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EX - 99.13 a52373302ex99_1.htm EXHIBIT 99.1 ● ● Tapestry , Inc. Reports Fiscal 2021 Second Quarter Results Holiday Quarter Exceeded Expectations Underscoring Power of Acceleration Program Drove Significant Sequential Improvement in Revenue Trends Generated Triple - Digit Increase in Global Digital Sales Delivered Strong Gross Margin Expansion of Approximately 300 Basis Points Achieved Second Consecutive Quarter of Operating Income and EPS Growth NEW YORK -- ( BUSINESS WIRE ) -- February 4 , 2021 -- Tapestry , Inc. ( NYSE : TPR ) , a leading New York - based house of modern luxury accessories and lifestyle brands , today reported results for the fiscal second quarter ended December 26 , 2020 . Exhibit 99.1 Joanne Crevoiserat , Chief Executive Officer of Tapestry , Inc. , said , " Our results significantly outpaced expectations driven by the successful execution of our Acceleration Program . Our sharpened focus on the consumer fueled new customer acquisition across all brands with notable sales gains in Digital and China . Importantly , for the second consecutive quarter , we generated strong operating income growth supported by a reduction in promotional activity and higher AUR , as well as disciplined inventory and expense management . Further , we delivered this profit growth in the face of unprecedented Covid - related external headwinds , including pressured bricks and mortar traffic , store closures and capacity limits , as well as higher freight costs and shipping constraints . I'm incredibly proud of our teams around the world for their unwavering passion , agility , and resilience this holiday season . " " As we enter the second half of our fiscal year , we are optimistic for the future in spite of the uncertain backdrop . We are listening closely to consumers and responding in real - time to changes in their values , shopping behaviors , and brand engagement . We are leaning into the competitive advantages of our platform , bringing innovation to both product and how we connect with customers . As a result , we are driving demand for our categories and stretching what's possible for our brands . Looking forward , I am confident that Tapestry will emerge from the pandemic stronger , well - positioned to both capture market share at higher levels of profitability and fully unlock the flywheel of sustainable , long - term growth , " Ms. Crevoiserat concluded . Tapestry , Inc. Fiscal Second Quarter 2021 Highlights Achieved significant sequential improvement in revenue trends across all brands , led by North America • Drove triple - digit e - commerce growth versus prior year , with digital representing approximately one - third of global sales , including nearly half of revenue in North America • Posted over 30 % year - over - year revenue growth in Mainland China • Increased gross margin , primarily driven by lower , more disciplined promotional activity , resulting approximately 300 basis points of improvement year - over - year • Reduced SG & A costs , which declined high - single digits versus prior year , reflecting effective expense management and previously announced actions to transform the Company's operating model , while reinvesting in the business and increasing marketing spend Generated strong operating income growth and margin expansion for the second consecutive quarter ● • Funded the pay down of $ 500 million of the Company's $ 700 million revolver with positive free cash flow of $ 697 million year - to date ; paid down remaining $ 200 million balance subsequent to quarter - end Acceleration Program Highlights In the fiscal second quarter , the Company made meaningful progress against its 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 over 1.5 million new customers in North America across brands through our e - commerce channels , a meaningful increase versus prior year , as we continue to meet consumers where they choose to shop and utilize marketing capabilities to drive engagement and enhance the customer's digital journey , Leveraged Tapestry's scale and agility to deliver triple - digit digital growth by expanding our network through added fulfillment capacity and the diversification of parcel carrier partnerships , swiftly adapting to the current environment and navigating market constraints to support increased customer demand , • Drove significant growth in China through compelling product assortments , enhanced marketing and expanded reach across direct channels and third party online distribution , ● • Achieved record sales during the 11.11 Global Shopping Festival on Tmall Luxury Pavilion , with Coach as the number one ranked brand in the handbags , luggage , and leather goods category and Stuart Weitzman as the number one ranked footwear brand over this key holiday period ; Deployed new data and analytics tools to drive strategic , data - driven decision making to optimize marketing messaging , assortment planning , and promotional levels , supporting higher AUR and conversion rates ;