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EX - 99.13 a52424300ex99_1.htm EXHIBIT 99.1 Tapestry , Inc. Reports Fiscal 2021 Third Quarter Results Results Significantly Ahead of Expectations With Operating Income Exceeding Pre - Pandemic Levels Drove Sequential Improvement in Topline Trends and Outperformed Third Quarter Revenue Outlook Generated Triple - Digit Increase in Global Digital Sales , Fueled by New Customer Acquisition Delivered Strong Gross Margin Expansion Across Brands ● Now On Track to Exceed FY19 EPS for the Fiscal Year ● Exhibit 99.1 NEW YORK -- ( BUSINESS WIRE ) -- May 6 , 2021 -- Tapestry , Inc. ( NYSE : TPR ) , a leading New York - based house of modern luxury accessories and lifestyle brands , today reported results for the fiscal third quarter ended March 27 , 2021 . Joanne Crevoiserat , Chief Executive Officer of Tapestry , Inc. , said , " Our third quarter results significantly outpaced expectations , underscoring the power of the Acceleration Program and enthusiasm for our brands . Through a sharpened focus on the consumer , we fueled new customer acquisition at Coach , Kate Spade , and Stuart Weitzman and delivered robust sales growth led by Digital and China . Importantly , for the third consecutive quarter , we achieved operating income gains - compared to both FY20 and FY 19 - supported by a continued reduction in promotional activity , higher AUR , and disciplined expense management . This performance is a testament to our talented teams around the world , whose creativity , agility , and resilience have enabled us to successfully navigate a challenging backdrop and deliver for our customers , while positioning Tapestry to emerge from the pandemic stronger . " Ms. Crevoiserat continued , " Building on this momentum , we are increasingly optimistic about our ability to generate sustainable top and bottom - line growth . Looking forward , while the environment remains volatile , we see encouraging signs of recovery as vaccination efforts progress , resulting in increased consumer confidence , strong demand for our categories , and improving in - store traffic trends . In this context , we remain focused on driving brand relevance and customer engagement through product innovation and compelling marketing , supported by data - driven insights and a digital - first mindset . We will also continue to lean into our competitive advantages , including our globally diversified , direct - to - consumer model , and distort investments to high - growth opportunities . We are confident that our clear , consumer - centric strategy , powerful brands , and differentiated , scalable platform uniquely position us to capture market share at higher levels of profitability . " Tapestry , Inc. Fiscal Third Quarter 2021 Highlights • Achieved sequential improvement in year - over - year revenue trends compared to both FY20 and FY 19 • Realized continued momentum in Digital , driving triple - digit growth versus prior year , while improving revenue trends in - stores on both a one and two - year basis • Posted a revenue increase of approximately 175 % in Mainland China versus FY20 and 40 % growth compared to FY 19 • Drove a mid - teens sales increase versus prior year in North America , representing a return to pre - pandemic levels • Expanded gross margin across brands year - over - year , primarily driven by lower , more disciplined promotional activity overall • Reduced SG & A costs compared to last 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 • Delivered operating income growth and margin expansion - ahead of both FY20 and FY19- for the third consecutive quarter • Generated $ 876 million of free cash flow year - to - date , underscoring the Company's financial strength and flexibility Acceleration Program Highlights In the fiscal third 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 approximately 700,000 new customers through our e - commerce channels in North America , a meaningful increase versus prior year , as we continue to meet consumers where they choose to shop and leverage social media platforms to build awareness and drive engagement , notably with Millennial and Gen Z consumers , • Delivered an increase in purchase frequency versus prior year through enhanced and consistent brand experiences across touchpoints and reactivated lapsed customers across brands , • Achieved significant growth in China compared to both FY20 and FY19 through integrated , comprehensive brand - building strategies , bringing innovative product , marketing , and experiences to Chinese consumers ; Drove revenue gains with Chinese consumers globally compared to pre - pandemic levels ; Effectively reduced SKU counts by 30 % to 50 % and improved assortment productivity , resulting in more focused product messaging and compelling offerings , which in turn , contributed to stronger overall AUR and gross margin through higher IMUS and lower promotional activity , ● Utilized data and analytics tools across Tapestry's platform to provide us with a deeper understanding of customer behavior through measurement , enabling a ' test - and - learn ' environment that empowers our teams to more quickly respond to changes in consumer preferences and demand as well as scale opportunities across brands ;