Slide 1: Tapestry
tapestry ‘GOAGH | kate spade | STUART WHTZMAN
Slide 2: Forward-looking statements
n the slide entitled “Fiscal 2020 Financial Outlook”, and statements regarding the Company’s planned share repurchase program and anticipated dividend payments for future quarters, as well as statements which can be identified by the use of forward-looking terminology such as "may," "will," “can,” "
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: Our brands: Coach, Kate Spade, Stuart Weitzman
established 1941 AUTHENTIC CONFIDENT MODERN established 1986 EMPOWERED POLISHED SOPHISTICATED established 1993 JOYFUL FEMININE OPTIMISTIC 5
Slide 6: Brand revenue, operating margin and stores
6 As of FY19. Non-GAAP Financials. Store counts reflect directly operated locations. revenue $6.0B operating margin 15.7% stores 1,540 revenue $4.3B operating margin 27.1% stores 986 revenue $1.4B operating margin 13.6% stores 407 revenue $389M operating margin (4.3%) stores 147
Slide 7: Product, geographic and channel breakdown
TAPESTRY PRODUCT, GEOGRAPHIC & CHANNEL BREAKDOWNGLOBAL HOUSE OF MODERN LUXURY BRANDS WITH FOCUS ON INTERNATIONAL GROWTH &DIRECT-TO-CONSUMER DISTRIBUTION 7 As of FY19.
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 Handbags & Accessories Footwear Outerwear $95B FY19 Handbags & Accessories Footwear Outerwear $91B FY18 8 +7% GROWTH Source: Tapestry proprietary global market sizing model &
Slide 9: Leadership Team
Tom Glaser Chief Operations Officer Leadership Team Anna BakstCEO and Brand President,Kate Spade Noam ParanskyChief Digital Officer Sarah DunnGlobal Human Resources Officer Todd KahnPresident, Chief Administrative Officer and Chief Legal Officer Joshua SchulmanCEO and Brand President,Coach Victor Lu
Slide 10: Highlights from 2019
highlights 2019 from
Slide 11: A year of meaningful evolution: fiscal 2019 milestones
11 A YEAR OF meaningful evolution FISCAL 2019 MILESTONES 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
Slide 12: Fiscal 2019 P&L overview by brand
12 Non-GAAP Financials. Tapestry includes Corporate segment SG&A expenses of $382M (not shown). FISCAL 2019 P&L OVERVIEW BY BRAND NET REVENUE GROSS PROFIT SG&A EXPENSES OPERATING INCOME EARNINGS PER DILUTED SHARE TAPESTRY $6,027M+3% growth $4,081M67.7% margin; +30bps vs. LY $3,136M52.0% of sales; +1
Slide 13: Fiscal 2019 capital allocation milestones
FISCAL 2019 CAPITAL ALLOCATION MILESTONES 13 share repurchase program. $1B Board of Directors approved to shareholders through dividends & share repurchases. $490M Company returned RETURNED 95% of free cash flow TO SHAREHOLDERS THROUGH DIVIDEND &SHARE REPURCHASE PROGRAM
Slide 14: Priorities 2020
priorities 2020
Slide 15: Fiscal 2020 strategic priorities
INNOVATION AND EXCELLENCE IN execution FUELBRANDINNOVATION DRIVEGLOBALGROWTH INVEST inDIGITAL& DATA HARNESS the POWER of MULTI-BRAND Accelerate product newnessBuild brand connections through cultural relevance Maximize the opportunity with the Chinese consumer globally and across brands Increase pow
Slide 16: Modified capital allocation policy in fiscal 2020
16 we are modifying our capital allocation policy in fiscal 2020, dedicating our resources to driving organic growth. ORGANIC GROWTH FISCAL 2020 CAPITAL ALLOCATION PRIORITIES With continued momentum at Coach, our main priority is to fuel an acceleration in our acquired businesses to unlock the power
Slide 17: Fiscal 2020 financial outlook
17 FISCAL 2020 FINANCIAL OUTLOOK low-single-digit sales growth at Coach driven by positiv e comparable store sales growth REVENUE low-single-digit growth GROSS MARGI N modest year over year decline approximately in-line with top-line growth SG&A EXPENSES EARNINGS PER DILUTED SHARE roughly even with
Slide 18: Overview by Brand
OVERVIEWbyBRAND
Slide 19: Coach
=, Cc OAC H NEW YORK
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Slide 21: The Shops at Hudson Yards, New York City
THE SHOPSAT HUDSON YARDSNEW YORK CITY
Slide 22: Art of Signature pop-up at The Vessel, New York City
‘ART OF SIGNATURE’ POP-UP AT THE VESSELNEW YORK CITY
Slide 23: Coach CEO quote on heritage and lifestyle brand
“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 formodern lives.” Joshua Schulman, CEO & Brand President, Coach 23
Slide 24: Coach vision
Coach inspires the dreamer in all of us, connecting our modern lives with the spirit of the open road. our vision 24
Slide 25: Coach employees, stores and revenue
13,500EMPLOYEES 986DIRECTLY OPERATED STORES $4.27BANNUAL REVENUE 25 As of FY19.
Slide 26: Coach fiscal 2019 milestones
COACH FISCAL 2019 MILESTONES 26 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 leat
Slide 27: Coach product, geographic and channel breakdown
coach product, geographic & channel breakdownDirect-to-consumer focused with diversified product categories & geographies 27 As of FY19.
Slide 28: Coach fiscal 2020 strategic priorities
COACH FISCAL 2020 STRATEGIC PRIORITIES DRIVE product innovation & disruption enforce Fashion Authority through cultural relevance Inject excitement into stores Fuel Digital Innovation & E-commerce Growth 28
Slide 29: Kate Spade New York
& kate spade NEW YORK
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Slide 31: The Shops at Hudson Yards, New York City
THE SHOPSAT HUDSON YARDSNEW YORK CITY
Slide 32: 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 32
Slide 33: Kate Spade vision
OUR VISION A globally admired aspirational life & style brand, delivering brand-enhancing profitable growth,where people — our customers and teams — areat the center of everything we do.
Slide 34: Kate Spade employees, stores and revenue
4,800EMPLOYEES 407DIRECTLY OPERATED STORES $1.37B ANNUAL REVENUE 34 As of FY19.
Slide 35: 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 36: Kate Spade product, geographic and channel breakdown
KATE SPADE product, geographic & channel breakdownOpportunity to expand internationally with unique and globally-relevant positioning 36 As of FY19. OTHER ASIA12%
Slide 37: Kate Spade fiscal 2020 strategic priorities
KATE SPADE FISCAL 2020 STRATEGIC PRIORITIES 37 Solidify brand authority INTRODUCE exceptional and inspiring products Enhance omni-channel platform globally CREATE immersive channel experiences Engage with Chinese consumers globally
Slide 38: Stuart Weitzman
STUART WEITZMAN
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Slide 40: The Shops at Hudson Yards, New York City
THE SHOPSAT HUDSON YARDSNEW YORK CITY
Slide 41: 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 41
Slide 42: Stuart Weitzman 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. 42
Slide 43: Stuart Weitzman employees, stores and revenue
1,100EMPLOYEES 147DIRECTLY OPERATED STORES $389MANNUAL REVENUE 43 As of FY19.
Slide 44: 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 OPP
Slide 45: Stuart Weitzman fiscal 2020 strategic priorities
Stuart weitzman FISCAL 2020 STRATEGIC priorities 45 ENHANCE SYSTEMS AND PROCESSES Maintain Boot & Sandal Authority while Expanding Footwear Expression DRIVE CREDIBILITY IN HANDBAGS FUEL CONSUMER DESIRE & BRAND AWARENESS Expand Globally,with Focus on China
Slide 46: Stuart Weitzman product, geographic and channel breakdown
STUART WEITZMAN product, geographic & channel breakdownOpportunity to expand internationally WITH SOPHISTICATED FOOTWEAR & ACCESSORIES OFFERING COMBINING FUNCTION AND FIT 46 REST OF WORLD18% As of FY19.
Slide 47: Corporate Responsibility
corporate RESPONSIBILITY
Slide 48: 2025 corporate responsibility strategy and 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, susta
Slide 49: Three strategic pillars: people, planet, communities
CORPORATE SOCIAL RESPONSIBILITY OUR 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 dedicated to reducing its e
Slide 50: Our People: 2025 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 51: Our People: recent milestones
RECENTMILESTONES 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 Rights Campaign Corp
Slide 52: Our Planet: 2025 goals
CORPORATE SOCIAL RESPONSIBILITY 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 su
Slide 53: Our Planet: recent milestones
RECENTMILESTONES CORPORATE SOCIAL RESPONSIBILITY our planet 2 Achieved a 4.4% reduction in absolute Scope 1 and 2CO2e emissions across Tapestry in fiscal 2018 over a2017 baseline. Provided in-person compliance and anti-corruption training to over 120 suppliers and manufacturers infiscal 2017 and ear
Slide 54: Our Communities: 2025 goals
CORPORATE SOCIAL RESPONSIBILITY our communities 3 2025GOALS 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 Weitz
Slide 55: Our Communities: recent milestones
RECENTMILESTONES CORPORATE SOCIAL RESPONSIBILITY our communities 3 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
Slide 56: Tapestry
tapestry
Slide 57: CEO closing quote
VICTOR LUIS, ceo 57 “We are confident in the clarity of our vision, the power of our brands and the benefits of our distinct multi-brand platform.”
Slide 58: Appendix
APPENDIX
Slide 59: 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 60: GAAP to non-GAAP reconciliation
GAAP to non-GAAP ReconciliationFor the Years Ended June 29, 2019 and June 30, 2018 Amounts as of June 29, 2019 primarily represent technology implementation costs. Amounts as of June 29, 2019 represent charges attributable to acquisition and integration costs related to:Organization-related costsPro
Slide 61: GAAP to non-GAAP reconciliation for segment results
GAAP TO NON-GAAP RECONCILIATION – FOR SEGMENT RESULTS For the Years Ended June 29, 2019 and June 30, 2018 in millions; unaudited GAAP COACH KATESPADE STUART WEITZMAN CORPORATE NON-GAAP Cost of sales Integration & Acquisition (1.9) (6.3) (19.6) — Gross profit $4,053.7 $(1.9) $(6.3) $(19.6) $— $4,081.
Slide 62: Segment information
SEGMENT INFORMATIONFor the Years ENDED June 29, 2019 and June 30, 2018 in millions; unaudited COACH KATESPADE STUART WEITZMAN CORPORATE TOTAL Net sales $4,270.9 $1,366.8 $389.4 $— $6,027.1 Gross profit 2,996.4 863.6 193.7 — 4,053.7 Operating Income (loss) 1,148.4 165.7 (51.2) (448.8) 814.1 Income (l
Slide 63: Tapestry
tapestry ‘GOAGH | kate spade | STUART WHTZMAN