Slide 1: Tapestry
tapestry GOAGH | 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 2020 Financial Outlook”, and statements regarding the Company's planned share
Slide 3: Tapestry values, principles, brands and model
tapestry [ou R VALUES: optimistic innovative, inclusive OUR PRINCIPLES: brand-led, consumer-centric meritocracy OUR BRANDS: global, unique & differentiated OUR MODEL: disciplined, shared & scalable |
Slide 4: 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 5: Brand established dates and attributes
established 1941 established 1986 established 1993 CONFIDENT POLISHED FEMININE MoOoDERN SOPHISTICATED OPTIMISTIC AUTHENTIC EMPOWERED Jo YFUEL
Slide 6: Tapestry brands revenue, margin and stores
tapestry $6.0B $4.3B revenue revenue 15.8% 27.1% operating margin operating margin 1,540 986 stores stores @ kate spade NEW YORK $1.4B revenue 13.6% operating margin 407 stores $389M revenue (4.3%) operating margin 147 stores tapestry As of FY19. Non-GAAP Financials. As of Fiscal 2020, foreign curre
Slide 7: Tapestry product, geographic & channel breakdown
TAPESTRY PRODUCT, GEOGRAPHIC & CHANNEL BREAKDOWN GLOBAL HOUSE OF MODERN LUXURY BRANDS WITH FOCUS ON INTERNATIONAL GROWTH & DIRECT-TO-CONSUMER DISTRIBUTION tapestry As of FYI. y
Slide 8: Opportunity in global premium handbag, footwear and outerwear markets
OPPORTUNITY ACROSS BRANDS IN THE ATTRACTIVE AND GROWING GLOBAL PREMIUM HANDBAG & ACCESSORIES, FOOTWEAR AND OUTERWEAR MARKETS FY19 FY18 — b +7% GROWTH aad tapestry Source: Tapestry proprietary global market sizing model & Euromonitor. Growth noted is in constant currency.
Slide 9: Leadership Team
LEADERSHIP TEAM (a i bur is » tapestry
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Slide 11: Fiscal 2020 Strategic Priorities
FISCAL 2020 STRATEGIC PRIORITIES - INNOVATION AND EXCELLENCE IN execution FUEL DRIVE INVEST in HARNESS te BRAND GLOBAL DIGITAL POWER or & INNOVATION GROWTH DATA MULTI-BRAND + Accelerate product + Maximize the + Increase power of + Capture full benefit of newness opportunity with the digital platform
Slide 12: Fiscal 2020 Capital Allocation Priorities
FISCAL 2020 CAPITAL ALLOCATION PRIORITIES tapestry ORGANIC GROWTH + With continued momentum at Coach, our main priority is to fuel an acceleration in our acquired businesses to unlock the power of our multi-brand platform. At this time, we do not expect to pursue strategic acquisitions. COMMITMENT T
Slide 13: FY20 First Quarter Results
FY20 FIRST QUARTER RESULTS Achieved revenue consistent with our expectations; adjusted operating income and EPS ahead of forecast, including favorable expense timing. Delivered solid and consistent performance at Coach - the largest brand of our house - highlighted by the eighth consecutive quarter
Slide 14: Fiscal 2020 Financial Outlook
FISCAL 2020 FINANCIAL OUTLOOK | revenue | low-single-digit growth | tow-single-digit sales growth at Coach driven by positive comparable store sales growth | tow to mid-single-digit sales growth at Kate Spade driven by distribution | slight sales growth at Stuart Weitzman CUES modest year over year
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Slide 16: Fiscal 2019 Milestones
FISCAL 2019 MILESTONES A YEAR OF meaningful evolution Achieved ongoing strength in our businesses internationally, while navigating a challenging retail backdrop in North America. Advanced our strategic initiatives, most notably building the foundation of our multi-brand platform, as we generated th
Slide 17: Fiscal 2019 P&L Overview by Brand
FISCAL 2019 P&L OVERVIEW BY BRAND TAPESTRY KATE TUART SPADE WEITZMAN $6,027M $4,271M $1,367M $389M NET REVENUE 93% growth "1% growth 6% growth 4% growth $4,081M $2,998M $870M $213M GROSS PROFIT 67.7% margin; *30bps vs. LY 70.2% margin; +70bps vs. LY 63.6% margin; +40bps vs. LY 54.8% margin; (330bps)
Slide 18: Fiscal 2019 Capital Allocation Milestones
FISCAL 2019 CAPITAL ALLOCATION MILESTONES RETURNED 95% of free cash SHARE REPURCHASE PROGRAM tapestry ) TO SHAREHOLDERS THROUGH DIVIDEND &
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Slide 20: Coach
re it, COACH NEW YORK
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Slide 24: 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 25: Our Vision
OUR VISION Coach inspires the dreamer in all of us, connecting our modern lives with the spirit of the open road. an
Slide 26: Coach annual revenue, stores and employees
$4.27B ANNUAL REVENUE 986 DIRECTLY OPERATED STORES 13,500 EMPLOYEES
Slide 27: Coach Fiscal 2019 Milestones
COACH FISCAL 2019 MILESTONES Achieved seven consecutive quarters of global comparable store sales increases and gross margin expansion for the fiscal year. Delivered strong international growth and outperformed accessible luxury peers in North America; drove e-commerce gains globally. Cascaded leath
Slide 28: Coach product, geographic & channel breakdown
COACH PRODUCT, GEOGRAPHIC & CHANNEL BREAKDOWN DIRECT-TO-CONSUMER FOCUSED WITH DIVERSIFIED PRODUCT CATEGORIES & GEOGRAPHIES Other Lifestyle Rest of Categories % Mora Wholesale 6% % BW sof Fri. .
Slide 29: Coach Fiscal 2020 Strategic Priorities
COACH FISCAL 2020 STRATEGIC PRIORITIES DRIVE PRODUCT INNOVATION & DISRUPTION ENFORCE FASHION AUTHORITY THROUGH INJECT EXCITEMENT INTO STORES FUEL DIGITAL INNOVATION & E-COMMERCE ROWTH
Slide 30: Kate Spade
® kate spade NEW YORK
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Slide 33: 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 34: 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 35: Kate Spade annual revenue, stores and employees
As of FY19. $1.37B ANNUAL REVENUE 407 DIRECTLY OPERATED STORES 4,800 EMPLOYEES,
Slide 36: Kate Spade Fiscal 2019 Milestones
KATE SPADE FISCAL 2019 MILESTONES Debuted Nicola Glass’s creative vision with new & iconic brand elements, garnering a positive response; identified clear learnings to inform go-forward strategy. Maintained unique brand positioning with leadership in attributes of Fun, Fashionable & Feminine per U.S
Slide 37: Kate Spade product, geographic & channel breakdown
KATE SPADE PRODUCT, GEOGRAPHIC & CHANNEL BREAKDOWN OPPORTUNITY TO EXPAND INTERNATIONALLY WITH UNIQUE AND GLOBALLY-RELEVANT POSITIONING RESTOF CHINA WORLD 4% 6% WHOLESALE OTHER ASIA 1B 12% OTHER LIFESTYLE, CATEGORIES 23% e As of FYI9. a
Slide 38: Kate Spade Fiscal 2020 Strategic Priorities
KATE SPADE FISCAL 2020 STRATEGIC PRIORITIES INTRODUCE ENHANCE OLIDIFY BRAND EXCEPTIONAL OMNI-CHANNEL CREATE ENGAGE WITH IMMERSIVE CHINESE AUTHORITY AND INSPIRING PLATFORM PRODUCTS GLOBALLY CHANNEL CONSUMERS EXPERIENCES GLOBALLY
Slide 39: Stuart Weitzman
STUART WEITZMAN
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Slide 42: Stuart Weitzman CEO quote
“Stuart Weitzman footwear has long represented quality, style and the beautiful combination of fashion and function. We are building on this foundation as we evolve into a global, multi- channel and multi-category brand.” ERALDO POLETTO, CEO & BRAND PRESIDENT, STUART WEITZMAN
Slide 43: Our Vision
OUR VISION STUART WEITZMAN IS THE EMBODIMENT OF STRENGTH IN FEMININITY — EMPOWERING AND INSPIRING WOMEN TO TAKE ON THE WORLD IN FASHION AND FUNCTIONAL FOOTWEAR & ACCESSORIES. Sw
Slide 44: Stuart Weitzman annual revenue, stores and employees
As of FY19. $389M ANNUAL REVENUE 147 DIRECTLY OPERATED STORES |,100 EMPLOYEES
Slide 45: Stuart Weitzman Fiscal 2019 Milestones
STUART WEITZMAN FISCAL 2019 MILESTONES DELIVERED TOP-LINE GROWTH, ADDRESSING AREAS OF OPPORTUNITY EXITING FISCAL 2018. FOCUSED ON PRODUCT FIT AND CONSTRUCTION, CREATING FOUNDATIONAL PIECES CONSISTENT WITH THE BRAND’S DNA. GAINED FURTHER CREDIBILITY IN HANDBAGS AND. LEATHERGOODS, A CONTINUED AREA OF
Slide 46: Stuart Weitzman Fiscal 2020 Strategic Priorities
STUART WEITZMAN FISCAL 2020 STRATEGIC PRIORITIES MAINTAIN BOOT & SANDAL EXPAND ENHANCE SYSTEMS ee BRIVECREDIBIN Ig Maced GLOBALLY, AND PROCESSES RANGING IN HANDBAGS RARE KEee WITH FOCUS ON FOOTWEAR EXPRESSION
Slide 47: Stuart Weitzman product, geographic & channel breakdown
STUART WEITZMAN PRODUCT, GEOGRAPHIC & CHANNEL BREAKDOWN OPPORTUNITY TO EXPAND INTERNATIONALLY WITH SOPHISTICATED FOOTWEAR & ACCESSORIES OFFERING COMBINING FUNCTION AND FIT HANDBAGS & OTHER OTHER ASIA 2% 6% NORTH AMERICA 55% FOOTWEAR 98% As of FY19. DIRECT-TO- CONSUMER 61%
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Slide 49: People, Planet, Communities 2025 Corporate Responsibility Strategy & Goals
PEOPLE 2025 CORPORATE! RESPONSIBILITY OUR [STRATEGY & GOALS p> L A N E T Built on our values of Optimism, Innovation and Inclusivity, these goals solidify our commitment to responsible citizenship, O U R as we recognize our role as a leader in our industry to effect real, measurable change. Addressi
Slide 50: Corporate Social Responsibility: three strategic pillars
CORPORATE SOCIAL RESPONSIBILITY —=—= OUR PROGRAM IS FOCUSED ON THREE strategic pillars OUR PEOPLE COMMUNITIES Having individuals from different backgrounds with different experiences around the table creates a diversity of perspectives that enrich our organization. Tapestry is dedicated to reducing
Slide 51: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY 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
Slide 52: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Expanded our maternity leave in 2018 in the United States. Donated approximately $500K in fiscal 2018 to organizations that our employees are passionate about through our matching gift programs. Achieved a score of 100 for the fifth consecutive year on the Human Right
Slide 53: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Achieve a 20% reduction in absolute Scope 1 & Scope 2 CO0,e 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.
Slide 54: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Achieved a 4.4% reduction in absolute Scope 1 and 2 CO,e emissions across Tapestry in fiscal 2018 over a 2017 baseline. Provided in-person compliance and anti-corruption training to over 120 suppliers and manufacturers in fiscal 2017 and early fiscal 2018. Signed the
Slide 55: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY 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 emp
Slide 56: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Donated over $48M through The Coach Foundation since its inception in 2008 and launched the “Dream It Real” initiative which supports young people as they pursue their dreams. Employed and empowered 162 women in Masoro, Rwanda through the Kate Spade on purpose program
Slide 57: Tapestry
tapestry
Slide 58: Tapestry CEO quote
“I have profound belief in Tapestry’s people and culture, as well as our ability to enhance returns for all stakeholders. Together with a talented management team that combines long-tenured executives with new leaders who bring fresh perspectives, we will act with urgency to drive sustainable organi
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Slide 60: 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 61: GAAP to Non-GAAP Reconciliation, year ended June 29, 2019
GAAP TO NON-GAAP RECONCILIATION FOR THE YEAR ENDED JUNE 29, 2019 GAAP BASIS ERP INTEGRATION & — IMPACTOFTAX —_NON-GAAP BASIS in millions, except per share data; unaudited (AS REPORTED) IMPLEMENTATION ACQUISITION LEGISLATION (EXCLUDING ITEMS) Coach $2,996.4 + $01.9) = $2,998.3 Kate Spade 863.6 - (63)
Slide 62: GAAP to Non-GAAP Reconciliation, year ended June 30, 2018
GAAP TO NON-GAAP RECONCILIATION FOR THE YEAR ENDED JUNE 30, 2018 GAAP BASIS OPERATIONAL ——INTEGRATION& = IMPACTOF TAX _NON-GAAP BASIS in millions, except per share data; unaudited (AS REPORTED) EFFICIENCY PLAN ACQUISITION LEGISLATION (EXCLUDING ITEMS) Coach $2,931.5 - $(4.1) - $2,935.6 Kate Spade 70
Slide 63: Tapestry
tapestry GOAGH | kate spade | STUART WEITZMAN