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, the information provided on the slide entitled “Fiscal 2020 Financial Outlook”, and statements regarding the Company’s planned share
Slide 3: Our Values
O U R V A L U E S : optimistic innovative, inclusive O U R P R I N C I P L E S : b ra n d - l e d , c o n s u m e r- c e n t r i c m e r i t o c ra c y OUR B R A N D S : g l o b a l , u n i q u e & d i f fe re n t i a t e d O U R M O D E L : d i s c i p l i n e d , s h a re d & s c a l a b l e 3
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: Confident Polished Feminine
established 1941 established 1986 established 1993 C O N F I D E N T P O L I S H E D F E M I N I N E M O D E R N S O P H I S T I CAT E D OPTIMISTIC A U T H E N T I C EMPOWERED J O Y F U L 5
Slide 6: Tapestry and brand revenue, operating margin, stores
$6.0B $4.3B $1.4B $389M revenue revenue revenue revenue 15.8% 2 7. 1 % 13.6% (4.3%) operating margin operating margin operating margin operating margin 1,540 986 407 147 stores stores stores stores As of FY19. Non-GAAP Financials. As of Fiscal 2020, foreign currency gains and losses previously repor
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 Rest of Men's World Wholesale 14% 7% 11% Greater China 15% Footwear & Other Lifestyle Women's Categories Handbags 18% 50% Other Asia North 17% Am
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 Outerwear Outerwear $13B $12B +7% GROWTH Handbags & Handbags & $91B Accessories $95B Accessories Footwear Footwear $50B $48B $31B $32B Source: Tapestry proprietary g
Slide 9: Leadership Team
LEADERSHIP TEAM Jide Zeitlin Chairman and Chief Executive Officer Joshua Schulman Anna Bakst Eraldo Poletto CEO and Brand President, CEO and Brand President, CEO and Brand President, Coach Kate Spade Stuart Weitzman Todd Kahn Tom Glaser Joanne Crevoiserat President, Chief Administrative Officer Chie
Slide 10: Overview
overview
Slide 11: Fiscal 2020 Strategic Priorities
FISCAL 2020 STRATEGIC PRIORITIES INNOVATION AND EXCELLENCE IN execution FUEL DRIVE INVEST in HARNESS the BRAND GLOBAL DIGITAL POWER of & INNOVATION GROWTH MULTI-BRAND DATA • Accelerate product • Maximize the • Increase power of • Capture full benefit of newness opportunity with the digital platforms
Slide 12: Fiscal 2020 Capital Allocation Priorities
FISCAL 2020 CAPITAL ALLOCATION PRIORITIES • With continued momentum at Coach, our main priority is to fuel an we are dedicated to acceleration in our acquired businesses to unlock the power of our driving organic multi-brand platform. • At this time, we do not expect to pursue strategic acquisitions
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 low-single-digit sales growth at Coach driven by positive comparable store sales growth low to mid-single-digit sales growth at Kate Spade driven by distribution slight sales growth at Stuart Weitzman GROSS MARGIN modest year over year de
Slide 15: Highlights from Fiscal 2019
highlights from
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 KATE STUART TAPESTRY COACH SPADE WEITZMAN NET REVENUE $6,027M $4,271M $1,367M $389M +3% growth +1% growth +6% growth +4% growth GROSS PROFIT $4,081M $2,998M $870M $213M 67.7% margin; +30bps vs. LY 70.2% margin; +70bps vs. LY 63.6% margin; +40bps vs. LY 54.8% margin;
Slide 18: Fiscal 2019 Capital Allocation Milestones
FISCAL 2019 CAPITAL ALLOCATION MILESTONES RETURNED 95% of free cash flow TO SHAREHOLDERS THROUGH DIVIDEND & SHARE REPURCHASE PROGRAM Board of Directors Company returned approved share repurchase to shareholders through dividends program. & share repurchases. 18
Slide 19: Overview by Brand
OVERVIEW by
Slide 20: Coach New York
NN a , : oy aD COACH NEW YORK
Slide 21: The Kat Bag
The Kat Bag
Slide 22: The Shops at Hudson Yards
THE SHOPS AT HUDSON YARDS N E W YO R K C I T Y
Slide 23: New York Fashion Week
NEW YORK FASHION WEEK COACH ORIGINALS POP-UP M A D I S O N AV E N U E , N E W YO R K C I T Y
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 24 24
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. 25
Slide 26: Coach annual revenue, stores, employees
$4.27B ANNUAL REVENUE 986 DIRECTLY OPERATED STORES 13,500 EMPLOYEES As of FY19. 26
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 World Wholesale 9% 6% 8% Greater Women's China Accessories 18% 18% Women's Handbags North 53% America Other Asia 56% Men's 20% Direct-to- 20%
Slide 29: Coach Fiscal 2020 Strategic Priorities
COACH FISCAL 2020 STRATEGIC PRIORITIES ENFORCE FASHION FUEL DIGITAL DRIVE PRODUCT INJECT AUTHORITY INNOVATION & INNOVATION & EXCITEMENT THROUGH E-COMMERCE DISRUPTION INTO STORES CULTURAL GROWTH RELEVANCE 29
Slide 30: Kate Spade New York
& kate spade NEW YORK
Slide 31: Slide 31
Slide 32: The Shops at Hudson Yards
THE SHOPS AT HUDSON YARDS NEW YORK CITY
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 33 33
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. 34
Slide 35: Kate Spade annual revenue, stores, employees
$1.37B ANNUAL REVENUE 407 DIRECTLY OPERATED STORES 4,800 EMPLOYEES As of FY19. 35
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 GREATER REST OF CHINA WORLD 4% 6% WHOLESALE OTHER ASIA WOMEN'S 13% 12% ACCESSORIES 21% WOMEN'S OTHER HANDBAGS LIFESTYLE 56% CATEGORIES NORTH 23% AMERICA DIRECT-TO- 7
Slide 38: Kate Spade Fiscal 2020 Strategic Priorities
KATE SPADE FISCAL 2020 STRATEGIC PRIORITIES INTRODUCE ENHANCE CREATE ENGAGE WITH SOLIDIFY BRAND EXCEPTIONAL OMNI-CHANNEL IMMERSIVE CHINESE AUTHORITY AND INSPIRING PLATFORM CHANNEL CONSUMERS PRODUCTS GLOBALLY EXPERIENCES GLOBALLY 38
Slide 39: Stuart Weitzman
STUART WEITZMAN
Slide 40: Slide 40
Slide 41: The Shops at Hudson Yards
THE SHOPS AT HUDSON YARDS N E W YO R K C I T Y
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 42 42
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. 43
Slide 44: Stuart Weitzman annual revenue, stores, employees
$389M ANNUAL REVENUE 147 DIRECTLY OPERATED STORES 1,100EMPLOYEES As of FY19. 44
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 O
Slide 46: Stuart Weitzman Fiscal Strategic Priorities
S T U A RT W E I T Z M A N F I S C A L 2 0 2 0 S T R AT E G I C P R I O R I T I E S MAINTAIN BOOT & SANDAL EXPAND AUTHORITY FUEL CONSUMER ENHANCE SYSTEMS DRIVE CREDIBILITY GLOBALLY, WHILE DESIRE & BRAND AND PROCESSES IN HANDBAGS WITH FOCUS ON EXPANDING AWARENESS CHINA FOOTWEAR EXPRESSION 46
Slide 47: Stuart Weitzman product, geographic & channel breakdown
S T U A RT W E I T Z M A N P R O D U C T, G E O G R A P H I C & C H A N N E L B R E A K D OW N O P P O RT U N I T Y T O E X P A N D I N T E R N AT I O N A L LY W I T H S O P H I S T I C AT E D F O O T W E A R & ACCESSORIES OFFERING COMBINING FUNCTION AND FIT HANDBAGS & OTHER OTHER ASIA 2% 6% REST OF
Slide 48: Corporate Responsibility
corporate RESPONSIBILITY
Slide 49: 2025 Corporate Responsibility Strategy & Goals
2025 CORPOR ATE 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 c
Slide 50: Program focused on three strategic pillars
CORPORATE SOCIAL RESPONSIBILITY OUR PROGRAM IS FOCUSED ON THREE strategic pillars 1 Having individuals from different backgrounds with OUR different experiences around the table creates a diversity PEOPLE of perspectives that enrich our organization. 2 OUR Tapestry is dedicated to reducing its envir
Slide 51: Our People goals
CORPORATE SOCIAL RESPONSIBILITY 1 our people 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 Emplo
Slide 52: Our People achievements
CORPORATE SOCIAL RESPONSIBILITY 1 our people 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 th
Slide 53: Our Planet goals
CORPORATE SOCIAL RESPONSIBILITY 2 our planet 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 s
Slide 54: Our Planet achievements
CORPORATE SOCIAL RESPONSIBILITY 2 our planet Achieved a 4.4% reduction in absolute Scope 1 and 2 CO2e 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
Slide 55: Our Communities goals
CORPORATE SOCIAL RESPONSIBILITY 3 our communities 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 prod
Slide 56: Our Communities achievements
CORPORATE SOCIAL RESPONSIBILITY 3 our communities 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
Slide 57: Tapestry
tapestry
Slide 58: Chairman & 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
Slide 59: Appendix
APPENDIX
Slide 60: 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 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 & IMPACT OF TAX NON-GAAP BASIS in millions, except per share data; unaudited (AS REPORTED) IMPLEMENTATION ACQUISITION LEGISLATION (EXCLUDING ITEMS) Coach $2,996.4 $— $(1.9) $— $2,998.3 Kate Spade 863.6 — (6.3
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 & IMPACT OF 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 705
Slide 63: Tapestry
tapestry COACH | kate spade | STUART WEITZMAN