Page 1

Exhibit 99.1 Tapestry , Inc. Reports Fiscal 2022 First Quarter Results Raises FY22 Revenue and EPS Outlook Reflecting Strong First Quarter Performance and Underlying Momentum Announces Board of Director's Approval of New $ 1 Billion Share Buyback Authorization Declares Quarterly Cash Dividend Payment of $ 0.25 per Common Share • Delivered Revenue Growth of 26 % Compared to Prior Year ; Revenue Rose 9 % Versus FY20 Pre - Pandemic Levels , Reflecting Continued Sequential Improvement • Increased Gross Margin by Approximately 140 Basis Points Year - Over - Year and Over 450 Basis Points Compared to FY20 Pre - Pandemic Levels Driven by Higher AUR at Each Brand Achieved Operating Income and Margin Ahead of Last Year , FY20 , and Expectations Link to Download Q1 2022 Earnings Presentation , Including Brand Highlights NEW YORK -- ( BUSINESS WIRE ) -- November 11 , 2021 -- Tapestry , Inc. ( NYSE : TPR ) , a leading New York - based house of modern luxury accessories and lifestyle brands including Coach , Kate Spade , and Stuart Weitzman , today reported results for the fiscal first quarter ended October 2 , 2021 . Joanne Crevoiserat , Chief Executive Officer of Tapestry , Inc. , said , " We delivered another quarter of solid performance , reflecting strong customer engagement and increased demand for our brands . Importantly , revenue trends accelerated compared to pre - pandemic levels driven by North America , as well as continued growth in Digital and China - two key drivers of long - term opportunity . Tapestry's standout results highlight our teams ' extraordinary execution and the foundational changes we've made to transform into a more consumer - centric , data - driven , and responsive organization through the pillars of our Acceleration Program . " " Overall , this performance reaffirms our conviction in our ability to fuel continued revenue and profit gains . While supply chain challenges persist due to the global pandemic , we're remaining agile and taking deliberate actions to meet growing consumer demand . The incremental share repurchase program announced today further underscores our confidence in the strength of our brands and our ability to drive sustainable growth . Taken together , we are increasing our revenue and EPS outlook for the fiscal year , reflecting our first quarter performance and strong underlying business trends . We remain sharply focused on accelerating growth and profitability and are committed to creating value for all stakeholders . " Capital Deployment Given Tapestry's first quarter results , robust balance sheet , significant free cash flow generation , and outlook for growth , the Company's Board of Directors approved an incremental $ 1 billion share repurchase program . As a result , Tapestry now expects o return approximately $ 1.25 billion to shareholders in Fiscal 2022 , a meaningful increase from the previous outlook . • Share Repurchase Programs : During the fiscal year , the Company now intends to repurchase $ 1 billion of common stock , doubling the prior expectation for $ 500 million . This includes approximately $ 250 million completed in the first quarter to repurchase roughly 6 million shares of its common stock at an average cost of $ 41.02 . The Company intends to buy - back $ 750 million worth of its common stock in the balance of the fiscal year , utilizing the remaining $ 350 million under its existing authorization and $ 400 million of its newly announced $ 1 billion program . • Dividend Payments : The Board of Directors declared a quarterly cash dividend of $ 0.25 per common share payable on December 27 , 2021 to shareholders of record as of the close of business on December 3 , 2021. We anticipate an annual dividend rate of $ 1.00 per share , or $ 250 million returned to shareholders in the fiscal year . Tapestry remains committed to increasing its dividend at a faster rate than earnings growth over time . ⚫ Debt Repayment : In addition , Tapestry expects to repay its July 2022 bonds , totaling $ 400 million , by the end of Fiscal 2022 , reflecting the Company's goal to reduce leverage through a combination of organic profit growth and debt repayment . Taken together , these actions highlight Tapestry's confidence in its ability to drive long - term , sustainable growth and commitment to enhancing value for its stakeholders . Tapestry , Inc. Fiscal First Quarter Highlights • Increased revenue by 26 % compared to last year ; compared to pre - pandemic levels , revenue grew 9 % , representing continued sequential topline improvement fueled by improvements across Digital , stores and Wholesale ; Maintained strength in Digital , with revenue growth of nearly 50 % versus prior year and over 275 % compared to pre - pandemic levels , while further improving sequential revenue trends in - stores on both a one and two - year basis ; Drove over 40 % sales growth compared to last year in North America , representing a high - teens increase against pre - pandemic levels ; realized an increase of over 25 % in Mainland China , approximately 65 % higher than pre - pandemic sales levels in FY20 ; • Expanded gross margin by approximately 140 basis points compared to the prior year and over 450 basis points versus FY20 despite industry - wide supply chain headwinds resulting in higher freight costs primarily through deliberate actions to lessen promotional activity and increase SKU productivity ; • Reinvested structural SG & A savings in the business , including increased spend on growth - oriented marketing initiatives ; and Delivered operating income growth and operating margin expansion ahead of prior year , pre - pandemic levels , and expectations . Acceleration Program Highlights In the fiscal first quarter , we continued to make meaningful progress under Tapestry's Acceleration Program by sharpening the Company's focus on the consumer , leveraging data to lead with a digital - first mindset and transforming Tapestry into a leaner and more responsive organization : • Recruited over 1.6 million new customers across channels in North America , representing an increase of more than 20 % versus prior year , with growth in stores and online ; • Drove higher repeat transactions and continued to reactivate lapsed customers across brands through a sharpened focus on the consumer ; • Realized low double - digit revenue gains with Chinese consumers globally compared to pre - pandemic levels , representing a sequential improvement from the prior quarter ; Increased global AUR across Coach , Kate Spade and Stuart Weitzman , reflecting strong brand momentum and successful structural changes to lessen promotional activity and improve assortment productivity ; Advanced Digital capabilities through significant investments in the channel , including in talent , to improve the customer experience and drive conversion , resulting in a sequential acceleration in revenue trends on a two - year basis ; and Remain on track to realize gross run - rate savings of $ 300 million in FY22 . Overview of First Quarter 2022 Tapestry , Inc. Results • Net sales totaled $ 1.48 billion for the first quarter compared to $ 1.17 billion in the prior year , representing a 26 % increase Sales rose 9 % compared to pre - pandemic levels . ⚫ Gross profit totaled $ 1.07 billion on a reported and non - GAAP basis , while gross margin was 72.2 % . This compared to prior year gross profit of $ 830 million and gross margin of 70.8 % on a reported and non - GAAP basis . • SG & A expenses totaled $ 774 million on a reported basis and represented 52.2 % of sales compared to $ 628 million and 53.6 % , respectively , in the year ago quarter . On a non - GAAP basis , SG & A expenses were $ 762 million and represented 51.4 % of sales compared to $ 601 million and 51.3 % , respectively , in the year ago period . ⚫ Operating income was $ 295 million on a reported basis , while operating margin was 19.9 % , which compares to operating income of $ 202 million and operating margin of 17.3 % in the prior year . On a non - GAAP basis , operating income was approximately $ 307 million , while operating margin was 20.7 % . This compared to operating income of $ 229 million and an operating margin of 19.5 % in the prior year . ⚫ Net interest expense was $ 16 million in the quarter compared to approximately $ 19 million in the year ago period . • Other expense was $ 2 million versus $ 3 million of income in the prior year . • Net income for the quarter was $ 227 million on a reported basis , with earnings per diluted share of $ 0.80 , which compares to $ 232 million and earnings per diluted share of $ 0.83 in the prior year period . The reported tax rate for the quarter was 18.0 % compared to ( 25.0 ) % in the prior year period . On a non - GAAP basis , net income for the quarter was $ 235 million with earnings per diluted share of $ 0.82 . This compared to non - GAAP net income of $ 161 million with earnings per diluted share of $ 0.58 in the prior year period . The non - GAAP tax rate for the quarter was 18.6 % compared to 24.1 % in the prior year period . Balance Sheet and Cash Flow Highlights • Cash , cash equivalents and short - term investments totaled $ 1.66 billion and total borrowings outstanding were $ 1.59 billion . • Inventory at quarter - end was $ 818 million versus ending inventory of $ 811 million a year ago . • Free cash flow was an outflow of $ 12 million in the first quarter compared to an inflow of $ 64 million in the prior year ; CapEx was $ 33 million versus $ 26 million in the year ago period . Non - GAAP Reconciliation During the fiscal first quarter of 2022 , Tapestry recorded certain items that decreased the Company's net income and earnings per diluted share by $ 8 million and $ 0.02 , respectively . Please refer to Financial Schedules 3 and 4 included herein for a detailed reconciliation of the Company's reported to non - GAAP results . These items included : • Acceleration Program : Pre - tax charges of $ 12 million primarily associated with share - based compensation and professional fees incurred as a result of the development and execution of the Company's comprehensive strategic initiatives . Tapestry continues to expect to incur total pre - tax charges of $ 205 million to $ 220 million over the life of the Acceleration Program , including $ 15 million to $ 30 million in remaining charges in Fiscal 2022 , primarily consisting of share- based compensation and professional fees . Fiscal Year 2022 Outlook Tapestry's Fiscal 2022 outlook is provided on a non - GAAP basis and excludes anticipated Acceleration Program charges as described in the " Fiscal Year 2022 Outlook - Non - GAAP Adjustments " section of this press release . Based on current underlying business trends , the Company is increasing its outlook for Fiscal 2022 and now expects the following : ⚫ Revenue now approaching $ 6.6 billion , an increase from the prior outlook for $ 6.4 billion . This represents mid - teens growth versus the prior year on a 52 - week , comparable basis , which would mark a record level of sales for the Company . Net interest expense of approximately $ 65 million . The Company anticipates paying down its July 2022 bonds at the end of Fiscal 2022 . • Tax rate of approximately 18.5 % assuming a continuation of current tax laws . • Weighted average diluted share count in the area of 278 million , incorporating $ 1 billion in share repurchase activity throughout Fiscal 2022 . • Earnings per diluted share of $ 3.45 to $ 3.50 , ahead of the prior guidance for $ 3.30 to $ 3.35 reflecting strong underlying business momentum and additional share repurchases . Please note , due to the ongoing dynamic nature of the Covid - 19 pandemic , financial results could differ materially from the current outlook due to a number of external events , including the potential for more widespread resurgences of the pandemic globally and resulting pressure on store traffic trends , as well as further supply chain disruptions , including potential continued production and distribution delays as well as increased costs , not contemplated in the Company's estimates . Conference Call Details The Company will host a conference call to review these results at 8:00 a.m. ( ET ) today , November 11 , 2021. Interested parties may listen to the conference call via live webcast by accessing www.tapestry.com/investors or calling 1-866-847-4217 or 1-203-518-9845 and providing the Conference ID 6831609. 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 1-800-283-4641 or 1-402-220-0851 . 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 2022 second quarter results on Thursday , February 10 , 2022. To receive notification of future announcements , please register at www.tapestry.com/investors ( " Subscribe to E - Mail Alerts " ) . About Tapestry , Inc. Our global house of brands unites the magic of Coach , kate spade new york and Stuart Weitzman . 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 . We use our collective strengths to move our customers and empower our communities , to make the fashion industry more sustainable , and to build a company that's equitable , inclusive , and diverse . Individually , our brands are iconic . Together , we can stretch what's possible . To learn more about Tapestry , please visit www.tapestry.com . For important news and information regarding Tapestry , visit the Investor Relations section of our website at www.tapestry.com/investors . In addition , investors should continue to review our news releases and filings with the SEC . We use each of these channels of distribution as primary channels for publishing key information to our investors , some of which may contain material and previously non - public information . 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 2022 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 , statements regarding the