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 statements which can be identified by the use of forward-looking terminology such as "may," "will," “can,” "should," "expect," "inten
Slide 3: Our values, principles, brands and model
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: Authentic, courageous, inclusive
established 1941 established 1986 established 1993 A U T H E N T I C S T Y L I S H J O Y F U L COURAGEOUS C O N F I D E N T OPTIMISTIC I N C L U S I V E S O P H I S T I C AT E D C O L O R F U L 5
Slide 6: Tapestry product, geographic & channel breakdown
TAPESTRY PRODUCT, GEOGRAPHIC & CHANNEL BREAKDOWN GLOBAL HOUSE OF BRANDS WITH STRONG DIRECT-TO-CONSUMER DISTRIBUTION Rest of Men's World Wholesale 14% 7% 9% Greater China 15% Footwear & Other Lifestyle Women's Categories Handbags Other Asia North 18% 50% 17% America 61% Women's Direct-to- Accessories
Slide 7: Leadership team
LEADERSHIP TEAM Joanne Crevoiserat Interim Chief Executive Officer Todd Kahn Liz Fraser Giorgio Sarné Interim CEO and Brand President, Coach; CEO and Brand President, CEO and Brand President, President and Chief Kate Spade Stuart Weitzman Administrative Officer Andrea Shaw Resnick Interim Chief Fina
Slide 8: Update
update
Slide 9: Navigating the environment to emerge stronger
FISCAL 2020 OVERVIEW NAVIGATING THE ENVIRONMENT TO emerge stronger ENTERED THE CALENDAR YEAR IN A POSITION OF STRENGTH As the coronavirus pandemic expanded globally, our results materially weakened due to numerous store closures across our fleet. ACTED SWIFTLY TO ENHANCE LIQUIDITY & FINANCIAL FLEXIB
Slide 10: 4Q20 results ahead of internal expectations
4Q20 RESULTS AHEAD OF INTERNAL EXPECTATIONS, DEMONSTRATING THE power OF OUR BRANDS & resilience OF OUR BUSINESS Nearly Digital strength with a Year-over-year revenue 100% triple-digit improved of global directly sequentially throughout year-over-year operated stores the quarter, with continued incre
Slide 11: Acceleration Program
acceleration PROGRAM
Slide 12: Acceleration
acceleration /akˌseləˈrāSH(ə)n/ we are accelerating growth & profitability noun we are accelerating our focus on the consumer the act of accelerating; increase of speed or velocity. we are accelerating with agility & urgency together 12
Slide 13: Acceleration program focused on customer needs
OUR acceleration program IS FOCUSED ON BETTER MEETING THE NEEDS OF OUR CUSTOMERS LEVERAGE DATA & TRANSFORM INTO A SHARPEN OUR LEAD WITH A LEANER & MORE FOCUS ON THE DIGITAL-FIRST RESPONSIVE CONSUMER MINDSET ORGANIZATION • Operate with a clearly defined • Build significant data and analytics • Move w
Slide 14: Tapestry is an enabling platform for our brands
TAPESTRY IS AN enabling platform THAT ENHANCES OPPORTUNITIES FOR OUR BRANDS CONSUMER INSIGHTS tapestry’s GLOBALLY DIVERSIFIED differentiated SUPPLY CHAIN platform DIGITAL INFRASTRUCTURE & CAPABILITIES provides: ACCESS TO GLOBAL TALENT 14
Slide 15: Financial outlook
FINANCIAL OUTLOOK N E A R -T E R M drive efficiency-led profit growth In FY21, we will focus on factors within our control to create a strong foundation for profitable expansion Assuming a continued slow and steady recovery from the pandemic, we project revenue to be roughly even with prior year (on
Slide 16: Capital allocation priorities
CAPITAL ALLOCATION PRIORITIES NEAR-TERM PRESERVE CASH • In FY20, as anticipated, we returned $700M to shareholders. However, due to the impact of Covid-19, we suspended our dividend and share repurchase programs while drawing down on our revolver to enhance liquidity. • In the near-term, our priorit
Slide 17: Interim CEO quote
“Our steadfast commitment to our purpose and values, as well as our focus on our multi-year strategic agenda have remained constant. Looking forward, I am confident that Tapestry’s next chapter of growth is ours to write.” JOANNE CREVOISERAT, INTERIM CHIEF EXECUTIVE OFFICER 17 17
Slide 18: Brand overview
OVERVIEW by
Slide 19: Coach New York
NN a , : oy aD COACH NEW YORK
Slide 20: Coach campaign imagery
4 8 ; i x H a & a a Jennifer Lopez, Hutton Bag, High Line, New York City Seulptare: Simone Leigh, Brick Howe
Slide 21: Coach vision
OUR VISION Coach inspires the dreamer in all of us, connecting our modern lives with the spirit of the open road. 21
Slide 22: Coach directly operated stores
958 DIRECTLY OPERATED STORES 55+ COUNTRIES 11,000+EMPLOYEES As of FY20. 22
Slide 23: 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 10% 6% 6% Greater Women's China Accessories 17% 18% Women's Handbags North 53% America Other Asia 57% 20% Direct-to- Men's 19%
Slide 24: Coach multi-year growth strategies
COACH MULTI-YEAR GROWTH STRATEGIES DEEPEN CREATE DRIVE DIGITAL ACCELERATE ENGAGEMENT INNOVATIVE & SALES & NEW ENHANCE GROWTH IN WITH COMPELLING CUSTOMER PROFITABILITY CHINA CONSUMERS PRODUCT RECRUITMENT • Enhance brand & • Exceed the • Offer a true • Tailor and optimize • Improve AUR and cultural re
Slide 25: Coach brand president quote
“We’re ready to reignite the accessible luxury segment by evolving our message from one rooted in high fashion imagery to one that is inclusive, culturally relevant and consumer-centric. We will focus on authentic communications that are grounded in our values and embody the courageous spirit of New
Slide 26: Kate Spade
& kate spade NEW YORK
Slide 27: Kate Spade New York imagery
NEW YORK cD) ae a} oF N oO pli ax) ake
Slide 28: Kate Spade vision
OUR VISION A globally admired aspirational life & style brand, where people — our customers and teams — are at the center of everything we do. 28
Slide 29: Kate Spade directly operated stores
420 DIRECTLY OPERATED STORES 35+ COUNTRIES 3,900+EMPLOYEES As of FY20. 29
Slide 30: Kate Spade product, geographic & channel breakdown
KATE SPADE PRODUCT, GEOGRAPHIC & CHANNEL BREAKDOWN OPPORTUNITY TO REENERGIZE & GROW HANDBAGS, WHILE FOCUSING ON MARKETS WITH HIGH BRAND AWARENESS GREATER REST OF CHINA WORLD 4% 6% WHOLESALE WOMEN'S 12% ACCESSORIES 21% OTHER ASIA 12% OTHER WOMEN'S LIFESTYLE HANDBAGS CATEGORIES 56% NORTH 23% AMERICA D
Slide 31: Kate Spade multi-year growth strategies
KATE SPADE MULTI-YEAR GROWTH STRATEGIES CRYSTALLIZE CAPTURE MARKET BRAND PURPOSE & INSTILL A LASER REENERGIZE AND LEAN INTO SHARE AND RETURN TO A FOCUS ON THE GROW HANDBAGS DIGITAL IMPROVE POSITION OF CUSTOMER & LEATHERGOODS STRENGTH PROFITABILITY STRENGTH • Fulfill our promise as a • Foster a commu
Slide 32: Kate Spade CEO quote
“I am incredibly optimistic about the long-term potential for Kate Spade. We have a brand that has a universal language of Joy, Optimism and Color. Our customers have historically deeply connected to our brand emotionally. If we embed this language in our product, marketing and customer experience,
Slide 33: Stuart Weitzman
STUART WEITZMAN
Slide 34: Stuart Weitzman
STUART WEITZMAN
Slide 35: Stuart Weitzman vision
OUR VISION STUART WEITZMAN IS THE EMBODIMENT OF STRENGTH IN FEMININITY – EMPOWERING AND INSPIRING WOMEN TO TAKE ON THE WORLD IN FASHIONABLE AND FUNCTIONAL FOOTWEAR. 35
Slide 36: Stuart Weitzman directly operated stores
131 DIRECTLY OPERATED STORES 40+ COUNTRIES 950+ EMPLOYEES As of FY20. 36
Slide 37: 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 F O C U S O N K E Y G E O G R A P H I E S & C H A N N E L S W I T H A C O M P E L L I N G F O O T W E A R A S S O RT M E N T HANDBAGS & OTHER OTHER ASIA 2% 7% REST OF WORLD WHOLESA
Slide 38: Stuart Weitzman multi-year growth strategies
S T U A RT W E I T Z M A N M U LT I - Y E A R G R OW T H S T R AT E G I E S RENEW STRENGTHEN ESTABLISH A REPUTATION FOR GROW KEY RESTORE RELATIONSHIP ROBUST DIGITAL FIT, COMFORT & CATEGORIES PROFITABILITY WITH WHOLESALE PRESENCE QUALITY PARTNERS • Listen and respond to • Build a leading • Focus dist
Slide 39: Stuart Weitzman CEO quote
“For nearly 35 years, Stuart Weitzman has empowered women to feel confident, stylish and sophisticated through its unmatched combination of fit, comfort and quality. Looking ahead, our long-term strategy centers on one principle: focus. Focus on the customer. Focus on tightening the product offering
Slide 40: Corporate responsibility
corporate RESPONSIBILITY
Slide 41: 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 42: 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 43: 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 44: Our people: progress
CORPORATE SOCIAL RESPONSIBILITY 1 our people Established an Inclusion Council to ensure that people with diverse perspectives and backgrounds are included in business decisions. Recognized on the Forbes Diversity & Inclusion List in 2019 for the third consecutive year. Achieved a score of 100 for th
Slide 45: 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 46: Our planet: progress
CORPORATE SOCIAL RESPONSIBILITY 2 our planet Reduced our 2019 carbon footprint by 2.4% from 2018 and a total of 6.7% from our 2017 baseline. Commercialized five different lining textiles and purchased an aggregate one million pounds of REPREVE® recycled polyester for use in kate spade new york handb
Slide 47: 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 48: Our communities: progress
CORPORATE SOCIAL RESPONSIBILITY 3 our communities Donated $22M in fiscal 2019 via grants from the Coach Foundation and kate spade new york Foundation, as well as through brand product donations. Engaged our employees to volunteer over 5,750 hours, serving our communities globally. Made $429,000 in c
Slide 49: Tapestry
tapestry
Slide 50: Appendix
APPENDIX
Slide 51: 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 52: GAAP to non-GAAP reconciliation, quarter ended June 7, 2020
GAAP TO NON-GAAP RECONCILIATION FOR THE QUARTER ENDED JUNE 27, 2020 ORGANIZATION- GAAP BASIS ERP ACCELERATION NON-GAAP BASIS RELATED & IMPAIRMENT (AS REPORTED) IMPLEMENTATION PROGRAM (EXCLUDING ITEMS) in millions, except per share data; unaudited INTEGRATION COSTS Coach $381.0 $— $— $— $— $381.0 Kat
Slide 53: GAAP to non-GAAP reconciliation, quarter ended June 9, 2019
GAAP TO NON-GAAP RECONCILIATION FOR THE QUARTER ENDED JUNE 29, 2019 GAAP BASIS ERP INTEGRATION & NON-GAAP BASIS in millions, except per share data; unaudited (AS REPORTED) IMPLEMENTATION ACQUISITION (EXCLUDING ITEMS) Coach $764.9 $— $0.1 764.8 Kate Spade 205.6 — (0.9) 206.5 Stuart Weitzman 28.7 — (1
Slide 54: Tapestry
tapestry COACH | kate spade | STUART WEITZMAN