Tapestry, Inc. · NYSE:TPR

Tapestry — Investor Day (2022)

183 slides from Tapestry's investor day presentation, 2022

Slide 1: Tapestry
tapestry
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 regarding the Company’s 2025 growth strategy and long-term financial targets and goals, fiscal year 2023 outlook, capital
Slide 4: Who We Are & Competitive Advantages
WhoWe Are The & Competitive Acceleration Growth Advantages Program Agenda © 2022 Tapestry, Inc. 4
Slide 5: Who We Are & Competitive Advantages
WhoWe Are The & Competitive Acceleration Growth Advantages Program Agenda © 2022 Tapestry, Inc. 5
Slide 8: Tapestry is a global powerhouse
Tapestry is a global powerhouse $6.7B ~70 1,443 18K REVENUE COUNTRIES DIRECTLY OPERATED EMPLOYEES STORES © 2022 Tapestry, Inc. Figures as of FY22. 8
Slide 10: We have distinct & enduring competitive advantages
We have distinct & enduring competitive advantages © 2022 Tapestry, Inc. 10
Slide 11: Competitive Advantages
COMPETITIVE ADVANTAGES 1. Iconic Brands 2. Attractive Categories 3. Omni-Channel Leadership 4. Global Platform 5. Talented Team © 2022 Tapestry, Inc. 11
Slide 12: Iconic Brands
1. Iconic Brands Our brands are uniquely positioned and have STRONG EMOTIONAL CONSUMER #1 UNAIDED #3UNAIDED #16UNAIDED AWARENESS AWARENESS AWARENESS CONNECTIONS IN HANDBAGS IN HANDBAGS IN FOOTWEAR RE-PURCHASE INTENT >70% ACROSS BRANDS © 2022 Tapestry, Inc. Sourced from Tapestry’s FY22 North America
Slide 13: Attractive Categories
2. Attractive Categories Personal Premium Goods by We play in FY25E (6% to 8% CAGR vs. FY22) ~$370B GROWING & Personal $295B HIGH-MARGIN Premium Goods Handbags, SLGs, CATEGORIES FTW & Apparel $195B Handbags, $98B SLGs & FTW Tapestry $6.7B Today Tapestry revenue figure as of FY22. Global market sourc
Slide 14: Omni-Channel Leadership
3. Omni-Channel Leadership PROVEN & PROFITABLE ECOMMERCE 30% DIRECT-TO- STORES 59% Nearly 90% CONSUMER MODEL REVENUE BY CHANNEL Direct-to-Consumer with best-in-class digital capabilities WHOLESALE 11% © 2022 Tapestry, Inc. As of FY22. 14
Slide 15: Global Platform
4. Global Platform MODERN DATA-DRIVEN & AGILE PLATFORM designed to drive consumer engagement MODERN DATA-DRIVEN CRAFTSMANSHIP TECHNOLOGY ADVANTAGE AT SCALE INFRASTRUCTURE © 2022 Tapestry, Inc. 15
Slide 16: Talented Team
5. Talented Team WORLD-CLASS LEADERSHIP with a proven track record Joanne Crevoiserat Scott Roe Todd Kahn Liz Fraser Giorgio Sarné Noam Paransky CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER & CEO & BRAND PRESIDENT CEO & BRAND PRESIDENT CEO & BRAND PRESIDENT CHIEF OMNI & CHIEF OPERATING OFFICER CO
Slide 17: The Acceleration Program
WhoWe Are The & Competitive Acceleration Growth Advantages Program Agenda © 2022 Tapestry, Inc. 17
Slide 18: We've radically and successfully transformed our business
Over the last two years, we’ve radically and successfully transformed our business © 2022 Tapestry, Inc. 18
Slide 19: The Acceleration Program
The Acceleration Program enabled a pivot in how we build our brands SHARPENING OUR LEVERAGING DATA TRANSFORMING FOCUS ON THE & LEADING WITH A INTO A LEANER CONSUMER DIGITAL-FIRST & MORE MINDSET RESPONSIVE ORGANIZATION © 2022 Tapestry, Inc. 19
Slide 20: Increase in active customer base with higher spend
OVER THE LAST TWO YEARS IN NORTH AMERICA: ACQUIRED INCREASED RE-ENGAGED 15 million new lapsed retention rates customers customers SHARPENING OUR FOCUS ON THE Fueled an increase in our active customer CONSUMER base with higher average spend © 2022 Tapestry, Inc. 20
Slide 21: Grew global digital sales
$2.0B GREW GLOBAL DIGITAL SALES FY22 $600M FY19 MORE THAN 3X PRE-PANDEMIC LEVELS LEVERAGING DATA & LEADING WITH A DIGITAL-FIRST MINDSET © 2022 Tapestry, Inc. 21
Slide 22: Operational savings fund brand building
8% OF SALES 4% OF SALES REALIZED OPERATIONAL SAVINGS TO FUND BRAND BUILDING, INCLUDING AN INCREASE IN MARKETING FY19 FY22 TRANSFORMING INTO A LEANER INCREASED MARKETING VS. FY19 & MORE RESPONSIVE ORGANIZATION © 2022 Tapestry, Inc. Note: Non-GAAP financials (full reconciliation in appendix). 22
Slide 23: Transformation fueled exceptional financial outcomes
Our transformation fueled exceptional financial outcomes RECORD REVENUE OPERATING MARGIN EPS (% GROWTH) (MARGIN CHANGE) (% GROWTH) +11% +250bps +35% $6.7B 18.2% $3.47 $2.57 $6.0B 15.7% FY19 FY22 FY19 FY22 FY19 FY22 © 2022 Tapestry, Inc. Note: Non-GAAP financials (full reconciliation in appendix). 23
Slide 24: Culture of empowerment
And, importantly, we’ve created a culture of empowerment EXTERNAL RECOGNITION ENGAGED TEAMS WORLDWIDE 89% of employees say that they are made to feel welcome when joining the company Top quartile for employee engagement 88% of employees say that they are proud to tell others that they work at Tapest
Slide 25: Our transformation positions us for the future
Our transformation positions us for the future © 2022 Tapestry, Inc. 25
Slide 26: The consumer landscape is rapidly evolving
The consumer DIGITALLY LED, OMNI-ENABLED VALUES FOCUSED landscape is rapidly evolving © 2022 Tapestry, Inc. SELF-EXPRESSION GEN-Z INFLUENCE 26
Slide 27: We're prepared to move at the speed of the consumer
W E ’ R E P R E PA R E D T O M OV E AT T H E S P E E D O F T H E C O N S U M E R © 2022 Tapestry, Inc. 27
Slide 29: Growth Agenda
WhoWe Are The & Competitive Acceleration Growth Advantages Program Agenda © 2022 Tapestry, Inc. 29
Slide 30: Continued growth and significant cash generation
Our intentional focus positions Tapestry for continued growth and significant cash generation REVENUE EARNINGS PER SHARE CUMULATIVE RETURN OF $8B $5+ $3B 6% TO 7% LOW TO MID-TEENS TO SHAREHOLDERS CAGR VS. FY22 CAGR VS. FY22 BY FISCAL 2025 © 2022 Tapestry, Inc. Note: Non-GAAP financials (full reconci
Slide 31: Balanced, profitable growth across our brands
We will drive balanced, profitable growth across our brands $5.7B $1.9B $450M IN REVENUE IN REVENUE IN REVENUE A MID-SINGLE-DIGIT CAGR A HIGH-SINGLE-DIGIT CAGR A LOW DOUBLE-DIGIT CAGR BY FISCAL 2025 © 2022 Tapestry, Inc. 31
Slide 32: How we win
How we win 1 2 3 4 FUEL FASHION DELIVER BUILD LASTING POWER INNOVATION COMPELLING CUSTOMER GLOBAL & PRODUCT OMNI-CHANNEL RELATIONSHIPS GROWTH EXCELLENCE EXPERIENCES © 2022 Tapestry, Inc. 32
Slide 33: Build lasting customer relationships
1 BUILD LASTING CUSTOMER RELATIONSHIPS TO FUEL CUSTOMER LIFETIME VALUE, WE WILL LEVERAGE OUR TRANSFORMED BUSINESS MODEL BY: ACQUIRING REACTIVATING NEW, DRIVING LAPSED YOUNGER RETENTION CUSTOMERS CUSTOMERS © 2022 Tapestry, Inc. 33
Slide 34: Revenue by category
CONTINUED GROWTH IN OUR CORE, WITH OUTSIZED GAINS IN FOOTWEAR & LIFESTYLE 2 FUEL FASHION INNOVATION REVENUE BY CATEGORY & PRODUCT EXCELLENCE FOOTWEAR & Low double-digit LIFESTYLE CAGR ~20% penetration FOOTWEAR & LIFESTYLE 18% Mid-single-digit penetration CAGR HANDBAGS & SLGS HANDBAGS & ~80% SLGS pen
Slide 35: Deliver compelling omni-channel experiences
3 DELIVER COMPELLING OMNI-CHANNEL EXPERIENCES DIGITAL STORES Fuel a high-single-digit Drive a mid-single-digit revenue CAGR revenue CAGR TO REACH $2.6B IN FY25 AT HIGHER PROFITABILITY © 2022 Tapestry, Inc. Note: CAGR refers to growth from FY22 Actual to FY25 estimate. 35
Slide 36: Balanced growth across geographies
4 POWER GLOBAL GROWTH Balanced growth across geographies, with AUR & unit opportunity CONTINUED RUNWAY IN KEY FURTHER OPPORTUNITY IN UNDER- REGIONS PENETRATED GEOGRAPHIES • North America mid-single-digit CAGR • Europe high-single-digit CAGR • Greater China low double-digit CAGR • Balance of Asia low
Slide 37: Our Social Fabric
Our Social Fabric T R U E FA S H I O N A U T H O R I T Y. T R U E P O S I T I V E I M PAC T. OUR PEOPLE OUR PLANET OUR COMMUNITIES © 2022 Tapestry, Inc. 37
Slide 38: Well-positioned to drive sustainable, profitable growth
We are well-positioned to drive sustainable, profitable growth to create value for all stakeholders © 2022 Tapestry, Inc. 38
Slide 39: Well-positioned to drive sustainable, profitable growth
We are well-positioned to drive sustainable, profitable growth to create value for all stakeholders ICONIC & AGILE & DATA-DRIVEN STRONG POWERFUL GROWTH UNIQUE BRANDS OPERATING PLATFORM FOUNDATION AGENDA © 2022 Tapestry, Inc. 39
Slide 44: The courage to live authentically
For more than 80 years, Coach has made beautiful things, crafted to last — for our customers to express themselves. Inspired by the spirit of our hometown, New York City, we’ve built a legacy of craft and a community that champions the courage to live authentically. © 2022 Tapestry, Inc. 44
Slide 46: Our Values
Our Values GENUINE AT CRAFTED BE YOURSELF, WONDER, HEART TO LAST TOGETHER WHAT IF? © 2022 Tapestry, Inc. 46
Slide 47: Coach is a Beloved Global Fashion House
Coach is a Beloved Global Fashion House GLOBAL REACH INNOVATION FASHION LEADER $5B in sales across Creating Leading the conversation 50+ countries emotional icons around American style © 2022 Tapestry, Inc. Note: Figures as of FY22. 47
Slide 48: Revenue and operating margin since FY19
Since FY19, revenue has grown $650 million and operating margin has improved 300bps © 2022 Tapestry, Inc. Note: Non-GAAP financials (full reconciliation in appendix). 48
Slide 49: What's Driving Our Success
What’s Driving Our Success CUSTOMER-CENTRICITY INNOVATION DIGITAL Acquired 8M customers in Success of icons; Men’s Penetration up from NA over the last two years; Global approaching $1B in revenue; high-single-digits to ~30% Handbag AUR +30% against FY19 Outsized growth in Lifestyle © 2022 Tapestry,
Slide 50: Global Market Context
Global Market Personal Premium Goods by FY25E ~$370B Context Personal Premium Goods $295B Handbags, SLGs, $195B FTW & Apparel Handbags, SLGs & FTW $98B Coach Today $5B © 2022 Tapestry, Inc. Coach revenue figure as of FY22. Global market sourced from Euromonitor FY22, Bain Altagamma Luxury Goods Worl
Slide 52: Customer-Centricity
Customer-Centricity Distorting focus and investment to fuel customer acquisition of Millennials & Gen-Z © 2022 Tapestry, Inc. 52
Slide 53: Millennial & Gen-Z Will Dominate the Luxury Market
By FY25, Millennial & Gen-Z Will Dominate the Luxury Market with >70% Share <30% 40% >-10% Gen-X & Older 61% -21% >+5% >50% +11% 45% Millennials 34% >+5% +10% >20% Gen-Z 15% 5% FY19 FY22 FY25E © 2022 Tapestry, Inc. Penetration of demand sourced from Bain Fall 2021 Luxury Goods Market Study. 53
Slide 54: Who is the Timeless Millennial / Gen-Z?
Who is the Timeless Millennial / Gen-Z? They are smart and deliberate and seek a put-together, professional look that projects confidence (even on their off days). They like brands that reflect their status and invest in tried-and-true, quality pieces that are versatile and will last for years. When
Slide 55: What This Customer Is Telling Us
What This Customer Is Telling Us © 2022 Tapestry, Inc. Inc. © 2022 Tapestry, 55
Slide 56: Strongest Right to Win with the Timeless Millennial & Gen-Z
We Have the Strongest Right to Win with the Timeless Millennial & Gen-Z Customer Globally KEY NEEDS U.S. CHINA JAPAN EUROPE SOPHISTICATED RELAXED (Relaxed + Classic + Understated + Effortless) CONFIDENT STYLISH QUALITY (High Quality + Durable + Trusted Brand) DIVERSE USE (Comfortable + Versatile) TI
Slide 59: The Coach Story – A History of Innovation
The Coach Story – A History of Innovation 1950s 1962 2000s 2014 2022 Coach founder Miles Bonnie Cashin is Coach pioneers Stuart Vevers joins We are writing our Cahn invents “Glove- hired as Coach’s first “Accessible Luxury” Coach, transforming next chapter. tanned Leather,” head designer and based o
Slide 60: Bonnie Cashin quote
“It’s more fun to be ahead of the crowd than lost in it.” — Bonnie Cashin, Coach’s First Head Designer © 2022 Tapestry, Inc. 60
Slide 61: Expressive Luxury
Expressive Luxury Our Position Our Purpose Coach invites our community to be their true selves To inspire people to be confident to express their true through Expressive Luxury. Luxury is not just about selves and play the main character in their story. To have impressing, it’s also about self-expre
Slide 63: Drive Topline Growth While Maintaining Best-in-Class Margin
Financial Outcomes: Drive Topline Growth While Maintaining Best-in-Class Operating Margin Revenue MSD CAGR Operating Margin AUR Improvement Operating $5.7B Margin $4.9B ~30% Inflation Benefits Headwinds FY22 FY25E © 2022 Tapestry, Inc. Note: Non-GAAP financials (full reconciliation in appendix). 63
Slide 64: Brand Building to Connect Emotionally
Brand Building Innovation that Digital to to Connect Encourages Omni-Channel Emotionally Self-Expression Experience © 2022 Tapestry, Inc. 64
Slide 65: Brand Building to Connect Emotionally
Brand Building to Connect Emotionally Leverage our brand purpose and values to tell stories that drive emotional connection with our target customer segment © 2022 Tapestry, Inc. 65
Slide 66: Innovation that Encourages Self-Expression
Innovation that Encourages Self-Expression Grow Women’s leather goods by continuing to build equity in key iconic families Accelerate growth in lifestyle through Men’s, FTW & RTW Lead in sustainability/circular fashion with Coachtopia © 2022 Tapestry, Inc. 66
Slide 67: Digital to Omni-Channel Experience
Digital to Omni-Channel Experience It is no longer about physical first, or digital first, it’s about people first: community, belonging and entertainment will be at the heart of retail. © 2022 Tapestry, Inc. 67
Slide 68: Where We Will Play: Geographic Mix
Where We Will Play: Geographic Mix Europe Europe Other Asia $0.2B Other Asia $0.3B $0.2B $0.3B Japan $0.5B Japan $0.6B MSD% Greater China $4.9B CAGR Greater $5.7B North $0.9B North China America America $1.1B $3.4B $3.1B FY22 FY25E © 2022 Tapestry, Inc. 68
Slide 69: Where We Will Play: Category Mix
Where We Will Play: Category Mix Women's Women's Lifestyle Lifestyle $0.5B $0.7B Men's $0.9B MSD% Men's $1.1B $4.9B CAGR $5.7B Women’s Handbags & Women’s Handbags & SLGs SLGs $3.5B $3.9B FY22 FY25E Note: Women’s Leather Goods includes Handbags, Small Leather Goods/Wallets & Tech accessories. Women’s
Slide 71: Key Takeaways
Key Takeaways 01 02 03 Coach’s past informs its Continue to build Bring Expressive Luxury to life through: future. We are building deeper customer insights to • Brand building to create emotional connection on our recent success. better understand their emotional • Product innovation that allows sel
Slide 76: Joy, Colors, Life
JOY COLORS LIFE Joy makes anything possible. One little spark can create a chain reaction that brightens your world. © 2022 Tapestry, Inc. 76
Slide 77: We design extra-ordinary things for everyday
OUR PROMISE WE DESIGN EXTRA-ORDINARY THINGS for EVERYDAY. © 2022 Tapestry, Inc. 77
Slide 78: Our Brand Values
Our Brand Playful & Pragmatic Values We combine spirited thinking with a no-nonsense approach. Welcome with Warmth For our employees and our customers, our door is always open. Positive Well-being We foster holistic empowerment – social, economic, mental and cultural. Wonderfully Determined Even whe
Slide 79: It started with a spark
It started Playful & pragmatic with a spark product Andy Spade’s storytelling How it all started in 1993. Kate’s design vision Emotional connection with the customer Color & optimism A group of friends collaborating together © 2022 Tapestry, Inc. 79
Slide 80: We recently focused on three main areas
We recently focused on three main areas Clarified Brand Proposition Clarified Target Customer Built Team & Culture © 2022 Tapestry, Inc. 80
Slide 82: Focusing on our consumer target, The Enthusiast
Focusing on our consumer target, The Enthusiast They are a mindset, not a demographic. The Enthusiast A playful, creative person who enjoys shopping but wants to feel like they're making smart choices. They care more about what makes them happy than what others think about their fashion (although th
Slide 84: Deep bonds with our customers
Our focus has enabled us to form deep bonds with our customers. © 2022 Tapestry, Inc. 84
Slide 85: We've strengthened our foundation
We’ve strengthened our foundation. Our momentum gives us confidence in the future. © 2022 Tapestry, Inc. 85
Slide 86: FY22 Key Achievements
FY22 Key Achievements Record setting Low $1.4B Double-Digit >25% ~25% ~35% in revenue in FY22, growth in global sales growth in increase in growth in with outsized growth handbag AUR key market of North new customer reactivated in profit America spend1 customer spend1 © 2022 Tapestry, Inc. 1) Based
Slide 89: We're growing
We're growing. Revenue FY22-FY25 HSD $1.9B CAGR $1.4B On track to surpass $2B FY22 FY25E FY27E © 2022 Tapestry, Inc. 89
Slide 90: While accelerating operating margin
While accelerating operating margin. ~20% Operating Margin FY22-FY25 Mid-teens On track to Expand gross margin and drive ~ 11% achieve SG&A leverage through: AUR growth & iconic product high-teens Normalizing air freight margin International expansion TPR Digital platform Strategic growth of indirec
Slide 91: Kate Spade: How We Win
Kate Spade: How We Win Harness the emotional power of the Kate Spade brand to fuel multi-faceted growth. More Emotional More Lifestyle More Global © 2022 Tapestry, Inc. 91
Slide 93: How we engage
More Emotional How we engage Distinct product Energy across touchpoints Strong social impact Storytelling © 2022 Tapestry, Inc. 93
Slide 94: How we engage
More Emotional How we engage Distinct product Energy across touchpoints Strong social impact Storytelling © 2022 Tapestry, Inc. 94
Slide 95: How we engage
More Emotional How we engage Distinct product Energy across touchpoints Strong social impact Storytelling © 2022 Tapestry, Inc. 95
Slide 96: How we engage
More Emotional How we engage Distinct product Energy across touchpoints Strong social impact Storytelling © 2022 Tapestry, Inc. 96
Slide 99: Enabling joy everyday
More Lifestyle Enabling joy everyday Builds Drives Customer Increases out the purchase acquisition customer World of frequency vehicles lifetime value Kate Spade Handbags & SLGs – Brand core Jewelry & Footwear – Volume & acquisition RTW & Living – Brand storytelling © 2022 Tapestry, Inc. 99
Slide 100: Grow the core, grow lifestyle faster
More Lifestyle Grow the core, grow lifestyle $1.9B faster. $1.4B Mid-Teens CAGR Revenue – Category Mix Lifestyle HSD CAGR Handbags & SLGs FY22 FY25E © 2022 Tapestry, Inc. 100
Slide 102: Meet the needs of The Enthusiast around the world
More Global Meet the needs of The Enthusiast around the world Globally consistent emotional needs: joyful | stylish | treat © 2022 Tapestry, Inc. 102
Slide 103: The Enthusiast around the world
North America Japan Europe China Trust our Feel happy Feels Express quality and sophisticated authentic style appropriate Play with Express Acknowledge our unique Express individuality trend prints, pops their joy and and of color femininity irreverence Feel youthful and unique Thoughtful Feel put d
Slide 104: Grow NA, grow other regions faster
More Global Grow NA, grow other $1.9B regions Rest of World $1.4B International >20% CAGR faster. Europe Greater China Japan Revenue - Region Mix North MSD America CAGR North America FY22 FY25E © 2022 Tapestry, Inc. 104
Slide 108: An iconic brand with iconic product
AN ICONIC BRAND WITH ICONIC PRODUCT FOUNDED IN 1986 WITH A HISTORY OF SPANISH CRAFTSMANSHIP LOVED BY WORLD-FAMOUS CELEBRITIES ©© 2022 2022 Tapestry, Tapestry, Inc. Inc. AND A RED-CARPET FAVORITE FOR DECADES 108
Slide 111: Everyday Essentials
EVERYDAY ESSENTIALS KOLBIE BOOTIE PALMER LOAFER STUART PUMP ©© 2022 Tapestry, 2022 Inc. Tapestry, Inc. 111
Slide 112: Top-Tier Distribution
TOP-TIER DISTRIBUTION LA RINASCENTE, MILAN ©© 2022 2022 Tapestry, Tapestry, Inc. Inc. 112
Slide 113: Significant Ecommerce Penetration
SIGNIFICANT ECOMMERCE PENETRATION ~30% of FY22 Total North America Sales1 © 2022 Tapestry, Inc. 1) Represents direct ecommerce only as a % of Total Stuart Weitzman sales in North America. 113
Slide 114: Strong Customer Relationships
STRONG CUSTOMER RELATIONSHIPS OUR CUSTOMER CONTINUES TO BE LOYAL SPENT NEARLY $600 WITH US, UP STRONG DOUBLE-DIGITS VS. FY211 SW MAKES CUSTOMERS LOOK CUSTOMERS FEEL TO SW FOR CONFIDENT FASHION ACCOMPLISHED QUALITY BEAUTIFUL COMFORT © 2022 Tapestry, Inc. 1) Represents FY22 average spend per customer
Slide 115: We Played to Win
FY22 WE PLAYED TO WIN  COMPELLING & EMOTIONAL PRODUCT DRIVING OVER 20% AUR GROWTH IN NORTH AMERICA  INCREASED SUPPLY CHAIN AGILITY  STRONG GROWTH IN RECRUITED & REENGAGED CUSTOMERS  RETURNED TO PROFIT ©© 2022 2022 Tapestry, Tapestry, Inc. Inc. 115
Slide 116: Our Vision
OUR VISION TO BE THE GLOBAL, NEW YORK-BASED, LUXURY FOOTWEAR BRAND FUSING RELEVANCE, CREATIVITY AND FASHION ©© 2022 2022 Tapestry, Tapestry, Inc. Inc. 116
Slide 117: Tremendous runway in the footwear category
WE HAVE TREMENDOUS RUNWAY IN THE FOOTWEAR CATEGORY GLOBAL PREMIUM FOOTWEAR MARKET +7% CAGR ~$37B $30B FY22 FY25E ©© 2022 2022 Tapestry, Tapestry, Inc. TPR data as of FY22. Global market; Source Euromonitor FY22, Bain Altagamma Luxury Goods World Wide Market Study Spring 2022. All figures have been a
Slide 118: Our Call to Action
OUR CALL TO ACTION PLAY TO WIN WIN WITH HEAT — FOCUS ON RECRUITING YOUNGER CUSTOMERS — ENGAGE & RE-ENGAGE CURRENT CUSTOMERS ©© 2022 2022 Tapestry, Tapestry, Inc. Inc. 118
Slide 119: Win with Heat
WIN WITH HEAT 1 2 3 SPARK BUILD EXCITING CREATE CONSUMER OMNI-CHANNEL BRAND DESIRE WITH EXPERIENCES HEAT PRODUCT ©© 2022 2022 Tapestry, Tapestry, Inc. Inc. 119
Slide 120: Spark consumer desire with product
SPARK CONSUMER DESIRE WITH PRODUCT PRODUCT & AUR ELEVATION BUILDING NEW ICONS EXPANDING ACROSS OCCASIONS GLOBAL COLLABORATIONS ©© 2022 2022 Tapestry, Tapestry, Inc. Inc. 120
Slide 121: Build exciting omni-channel experiences
BUILD EXCITING OMNI-CHANNEL EXPERIENCES DIGITAL STORES WHOLESALE LUXURY EXPERIENCE & MAXIMIZE CLIENTELING STRENGTHEN ENHANCED FEATURES & DATA TO INCREASE PARTNERSHIPS & PRODUCTIVITY INCREASE VISIBILITY ©© 2022 2022 Tapestry, Tapestry, Inc. Inc. 121
Slide 122: Create Brand Heat
NEW PURPOSE CREATE BRAND NEW VISUAL IDENTITY HEAT NEW AMBASSADOR ©© 2022 2022 Tapestry, Tapestry, Inc. Inc. 122
Slide 123: Stuart Weitzman celebrates women who stand strong
STUART WEITZMAN CELEBRATES WOMEN WHO STAND.S] RONG 123
Slide 127: Financial Overview
FINANCIAL OVERVIEW NET SALES LOW DOUBLE-DIGIT CAGR ~$450M • OVER $130M TOTAL SALES GROWTH $318M • GAIN MARKET SHARE IN FOOTWEAR • GROW BOTH UNITS & AUR FY22 FY25E OPERATING 2% HIGH-SINGLE- MARGIN DIGIT © 2022 Tapestry, Inc. Note: Non-GAAP financials (full reconciliation in appendix). 127
Slide 128: Region Mix
REGION MIX OUTSIZED GROWTH IN ASIA, DRIVEN BY CHINA ~$ 450M $450 EMEA $ $318 318M Asia EMEA Asia NA NA FY22 REVENUE FY25E REVENUE ©© 2022 2022 Tapestry, Tapestry, Inc. Inc. 128
Slide 129: Channel Mix
CHANNEL MIX OUTSIZED GROWTH IN GLOBAL DIGITAL AND STORES ~$ 450M $450 Wholesale $ $318 318M Wholesale eCommerce eCommerce Stores Stores FY22 REVENUE FY25E REVENUE ©© 2022 2022 Tapestry, Tapestry, Inc. Inc. 129
Slide 130: Operating Margin
OPERATING MARGIN HIGH-SINGLE-DIGIT 2% FY22 FY25E KEY DRIVERS OF MARGIN EXPANSION: AUR INCREASES CHINA ACCELERATION GLOBAL STORE PRODUCTIVITY WHOLESALE GROWTH ©© 2022 2022 Tapestry, Tapestry, Inc. Inc. Note: Non-GAAP financials (full reconciliation in appendix). 130
Slide 131: Summary
SUMMARY FY25 REVENUE TARGET FY25 OPERATING MARGIN TARGET $450M HIGH-SINGLE- DIGIT WIN WITH HEAT EMOTIONAL AND DESIRABLE PRODUCT EXCITING OMNI-CHANNEL EXPERIENCES BRAND HEAT AND AWARENESS ©© 2022 2022 Tapestry, Tapestry, Inc. Note: Non-GAAP financials (full reconciliation in appendix). Inc. 131
Slide 133: Noam Paransky, Chief Omni & Innovation Officer
Noam Paransky C H I E F O M N I & I N N OVAT I O N O F F I C E R 133
Slide 134: Modern, data-driven & agile platform
MODERN DATA-DRIVEN & AGILE PLATFORM Designed to drive consumer engagement © 2022 Tapestry, Inc. 134
Slide 135: Our digital transformation
LEADING WITH Meet CUSTOMERS where they want CONSUMER CENTRICITY to shop & improve overall EXPERIENCE Our digital ADOPTING NEW Create a digital OPERATING model transformation WAYS OF WORKING has been FUELING DATA-DRIVEN Scale, TEST & LEARN mindset centered around: DECISION MAKING LEVERAGING POWER OF
Slide 136: Building a customer engagement engine
1 2 3 BUILDING A LEVERAGING POWERING OUR CUSTOMER OUR BRANDS AT THE ENGAGEMENT ENTERPRISE SPEED OF THE ENGINE PLATFORM CONSUMER © 2022 Tapestry, Inc. 136
Slide 137: A customer engagement engine across touchpoints
A customer engagement engine designed to be deployed across customer touchpoints GENERATE QUALITY TRAFFIC X DRIVE CONVERSION X CREATE LASTING CUSTOMER RELATIONSHIPS • Know our target consumer EXPERIENCE EVOLUTION • Deliver a seamless end-to-end • Profitable quality traffic experience Improve custome
Slide 138: A shared and fully leveraged solution
A shared & fully leveraged solution with a highly capable set of tools to engage with consumers ENGAGEMENT LAYER Customer Storytelling Discovery Buying Fulfillment Returns & Customer Care Store POS Outreach Exchanges CORE COMMERCE Experience Platform Search & Recs Commerce Distributed Order Tracking
Slide 139: Customer engagement engine to drive effective touchpoints
We set out to create a customer engagement engine to drive increasingly effective customer touchpoints Data Operations 1st party & transactional Easy to data on our customers use tools Insight Activation Algorithmic insights at Multivariate & a customer level adaptive at scale AI/ML Measurement Adva
Slide 140: Building a customer engagement engine
1 2 3 BUILDING A LEVERAGING POWERING OUR CUSTOMER OUR BRANDS AT THE ENGAGEMENT ENTERPRISE SPEED OF THE ENGINE PLATFORM CONSUMER © 2022 Tapestry, Inc. 140
Slide 141: Leveraging our platform to enhance customer engagement
Leveraging our platform to enhance customer engagement 1. Recognize 2. Personalize 3. Optimize the customer making a playbook that maps product, experience utilizing a previously content and recommendation decision engine with test- anonymous site visit strategies to defined and-learn at scale INTEN
Slide 142: Profitably scale marketing investments
Leveraging our platform to profitably scale marketing investments ENTERPRISE MARKETING RETURN FRAMEWORK Robust measurement framework that allows our Future Enterprise Revenue Customer Value brands to understand the Provide visibility to benefit Incorporate customer details to financial impact of mar
Slide 143: Engagement engine a key enabler of the Acceleration Program
Our engagement engine has been a key enabler of the Acceleration Program DIGITAL REVENUE 15M $2B $600M NEW CUSTOMERS IN NORTH AMERICA OVER THE LAST TWO YEARS FY19 FY22 © 2022 Tapestry, Inc. 143
Slide 144: Leveraging our enterprise platform
1 2 3 BUILDING A LEVERAGING POWERING OUR CUSTOMER OUR BRANDS AT THE ENGAGEMENT ENTERPRISE SPEED OF THE ENGINE PLATFORM CONSUMER © 2022 Tapestry, Inc. 144
Slide 145: Modern, flexible microservices architecture
Our platform is built on a modern, flexible microservices architecture © 2022 Tapestry, Inc. 145 © 2022 Tapestry, Inc.
Slide 146: 10x faster development time
The platform allows our teams to quickly 10x build & deploy high Faster Development performance brand Time building experiences © 2022 Tapestry, Inc. 146
Slide 147: Double-digit increase in conversion
This delivers a fast & Double- frictionless experience Digit for our customers increase in conversion © 2022 Tapestry, Inc. 147
Slide 148: We simplified the customer journey
We simplified the customer journey… Legacy SPA Headless PWA © 2022 Tapestry, Inc. 148
Slide 149: Platform leveraged across the portfolio
The platform’s code & capabilities are fully leveraged across the portfolio © 2022 Tapestry, Inc. 149
Slide 150: New ways of working across the company
Enabling new ways of working across the company BRAND DATA & DIGITAL & ANALYTICS GLOBAL Tapestry EXP TAPESTRY Digital Community BRAND DIGITAL MKTG COE LOGISTICS DIGITAL IT FINANCE © 2022 Tapestry, Inc. 150
Slide 151: Powering iconic brands at the speed of the consumer
Powering iconic brands to move at the speed of the consumer © 2022 Tapestry, Inc. 151
Slide 152: Scott Roe, CFO & COO
Scott Roe CHIEF FINANCIAL OFFICER & C H I E F O P E R AT I N G O F F I C E R 152
Slide 153: Committed to Strong & Sustainable Shareholder Return
Committed to Strong & Sustainable Shareholder Return © 2022 Tapestry, Inc. 153
Slide 154: Attractive Categories, Transformed Business Model
Transformed Sustained, Significant Attractive Business Profitable Cash Categories Model Growth Generation © 2022 Tapestry, Inc. 154
Slide 155: Attractive Categories, Transformed Business Model
Transformed Sustained, Significant Attractive Business Profitable Cash Categories Model Growth Generation © 2022 Tapestry, Inc. 155
Slide 156: Attractive Categories: Growing & High-Margin
Attractive Categories Personal Premium Goods by We play in FY25E (6% to 8% CAGR vs. FY22) ~$370B GROWING & Personal $295B HIGH-MARGIN Premium Goods Handbags, SLGs, CATEGORIES FTW & Apparel $195B Handbags, $98B SLGs & FTW Tapestry $6.7B Today TPR data as of FY22. Global market; Source Euromonitor FY2
Slide 157: Attractive Categories: Highly Resilient
Attractive Categories Our categories are HIGHLY GLOBAL PREMIUM MARKET $B Handbags, SLGs & FTW 98 RESILIENT 5% CAGR 75 80 79 83 30 71 67 26 62 64 30 27 59 29 55 28 50 52 27 46 48 47 26 43 27 40 26 35 37 38 22 24 33 34 24 21 20 23 68 23 57 23 23 52 22 22 23 46 50 22 40 43 33 35 38 FOOTWEAR 27 27 27 29
Slide 158: Attractive Categories, Transformed Business Model
Transformed Sustained, Significant Attractive Business Profitable Cash Categories Model Growth Generation © 2022 © 2022 Tapestry, Tapestry, Inc. Inc. 158
Slide 159: Consumer-centric, Digital-first, Agile
W E H A V E F U N D A M E N T A L LY T R A N S F O R M E D T H E C O M PA N Y OV E R T H E GREW DIGITAL SALES FROM $600M TO $2B LAST TWO YEARS TO BECOME MORE: Consumer-centric DOUBLED MARKETING SPEND FROM 4% TO 8% OF SALES Digital-first REDUCED SKU COUNTS BY 40% TO 50% Agile IMPROVED STORE PROFITABI
Slide 160: Delivered accelerated revenue, profit and earnings growth
Delivered accelerated revenue, profit and earnings growth RECORD REVENUE OPERATING MARGIN EPS (% GROWTH) (MARGIN CHANGE) (% GROWTH) +11% +250bps +35% $6.7B 18.2% $3.47 $2.57 $6.0B 15.7% FY19 FY22 FY19 FY22 FY19 FY22 © 2022 Tapestry, Inc. Note: Non-GAAP financials (full reconciliation in appendix). 1
Slide 161: Attractive Categories, Transformed Business Model
Transformed Sustained, Significant Attractive Business Profitable Cash Categories Model Growth Generation ©2022 © 2022Tapestry, Tapestry,Inc. Inc. 161
Slide 162: How We Win
How We Win 1 2 3 4 FUEL FASHION DELIVER BUILD LASTING POWER INNOVATION COMPELLING CUSTOMER GLOBAL & PRODUCT OMNI-CHANNEL RELATIONSHIPS GROWTH EXCELLENCE EXPERIENCES © 2022 Tapestry, Inc. 162
Slide 163: Strategy to drive sustainable, profitable growth and cash return
A strategy to drive sustainable, profitable growth and cash return REVENUE EARNINGS PER SHARE CUMULATIVE RETURN OF $8B $5+ $3B LOW TO MID-TEENS 6% TO 7% CAGR VS. FY22 TO SHAREHOLDERS CAGR VS. FY22 BY FISCAL 2025 © 2022 Tapestry, Inc. Note: Non-GAAP financials (full reconciliation in appendix). 163
Slide 164: Balanced revenue growth across brands, categories, channels and geographies
Balanced revenue growth across brands, categories, channels and geographies © 2022 Tapestry, Inc. 164
Slide 165: Profitable growth across our brands
We will drive profitable growth across our brands $5.7B $1.9B $450M IN REVENUE IN REVENUE IN REVENUE A MID-SINGLE-DIGIT CAGR A HIGH-SINGLE-DIGIT CAGR A LOW DOUBLE-DIGIT CAGR BY FISCAL 2025 © 2022 Tapestry, Inc. Note: Revenue CAGRs based on FY22 actual to FY25 estimate. 165
Slide 166: Revenue by category and channel
REVENUE BY CATEGORY REVENUE BY CHANNEL Handbags & SLGs fueling overall growth; Growth across channels led by Digital focused investments in lifestyle & footwear categories FY22 FY25E FY22 FY25E Wholesale Wholesale ~12% Lifestyle & Lifestyle & 11% Digital Footwear 18% Footwear ~20% ~32% Digital 30% $
Slide 167: Revenue growth across geographies
Revenue growth across geographies through organic gains and store opening opportunities internationally JAPAN low-single-digit CAGR ~270 stores, EUROPE relatively in-line NORTH AMERICA GREATER CHINA with FY22 high-single-digit CAGR mid-single-digit CAGR ~90 stores, low double-digit CAGR ~570 stores,
Slide 168: Financially disciplined & agile business model
Financially disciplined & agile business model © 2022 Tapestry, Inc. 168
Slide 169: Opportunity to deliver sustainable margin gains
Opportunity to deliver sustainable margin gains OPERATING MARGIN +100BPS ~(50BPS) IN THE ~+100BPS AREA OF ~(50BPS) 19% ~+100BPS 18.2% PRICING POWER GEOGRAPHIC MIX FY22 GROSS MARGIN SCALE & DIGITAL MARKETING FY25E EFFICIENCIES INVESTMENTS INVESTMENTS © 2022 Tapestry, Inc. Note: Non-GAAP financials (f
Slide 170: Margin breakdown by brand
Margin breakdown by brand GROSS MARGIN OPERATING MARGIN 72% 73% 30% ~30% 63% 65% 62% 58% >300bps >500bps Mid- Teens High- Maintain 11% single ~+50bps ~+200bps ~+400bps -digit 2% Coach Kate Spade Stuart Weitzman Coach Kate Spade Stuart Weitzman FY22 FY25E FY22 FY25E © 2022 Tapestry, Inc. Note: Non-GA
Slide 171: Attractive Categories, Transformed Business Model
Transformed Sustained, Significant Attractive Business Profitable Cash Categories Model Growth Generation ©2022 © 2022Tapestry, Tapestry,Inc. Inc. 171
Slide 172: Growth plans translate to significant cash generation
Our growth plans translate to significant cash generation $3B IN CUMUL ATIVE FREE CASH FLOW THROUGH 2025 © 2022 Tapestry, Inc. 172
Slide 173: Capital priorities
Capital priorities focused on driving organic growth, profitability and shareholder value CURRENT FUTURE FUTURE 1 2 3 Reinvest Return Maintain in the Capital to M&A Business Shareholders Flexibility © 2022 Tapestry, Inc. 173
Slide 174: Reinvest in the business: focused priorities
1 REINVEST IN THE BUSINESS: focused priorities DIGITAL PLATFORM DATA CAPABILITIES DIRECT TO CONSUMER INFRASTRUCTURE CHANNELS EXPANSION 174
Slide 175: Strategic investments to drive long-term growth
1 REINVEST IN THE BUSINESS: strategic investments to drive long-term growth CAPEX & CLOUD COMPUTING COSTS 400 INFRASTRUCTURE INCLUDES BUILD-OUT 10% OF L AS VEGAS FULFILLMENT CENTER 9% 350 8% 300 SPEND NORMALIZING AT 2-3% OF SALES 7% 250 6% 200 5% 4% 150 3% 100 2% 50 1% 0 0% FY19 FY22 FY23E FY24E FY2
Slide 176: Return capital to shareholders
2 RETURN CAPITAL TO SHAREHOLDERS: significant return over our planning horizon 100% DIVIDENDS • Growing faster than earnings growth • Pay-out ratio of 35% to 40% by FY25 SHARE REPURCHASES OF FREE CASH FLOW RETURNED TO • At least $700M annually SHAREHOLDERS THROUGH 2025 © 2022 Tapestry, Inc. 176
Slide 177: Four-lens approach to evaluating investments
Utilizing a four-lens approach to evaluating investments STRATEGIC EXECUTION Integrated Strategy Roadmap TSR & VALUE CREATION PLATFORM CAPABILITIES © 2022 Tapestry, Inc. 177
Slide 178: Total shareholder return framework
Total shareholder return framework implies opportunity for high-teens gains by 2025 FURTHER POTENTIAL VIA P/E MULTIPLE LOW TO MID-TEENS EPS GROWTH +3% +5% TO +7% +HIGH- TEENS +1% +6% TO 8-10% CAPITAL RETURNS TARGET +7% REVENUE MARGIN SHARE DIVIDEND TOTAL GROWTH EXPANSION REPURCHASES SHAREHOLDER RETU
Slide 179: Attractive categories, sustained growth, significant cash generation
Attractive categories Sustained $8B REVENUE growth Transformed $5+ EARNINGS PER SHARE business model $3B CUMULATIVE CASH RETURN TO Significant cash SHAREHOLDERS generation © 2022 Tapestry, Inc. Note: Expect to achieve these figures by FY25. 179
Slide 180: GAAP to non-GAAP reconciliation
GAAP BASIS ACCELERATION DEBT NON-GAAP BASIS in millions, except per share data; unaudited (AS REPORTED) PROGRAM EXTINGUISHMENT (EXCLUDING ITEMS) GAAP to Coach $3,553.8 $— $— $3,553.8 non-GAAP Kate Spade Stuart Weitzman 912.0 184.6 — — — — 912.0 184.6 reconciliation Gross profit(1) 4,650.4 — — 4,650.
Slide 181: GAAP to non-GAAP reconciliation
GAAP to in millions, except per share data; unaudited GAAP BASIS (AS REPORTED) ERP IMPLEMENTATION INTEGRATION & ACQUISITION IMPACT OF TAX LEGISLATION NON-GAAP BASIS (EXCLUDING ITEMS) non-GAAP Coach Kate Spade $2,996.4 863.6 $— — $(1.9) (6.3) $— — $2,998.3 869.9 reconciliation Stuart Weitzman Gross p
Slide 182: Non-GAAP financial measures note
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

Tapestry — Investor Day (2022) on 6ix

Tapestry — Investor Day (2022)

Slide 1: Tapestry

Slide 2: Forward-looking statements

Slide 3: Joanne Crevoiserat, Chief Executive Officer

Slide 4: Who We Are & Competitive Advantages

Slide 5: Who We Are & Competitive Advantages

Slide 6: Iconic brands, expansive possibilities

Slide 7: Brands established 1941, 1986, 1993

Slide 8: Tapestry is a global powerhouse

Slide 9: Stretch What's Possible

Slide 10: We have distinct & enduring competitive advantages

Slide 11: Competitive Advantages

Slide 12: Iconic Brands

Slide 13: Attractive Categories

Slide 14: Omni-Channel Leadership

Slide 15: Global Platform

Slide 16: Talented Team

Slide 17: The Acceleration Program

Slide 18: We've radically and successfully transformed our business

Slide 19: The Acceleration Program

Slide 20: Increase in active customer base with higher spend

Slide 21: Grew global digital sales

Slide 22: Operational savings fund brand building

Slide 23: Transformation fueled exceptional financial outcomes

Slide 24: Culture of empowerment

Slide 25: Our transformation positions us for the future

Slide 26: The consumer landscape is rapidly evolving

Slide 27: We're prepared to move at the speed of the consumer

Slide 28: © 2022 Tapestry, Inc.

Slide 29: Growth Agenda

Slide 30: Continued growth and significant cash generation

Slide 31: Balanced, profitable growth across our brands

Slide 32: How we win

Slide 33: Build lasting customer relationships

Slide 34: Revenue by category

Slide 35: Deliver compelling omni-channel experiences

Slide 36: Balanced growth across geographies

Slide 37: Our Social Fabric

Slide 38: Well-positioned to drive sustainable, profitable growth

Slide 39: Well-positioned to drive sustainable, profitable growth

Slide 40: Todd Kahn, CEO & Brand President

Slide 41: Coach

Slide 42: Coach agenda

Slide 43: Who We Are

Slide 44: The courage to live authentically

Slide 45: © 2022 Tapestry, Inc.

Slide 46: Our Values

Slide 47: Coach is a Beloved Global Fashion House

Slide 48: Revenue and operating margin since FY19

Slide 49: What's Driving Our Success

Slide 50: Global Market Context

Slide 51: Our Customer

Slide 52: Customer-Centricity

Slide 53: Millennial & Gen-Z Will Dominate the Luxury Market

Slide 54: Who is the Timeless Millennial / Gen-Z?

Slide 55: What This Customer Is Telling Us

Slide 56: Strongest Right to Win with the Timeless Millennial & Gen-Z

Slide 57: Our Brand Positioning

Slide 58: Our Past Informs Our Future

Slide 59: The Coach Story – A History of Innovation

Slide 60: Bonnie Cashin quote

Slide 61: Expressive Luxury

Slide 62: Our Growth Agenda

Slide 63: Drive Topline Growth While Maintaining Best-in-Class Margin

Slide 64: Brand Building to Connect Emotionally

Slide 65: Brand Building to Connect Emotionally

Slide 66: Innovation that Encourages Self-Expression

Slide 67: Digital to Omni-Channel Experience

Slide 68: Where We Will Play: Geographic Mix

Slide 69: Where We Will Play: Category Mix

Slide 70: Magic & Logic

Slide 71: Key Takeaways

Slide 72: Liz Fraser, CEO & Brand President

Slide 73: © 2022 Tapestry, Inc.

Slide 74: Agenda

Slide 75: Our Brand

Slide 76: Joy, Colors, Life

Slide 77: We design extra-ordinary things for everyday

Slide 78: Our Brand Values

Slide 79: It started with a spark