8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549 

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): October 24, 2020

Tapestry, Inc.

(Exact Name of Registrant as Specified in Charter) 

Maryland	001-16153	52-2242751
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

    10 Hudson Yards, New York, New York 10001   

(Address of Principal Executive Offices, and Zip Code)

        (212) 946-8400       

Registrant’s Telephone Number, Including Area Code

 (Former Name or Former Address, if Changed Since Last Report) 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐    Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	TPR	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On October 29, 2020, Tapestry, Inc. (“Tapestry” or the “Company”) issued a press release (the “Press Release”) in which the Company announced its financial results for its first fiscal quarter ended September 26, 2020.  The Company also posted a slide presentation entitled “Investor Presentation” dated October 29, 2020 on the “Presentations & Financial Reports” investor section of its website (www.tapestry.com). Copies of the Press Release and slide presentation are furnished herewith as Exhibit 99.1 and Exhibit 99.2, respectively. Information on the Company’s website is not, and will not be deemed to be, a part of this Current Report on Form 8-K or incorporated into any other filings the Company may make with the Securities and Exchange Commission (the “Commission”).

The information in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, is being furnished to the Commission and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to liability under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Appointment of Chief Executive Officer

On October 27, 2020, the Company announced that the Board of Directors (the “Board”) of the Company appointed Joanne Crevoiserat, age 56, as Chief Executive Officer of the Company, effective as of October 27, 2020 (the “Effective Date”). Ms. Crevoiserat will serve as the Company’s principal executive officer. Ms. Crevoiserat has served as the Company’s Interim Chief Executive Officer since July 21, 2020.  Prior to this role, she served as the Company’s Chief Financial Officer since August 2019. Prior to joining the Company, Ms. Crevoiserat was Executive Vice President and Chief Operating Officer at Abercrombie & Fitch Co. from February 2017 to June 2019. She joined Abercrombie & Fitch in May 2014 as Chief Financial Officer and also served as Executive Vice President, CFO and COO, and Interim Principal Executive Officer during her tenure with the company. Prior to joining Abercrombie & Fitch, she served in a number of senior management roles at Kohl’s Corporation including Executive Vice President of Finance and Executive Vice President of Merchandise Planning and Allocation. Prior to her time with Kohl’s, Ms. Crevoiserat held senior finance positions with Wal-Mart Stores and May Department Stores, including Chief Financial Officer of the Filene’s, Foley’s and Famous-Barr brands. She is a graduate of the University of Connecticut where she received a Bachelor of Science degree in Finance. Ms. Crevoiserat has served on the board of directors of At Home Group Inc. since January 2019.

In connection with her appointment as Chief Executive Officer, Ms. Crevoiserat and the Company entered into a letter agreement (the “Letter Agreement”).  The material terms of the Letter Agreement are summarized below.

Ms. Crevoiserat will be an employee at-will of the Company, meaning either Ms. Crevoiserat or the Company may terminate Ms. Crevoiserat’s employment at any time, although Ms. Crevoiserat is required to provide the Company with six months’ advance written notice of her intention to resign.

Pursuant to the Letter Agreement, Ms. Crevoiserat will receive a base salary of $1,300,000 per year, which will be temporarily reduced by 20% as part of the Company-wide salary reductions that were announced in a Form 8-K filed with the Commission on April 20, 2020 for so long as such salary reductions are in effect. See “Salary Reinstatement Actions” below for information on the Company-wide salary reductions.  She will be eligible for a target bonus of 175% of salary actually paid under the Company’s Performance-Based Annual Incentive Plan (“AIP), starting on the Effective Date (with payment ranging from 0-200% of target subject to performance). Ms. Crevoiserat’s bonus for the portion of fiscal year 2021 prior to the Effective Date will be based on her target bonus percentage in effect at that time. The actual amount of this bonus will be based on the Company attaining criteria determined by the Company’s Board in accordance with the terms of the Performance-Based Annual Incentive Plan. All performance-based compensation paid to Ms. Crevoiserat is subject to the Company’s incentive repayment policy applicable in the event of a material restatement of the Company’s financial results.

Ms. Crevoiserat will receive appointment equity awards under the Amended and Restated Tapestry, Inc. 2018 Stock Incentive Plan with an aggregate grant date value of $3,500,000 (the “Appointment Grant”).  The Appointment Grant will be made up of stock options that will vest ratably over four years and performance restricted stock units (“PRSUs”) that are eligible to vest on the second anniversary of the grant date based on the Company’s achievement of performance goals established by the Company’s Board. Ms. Crevoiserat will be required to retain all of the net shares earned upon vesting of the PRSUs for two years following the vesting date.

Ms. Crevoiserat has a guideline annual equity grant with a fair market value on the grant date of $6,500,000 for fiscal year 2022, to be granted in a fixed proportion of different equity vehicles as determined by the Board and normally granted in August, which may include PRSUs, stock options and/or restricted stock units (“RSUs”).

If the Company terminates Ms. Crevoiserat’s employment without “Cause”, or if she resigns for “Good Reason” (as each such term is defined in the Letter Agreement), she will be eligible to receive (i) cash severance equal to twenty-four (24) months of base salary, (ii) a pro-rated portion of her AIP bonus for the fiscal year in which any termination occurs, based on actual Company performance, to be paid on the regular AIP payout date, and (iii) payment of her AIP bonus on the regular payout date for AIP that was earned and payable for the prior fiscal year based on actual performance, which has not been paid as of the date of termination. Ms. Crevoiserat will be subject to the noncompetition and nonsolicitation covenants set forth in the Agreement, both during her employment with the Company as well as during the twenty-four (24) months following termination.

There are no family relationships between Ms. Crevoiserat and any director or executive officer of the Company and she has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.

The foregoing summary of the material terms of the Letter Agreement is not complete and is qualified entirely by reference to the full text of the Letter Agreement, which will be filed as an exhibit to the Company’s next annual report on Form 10-Q.

Salary Reinstatement Actions

The Company announced on April 20, 2020 that, due to the economic impacts of the COVID-19 global pandemic, it was reducing the base salaries of its executives and certain employees above a certain salary threshold, effective June 28, 2020, the first day of the Company’s fiscal year 2021.  Effective November 1, 2020, all impacted employees will have their salaries restored to full salary levels going forward.  As of November 1, 2020, the base salary of:

● Joanne Crevoiserat, the Company’s Chief Executive Officer, which had been reduced by 20%, will revert from the reduced rate of $1,040,000 to the full rate of $1,300,000;

● Andrea Shaw Resnick, the Company’s Interim Chief Financial Officer; Global Head of Investor Relations and Corporate Communications, which had been reduced by 15%, will revert from the reduced rate of $595,000 to the full rate of $700,000;

● Todd Kahn, Interim Chief Executive Officer & Brand President, Coach; President, Chief Administrative Officer, which had been reduced by 20%, will revert from the reduced rate of $720,000 to the full rate of $900,000; and

● Tom Glaser, Chief Operations Officer, which had been reduced by 20%, will revert from the reduced rate of $640,000 to the full rate of $800,000.

In addition, in conjunction with the corporate salary reductions, the Board had determined to reduce the value of the Board’s cash retainers by 50%.  Effective November 1, 2020, such cash retainers will be restored to their full values going forward.

Item 9.01 Financial Statements and Exhibits.

(d)  Exhibits.  The following exhibits are being furnished herewith:

99.1     Text of Press Release, dated October 29, 2020

99.2     Slide Presentation entitled “Investor Presentation,” dated October 29, 2020

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated:  October 29, 2020

TAPESTRY, INC.
By:	/s/ David E. Howard
	David E. Howard
	Senior Vice President, General Counsel and Secretary

EXHIBIT INDEX

99.1 Text of Press Release, dated October 29, 2020

99.2 Slide Presentation entitled “Investor Presentation,” dated October 29, 2020

EX-99.1

 Exhibit 99.1

Tapestry, Inc. Reports Fiscal 2021 First Quarter Results

Strong Operating Income & EPS Growth Demonstrates Progress on Acceleration Program

• Gross Margin Increased By More Than 300 Basis Points And SG&A Declined Significantly, Driving Over 700 Basis Points of Operating Margin Expansion Year-Over-Year
• GAAP Operating Income was $202 Million vs. $52 Million a Year Ago; Non-GAAP Operating Income was $229 Million vs. $167 Million a Year Ago
• GAAP EPS was $0.83 vs. $0.07 a Year Ago; Non-GAAP EPS was $0.58 vs. $0.40 a Year Ago

NEW YORK--(BUSINESS WIRE)--October 29, 2020--Tapestry, Inc. (NYSE: TPR), a leading New York-based house of modern luxury accessories and lifestyle brands, today reported results for the fiscal first quarter ended September 26, 2020.

Joanne Crevoiserat, Chief Executive Officer of Tapestry, Inc., said, “We are very pleased with our first quarter results, which exceeded expectations and demonstrated the bold actions we are implementing as part of our Acceleration Program. We delivered strong profit growth across our portfolio of brands in the face of an unprecedented and challenging backdrop. We drove a meaningful sequential improvement in topline trends, supported by strength in Digital and China. At the same time, we expanded gross margin by deliberately reducing promotional activity and raising AUR, while also tightly controlling SG&A expense. Taken together, we achieved a significant increase in EPS and generated positive free cash flow.”

Ms. Crevoiserat continued, “Our performance underscores the power of our brands, the agility of our talented teams and the competitive advantage of Tapestry’s enabling platform. Importantly, it also reinforces the potential of our Acceleration Program. Guided by an unwavering focus on the consumer and supported by new ways of working, we are positioning the Company to successfully navigate the dynamic environment and drive long-term, sustainable growth.”

Tapestry, Inc. Fiscal First Quarter 2021 Highlights

• Delivered top and bottom line results materially ahead of expectations
• Achieved sequential improvement in revenue trends across all brands
• Drove a second consecutive quarter of triple-digit e-commerce growth versus prior year, while simultaneously improving global store sales trends
• Posted double-digit year-over-year revenue growth in Mainland China
• Significantly expanded gross margins by over 300 basis points driven in part by lower, more disciplined promotional activity
• Realized substantial decline in SG&A of 27% on a reported basis and 20% on a non-GAAP basis, reflecting effective expense management and previously announced actions to transform the Company’s operating model, including a 20% reduction in Tapestry’s run-rate corporate headcount costs
• Increased operating margin by over 700 basis points on a GAAP and non-GAAP basis
• Tightly managed inventories, which declined 8% from prior year and are well-positioned heading into the holiday quarter
• Generated positive free cash flow of $64 million as compared to an outflow of $66 million in the prior year
• Ended the quarter with $1.5 billion in cash and equivalents

Acceleration Program Highlights

In the first fiscal quarter, the Company made meaningful progress against its previously announced Acceleration Program to sharpen its focus on the consumer, leverage data to lead with a digital-first mindset and transform into a leaner and more responsive organization:

• Recruited nearly 800,000 new customers across brands in North America through our e-commerce channels, meeting consumers where they choose to shop and leveraging marketing capabilities to drive engagement and enhance the customer’s digital journey;
• Drove significant growth in China through compelling product assortments, enhanced marketing and expanded reach across direct channels and third party online distribution; Coach is the number one ranked handbag brand on Tmall;
• Leveraged data and analytics to optimize marketing messaging, assortment planning and promotional levels to support higher AUR;
• Made further progress in creating an agile and scalable operating model, with a streamlined organizational structure and empowered teams, while optimizing our global fleet with 15 net store closures in the first fiscal quarter representing a net decrease of 50 stores from the prior year; Remain on track to achieve gross run-rate savings of $300 million, including gross savings of $200 million in fiscal 2021.

Through these initiatives, the Company is better meeting the needs of each of its brands' unique customers to drive engagement and desire for its products among new and existing customers, creating a strong foundation for profitable expansion.

Overview of First Quarter 2021 Tapestry, Inc. Results

• Net sales totaled $1.17 billion for the fiscal first quarter as compared to $1.36 billion in the prior year, representing a 14% decline.
• Gross profit totaled $830 million, while gross margin was 70.8%, on a reported and non-GAAP basis. This compared to prior year reported gross profit of approximately $914 million and gross margin of 67.3%. On a non-GAAP basis, gross profit in the year ago period totaled $919 million with gross margin of 67.6%.
• SG&A expenses totaled $628 million on a reported basis and represented 53.6% of sales compared to $863 million and 63.5%, respectively, in the year ago quarter. On a non-GAAP basis, SG&A expenses were $601 million and represented 51.3% of sales as compared to $752 million and 55.4%, respectively, in the year ago period.
• Operating income was $202 million on a reported basis, while operating margin was 17.3% versus operating income of $52 million and an operating margin of 3.8% in the prior year. On a non-GAAP basis, operating income was $229 million, while operating margin was 19.5% versus operating income of $167 million and an operating margin of 12.3% in the prior year.
• Net interest expense was $19 million in the quarter as compared to $12 million in the year ago period.
• Other income was $3 million versus an expense of $13 million in the prior year.
• Net income for the quarter was $232 million on a reported basis, with earnings per diluted share of $0.83. This compared to net income of $20 million with earnings per diluted share of $0.07 in the prior year period. The reported tax rate for the quarter was (25.0)%, reflecting the benefit under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act, most notably the Net Operating Loss (“NOL”) carryback claim. This compared to the prior year reported tax rate of 24.8%. On a non-GAAP basis, net income for the quarter was $161 million with earnings per diluted share of $0.58. This compared to non-GAAP net income of $114 million with earnings per diluted share of $0.40 in the prior year period. The non-GAAP tax rate for the quarter, which excludes the tax impact under the CARES Act, was 24.1% compared to 19.6% in the prior year.
• Inventory was $811 million at the end of quarter versus ending inventory of $880 million in the year ago period.

Fiscal first quarter results by brand were as follows:

Coach First Quarter 2021 Results

• Net sales for Coach totaled $875 million for the fiscal first quarter as compared to $966 million in the prior year, representing a decline of 9%.
• Gross profit for Coach totaled $645 million, while gross margin was 73.7% on a reported and non-GAAP basis. This compared to prior year gross profit of $678 million on a reported and non-GAAP basis, while gross margin was 70.1% and 70.2% on a reported and non-GAAP basis, respectively.
• SG&A expenses for Coach were $375 million on a reported basis and represented 42.8% of sales compared to $478 million and 49.5%, respectively, in the year ago period. On a non-GAAP basis, SG&A expenses were $364 million and represented 41.6% of sales compared to expenses of $436 million or 45.2% of sales in the prior year.
• Operating income for Coach was $270 million compared to reported operating income of approximately $200 million in the prior year, while operating margin was 30.8% versus 20.7% a year ago. On a non-GAAP basis, operating income was $281 million compared to $241 million in the prior year, while operating margin was 32.1% versus 25.0% a year ago.

Kate Spade First Quarter 2021 Results

• Net sales for Kate Spade totaled $240 million for the fiscal first quarter as compared to $306 million in the prior year, representing a decline of 21%, which included the impact related to a strategic pullback in lower margin wholesale disposition sales.
• Gross profit for Kate Spade totaled $154 million on both a reported basis and non-GAAP basis, while gross margin was 64.1%. This compared to reported gross profit and margin in the prior year of $192 million and 62.7%, respectively. On a non-GAAP basis, prior year gross profit was $193 million, while gross margin was 63.1%.
• SG&A expenses for Kate Spade were $131 million on a reported basis and represented 54.5% of sales. This compared to reported SG&A expenses of $199 million in the year ago period, which represented 65.0% of sales. On a non-GAAP basis, SG&A expenses were $130 million and represented 54.0% of sales. This compared to SG&A expenses of $173 million or 56.7% of sales on a non-GAAP basis in the previous year.
• Operating income for Kate Spade was $23 million on a reported basis, representing an operating margin of 9.6%. This compared to an operating loss of $7 million and an operating margin of (2.4)% on a reported basis in the year ago period. On a non-GAAP basis, operating income was $24 million, while operating margin was 10.1%. This compared to operating income of $19 million and an operating margin of 6.3% on a non-GAAP basis in the previous year.

Stuart Weitzman First Quarter 2021 Results

• Net sales for Stuart Weitzman totaled $56 million for the fiscal first quarter compared to $87 million in the same period of the prior year, representing a 35% decline.
• Gross profit for Stuart Weitzman totaled $31 million on both a reported and non-GAAP basis, while gross margin for the quarter was 55.3%. This compared to prior year reported gross profit of $45 million and gross margin of 52.5%. On a non-GAAP basis, prior year gross profit was $48 million, while gross margin was 55.7%.
• SG&A expenses for Stuart Weitzman were $31 million on a reported basis and represented 55.2% of sales. This compared to reported SG&A expenses of $65 million in the year ago period, which represented 74.8% of sales. On a non-GAAP basis, SG&A expenses were approximately $34 million and represented 59.5% of sales as compared to $58 million or 67.2% of sales in the prior year period.
• Operating profit was breakeven on a reported basis, representing an operating margin of 0.0%, compared to an operating loss of $19 million and operating margin of (22.2)% in the year ago period. On a non-GAAP basis, the operating loss was approximately $2 million or a (4.2)% operating margin versus an operating loss of $10 million and operating margin of (11.5)% in the prior year.

Non-GAAP Reconciliation

During the first fiscal quarter of 2021, the Company recorded the following on a reported basis:

• CARES Act Tax Impact: $92 million of tax benefits under the CARES Act, most notably the NOL carryback claim. This reflects the Company’s provisional estimate and is subject to adjustment as estimation approaches are refined.
• Acceleration Program: $27 million of pre-tax charges primarily associated with professional fees incurred as a result of the development and execution of the Company’s comprehensive strategic initiatives, as well as actions to streamline the Company's organization, which includes severance. The Company continues to expect to incur total charges of $185 to $200 million over the life of the Acceleration Program, including $75 to $90 million in remaining charges. The majority of these future costs are estimated to be cash and recorded primarily in fiscal 2021.

Taken together, on a reported basis, these items decreased the Company’s operating income by $27 million, while increasing net income and earnings per diluted share by $71 million and $0.25, respectively. Please refer to the financial tables included herein for a detailed reconciliation of the Company’s reported to non-GAAP results.

Conclusion

Ms. Crevoiserat continued, “We are confident in the strong foundation we’re building and our ability to create long-term value for our stakeholders. As we enter the holiday season, our teams continue to focus on the factors within our control. We are putting the consumer first, delivering innovative, relevant and beautifully crafted product, while staying true to the unique purpose of each of our brands. We are also leaning into the opportunity to evolve with the changing landscape and shifting consumer needs and preferences. Given the strength of the first quarter, we are increasingly optimistic in our ability to drive sustainable top and bottom line growth over our planning horizon.”

Fiscal Year 2021 Outlook

Due to the dynamic nature of the Covid-19 crisis and lack of visibility, the potential financial impact to our business cannot be accurately projected. Therefore, the Company is not providing detailed guidance for fiscal 2021. However, given the strong start to the fiscal year and assuming a continued steady recovery emerging from the pandemic, the Company continues to expect a topline inflection in the second half of the fiscal year, with both revenue and bottom line growth now projected for fiscal 2021.

The Company also notes that fiscal 2021 includes a 53rd week in its fourth fiscal quarter.

Conference Call Details

The Company will host a conference call to review these results at 7:30 a.m. (ET) today, October 29, 2020. Interested parties may listen to the conference call via live webcast by accessing www.tapestry.com/investors on the Internet or calling 1-877-510-8087 or 1-862-298-9015 and providing the Conference ID 9406188. A telephone replay will be available starting at 12:00 p.m. (ET) today, for a period of five business days. To access the telephone replay, call 1-800-585-8367 or 1-404-537-3406 and enter the Conference ID 9406188. A webcast replay of the earnings conference call will also be available for five business days on the Tapestry website. Presentation slides have also been posted to the Company’s website at www.tapestry.com/investors.

Upcoming Events

The Company expects to report fiscal 2021 second quarter results on Thursday, February 4, 2021. To receive notification of future announcements, please register at www.tapestry.com/investors ("Subscribe to E-Mail Alerts").

Tapestry, Inc. is a New York-based house of modern luxury lifestyle brands. The Company’s portfolio includes Coach, Kate Spade and Stuart Weitzman. Our Company and our brands are founded upon a creative and consumer-led view of luxury that stands for inclusivity and approachability. Each of our brands are unique and independent, while sharing a commitment to innovation and authenticity defined by distinctive products and differentiated customer experiences across channels and geographies. To learn more about Tapestry, please visit www.tapestry.com. The Company’s common stock is traded on the New York Stock Exchange under the symbol TPR.

This information to be made available in this press release may contain forward-looking statements based on management's current expectations. Forward-looking statements include, but are not limited to, the statements under “Fiscal Year 2021 Outlook,” and statements regarding the Acceleration Program, including future charges under and future impacts of this program, the potential impact of the Covid-19 pandemic and success of mitigating actions, and statements that can be identified by the use of forward-looking terminology such as "may," "will," “can,” "should," "expect," "intend," "estimate," "continue," "project," "guidance," "forecast," “outlook,” “roadmap,” "anticipate," “excited,” “moving,” “leveraging,” “sharpening,” transforming,” “deepening,” “creating,” accelerating,” “enhancing,” leaning into,” “strengthening,” “developing,” “drive,” “targeting,” “assume,” “plan,” “build,” “pursue,” “maintain,” “progress,” “future,” “emerge,” “assure,” “on track,” “well positioned to,” “look forward to,” “looking ahead,” “to acquire,” “achieve,” “strategic vision,” “strategic agenda,” “long-term objectives,” “steady recovery,” “growth opportunities,” “view,” or comparable terms. Future results may differ materially from management's current expectations, based upon a number of important factors, including risks and uncertainties such as the impact of the Covid-19 pandemic, the ability to control costs and successfully execute our growth strategies, expected economic trends, the ability to anticipate consumer preferences, risks associated with operating in international markets, our 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, etc. Please refer to the Company’s latest Annual Report on Form 10-K, quarterly report on 10-Q and its other filings with the Securities and Exchange Commission for a complete list of risks and important factors. The Company assumes no obligation to revise or update any such forward-looking statements for any reason, except as required by law.

TAPESTRY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Quarters Ended September 26, 2020 and September 28, 2019
(in millions, except per share data)
	(unaudited)
	QUARTER ENDED
	September 26, 2020		September 28, 2019
Net sales	$	1,172.2	$	1,357.9
Cost of sales		342.0		443.4
Gross profit		830.2		914.5
Selling, general and administrative expenses		628.0		862.9
Operating income (loss)		202.2		51.6
Interest expense, net		19.4		12.3
Other expense (income)		(2.6)		12.7
Income (loss) before provision for income taxes		185.4		26.6
Provision for income taxes		(46.3)		6.6
Net income (loss)	$	231.7	$	20.0
Net income (loss) per share:
Basic	$	0.84	$	0.07
Diluted	$	0.83	$	0.07
Shares used in computing net income per share:
Basic		276.8		284.4
Diluted		277.9		285.7

TAPESTRY, INC.
DETAIL TO NET SALES
For the Quarters Ended September 26, 2020 and September 28, 2019
(in millions)
(unaudited)
	QUARTER ENDED
	September 26, 2020		September 28, 2019		% Change	Constant Currency % Change
Coach	$	875.4	$	965.9	(9)%	(10)%
Kate Spade		240.4		305.5	(21)%	(21)%
Stuart Weitzman		56.4		86.5	(35)%	(35)%
Total Tapestry	$	1,172.2	$	1,357.9	(14)%	(14)%

TAPESTRY, INC.
GAAP TO NON-GAAP RECONCILIATION
(in millions, except per share data)
(unaudited)
	For the Quarter Ended September 26, 2020
			Items Affecting Comparability
	GAAP Basis (As Reported)		CARES Act Tax Impact		Acceleration Program		Non-GAAP Basis (Excluding Items)
Cost of sales
Coach		644.9		-		-		644.9
Kate Spade		154.1		-		-		154.1
Stuart Weitzman		31.2		-		-		31.2
Gross profit(1)	$	830.2	$	-	$	-	$	830.2
SG&A expenses
Coach		374.9		-		10.7		364.2
Kate Spade		130.9		-		1.0		129.9
Stuart Weitzman		31.2		-		(2.4)		33.6
Corporate		91.0		-		17.3		73.7
SG&A expenses	$	628.0	$	-	$	26.6	$	601.4
Operating income (loss)
Coach		270.0		-		(10.7)		280.7
Kate Spade		23.2		-		(1.0)		24.2
Stuart Weitzman		-		-		2.4		(2.4)
Corporate		(91.0)		-		(17.3)		(73.7)
Operating income (loss)	$	202.2	$	-	$	(26.6)	$	228.8
Provision for income taxes		(46.3)		(91.7)		(5.8)		51.2
Net income (loss)	$	231.7	$	91.7	$	(20.8)	$	160.8
Net income (loss) per diluted common share	$	0.83	$	0.33	$	(0.08)	$	0.58
(1) Adjustments within Gross profit are recorded within Cost of sales.

TAPESTRY, INC.
GAAP TO NON-GAAP RECONCILIATION
(in millions, except per share data)
(unaudited)
	For the Quarter Ended September 28, 2019
			Items Affecting Comparability
	GAAP Basis (As Reported)		ERP Implementation		Organization-related & Integration costs		Impairment		Non-GAAP Basis (Excluding Items)
Cost of sales
Coach		677.6		-		(0.1)		-		677.7
Kate Spade		191.5		-		(1.2)		-		192.7
Stuart Weitzman		45.4		-		(2.8)		-		48.2
Gross profit(1)	$	914.5	$	-	$	(4.1)	$	-	$	918.6
SG&A expenses
Coach		478.1		-		0.3		41.5		436.3
Kate Spade		198.7		-		0.1		25.2		173.4
Stuart Weitzman		64.7		-		(2.4)		8.9		58.2
Corporate		121.4		14.5		22.7		-		84.2
SG&A expenses	$	862.9	$	14.5	$	20.7	$	75.6	$	752.1
Operating income (loss)
Coach		199.5		-		(0.4)		(41.5)		241.4
Kate Spade		(7.2)		-		(1.3)		(25.2)		19.3
Stuart Weitzman		(19.3)		-		(0.4)		(8.9)		(10.0)
Corporate		(121.4)		(14.5)		(22.7)		-		(84.2)
Operating income (loss)	$	51.6	$	(14.5)	$	(24.8)	$	(75.6)	$	166.5
Provision for income taxes		6.6		(3.5)		(5.4)		(12.1)		27.6
Net income (loss)	$	20.0	$	(11.0)	$	(19.4)	$	(63.5)	$	113.9
Net income (loss) per diluted common share	$	0.07	$	(0.04)	$	(0.07)	$	(0.22)	$	0.40
(1) Adjustments within Gross profit are recorded within Cost of sales.

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 above, as well as gross margin, SG&A expense ratio, and operating margin, have been presented both including and excluding the effect of certain items related to the tax benefit the Company received under the CARES Act and the Acceleration Program for the first quarter of fiscal year 2021 and ERP Implementation, Organization-related & Integration Costs and Impairment for the first quarter of fiscal year 2020.

The Company operates on a global basis and reports financial results in U.S. dollars in accordance with GAAP. Percentage increases/decreases in net sales for the Company and each segment have been presented both including and excluding currency fluctuation effects from translating foreign-denominated sales into U.S. dollars and compared to the same periods in the prior quarter and fiscal year. The Company calculates constant currency net sales results by translating current period net sales in local currency using the prior year period’s currency conversion rate.

Net sales changes for the Company and each segment are based on absolute sales dollar changes and are not presented in accordance with the Company’s comparable sales definition utilized historically due to the uncertain business environment resulting from the impact of the Covid-19 pandemic.

Management utilizes these non-GAAP and constant currency 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. Additionally, the Company believes presenting these metrics on a constant currency basis will help investors and analysts to understand the effect of significant year-over-year foreign currency exchange rate fluctuations on these performance measures and provide a framework to assess how business is performing and expected to perform excluding these effects.

TAPESTRY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
At September 26, 2020 and June 27, 2020
(in millions)
	(unaudited)		(audited)
	September 26, 2020		June 27, 2020
ASSETS
Cash, cash equivalents and short-term investments	$	1,522.4	$	1,434.4
Receivables		251.1		193.3
Inventories		811.2		736.9
Other current assets		260.8		188.5
Total current assets		2,845.5		2,553.1
Property and equipment, net		753.0		775.2
Lease right-of-use assets		1,692.6		1,757.0
Other noncurrent assets		2,842.3		2,838.9
Total assets	$	8,133.4	$	7,924.2
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	296.0	$	130.8
Accrued liabilities		470.1		511.0
Short-term lease liabilities		341.4		388.8
Current debt		711.5		711.5
Total current liabilities		1,819.0		1,742.1
Long-term debt		1,588.6		1,587.9
Long-term lease liabilities		1,739.9		1,799.8
Other liabilities		455.8		518.0
Stockholders' equity		2,530.1		2,276.4
Total liabilities and stockholders' equity	$	8,133.4	$	7,924.2

TAPESTRY, INC.
STORE COUNT
At June 27, 2020 and September 26, 2020
(unaudited)
	As of			As of
Directly-Operated Store Count:	June 27, 2020	Openings	(Closures)	September 26, 2020
Coach
North America	375	-	(1)	374
International	583	13	(13)	583
Kate Spade
North America	213	3	-	216
International	207	6	(5)	208
Stuart Weitzman
North America	58	-	(3)	55
International	73	3	(18)	58

Contacts

Tapestry, Inc.
Analysts & Media:
Andrea Shaw Resnick
Interim Chief Financial Officer
Global Head of Investor Relations and Corporate Communications
212/629-2618
aresnick@tapestry.com
Christina Colone
Vice President, Investor Relations
212/946-7252
ccolone@tapestry.com

EX-99.2

 Exhibit 99.2

 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  COURAGEOUS  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. Reflects adjustments to Wholesale penetration figure from previously reported number. 

   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 CrevoiseratChief 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  1Q21 

 DELIVERED TOP AND BOTTOM-LINE RESULTS MATERIALLY AHEAD OF EXPECTATIONS  1Q21 RESULTS OVERVIEW  Generated strong profit growth across our portfolio of brands in the face of a challenging backdropAchieved a significant increase in EPS and generated positive free cash flow of $64 million  REMAIN CONFIDENT IN OUR STRATEGY AND LONG-TERM POTENTIAL  DEMONSTRATED PROGRESS ON acceleration program   9  Strength of our first quarter results demonstrates the bold actions we are implementing as part of our Acceleration ProgramWe are increasingly confident in our ability to drive sustainable top and bottom-line growth that will create long-term value for all of our stakeholders  Non-GAAP Financials.  

   Realized a significant  reduction in SG&A expense year-over-year, reflecting effective cost management  20%   10  1Q21 RESULTS EXCEEDED EXPECTATIONS, HIGHLIGHTING THE power  Non-GAAP Financials.     e-commerce revenue growth, while simultaneously improving global store sales trends  triple-digit  Second consecutive quarter of     Generated  of operating margin expansion compared to prior year  720 bps    Delivered  double-digit  revenue growth in China      Year-over-year revenue trends  improved  sequentially across all brands  OF OUR BRANDS & resilience OF OUR BUSINESS    year-over-year, driven in part by lower, more disciplined promotional activity  320 bps  Gross margin increased by 

     PROGRAM  acceleration 

  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 

  14  acceleration program HIGHLIGHTS  MEANINGFUL PROGRESS AGAINST ACCELERATION PROGRAM IN THE FIRST QUARTER  Recruited nearly 800,000 new customers across brands in North America throughour e-commerce channels Drove significant growth in China through compelling product assortments,enhanced marketing and expanded reach across direct channels and third partyonline distribution; Coach is now the number one ranked handbag brand on TmallLeveraged data and analytics to optimize marketing messaging, assortmentplanning and promotional levels to support higher AURMade further progress in creating an agile and scalable operating model, with astreamlined organizational structure and empowered teams, while optimizing ourglobal fleet; Remain on track to achieve gross run-rate savings of $300 million  Non-GAAP Financials.  

   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   15 

  16  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.     Given our strong Q1 performance and assuming a continued slow and steady recovery from the pandemic, we now project fiscal year revenue to increase at a mid-single-digit rate over prior year on both a 52-week and 53-week basis. This includes the expectation for a low double-digit sales decline in the second quarter, with a significant topline inflection in the second half.  Project gross margin expansion through deliberate actions to raise AUR while aggressively controlling SG&A, including structural changes representing $300M in gross run-rate savings, including $200M in gross savings projected in FY21.  As revenues inflect, we will drive bottom-line growth in excess of top-line gains over the planning horizon  LONG-TERM  create a flywheel     

   NEAR-TERM  PRESERVE CASH    In the near-term, our priority is to preserve our cash on-hand and utilize free cash flow for revolver paydown in FY21. We will start this paydown in the second quarter.    17  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. 

  18  “Given the strength of the first quarter, we are increasingly confident in our ability to drive sustainable top and bottom line growth that will create long-term value for all of our stakeholders.”  Joanne Crevoiserat, chief executive officer 

   OVERVIEWbyBRAND   

 Coach inspires the dreamer in all of us, connecting our modern lives with the spirit of the open road.   our vision    22 

 11,000+EMPLOYEES  55+COUNTRIES  958DIRECTLY OPERATED STORES   23  As of FY20. 

   coach product, geographic & channel breakdownDirect-to-consumer focused with diversified product categories & geographies   24  As of FY20. Reflects adjustments to Wholesale penetration figure from previously reported number. 

 COACH MULTI-YEAR GROWTH STRATEGIES   25  Enhance brand & cultural relevance  Deepen ENGAGEMENT WITH consumers  Create INNOVATIVE & COMPELLING PRODUCT  Drive DIGITAL SALES & NEW CUSTOMER RECRUITMENT  Accelerate GROWTH IN CHINA  Enhance profitability  Exceed the expectations of our target consumers by geography and customer segments  Offer a true omnichannel experience  Tailor and optimize assortmentsEnhance marketingExpand reach across direct channels and third party online distribution  Improve AUR and increase gross margin through more focused assortments and a disciplined approach to promotionsAchieve operational excellence by right-sizing SG&A cost structure and store fleet 

  26  “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 York City.”  Todd kahn, INTERIM ceo & brand president, COACH 

 OUR VISION  A globally admired aspirational life & style brand, where people — our customers and teams — areat the center of everything we do. 

 3,900+EMPLOYEES  35+COUNTRIES  420DIRECTLY OPERATED STORES   30  As of FY20.  

   KATE SPADE product, geographic & channel breakdownOpportunity to reenergize & grow handbags, while focusing on markets with high brand awareness   31  As of FY20. Reflects adjustments to Wholesale penetration figure from previously reported number.  OTHER ASIA12% 

 KATE SPADE MULTI-YEAR GROWTH STRATEGIES   32  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 

  33  “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.   36 

 950+EMPLOYEES  40+COUNTRIES  131DIRECTLY OPERATED STORES  As of FY20.    37 

 STUART WEITZMAN product, geographic & channel breakdownOpportunity to focus on key geographies & channels with a compelling footwear assortment   38  REST OF WORLD14%  As of FY20. 

  39  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 

  40  “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 

   corporate RESPONSIBILITY   

 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   42 

 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   43 

 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   45 

 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).   47 

 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.   49 

   APPENDIX   

 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 the CARES Act Tax Impact and the Acceleration Program for the first quarter of fiscal year 2021 and our ERP Implementation, Organization-Related and Integration Costs and Impairment for the first quarter of fiscal year 2020. 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.    52 

   GAAP to non-GAAP ReconciliationFor the quarter Ended September 26, 2020  in millions, except per share data; unaudited  GAAP BASIS(AS REPORTED)  CARES ACT TAX IMPACT  ACCELERATION PROGRAM  NON-GAAP BASIS(EXCLUDING ITEMS)  Coach   $644.9   $—  $—  $644.9  Kate Spade  154.1   —  —  154.1  Stuart Weitzman  31.2   —   —  31.2   Gross profit(1)  830.2   —   —  830.2            Coach  374.9   —  10.7  364.2  Kate Spade  130.9   —  1.0  129.9  Stuart Weitzman  31.2   —  (2.4)  33.6  Corporate  91.0  —  17.3  73.7   Selling, general and administrative expenses  628.0  —  26.6  601.4            Coach  270.0  —  (10.7)  280.7  Kate Spade  23.2  —  (1.0)  24.2  Stuart Weitzman  —  —  2.4  (2.4)  Corporate  (91.0)  —  (17.3)  (73.7)   Operating income (loss)  202.2  —  (26.6)  228.8            Provision for income taxes  (46.3)  (91.7)  (5.8)  51.2  Net income  231.7  91.7  (20.8)  160.8  Net income per diluted common share  0.83  0.33  (0.08)  0.58  (1) Adjustments within Gross profit are recorded within Cost of sales.   

   GAAP to non-GAAP ReconciliationFor the quarter Ended September 28, 2019  in millions, except per share data; unaudited  GAAP BASIS(AS REPORTED)  ERP IMPLEMENTATION  ORGANIZATION-RELATED & INTEGRATION COSTS  IMPAIRMENT  NON-GAAP BASIS(EXCLUDING ITEMS)  Coach   $677.6   $—   $(0.1)  $—  $677.7  Kate Spade  191.5   —  (1.2)  —  192.7  Stuart Weitzman  45.4   —  (2.8)   —  48.2   Gross profit(1)  914.5   —  (4.1)   —  918.6              Coach  478.1   —  0.3  41.5  436.3  Kate Spade  198.7   —  0.1  25.2  173.4  Stuart Weitzman  64.7   —  (2.4)  8.9  58.2  Corporate  121.4  14.5  22.7  —  84.2   Selling, general and administrative expenses  862.9  14.5  20.7  75.6  752.1              Coach  199.5  —  (0.4)  (41.5)  241.4  Kate Spade  (7.2)  —  (1.3)  (25.2)  19.3  Stuart Weitzman  (19.3)  —  (0.4)  (8.9)  (10.0)  Corporate  (121.4)  (14.5)  (22.7)  —  (84.2)   Operating income (loss)  51.6  (14.5)  (24.8)  (75.6)  166.5              Provision for income taxes  6.6  (3.5)  (5.4)  (12.1)  27.6  Net income  20.0  (11.0)  (19.4)  (63.5)  113.9  Net income per diluted common share  0.07  (0.04)  (0.07)  (0.22)  0.40  (1) Adjustments within Gross profit are recorded within Cost of sales.   

XML

Document and Entity Information	Oct. 24, 2020
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 24, 2020
Entity Registrant Name	Tapestry, Inc.
Entity Incorporation, State or Country Code	MD
Entity File Number	001-16153
Entity Tax Identification Number	52-2242751
Entity Address, Address Line One	10 Hudson Yards
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10001
City Area Code	212
Local Phone Number	946-8400
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001116132
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	TPR
Security Exchange Name	NYSE