Slide 1: Tapestry
tapestry COACH | kate spade | STUART WEITZMAN
Slide 2: Forward-looking statements
This presentation contains certain “forward-looking statements” based on management’s current expectations. Forward-looking statements include, but are not limited to statements which can be identified by the use of forward-looking terminology such as "may," "will," “can,” "should," "expect," "inten
Slide 3: Tapestry values, principles, brands and model
tapestry optimistic, innovative, inclusive OUR VALUES: brand-led, consumer-centric meritocracy OUR PRINCIPLES: global, unique & differentiated OUR BRANDS: disciplined, shared & scalable OUR MODEL: *
Slide 4: Global house of brands defined by inclusivity
DEFINED BY INCLUSIVITY RATHER THAN EXCLUSIVITY, we area 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 for p
Slide 5: Brands established 1941, 1986, 1993
established 1941 INCLUSIVE AUTHENTIC COURAGEOUS established 1986 SOPHISTICATED STYLISH CONFIDENT established 1993 COLORFUL JOYFUL OPTIMISTIC *
Slide 6: Tapestry product, geographic & channel breakdown
TAPESTRY PRODUCT, GEOGRAPHIC & CHANNEL BREAKDOWNGLOBAL HOUSE OF BRANDS WITH STRONG DIRECT-TO-CONSUMER DISTRIBUTION * As of FY20.
Slide 7: Leadership Team
LEADERSHIP TEAM Todd KahnInterim CEO and Brand President, Coach; President and Chief Administrative Officer Giorgio SarnéCEO and Brand President,Stuart Weitzman Liz FraserCEO and Brand President,Kate Spade Joanne CrevoiseratChief Executive Officer Andrea Shaw ResnickInterim Chief Financial Officer;
Slide 8: Update 2Q21
update 2Q21
Slide 9: Holiday quarter exceeded expectations: 2Q21 results overview
HOLIDAY QUARTER EXCEEDED EXPECTATIONS 2Q21 RESULTS OVERVIEW Sharpened our focus on the consumer, which fueled new customer acquisition across brands, supporting notable sales gains in Digital and ChinaReduced promotional activity and increased AUR while remaining disciplined in inventory and expense
Slide 10: 2Q21 results highlight the power of our brands and platform
Posted higher revenue in Mainland China compared to last year over 30% * 2Q21 RESULTS HIGHLIGHT THE power OF OUR BRANDS & THE advantages Non-GAAP Financials. quarter over quarter 7 points Revenue trends improved Operating margin expanded versus last year 380 bps Drove triple-digit growth in global d
Slide 11: Acceleration Program
PROGRAM acceleration
Slide 12: Acceleration: we are accelerating growth and profitability
* acceleration noun /akˌseləˈrāSH(ə)n/ the act of accelerating; increase of speed or velocity. we are accelerating growth & profitability we are accelerating our focus on the consumer we are accelerating with agility & urgency together
Slide 13: Acceleration Program focus areas
* SHARPEN OUR FOCUS ON THE CONSUMER Operate with a clearly defined purpose and strategy for each brand and an unwavering focus on the consumer at the core of everything we do LEVERAGE DATA & LEAD WITH A DIGITAL-FIRST MINDSET Build significant data and analytics capabilities to drive decision-making
Slide 14: Acceleration Program second quarter highlights
* acceleration program SECOND QUARTER HIGHLIGHTS Non-GAAP Financials. Recruited over 1.5 million new customers in North America across brands through our digital channels, a meaningful increase versus prior yearLeveraged Tapestry’s scale and agility to deliver triple-digit digital growth by adding f
Slide 15: Tapestry's differentiated enabling platform
tapestry’s differentiated platform provides: CONSUMERINSIGHTS ACCESS TO GLOBAL TALENT DIGITAL INFRASTRUCTURE & CAPABILITIES GLOBALLY DIVERSIFIED SUPPLY CHAIN TAPESTRY IS AN enabling platform THAT ENHANCES OPPORTUNITIES FOR OUR BRANDS *
Slide 16: Financial outlook
* FINANCIAL OUTLOOK In FY21, we will focus on factors within our control to create a strong foundation for profitable expansion NEAR-TERM drive efficiency-led profit growth Non-GAAP Financials. As revenues inflect, we expect to drive bottom-line growth well in excess of top-line gains over our plann
Slide 17: Capital allocation priorities
NEAR-TERM PRESERVE CASH The strength of our business and free cash flow generation enabled us to fully pay down our revolver as of January 2021We will continue to preserve our cash-on-hand while re-investing in the business * CAPITAL ALLOCATION PRIORITIES LONG-TERM COMMITTED TO SHAREHOLDER RETURNS L
Slide 18: CEO quote on first half performance
* “Our first half performance proves the power of our platform, the resilience and agility of our team, and the strength of our portfolio of brands. I am confident that Tapestry will emerge from the pandemic stronger, well-positioned to both capture market share at higher levels of profitability and
Slide 19: Overview by Brand
OVERVIEWbyBRAND
Slide 20: Coach
bo eee COACH NEW YORK
Slide 21: Slide 21
Slide 22: Drone lightshow at the Bund, Shanghai
DRONE LIGHTSHOW AT THE BUNDSHANGHAI
Slide 23: Coach vision
Coach inspires the dreamer in all of us, connecting our modern lives with the spirit of the open road. OUR VISION *
Slide 24: Coach employees, countries, stores
11,000+EMPLOYEES 55+COUNTRIES 958DIRECTLY OPERATED STORES * As of FY20.
Slide 25: Coach product, geographic & channel breakdown
COACH PRODUCT, GEOGRAPHIC & CHANNEL BREAKDOWNDIRECT-TO-CONSUMER FOCUSED WITH DIVERSIFIED PRODUCT CATEGORIES & GEOGRAPHIES * As of FY20.
Slide 26: Coach multi-year growth strategies
COACH MULTI-YEAR GROWTH STRATEGIES * Enhance brand & cultural relevance DEEPEN ENGAGEMENT WITH CONSUMERS CREATE INNOVATIVE & COMPELLING PRODUCT DRIVE DIGITAL SALES & NEW CUSTOMER RECRUITMENT ACCELERATE GROWTH IN CHINA ENHANCE PROFITABILITY Exceed the expectations of our target consumers by geography
Slide 27: Coach CEO quote on accessible luxury
* “We’re ready to reignite the accessible luxury segment by evolving our message from one rooted in high fashion imagery to one that is inclusive, culturally relevant and consumer-centric. We will focus on authentic communications that are grounded in our values and embody the courageous spirit of N
Slide 28: Kate Spade New York
& kate spade NEW YORK
Slide 29: Kate Spade New York
“kate spade — NEW YORK
Slide 30: Kate Spade vision
OUR VISION A globally admired aspirational life & style brand, where people — our customers and teams — areat the center of everything we do.
Slide 31: Kate Spade employees, countries, stores
3,900+EMPLOYEES 35+COUNTRIES 420DIRECTLY OPERATED STORES * As of FY20.
Slide 32: Kate Spade product, geographic & channel breakdown
KATE SPADE PRODUCT, GEOGRAPHIC & CHANNEL BREAKDOWNOPPORTUNITY TO REENERGIZE & GROW HANDBAGS, WHILE FOCUSING ON MARKETS WITH HIGH BRAND AWARENESS * As of FY20. OTHER ASIA12%
Slide 33: Kate Spade multi-year growth strategies
KATE SPADE MULTI-YEAR GROWTH STRATEGIES * Fulfill our promise as a lifestyle brand representing joy, optimism and colorAmplify brand messages through unique, best-in-class storytelling on a multi-category lifestyle platform CRYSTALLIZE BRAND PURPOSE & RETURN TO A POSITION OF STRENGTH INSTILL A LASER
Slide 34: Kate Spade CEO quote
* “I am incredibly optimistic about the long-term potential for Kate Spade. We have a brand that has a universal language of Joy, Optimism and Color. Our customers have historically deeply connected to our brand emotionally. If we embed this language in our product, marketing and customer experience
Slide 35: Stuart Weitzman
STUART WEITZMAN
Slide 36: Slide 36
Slide 37: Stuart Weitzman vision
OUR VISION STUART WEITZMAN IS THE EMBODIMENT OF STRENGTH IN FEMININITY – EMPOWERING AND INSPIRING WOMEN TO TAKE ON THE WORLD IN FASHIONABLE AND FUNCTIONAL FOOTWEAR. *
Slide 38: Stuart Weitzman employees, countries, stores
950+EMPLOYEES 40+COUNTRIES 131DIRECTLY OPERATED STORES As of FY20. *
Slide 39: Stuart Weitzman product, geographic & channel breakdown
STUART WEITZMAN PRODUCT, GEOGRAPHIC & CHANNEL BREAKDOWNOPPORTUNITY TO FOCUS ON KEY GEOGRAPHIES & CHANNELS WITH A COMPELLING FOOTWEAR ASSORTMENT * REST OF WORLD 14% As of FY20.
Slide 40: Stuart Weitzman multi-year growth strategies
* Listen and respond to our customers’ needs in order to design beautiful and on-trend shoes RENEW REPUTATION FOR FIT, COMFORT & QUALITY GROW KEY CATEGORIES RESTORE PROFITABILITY STRENGTHEN RELATIONSHIP WITH WHOLESALE PARTNERS ESTABLISH A ROBUST DIGITAL PRESENCE Build a leading presence in boots, bo
Slide 41: Stuart Weitzman CEO quote on focus
* “For nearly 35 years, Stuart Weitzman has empowered women to feel confident, stylish and sophisticated through its unmatched combination of fit, comfort and quality. Looking ahead, our long-term strategy centers on one principle: focus. Focus on the customer. Focus on tightening the product offeri
Slide 42: Social Fabric: our corporate responsibility
social fabric our corporate responsibility
Slide 43: 2025 corporate responsibility strategy & goals
Built on our values of Optimism, Innovation and Inclusivity, these goals solidify our commitment to responsible citizenship, as we recognize our role as a leader in our industry to effect real, measurable change. Addressing pressing global issues and contributing to a world that is inclusive, sustai
Slide 44: Our Social Fabric: three strategic pillars
OUR SOCIAL FABRIC: CORPORATE SOCIAL RESPONSIBILITY THE PROGRAM IS FOCUSED ON THREE strategic pillars OUR PEOPLE Having individuals from different backgrounds with different experiences around the table creates a diversity of perspectives that enrich our organization. 1 OURPLANET Tapestry is dedicate
Slide 45: Our people: goals
Build diversity in North America Tapestry and brand leadership teams by increasing the number of North America-based ethnic minority leaders to better reflect the company’s general corporate population.Reduce gender and ethnicity differences in the Employee Inclusion Index scores from our Employee E
Slide 46: Our people: progress
Established an Inclusion Council to ensure that people with diverse perspectives and backgrounds are included in business decisions.Recognized on the Forbes Diversity & Inclusion List in 2019 for the third consecutive year. Achieved a score of 100 for the seventh consecutive year on the Human Rights
Slide 47: Our planet: goals
OUR SOCIAL FABRIC our planet 2 Achieve a 20% reduction in absolute Scope 1 & Scope 2 CO2e emissions & 20% reduction in absolute Scope 3 emissions from freight shipping over a 2017 baseline.Attain a 95% traceability & mapping of our raw materials to ensure a transparent & responsible supply chain.Ens
Slide 48: Our planet: progress
OUR SOCIAL FABRIC our planet 2 Reduced our 2019 carbon footprint by 2.4% from 2018 and a total of 6.7% from our 2017 baseline.Commercialized five different lining textiles and purchased an aggregate one million pounds of REPREVE® recycled polyester for use in kate spade new york handbags, representi
Slide 49: Our communities: goals
OUR SOCIAL FABRIC our communities 3 Dedicate 100,000 volunteer service hours completed by our employees around the globe.Give $75M in financial and product donations to nonprofit organizations globally.Provide 50,000 people crafting Coach, kate spade new york and Stuart Weitzman products access to e
Slide 50: Our communities: progress
OUR SOCIAL FABRIC our communities 3 Donated $22M in fiscal 2019 via grants from the Coach Foundation and kate spade new york Foundation, as well as through brand product donations.Engaged our employees to volunteer over 5,750 hours, serving our communities globally.Made $429,000 in charitable donati
Slide 51: Tapestry
tapestry
Slide 52: Appendix
APPENDIX
Slide 53: Non-GAAP financial measures
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 54: GAAP to non-GAAP reconciliation, quarter ended December 26, 2020
GAAP TO NON-GAAP RECONCILIATIONFOR THE QUARTER ENDED DECEMBER 26, 2020 in millions, except per share data; unaudited GAAP BASIS(AS REPORTED) CARES ACT TAX IMPACT ACCELERATION PROGRAM NON-GAAP BASIS(EXCLUDING ITEMS) Coach $888.1 $— $— $888.1 Kate Spade 233.1 — — 233.1 Stuart Weitzman 52.5 — — 52.5 Gr
Slide 55: GAAP to non-GAAP reconciliation, quarter ended December 28, 2019
GAAP TO NON-GAAP RECONCILIATIONFOR THE QUARTER ENDED DECEMBER 28, 2019 in millions, except per share data; unaudited GAAP BASIS(AS REPORTED) ERP IMPLEMENTATION ORGANIZATION-RELATED & INTEGRATION COSTS NON-GAAP BASIS(EXCLUDING ITEMS) Coach $877.3 $— $— $877.3 Kate Spade 262.4 — — 262.4 Stuart Weitzma
Slide 56: Tapestry
tapestry COACH | kate spade | STUART WEITZMAN