Slide 45: Financial
inancia
Slide 46: Fiscal 2019 Outlook
FISCAL 2019 OUTLOOK FOCUS ON execution revenue low-to-mid single digit growth earnings per diluted share $2.55 to $2.60 We are focused on harnessing the power of our multi-brand model, unlocking the full potential of the strategic investments, to drive a return to double-digit operating income and E
Slide 47: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES MAINTAINING A STRONG AND FLEXIBLE BALANCE SHEET @ Invest in our brands and business 2] Acquire new brands on a strategic and opportunistic basis © Return capital to shareholders, with a focus on dividends tapestry
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Slide 49: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY to. OUR PROGRAM IS FOCUSED ON THREE strategic pillars ENVIRONMENT and SUPPLY CHAIN * Corporate Governance * Global Business Integrity Program * Supply Chain & Human Rights + Environmental Sustainability tapestry .2) COMMUNITY ENGAGEMENT * The Coach and Kate Spade Foun
Slide 50: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Achieved a 13.4% absolute CO2e reduction across Coach brand corporate and store locations in fiscal 2017. Provided in-person compliance and anti-corruption training to over 120 suppliers and manufacturers in fiscal 2017 and early fiscal 2018. Signed the UN Global Comp
Slide 51: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Donated over $48 million through The Coach Foundation since its inception in 2008, including $1.4 million in 2018 towards the placement of “Dream Directors” in high schools nationwide, as part of the brand's Dream It Real initiative. Employed and empowered 162 women i
Slide 52: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Expanded our maternity leave in 2018 in the United States. Donated approximately $500,000 in fiscal 2018 to organizations that our employees are passionate about through our matching gift programs. Achieved a score of 100 for the fourth consecutive year on the Human R
Slide 53: CEO quote: a company investors believe in
“We want Tapestry to be a company where employees love to work, great brands aspire to be part of and investors believe in.” VICTOR LUIS, CEO
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Slide 55: Non-GAAP financial measures notes
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 a
Slide 56: GAAP to Non-GAAP Reconciliation: Quarters
GAAP TO NON-GAAP RECONCILIATION FOR THE QUARTERS ENDED DECEMBER 29, 2018 AND DECEMBER 30, 2017 GAAP BASIS ERP INTEGRATION IMPACT OF TAX _NON-GAAP BASIS {in mitions, except per share data) ‘= OF058 profit $1.2035 + $65) - $12070 & Selling, general and administrative expenses 2228 64 7 = 204.7 Operati
Slide 57: GAAP to Non-GAAP Reconciliation: Six Months
GAAP TO NON-GAAP RECONCILIATION FOR THE SIX MONTHS ENDED DECEMBER 29, 2018 AND DECEMBER 30, 2017 GAAP BASIS ERP INTEGRATION IMPACT OF TAX _NON-GAAP BASIS {in mittions, except per share data) ‘= OF058 profit 2.1388 + $0.0) + $2.102.7 & Selling, general and administrative expenses 1.6002 104 306 - 1.5
Slide 58: GAAP to Non-GAAP Reconciliation: Years
GAAP TO NON-GAAP RECONCILIATION FOR THE YEARS ENDED JUNE 30, 2018 AND JULY 1, 2017 GAAP BASIS OPERATIONAL ——INTEGRATION& —IMPACTOF TAX _NON-GAAP BASIS {in mitions, except per share data) (AS REPORTED) EFFICIENCY PLAN (Gross profit $3.8085 ca $(1164) a $3.9649 o_ Selling, general and administrative e
Slide 59: Tapestry
tapestry COACH | kate spade | STUART WEITZMAN