Slide 1: Tapestry: Coach, Kate Spade, Stuart Weitzman
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, the information provided on the slide entitled "Fiscal 2019 Outlook”, as well as statements which can be identified by > will” fend,
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: Optimistic, Innovative, Inclusive
tapestry OPTIMISTIC INNOVATIVE INCLUSIVE
Slide 6: Leadership Team
LEADERSHIP TEAM RO f y senseme JU Saas OO) umes
Slide 7: Fiscal 2019
Slide 8: Fiscal 2019 Strategic Priorities
FISCAL 2019 STRATEGIC PRIORITIES DRIVE GLOBAL GROWTH INVEST in DIGITAL « DATA FOCUS ON execution HARNESS die FUEL POWER of BRAND MULTIBRAND INNOVATION + Capture full benefit of + Accelerate product multi-brand structure newness across and synergies all brands + Provide opportunities for talent movem
Slide 9: FY19 First Quarter Milestones
FY19 FIRST QUARTER MILESTONES AT THE ONE YEAR ANNIVERSARY OF ESTABLISHING TAPESTRY AS OUR NEW CORPORATE IDENTITY, RESULTS CONTINUE TO REFLECT THE BENEFITS OF OUR diversified multi-brand model Achieved strong increases in sales, operating income and earnings per diluted share in the first quarter. Dr
Slide 10: FY19 First Quarter: Financial Overview
FY19 FIRST QUARTER: FINANCIAL OVERVIEW DELIVERED STRONG TOP AND BOTTOM LINE GROWTH tapestry Note: Non-GAAP Financials. Non-GAAP reconciliation in Appendix.
Slide 11: Fiscal 2018
Slide 12: 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 13: FY18 Financial Overview: Revenue
FY18 FINANCIAL OVERVIEW: REVENUE STRONG RESULTS DRIVEN BY KATE SPADE ACQUISITION AND ORGANIC GROWTH FY18 FY17 * +31% GROWTH So >>>
Slide 14: FY18 Financial Overview: Operating Income
FY18 FINANCIAL OVERVIEW: OPERATING INCOME STRONG RESULTS DRIVEN BY KATE SPADE ACQUISITION AND ORGANIC GROWTH tapestry Note: Non-GAAP Financials. Non-GAAP reconciliation in Appendix.
Slide 15: FY18 Financial Overview: Earnings Per Diluted Share
FY18 FINANCIAL OVERVIEW: EARNINGS PER DILUTED SHARE STRONG RESULTS DRIVEN BY KATE SPADE ACQUISITION AND ORGANIC GROWTH tapestry Note: Non-GAAP Financials. Non-GAAP reconciliation in Appendix.
Slide 16: Opportunity across brands in the global premium handbag market
OPPORTUNITY ACROSS BRANDS IN THE ATTRACTIVE AND GROWING GLOBAL PREMIUM HANDBAG AND ACCESSORIES, FOOTWEAR AND OUTERWEAR MARKET FY18 FY17 +7% GROWTH >>> urce: é Public Fil NPD and Yano. Note: Growth noted is constant currency. . tapestry
Slide 17: ~70 countries, continents
~70;COUNTRIES 6 CONTINENTS
Slide 18: 1,400+ directly operated locations
1;400+ DIRECTLY OPERATED LOCATIONS
Slide 19: Overview by Brand
Slide 20: Coach
ie, COACH NEW YORK
Slide 21: Slide 21
Slide 22: Coach CEO quote on heritage
“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 23: Our Vision
OUR VISION Coach inspires the dreamer in all of us, connecting our modern lives with the spinit of the open road. an®:
Slide 24: $4.22B revenue, 987 stores, 13,500 employees
Slide 25: 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, read
Slide 26: Coach Product & Geographic Breakdown
COACH PRODUCT & GEOGRAPHIC BREAKDOWN DIVERSIFIED ACROSS PRODUCT CATEGORIES AND GEOGRAPHIES Other Lifestyle Categories 8% Be, orrvia. 7
Slide 27: Coach Fiscal 2019 Strategic Priorities
COACH FISCAL 2019 STRATEGIC PRIORITIES BALANCE CASCADE DRIVE GROWTH AUTHORITY & MODERNIZE, FUEL DIGITAL INNOVATION & LEATHERGOODS BEYOND CUSTOMIZE & 7 a UNIVERSAL ECOMMERCE INNOVATION BAGS ‘APPEAL IN PERSONALIZE GROWTH MARKETING
Slide 28: Kate Spade
® kate spade NEW YORK
Slide 29: Slide 29
Slide 30: Kate Spade CEO quote on opportunity
‘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 31: 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 32: Kate Spade annual revenue and stores
$1.28B ANNUAL REVENUE 342 DIRECTLY OPERATED STORES 3,000 EMPLOYEES
Slide 33: 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 34: Kate Spade Product & Geographic Breakdown
KATE SPADE PRODUCT & GEOGRAPHIC BREAKDOWN OPPORTUNITY TO EXPAND INTERNATIONALLY AND DEVELOP CLEAR GLOBAL POSITIONING INTERNATIONAL 17% ® As of FYI.
Slide 35: Kate Spade Fiscal 2019 Strategic Priorities
KATE SPADE FISCAL 2019 STRATEGIC PRIORITIES XPAND INTRODUCE, LAUNCH LOBALLY EXCEPTIONAL LIFESTYLE THINK GLOBAL, AND INSPIRING FOCUSED CHANNEL LEVERAGE TAPESTRY ACT LOCAL PRODUCTS BRANDING EXPERIENCES EER
Slide 36: Stuart Weitzman
STUART WEITZMAN
Slide 37: Slide 37
Slide 38: 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 39: 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 40: Stuart Weitzman revenue, stores, employees
As of FYIB. $374M ANNUAL REVENUE 103 DIRECTLY OPERATED STORES 940 EMPLOYEES
Slide 41: 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 42: 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 43: 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% STUART WEITZMAN AS Of FYB. a
Slide 44: Financial Outlook
Slide 45: Fiscal 2019 Outlook
FISCAL 2019 OUTLOOK FOCUS ON execution revenue mid-single-digit growth operating income leverage to bottom line earnings per diluted share alan it tapestry Note: Non-GAAP Financials. $2.75 to $2.80
Slide 46: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES MAINTAINING A STRONG AND FLEXIBLE BALANCE SHEET @ Invest in our brands and business © Acquire new brands on a strategic and opportunistic basis 3 ] Return capital to shareholders, with a focus on dividends tapestry
Slide 47: Corporate Responsibility
Slide 48: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY o. OUR PROGRAM IS FOCUSED ON THREE Strategic pillars ENVIRONMENT ana SUPPLY CHAIN + Corporate Governance * Global Business Integrity Program + Supply Chain & Human Rights + Environmental Sustainability tapestry 12) COMMUNITY ENGAGEMENT * The Coach and Kate Spade Found
Slide 49: 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 50: 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 51: 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 52: CEO quote: Tapestry
tapestry “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
Slide 53: Appendix
Slide 54: Non-GAAP basis of presentation
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 55: GAAP to Non-GAAP Reconciliation: quarters
GAAP TO NON-GAAP RECONCILIATION FOR THE QUARTERS ENDED SEPTEMBER 29, 2018 AND SEPTEMBER 30, 2017 GAAP BASIS ERP INTEGRATION & —_NON-GAAP BASIS (in millions, except per share data) ) ‘w 6r08 profit $995.1 + $108) $9957 & Selling, general and administrative expenses ma 40 189 7545 Operating income 157
Slide 56: 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 & IMPACT OF TAX _NON-GAAP BASIS {in mittions, except per share data) (AS REPORTED) EFFICIENCY PLAN) ACQUISITION) —_—_LEGISLATION®) (EXCLUDING ITEMS) Gross profit 338085 + $0164) = $
Slide 57: Tapestry: Coach, Kate Spade, Stuart Weitzman
tapestry COACH | kate spade | STUART WEITZMAN