Tapestry, Inc. · NYSE:TPR
Tapestry — Q1 2025 Earnings Presentation
48 slides from Tapestry's earnings presentation, Nov 7, 2024
Slide 1: Tapestry
tapestry COACH | kate spade | STUART WEITZMAN © 2024 Tapestry, nc
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 statements under “Financial Outlook,” statements regarding long term performance, statements regarding the comet capital deploym
Slide 3: Purpose
Purpose STRETCH WHAT'S POSSIBLE STRETCH speaks to how tensions challenge and pull us in new directions. These tensions compel us to look beyond ourselves and embrace new perspectives, experiences and ideas. WHAT’S POSSIBLE refers to what happens when we embrace the creative tensions within each othe
Slide 4: Values
Values Built by go-getters who saw unseen needs and took daring leaps, we channel that same passion today, doing what it takes to make the dream happen and refusing to settle for anything less. From how we source, to how we sew, to how we sell, we insist on the highest integrity at each step, doing
Slide 5: Competitive Advantages
Competitive Advantages 01 02 O38 OL O05 tapestry 5
Slide 6: Iconic Brands
OT) Iconic Brands kate spade NEW YORK STUART WEITZMAN tapestry
Slide 7: Attractive Categories
02 Attractive Categories RESILIENT CATEGORIES WITH CONTINUED. GROWTH EXPECTED IN COMPETITIVE MARKET WE PLAY IN Growing & High-margin Categories PERSONAL PREMIUM GOODS") HANDBAGS, SLGS, FTW & APPAREL‘) HANDBAGS, SLGS & FTW!) TAPESTRY FY24 J (1) Global market; Source: Euromonitor 2024 update, translat
Slide 8: Diversified Model with Omni-Channel Leadership
03 Diversified Model with Omni-Channel Leadership Women’s Accessories 21% Category Attractive and high-margin categories Resilient & durable demand given emotional & functional needs these categories fulfill Global leader in core categories with permission to play in lifestyle coum Geography China 1
Slide 9: Global Platform
04 Global Platform Modern, Data-driven & Agile Platform DESIGNED TO DRIVE CONSUMER ENGAGEMENT tapestry ’
Slide 10: Talented Team
05 Talented Team ad Joanne Crevoiserat CHIEF EXECUTIVE OFFICER t d David Howard GENERAL COUNSEL & SECRETARY Scott Roe CHIEF FINANCIAL. OFFICER & CHIEF OPERATING OFFICER Denise Kulikowsky CHIEF PEOPLE OFFICER Todd Kahn CEO & BRAND PRESIDENT COACH Andrea Shaw Resnick CHIEF COMMUNICATIONS OFFICER Sande
Slide 11: Powering iconic brands to move at the speed of the consumer
WE'RE POWERING ICONIC BRANDS TO MOVE AT THE SPEED OF THE CONSUMER futurespeed
Slide 12: tapestry
tapestry
Slide 13: First Quarter Highlights
First Quarter Highlights Drove revenue and earnings ahead of expectations DELIVERED REVENUE OF INCREASED INTERNATIONAL SALES BY WITH CONTINUED TOPLINE GAINS EXCLUDING FX, LED BY AT COACH STRONG GROWTH IN EUROPE EXPANDED GROSS MARGIN BY DROVE RECORD EPS" OF WITH SIGNIFICANT OPERATIONAL A DOUBLE-DIGIT
Slide 14: Revenue Trends by Geography: FY25 Q1
Revenue Trends by Geography: FY25 QI Growth rates shown on a constant currency basis. =~ tapestry 4
Slide 15: CEO quote on first quarter results
“Our first quarter results outperformed expectations, showcasing the brand magic and operational excellence that fuel our strategic growth agenda. We remain in a position of strength, with distinctive brands, an agile platform, and robust cash flow that provide us with strategic and financial flexib
Slide 16: P&L Overview by Brand: FY25 Q1
P&L Overview by Brand: FY25 QI NET REVENUE”) GROSS PROFIT SG&A EXPENSES OPERATING INCOME EARNINGS PER DILUTED SHARE $1.51B 0% vs. LY $1.13B 75.3% margin $850M 56.4% of sales $285M 18.9% margin $1.02 +10% vs. LY (1) Net Revenue growth rates expressed on a constant currency basis. Financials provided
Slide 17: Coach Highlights: FY25 Q1
Coach Highlights: FY25 QI Delivered standout results, highlighting the enduring power and relevance of the brand and its distinctive Expressive Luxury positioning, with growth outpacing the industry at exceptional margins Fueled momentum in the leathergoods offering led by the brand's iconic platfor
Slide 18: Kate Spade Highlights: FY25 Q1
Kate Spade Highlights: FY25 QI Remained disciplined operators, delivering results in-line with expectations highlighted by continued margin gains despite topline pressure Focused on strengthening core handbag offering with foundational platforms such as the Phoebe and Spade Flower, while delivering
Slide 19: Stuart Weitzman Highlights: FY25 Q1
Stuart Weitzman Highlights: FY25 QI Drove revenue gains for the quarter while supporting brand health by investing in initiatives to drive awareness, growth, and profitability long-term Delivered new styles that resonated with consumers, including the Vinnie pump and Naomi boot families, while growt
Slide 20: Raised Fiscal 2025 Revenue and Earnings Outlook
Raised Fiscal 2025 Revenue and Earnings Outlook REVENUE GROSS MARGIN SG&A EXPENSE OPERATING MARGIN NET INTEREST INCOME TAX RATE SHARE COUNT DILUTED ADJUSTED EPS FREE CASH FLOW CAPEX & CLOUD COMPUTING This outlook assumes no revenue, net interest, or earnings impact related to the proposed acquisitio
Slide 21: Capital allocation priorities
Capital allocation priorities focused on driving growth, profitability, and shareholder value CASH FLOW GENERATION & BALANCE SHEET FLEXIBILITY FOR VALUE CREATION FOUNDATIONAL COMMITMENTS Continue to invest in = Expect to maintain a rate = Firmly committed to solid = Opportunity to utilize = Utilize
Slide 22: tapestry
tapestry
Slide 23: tapestry
tapestry
Slide 24: Coach's brand purpose
COACH'S BRAND PURPOSE IS TO INSPIRE PEOPLE TO EXPRESS THEIR MANY SELVES AND HAVE THE COURAGE TO BE REAL. THIS PURPOSE IS GROUNDED IN CURRENT CONSUMER TRUTHS—THE MANY POSSIBILITIES OF SELF AND THE CHANGING NATURE OF “REAL.” WITH EVERY PRODUCT AND EXPERIENCE COACH CREATES, WE AIM TO INSPIRE OUR CONSUM
Slide 25: Coach key facts
Y M = \ $5.1B 930 -60 — 11600 NET SALES DIRECTLY COUNTRIES EMPLOYEES OPERATED STORES As of FY24, = COACH 25
Slide 26: Coach Revenue Breakdown
Coach Revenue Breakdown As of FY24. OACHII Other Asia 15% Geography Greater China 18% Channel Direct to Consumer 88%
Slide 27: Deepen connections with consumers
DEEPEN CONNECTIONS WITH > CONSUMERS FUEL GAINS LEAD WITH LEATHER- ~ ACROSS PURPOSE-LED GOODS LIFESTYLE STORYTELLING EXPAND RETAIL J EXPERIENCES x mm COACH 27
Slide 28: kate spade
kate spade NEW YORK tapestry
Slide 29: Kate Spade New York overview
SINCE ITS LAUNCH IN 1993 WITH A COLLECTION OF SIX ESSENTIAL HANDBAGS, KATE SPADE NEW YORK HAS ALWAYS BEEN COLORFUL, BOLD AND OPTIMISTIC. TODAY IT IS A GLOBAL LIFESTYLE BRAND THAT DESIGNS EXTRAORDINARY THINGS FOR THE EVERYDAY, DELIVERING SEASONAL COLLECTIONS OF HANDBAGS, READY- TO-WEAR, JEWELRY, FOOT
Slide 30: Kate Spade key facts
$L3B+ NET SALES As of FY24, — DIRECTLY OPERATED STORES -40 COUNTRIES 4,200 EMPLOYEES 30
Slide 31: Kate Spade Revenue Breakdown
Kate Spade Revenue Breakdown Rest of Other, World Asia 6% 10% Mille §=6 Category Geography Channel Handbags 54% North Other America Lifestyle 81% 22% Direct to Consumer 86% As of FY24. a
Slide 32: Growth Strategies
‘owth Strategies FUEL BRAND ACCELERATE i STRENGTHEN GROW MAXIMIZE THE HEAT TO DRIVE § CUSTOMER CORE LIFESTYLE OMNI-CHANNEL CONSIDERATION MF ACQUISITION HANDBAG OFFERING OPPORTUNITY FOUNDATION
Slide 33: Stuart Weitzman
> STUART WEITZMAN tapestry
Slide 34: Stand Strong
STAND STRONG SINCE 1986, NEW YORK CITY-BASED GLOBAL LUXURY FOOTWEAR BRAND STUART WEITZMAN HAS COMBINED ITS SIGNATURE ARTISANAL CRAFTSMANSHIP AND PRECISE ENGINEERING TO EMPOWER WOMEN TO STAND STRONG. HAVING PERFECTED THE ART OF SHOEMAKING FOR OVER 35 YEARS, THE BRAND CONTINUES TO EXPAND ITS ASSORTMEN
Slide 35: Stuart Weitzman key facts
NET SALES DIRECTLY COUNTRIES EMPLOYEES OPERATED STORES As of FY24, — § 7
Slide 36: Stuart Weitzman Revenue Breakdown
Stuart Weitzman Revenue Breakdown Category Footwear 100% As of FY24. — Ww Greater China 27% Geography North America 67% Channel Direct to 36
Slide 37: Stuart Weitzman FY25 Growth Strategies
Stuart Weitzman F'Y25 Growth St \ NYWZ115m Ayn — EXPAND CASUAL ACCELERATE & NEW WHOLESALE CATEGORIES GROW ICONS & KEY ITEMS FUEL BRAND RELEVANCY WITH EMOTIONAL : y STORYTELLING
Slide 38: tapestry
tapestry
Slide 39: The Fabric of Change
The Fabric of Change AMBITION: MAKE EVERY BEAUTIFUL CHOICE A RESPONSIBLE CHOICE | POWER SUSTAIN CREATE | OF OUR PEOPLE THE PLANET OUR COMMUNITIES PRODUCTS WITH CARE tapestry ”
Slide 40: Power of Our People
Power of Our People 2025 Goals Build diversity in Tapestry and brand leadership teams in North America by increasing the number of racial & ethnic minority leaders to better reflect the company's general corporate population. Reduce differences in our Employee Inclusion Index scores based on gender
Slide 41: Sustain the Planet
Sustain the Planet 2025 & Beyond Goals Reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions 64%, Scope 3 emissions 42%, and Scope 3 FLAG emissions 30% by 2030 from a 2021 baseline. Reach net-zero GHG emissions across the value chain by 2050. Procure 100% renewable energy in Tapestry-operated
Slide 42: Uplift Our Communities
Uplift Our Communities 2025 & Beyond Goals 500,000 volunteer service hours completed by our employees around the world by 2030. $75 million in financial and product donations to nonprofit organizations globally by 2025. 100,000 people working in the factories crafting our products will have access t
Slide 43: Create Products with Care
Create Products with Care 2025 & Beyond Goals 95% traceability and mapping of our raw materials by 2025. 90% of leather used in our products comes from Silver- and Gold-rated LWG tanneries by 2025. 95% of polyamide (nylon) will be from pre- or post-consumer recycled sources by 2025. 90% of cotton wi
Slide 44: tapestry
tapestry
Slide 45: Non-GAAP and constant currency measures
Management utilizes non-GAAP and constant currency measures to conduct and evaluate its business during its regular review of operating results for the periods affected and to make decisions about Company resources and performance. The Company believes presenting these non-GAAP measures, which exclu
Slide 46: Consolidated Segment Data and GAAP to Non-GAAP Reconciliation
Consolidated Segment Data and GAAP to Non-GAAP Reconciliation For the quarter ended September 28, 2024. in millions, except per share data; unaudited GAAP BASIS (AS REPORTEI ACQUISITION COSTS NON-GAAP BASIS (EXCLUDING ITEMS) Coach $916.1 $ $916.1 Kate Spade 189.6 - 189.6 Stuart Weitzman 29.2 - 29.2
Slide 47: Consolidated Segment Data and GAAP to Non-GAAP Reconciliation
Consolidated Segment Data and GAAP to Non-GAAP Reconciliation For the quarter ended September 30, 2023. in millions, except per share data; unaudited GAAP BASIS (AS REPORTEI ACQUISITION COSTS NON-GAAP BASIS (EXCLUDING ITEMS) Coach $867.6 + $867.6 Kate Spade 198.9 - 198.9 Stuart Weitzman 31.2 - 31.2
Slide 48: Tapestry
tapestry | COACH | kate spade | STUART WEITZMAN © 2024 Tapestry, Inc