Tapestry, Inc. · NYSE:TPR
Tapestry — Investor Presentation (April 2020)
51 slides from Tapestry's investor presentation, Apr 30, 2020
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: 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: 3
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: Brands established 1941, 1986, 1993
established 1941 AUTHENTIC CONFIDENT MODERN established 1986 EMPOWERED POLISHED SOPHISTICATED established 1993 JOYFUL FEMININE OPTIMISTIC 5
Slide 6: Leadership Team
Leadership Team Andrea Shaw ResnickGlobal Head of Investor Relations & Corporate Communications Joanne CrevoiseratChief Financial Officer Todd KahnPresident, Chief Administrative Officer and Company Secretary Giorgio SarnéCEO and Brand President,Stuart Weitzman Noam ParanskyChief Digital Officer Liz
Slide 7: Update 2020
update 2020
Slide 8: Effectively navigate the pandemic
8 EFFECTIVELY NAVIGATE THE PANDEMIC Entered calendar year with significant momentum, but the world shifted as Covid-19 pandemic spread Guided by our values, we are prioritizing our people, their families and our customersAlthough we are not immune to the impact of Covid-19, we are responding from a
Slide 9: Acting swiftly to reinforce liquidity and financial flexibility
ACTING SWIFTLY TO REINFORCE liquidity & financial flexibility COVID-19 RESPONSE: 9 TIGHTLY MANAGE INVENTORY Reflow late spring & early summer product introductionsCancel inventory receipts for late summer & early fall$500M+ in working capital savings targeted REDUCE CAPEX Delay or cancel new store o
Slide 10: Remain dedicated to our communities
COMMITTED $2,000,000 through the Coach Foundation to support NYC Department of Small Business Services’ Small Business Continuity Fund for businesses affected by Covid-19 SUPPORTING FRONTLINE WORKERS via donations through the kate spade new york foundation to provide short-term emergency funding nee
Slide 11: Capital allocation priorities
our commitment to driving organic growth, profitability and shareholder value long-term is unwavering. PRESERVE CASH IN LIGHT OF CURRENT ENVIRONMENT In FY20, as anticipated, we returned $700M to shareholders and were on track to deliver organic sales growth.However, due to the impact of Covid-19, we
Slide 12: Jide Zeitlin, Chairman & CEO quote
JIDE ZEITLIN, CHAIRMAN & CEO “The saliency of our brands and the strong financial position of our company will enable us to successfully manage through this crisis while accelerating work to become a more consumer-centric, data-driven and agile organization.” 12
Slide 13: Corporate Responsibility
corporate RESPONSIBILITY
Slide 14: 2025 Corporate 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 contributing to a world that is inclusive, sustai
Slide 15: Three strategic pillars
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 16: 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 17: Our People recent milestones
RECENTMILESTONES 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 the sixth consecutive year on t
Slide 18: 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 19: Our Planet recent milestones
RECENTMILESTONES CORPORATE SOCIAL RESPONSIBILITY our planet 2 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 spad
Slide 20: 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 21: Our Communities recent milestones
RECENTMILESTONES CORPORATE SOCIAL RESPONSIBILITY our communities 3 Donated $22 million in fiscal 2019 through the Coach and kate spade new york Foundations. Engaged our employees to volunteer over 5,750 hours, serving our communities globally.Made $429,000 in charitable donations matched through our
Slide 22: Highlights from 2019
highlights 2019 from
Slide 23: Fiscal 2019 revenue, operating margin and stores by brand
23 As of FY19. Non-GAAP Financials. As of Fiscal 2020, foreign currency gains and losses previously reported in SG&A expenses are reflected in Other Expense/(Income). Prior year results have been recast for comparability. Store counts reflect directly operated locations. revenue $6.0B operating marg
Slide 24: Tapestry product, geographic & channel breakdown
TAPESTRY PRODUCT, GEOGRAPHIC & CHANNEL BREAKDOWNGLOBAL HOUSE OF MODERN LUXURY BRANDS WITH FOCUS ON INTERNATIONAL GROWTH &DIRECT-TO-CONSUMER DISTRIBUTION 24 As of FY19.
Slide 25: 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 25 +7% GROWTH Source: Tapestry proprietary global market sizing model &
Slide 26: Overview by Brand
OVERVIEWbyBRAND
Slide 27: Coach
ee lt, COACH NEW YORK
Slide 28: Coach campaign imagery
= Jennifer Lopez, Hiution Bug, High Lise, New York Cry
Slide 29: The shops at Hudson Yards, New York City
THE SHOPSAT HUDSON YARDSNEW YORK CITY
Slide 30: Coach vision
Coach inspires the dreamer in all of us, connecting our modern lives with the spirit of the open road. our vision 30
Slide 31: Coach key facts: employees, stores, revenue
13,500EMPLOYEES 986DIRECTLY OPERATED STORES $4.27BANNUAL REVENUE 31 As of FY19.
Slide 32: Coach product, geographic & channel breakdown
coach product, geographic & channel breakdownDirect-to-consumer focused with diversified product categories & geographies 32 As of FY19.
Slide 33: The shops at Hudson Yards, New York City
THE SHOPSAT HUDSON YARDSNEW YORK CITY
Slide 34: Slide 34
Slide 35: The shops at Hudson Yards, New York City
THE SHOPSAT HUDSON YARDSNEW YORK CITY
Slide 36: 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 every thing we do.
Slide 37: Kate Spade key facts: employees, stores, revenue
4,800EMPLOYEES 407DIRECTLY OPERATED STORES $1.37B ANNUAL REVENUE 37 As of FY19.
Slide 38: Kate Spade product, geographic & channel breakdown
KATE SPADE product, geographic & channel breakdownOpportunity to expand internationally with unique and globally-relevant positioning 38 As of FY19. OTHER ASIA12%
Slide 39: Stuart Weitzman
STUART WEITZMAN
Slide 40: Slide 40
Slide 41: The shops at Hudson Yards, New York City
THE SHOPSAT HUDSON YARDSNEW YORK CITY
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 key facts: employees, stores, revenue
1,100EMPLOYEES 147DIRECTLY OPERATED STORES $389MANNUAL REVENUE As of FY19. 43
Slide 44: Stuart Weitzman product, geographic & channel breakdown
STUART WEITZMAN product, geographic & channel breakdownOpportunity to expand internationally WITH A SOPHISTICATED FOOTWEAR & ACCESSORIES OFFERING COMBINING FUNCTION AND FIT 44 REST OF WORLD18% As of FY19.
Slide 45: Tapestry
tapestry
Slide 46: Jide Zeitlin, Chairman & CEO quote
JIDE ZEITLIN, CHAIRMAN & CEO 46 “We are stewards of three powerful brands and we believe we have the leadership team and the means to effect significant and positive change to define the next chapter of sustainable growth at our company.”
Slide 47: Appendix
APPENDIX
Slide 48: Non-GAAP financial measures explanation
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 49: GAAP to non-GAAP Reconciliation, year ended June 29, 2019
GAAP to non-GAAP ReconciliationFor the Year Ended June 29, 2019 in millions, except per share data; unaudited GAAP BASIS(AS REPORTED) ERP IMPLEMENTATION INTEGRATION & ACQUISITION IMPACT OF TAX LEGISLATION NON-GAAP BASIS(EXCLUDING ITEMS) Coach $2,996.4 $— $(1.9) $— $2,998.3 Kate Spade 863.6 — (6.3) —
Slide 50: Fiscal 2019 foreign exchange gain/loss recast by quarter
Fiscal 2019 foreign exchange gain/loss recast by quarter in millions; Non-GAAP financials 1Q19 2Q19 3Q19 4Q19 FY19 Coach $448.8 $481.6 $446.7 $463.8 $1,840.9 Kate Spade 159.5 179.5 168.8 175.6 683.4 Stuart Weitzman 54.6 59.2 59.8 56.3 229.9 Corporate 91.6 84.4 104.5 101.4 381.9 Selling, general and
Slide 51: Tapestry
tapestry COACH | kate spade | STUART WEITZMAN