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," "intend," "estimate," "continue," "project," "guidance," "forecast," “outlook,” "anticipate," “moving,” “leveraging,” “capitalizing,” “developing,” “drive,” “targeting,” “assume,” “plan,” “build,” “pursue,” “maintain,” “on track,” “well positioned to,” “look forward to,” “to acquire,” “achieve,” “focus,” “strategic vision,” “growth opportunities,” “Acceleration Program,” “we are accelerating” or comparable terms, and similar or other references to future periods. Statements herein regarding our business and growth strategies; our plans, objectives, goals, beliefs, future events, business conditions, results of operations and financial position; and our business outlook and business trends are forward-looking statements.Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements due to a number of important factors. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:the impact of the Covid-19 pandemic;the ability to control costs and successfully execute our growth strategies and our Acceleration Program; The impact of economic conditions;the ability to anticipate consumer preferences;the risks associated with operating in international markets;the ability to achieve intended benefits, cost savings and synergies from acquisitions; the risk of cybersecurity threats and privacy or data security breaches; and, the impact of legislation.Please refer to the Company’s latest Annual Report on Form 10-K, Quarterly Report on Form 10-Q and its other filings with the Securities and Exchange Commission for a complete list of risks and important factors.We assume no obligation to revise or update any such forward-looking statements for any reason, except as required by law. 2
tapestry optimistic, innovative, inclusive OUR VALUES: brand-led, consumer-centric meritocracy OUR PRINCIPLES: global, unique & differentiated OUR BRANDS: disciplined, shared & scalable OUR MODEL: 3
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 people around the world. Our passion, detailed approach and genuine love of what we do enables us to develop and nurture brands so that they can reach their full potential.The value of our brands is not bestowed by previous generations or borrowed from tradition. It is determined by quality, craftsmanship, creativity and the opportunity for self-expression they provide. We believe anyone from anywhere can have the best idea, and with hard work and dedication anything is possible. 4
established 1941 INCLUSIVE AUTHENTIC OPTIMISTIC established 1986 SOPHISTICATED STYLISH CONFIDENT established 1993 COLORFUL JOYFUL OPTIMISTIC 5
TAPESTRY PRODUCT, GEOGRAPHIC & CHANNEL BREAKDOWNGLOBAL HOUSE OF BRANDS WITH STRONG DIRECT-TO-CONSUMER DISTRIBUTION 6 As of FY20.
Leadership Team Todd KahnInterim CEO and Brand President, Coach; President and Chief Administrative Officer Giorgio SarnéCEO and Brand President,Stuart Weitzman Liz FraserCEO and Brand President,Kate Spade Joanne CrevoiseratInterim Chief Executive Officer Andrea Shaw ResnickInterim Chief Financial Officer; Global Head of Investor Relations & Corporate Communications Noam ParanskyChief Digital Officer Tom Glaser Chief Operations Officer Sarah DunnGlobal Human Resources Officer Yann BozecPresident, Tapestry Asia Pacific;CEO and President, Coach China David HowardSenior Vice President, General Counsel and Secretary update 2020
FISCAL 2020 OVERVIEW 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 FLEXIBILITY We took decisive actions to adapt, including reducing SG&A and Capex, tightly managing inventories and suspending our dividend and share repurchase programs.Our fourth quarter results exceeded internal expectations across key metrics and we remain well-positioned to continue to navigate the current environment. We ended the year with $1.4B in cash and equivalents and generated approximately $200M in free cash flow. ACCELERATED OUR LONG-TERM STRATEGIC AGENDA NAVIGATING THE ENVIRONMENT TO emerge stronger 9The changing landscape has not changed our priorities. It has been a catalyst to accelerate our strategic agenda.We remain committed to transforming into a world-class consumer centric organization that is more agile and data-driven with a digital-first mindset. Non-GAAP Financials.
10 4Q20 RESULTS AHEAD OF INTERNAL EXPECTATIONS, DEMONSTRATING THE power OF OUR BRANDS & resilience OF OUR BUSINESS of global directly operated stores re-opened by quarter-end 100% Nearly year-over-year increase in sales triple-digit Digital strength with a Year-over-year revenue improved sequentially throughout the quarter, with continued progress into July Non-GAAP Financials. new customers across brands in North America through our digital channels 1 million Recruited nearly driven by lower levels of promotion and benefit of geographic mix 370bps Gross margin expanded Mainland China returned to positive year-over-year sales growth during the quarter
12 acceleration noun /akˌseləˈrāSH(ə)n/ the act of accelerating; increase of speed or velocity. we are accelerating growth & profitability we are accelerating our focus on the consumer we are accelerating with agility & urgency together
13 SHARPEN OUR FOCUS ON THE CONSUMER Operate with a clearly defined purpose and strategy for each brand and an unwavering focus on the consumer at the core of everything we do LEVERAGE DATA & LEAD WITH A DIGITAL-FIRST MINDSET Build significant data and analytics capabilities to drive decision-making and increase efficiencyOffer immersive customer experiences across our e-commerce and social channels Reevaluate the role of stores with an intent to optimize our fleet Move with greater agilitySimplify internal processesEmpower teams to act quickly to meet the rapidly changing needs of the consumer TRANSFORM INTO A LEANER & MORE RESPONSIVE ORGANIZATION OUR acceleration program IS FOCUSED ON BETTER MEETING THE NEEDS OF OUR CUSTOMERS RESULTING IN ACCELERATED GROWTH & ENHANCED PROFITABILITY ACROSS THE PORTFOLIO
tapestry’s differentiated platform provides: CONSUMERINSIGHTS ACCESS TO GLOBAL TALENT DIGITAL INFRASTRUCTURE & CAPABILITIES GLOBALLY DIVERSIFIED SUPPLY CHAIN TAPESTRY IS AN enabling platform THAT ENHANCES OPPORTUNITIES FOR OUR BRANDS 14
15 FINANCIAL OUTLOOK In FY21, we will focus on factors within our control to create a strong foundation for profitable expansion NEAR-TERM drive efficiency-led profit growth Non-GAAP Financials. Outlook assumes a continuation of the slow and steady recovery from the pandemic. Assuming a continued slow and steady recovery from the pandemic, we project revenue to be roughly even with prior year (on a 52-week basis), with a sales inflection anticipated in the second half Expect to expand gross margin through higher AURs while aggressively controlling SG&A, including structural changes representing $300M in gross run-rate savings, including $200M projected in FY21 As revenues inflect, we will drive bottom-line growth in excess of top-line gains LONG-TERM create a flywheel Expect to drive profit growth in each of FY21, FY22 and FY23
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 priority is to preserve our cash on-hand in light of the current environment. 16 CAPITAL ALLOCATION PRIORITIES LONG-TERM Committed to shareholder returns Over the long-term, our strategic intent is to return to sustainable top and bottom-line growth and strong free cash flow generation, which we intend to utilize for debt paydown as well as capital return to shareholders.Our commitment to driving organic growth, profitability and shareholder value long-term is unwavering.
17 “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
Coach New York
Coach inspires the dreamer in all of us, connecting our modern lives with the spirit of the open road. our vision 21
11,000+EMPLOYEES 55+COUNTRIES 958DIRECTLY OPERATED STORES 22 As of FY20.
coach product, geographic & channel breakdownDirect-to-consumer focused with diversified product categories & geographies 23 As of FY20.
KATE SPADE MULTI-YEAR GROWTH STRATEGIES 31 Fulfill our promise as a lifestyle brand representing joy, optimism and colorAmplify brand messages through unique, best-in-class storytelling on a multi-category lifestyle platform Crystallize BRAND PURPOSE & Return TO A POSITION OF STRENGTH Instill A LASER FOCUS ON the customer Reenergize and grow handbags & leathergoods Lean INTO DIGITAL STRENGTH Capture market share and improvE profitability Foster a community of women emotionally connected to and inspired by the brand’s story and values Reintroduce non-negotiable brand elementsRebuild core offeringCapitalize on a new Signature platform Modernize and create engaging brand experiences across all digital platformsUnleash the power of the Kate Spade community Acquire, reengage and retain customers, driving top and bottom line growth
32 “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, we are more confident than ever that we can delight our existing customers and attract new ones.” Liz fraser, ceo & brand president, kate spade
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
STUART WEITZMAN product, geographic & channel breakdownOpportunity to focus on key geographies & channels with a compelling footwear assortment 37 REST OF WORLD14% As of FY20.
38 Listen and respond to our customers’ needs in order to design beautiful and on-trend shoes Renew REPUTATION FOR FIT, COMFORT & QUALITY Grow KEY CATEGORIES RESTORe pROFITABILITY Strengthen RELATIONSHIP WITH WHOLESALE PARTNERS Establish A ROBUST DIGITAL PRESENCE Build a leading presence in boots, booties and sandalsExpand the casual assortmentDramatically simplify the product offering Focus distribution on markets and channels of greatest opportunity, notably China where the brand has strong momentum and high margins Provide relevant products and faster, more consistent execution Support best-in-class multi-media content and depth of assortment STUART WEITZMAN MULTI-YEAR GROWTH STRATEGIES
39 “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. And, focus on the most important geographic and channel opportunities.” Giorgio sarnÉ, ceo & brand president, stuart weitzman
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, sustainable and safe is a responsibility that we all share. 2025 CORPORATE RESPONSIBILITY STRATEGY & GOALS OURPEOPLEOURPLANETOURCOMMUNITIES 41
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 environmental impact across the world through continuous innovation. 2 OURCOMMUNITIES Tapestry engages closely with the communities in which our employees live and work, helping to strengthen them. 3 42
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 Engagement Survey.Demonstrate a focus on career progression, development and mobility by filling 60% of leadership roles (VP+) internally.Enable employees to manage their work and personal life balance by achieving a global core benefit standard for self-care, parental and family care leave policies. 2025GOALS CORPORATE SOCIAL RESPONSIBILITY our people 1
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 the Human Rights Campaign Corporate Equality Index and designated as a Best Place to Work for LGBTQ Equality.Maintained a Board of Directors with ethnic, gender, and nationality diversity. Piloted in-person Inclusion training for our NA employees to foster a welcoming and open workplace where we fully embrace diverse perspectives to drive innovation and business results. CORPORATE SOCIAL RESPONSIBILITY our people 1 44
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 supply chain.Ensure that 90% of leather is sourced from Silver- and Gold-rated Leather Working Group tanneries.Achieve 75% recycled content in packaging and 25% reduction in North America corporate & distribution center waste.Achieve a 10% reduction in water usage across Tapestry and its supply chain. 2025GOALS Photo courtesy of Friends of the High Line.
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 spade new york handbags, representing 27 million plastic bottles prevented from entering landfills.Increased Renewable Energy Certificate purchases from 1,335 MWh in FY18 to 3,433 MWh in FY19.Sourced 63% of leather from Leather Working Group Silver- and Gold-rated tanneries, with 79% achieving a PASS or higher.Restored 45,678 Coach products in our Carlstadt, New Jersey repair facility in fiscal 2019 (86% of all products received to repair) compared to 43,087 in fiscal 2018 (86% of all products received to repair). 46
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 Weitzman products access to empowerment programs during the workday.
RECENTMILESTONES CORPORATE SOCIAL RESPONSIBILITY our communities 3 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 charitable donations matched through our Foundations’ employee matching gift program.In 2019, on purpose, kate spade new york’s social enterprise initiative, worked with its contract supply partner, Abahizi Rwanda, to produce over 40,000 handbags for kate spade new york. The factory is 90% female,with 85% holding leadership roles, and is a certifiedB Corporation. 48
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 accordance with GAAP. Further, the non-GAAP measures utilized by the Company may be unique to the Company, as they may be different from non-GAAP measures used by other companies. The financial information presented has been presented both including and excluding the effect of certain items impacting comparability related to our ERP implementation efforts, Organization-Related & Integration Costs, Impairment and the Acceleration Program for fiscal year 2020 and our ERP Implementation and Integration & Acquisition-Related Costs for fiscal year 2019. Management utilizes these non-GAAP measures to conduct and evaluate its business during its regular review of operating results for the periods affected and to make decisions about Company resources and performance. The Company believes presenting these non-GAAP measures, which exclude items that are not comparable from period to period, is useful to investors and others in evaluating the Company’s ongoing operating and financial results in a manner that is consistent with management’s evaluation of business performance and understanding how such results compare with the Company’s historical performance. 51
