Slides
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2 This presentation contains certain “forward - looking statements” based on management’s current expectations. Forward - looking stat ements include, but are not limited to, the statements under “Financial Outlook,” statements regarding long term performance, statements regarding the Company’s capital deployment plans, including ant icipated annual dividend rates and share repurchase plans, and statements that can be identified by the use of forward - looking terminology such as "may," “can,” “if,” "continue," “project,” “assumption,” "sh ould," "expect," “confidence,” “goals,” “trends,” “anticipate,” "intend," "estimate," “on track,” “future,” “well positioned to,” “plan,” “potential,” “position,” “deliver,” “believe,” “seek,” “see,” “will,” “would, " “ uncertain,” “achieve,” “strategic,” “growth,” “target,” "guidance," "forecast," “outlook,” “commit,” “innovation,” “drive,” “leverage,” “generate,” “enhance,” “effort,” “progress,” “confident,” “amplify,” “we can stre tch what’s possible,” similar expressions, and variations or negatives of these words. They include, without limitation, statements regarding future anticipated capital expenditure. Statements herein regarding ou r b usiness 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 - look ing statements. Forward - looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on o ur 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 re late 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 re sul ts 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 ca use 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 international trade disputes and the risks associated with potential changes to international trade agreements, including the imposition or threat of imposition of new or increased tariffs or retaliatory tariffs implemented by countries where our manufacturers are located as well as the imposition of additional duties on the products we import; ▪ The impact of economic conditions, recession and inflationary measures; ▪ The risks associated with operating in international markets, including currency fluctuations and changes in economic or political conditions in the markets where we sell or source our products; ▪ The ability to anticipate consumer preferences and retain the value of our brands and respond to changing fashion and retail trends in a timely manner, including our ability to execute on our e - commerce and digital strategies; ▪ The impact of tax and other legislation; ▪ The ability to successfully implement the initiatives under our 2028 Amplify growth strategy; ▪ The effect of existing and new competition in the marketplace; ▪ The ability to successfully identify and implement any sales, acquisitions or strategic transactions on attractive terms or at all, including our recent sale of the Stuart Weitzman Business; ▪ The ability to achieve intended benefits, cost savings and synergies from acquisitions; ▪ The ability to control costs; ▪ The effect of seasonal and quarterly fluctuations on our sales or operating results; ▪ The risk of cybersecurity threats and privacy or data security breaches; ▪ The ability to satisfy outstanding debt obligations or incur additional indebtedness; ▪ The risks associated with climate change and other corporate responsibility issues; ▪ The ability to protect against infringement of our trademarks and other proprietary rights; and ▪ The impact of pending and potential future legal proceedings. Please refer to the Company’s latest Annual Report on Form 10 - K and its other filings with the Securities and Exchange Commissio n 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.
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3 Purpose Stretch What’s Possible [breaking boundaries] [continuous innovation] Purpose
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4 Built by go - getters who saw unseen needs and took daring leaps, we channel that same passion today, doing what it takes to make the dream happen and refusing to settle for anything less. DEDICATED TO THE DREAM From how we source, to how we sew, to how we sell, we insist on the highest integrity at each step, doing things right, no matter what; because when it’s hard is when it matters most. HOLD TO HIGH STANDARDS The kind of ingenuity that turns heads, that turns objects into icons, comes only from the places few have looked before — so diverse perspectives are the greatest assets we have. EMBRACE DIFFERENCE BY DESIGN Art and science. Design and data. Delight and discipline. For us, in the balance of these forces is where breakthroughs lie, and where our name was built. BREAK THROUGH WITH MAGIC & LOGIC At Tapestry, we create the roof under which our people can share knowledge and learning with each other, and we set the foundation that frees our brands to shine on their own. STAND TALLER TOGETHER Values
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5 STRETCH speaks to how tensions challenge and pull us in new directions. These tensions compel us to look beyond ourselves and embrace n ew perspectives, experiences and ideas. WHAT’S POSSIBLE refers to what happens when we embrace the creative tensions within each other, in our industry and in society. We push past bou ndaries, pull out the unexpected and expand what’s possible. Vision Give more people the power to bring their own style and story into the world.
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6 Figures as of FY25, excluding Stuart Weitzman ~$7B NET SALES 1,291 DIRECTLY OPERATED STORES ~60 COUNTRIES ~18,000 EMPLOYEES
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7 DRIVE NEW CUSTOMER ACQUISITION LEAD WITH LEATHERGOODS GROW IN KEY MARKETS OF NORTH AMERICA, GREATER CHINA, AND EUROPE FUTURE - PROOF OUR GROWTH THROUGH TALENT AND CULTURE Our Amplify Growth Strategies Build EMOTIONAL CONNECTIONS With Consumers Fuel Fashion INNOVATION & Product EXCELLENCE Deliver COMPELLING EXPERIENCES to Drive Global Growth Ignite the POWER OF OUR PEOPLE
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8 ICONIC BRANDS ATTRACTIVE TAM & CORE CATEGORIES GLOBAL, FLEXIBLE DTC MODEL CONSUMER - LED & DATA - DRIVEN CAPABILITIES TALENTED & PROVEN TEAM AGILE SUPPLY CHAIN Our Competitive Advantages
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Iconic Brands
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10 Attractive TAM Note: Total addressable population sourced from Euromonitor and reflects 18 – 64 - year - old qualified females. Point of Market Entry reflects 18 - to - 27 - year - old qualified females. WE BRING Expressive & Uplifting Luxury to Very Large Audiences 275M 1.9B 8.2B FY25 ADDRESSABLE POPULATION GLOBAL POPULATION GLOBAL ADDRESSABLE POPULATION POINT OF MARKET ENTRY (AGED 18 - 27)
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11 Attractive Core Categories Source: Euromonitor FY25, Bain Altagamma Luxury Goods World Wide Market Study. All figures have been aligned to the TPR fiscal calendar. Includes handbags/SLGs and footwear. BAGS/SLGS FOOTWEAR GLOBAL PREMIUM MARKET $B Handbags, SLGs & FTW 11 12 13 14 15 17 19 23 27 27 27 29 31 33 35 38 40 43 46 50 52 57 68 72 73 73 22 22 22 23 23 23 23 23 24 21 20 22 24 26 27 26 27 28 29 30 27 26 30 31 32 32 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 33 34 35 37 38 40 43 46 50 48 47 52 55 59 62 FY00 67 71 75 80 79 64 98 103 105 FY25 105 83 5% CAGR
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12 Global, Flexible DTC Model Figures as of FY25. Excludes Stuart Weitzman. Handbags 56% Accessories 27% Footwear 6% Other 11% Category North America 64% Rest of World 2% Other Asia 13% Europe 6% Greater China 15% Geography Stores 57% Wholesale & Other 13% Digital 30% Channel ▪ Attractive and high - margin categories ▪ Resilient & durable demand given emotional & functional needs these categories fulfill ▪ Global leader in core categories with permission to play in lifestyle ▪ Growing and increasingly younger customer base in North America ▪ Strong brand positioning in China, a key long - term opportunity ▪ Momentum in Europe with significant opportunities to grow in the region ▪ Brands own relationships with consumers ▪ Direct engagement yields unique consumer insights ▪ Differentiated digital engagement capabilities
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CUSTOMER EXPERIENCE MARKETING OPERATIONS PRICING ASSORTMENT PLANNING DESIGN 13 Consumer - led & Data - driven Capabilities Embedding Consumer Insights, Data, and AI ACROSS THE VALUE CHAIN
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14 Agile Supply Chain Consistently Delivering Craftsmanship at Scale Global Scale Global sourcing, manufacturing, and distribution network that ensures quality and product availability Agility & Speed Flexible operations that adapt quickly to demand shifts and trends, enabling faster delivery and shorter lead times Diversified Footprint Regional supplier and logistics balance that reduces single - country risk and supports international growth Best - in - class Talent & Strategic Relationships Deep supply chain expertise that ensures product quality and secures capacity with long - standing supplier partnerships Technology & AI Supply chain with AI - powered data infrastructures across demand forecasting, inventory optimization, and factory allocation
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Scott Roe CHIEF FINANCIAL OFFICER & CHIEF OPERATING OFFICER Todd Kahn CHIEF EXECUTIVE OFFICER & BRAND PRESIDENT, COACH Eva Erdmann CHIEF EXECUTIVE OFFICER & BRAND PRESIDENT, KATE SPADE Sandeep Seth CHIEF GROWTH OFFICER & PRESIDENT, TAPESTRY INT’L David Howard CHIEF LEGAL OFFICER & SECRETARY Denise Kulikowsky CHIEF PEOPLE OFFICER Peter Charles CHIEF SUPPLY CHAIN OFFICER Yang Lu CHIEF INFORMATION & DIGITAL OFFICER Joanne Crevoiserat CHIEF EXECUTIVE OFFICER 15 Talented & Proven Team
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Differentiated company with scaled competitive advantages and strong momentum in an attractive category Proven strategies and consistent execution to drive durable , organic growth Powerful brands and data - driven, direct - to consumer business model that fuels consumer insights and agility Disciplined financial operations , driving healthy margins, resilient balance sheet, robust cash flow, and compounding earnings growth Track record and commitment to strong shareholder returns and value creation 16 FIX – similar to brand page? Our Investment Thesis is Compelling
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Results Overview & Financial Outlook
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$580 million 200bps $1.7 billion 35% 16% 18 Q1 Highlights Outperformed expectations, marking a powerful start to the next chapter of growth DELIVERED RECORD REVENUE OF DROVE GLOBAL SALES (1) GROWTH OF ACQUIRED MORE THAN 2.2 million EXPANDED OPERATING MARGIN (1) BY ACHIEVED $1.38 IN EPS (1 ) REPRESENTING RETURNED TO SHAREHOLDERS OVER WITH DOUBLE - DIGIT GROWTH IN NORTH AMERICA, GREATER CHINA, AND EUROPE VERSUS PRIOR YEAR, FUELED BY 21% GROWTH AT COACH (EX. FX) NEW CUSTOMERS GLOBALLY, DRIVEN BY AN INCREASE IN GEN Z DRIVEN BY OPERATIONAL IMPROVEMENTS GROWTH VERSUS PRIOR YEAR, EXCEEDING EXPECTATIONS SUPPORTED BY ROBUST CASH FLOW GENERATION (1) Pro forma Net sales and related growth rates exclude Net sales of the Stuart Weitzman business. Operating Profit and Earnings Pe r Share (“EPS”) provided on a non - GAAP basis. Refer to Appendix for GAAP to non - GAAP reconciliations.
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19 Revenue Trends by Geography: FY26 Q1 Growth rates shown on a pro forma constant currency basis, which excludes the net sales of the Stuart Weitzman business. North America Q1 +18% VS. LY Revenue accelerated led by 26% growth at Coach, with gross and operating margin expansion in the region Greater China Q1 +19% VS. LY Growth ahead of expectations, with strength in Digital Europe Q1 +32% VS. LY Growth continued with strength across all channels, driven by increased local consumer spend and strong new customer acquisition, notably with Gen Z Other Asia Q1 +3% VS. LY Growth in the region led by Australia, New Zealand, and South Korea Japan Q1 - 10% VS. LY Sales declined, as expected, amid a challenging consumer backdrop
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20 JOANNE CREVOISERAT, CHIEF EXECUTIVE OFFICER “At our investor day in September, we introduced our Amplify plan – a bold vision to bring Tapestry’s iconic brands to new generations of consumers and drive durable growth . Our first quarter outperformance marked a powerful start to this next chapter. From this position of strength, we are raising our full year outlook , reinforcing that our advantages are structural and sustainable. We remain confident in our bright future, with a proven track record and an unwavering commitment to deliver compounding growth and long - term shareholder value.”
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21 P&L Overview by Brand: FY26 Q1 (1) Pro forma Net sales and related growth rates exclude Net sales of the Stuart Weitzman business on a constant currency bas is. Financials provided on a non - GAAP basis (full reconciliation available in appendix). The sale of the Stuart Weitzman Business was completed in August 2025. TAPESTRY COACH KATE SPADE $1.69B $1.43B $260M +16% vs. LY +21% vs. LY -9% vs. LY $1.29B $1.13B $167M 76.5% margin 78.8% margin 64.1% margin $939M $637M $161M 55.6% of sales 44.6% of sales 61.9% of sales $354M $489M $6M 20.9% margin 34.2% margin 2.2% margin EARNINGS PER $1.38 DILUTED SHARE +35% vs. LY PRO FORMA NET SALES (1) GROSS PROFIT SG&A EXPENSES OPERATING INCOME
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22 Coach Highlights: FY26 Q1 Delivered revenue growth of 21% at constant currency, with double - digit gains in North America (+26%), Greater China (+21%), and Europe (+39%), highlighting the growing desire for the brand and its distinctive Expressive Luxury positioning Welcomed over 1.7 million new customers globally, led by Gen Z who continue to transact at higher AURs; achieved growth in new customer acquisition and retention among Gen Z and non - Gen Z cohorts Fueled strong double - digit increase in leathergoods, powered by multiple iconic platforms, including outperformance in the Tabby, New York, and Teri families, while the Kisslock Bag remained a highly coveted and viral success Drove mid - teens global AUR growth, led by North America, while units also rose despite lower promotional activity, demonstrating the compelling value and craftsmanship Coach offers in the luxury market Achieved double - digit growth in footwear, fueled by sneakers, building lifetime value with the brand’s target Gen Z consumer Drove cultural relevance through storytelling that highlights the brand purpose and product offering, with the “Revive Your Courage” and “Not Just for Walking” campaigns driving momentum across markets
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23 Kate Spade Highlights: FY26 Q1 Achieved sequential improvement in topline trends ; revenue decline d 9% as actions to reset the brand for durable and profitable growth are underway Drove progress against key KPIs and areas of strategic focus, with a lift in consideration and improvement in Gen Z acquisition trends, driven by handbags Committed to fueling brand heat and through Uplifting Luxury positioning, highlighted by the Fall campaign, “Spark Something Beautiful,” which delivered strong organic engagement as Kate Spade’s most watched video on social channels and drove higher brand consideration and purchase intent Drove success in handbag blockbusters led by the Duo, 454, Deco and Kayla families, which outperformed the balance of the offering with higher AUR and strong Gen Z acquisition Advanced strategy to bring more focus to the assortment, which includes a planned handbag style count reduction of over 40% by Holiday Remained focused on maximizing omni - channel cohesiveness, evidenced by higher full price selling in the quarter – a building block to scale in a healthy way
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24 Raised Fiscal 2026 Revenue and Earnings Outlook CURRENT FY26 OUTLOOK FY26 Q2 EXPECTATIONS REVENUE In the area of $7.3 billion n/a REVENUE GROWTH (1) Pro forma growth of 7% to 8%, including a 70 bps FX tailwind Pro forma growth in the area of 7%, including an FX tailwind of nearly 50 bps GROSS MARGIN Decline in the area of 50 bps due to a 230 bps headwind from incremental tariff and duties Decline approximately 50 bps due entirely to tariff and duty headwinds SG&A EXPENSE At least 100 bps of expense leverage Over 100 bps of expense leverage OPERATING MARGIN Expansion in the area of 50 bps Expansion of roughly 80 bps NET INTEREST EXPENSE Approximately $65 million n/a TAX RATE Approximately 18% In the area of 20% SHARE COUNT Approximately 212 million shares n/a DILUTED ADJUSTED EPS $5.45 to $5.60, representing 7% to 10% growth compared to the prior year Approximately $2.15, representing high - single - digit growth compared to the prior year FREE CASH FLOW $1.3 billion n/a CAPEX & CLOUD COMPUTING In the area of $200 million n/a Embeds U.S. trade and tax policies as of November 1, 2025 and no implementation of OECD’s proposed Pillar II guidance; Includes foreign currency exchange rates using spot rates at the t ime of forecast; Assumes no material worsening of inflationary pressures or consumer confidence; Excludes one - time costs associated with the sale of Stuart Weitzman, which closed on August 4, 2025, as well as the brand’s results for the period under ownership in Fiscal 2026. The exclusion of Stuart Weitzman is expected to be immaterial to operating profit and earnings per diluted share in the fiscal year; Excludes non - recurring costs associated with the Company’s organizational efficie ncy efforts. (1) Revenue growth excludes net sales of the Stuart Weitzman Business from Fiscal Year 2025 and Fiscal Year 2026.
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0 1 REINVEST IN BRANDS & BUSINESS 02 RETURN CAPITAL VIA DIVIDEND UNDERPINNING THESE PRIORITIES IS A FIRM COMMITMENT TO A SOLID INVESTMENT GRADE RATING AND LONG - TERM GROSS LEVERAGE TARGET OF BELOW 2.5X SHARE REPURCHASE PROGRAM STRATEGIC PORTFOLIO MANAGEMENT CASH FLOW GENERATION & BALANCE SHEET FLEXIBILITY FOR VALUE CREATION FOUNDATIONAL COMMITMENTS 25 Capital Allocation Priorities Focused on Driving Growth, Profitability, and Shareholder Value 03 04
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26 Committed to Creating Value for Shareholders ▪ Continue to anticipate an annual dividend of $1.60, or approximately $300 million returned to shareholders in Fiscal 2026 ▪ Goal over time to increase the dividend at least in line with earnings SHARE REPURCHASES ▪ Expect to buy back approximately $1.0 billion in common stock in Fiscal 2026, an increase from original outlook of $800 million ▪ Spent $500 million in the first quarter to repurchase over 4.7 million shares of common stock at an average cost of approximately $106 per share DIVIDEND PAYMENTS Expect to return $1.3 billion or 100% of anticipated adjusted free cash flow in Fiscal 2026
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Overview by Brand
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29 COACH’S BRAND PURPOSE IS TO INSPIRE PEOPLE TO EXPRESS THEIR MANY SELVES AND HAVE THE COURAGE TO BE REAL . THIS PURPOSE IS GROUNDED IN CURRENT CONSUMER TRUTHS — THE MANY POSSIBILITIES OF SELF AND THE CHANGING NATURE OF “REAL.” WITH EVERY PRODUCT AND EXPERIENCE COACH CREATES, WE AIM TO INSPIRE OUR CONSUMERS TO FEEL CONFIDENT IN EXPLORING ALL OF WHO THEY ARE. BECAUSE BY COURAGEOUSLY AND HONESTLY SHOWING UP AS OUR FULL SELVES, WE INSPIRE OTHERS TO DO THE SAME, CREATING A POSITIVE IMPACT ON THE WORLD.
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30 As of FY25. $5.6B NET SALES 930 DIRECTLY OPERATED STORES ~50 COUNTRIES 12,300 EMPLOYEES
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31 Coach Revenue Breakdown As of FY25. Handbags 58% Accessories 27% Footwear 6% Other 9% Category North America 61% Rest of World 2% Other Asia 14% Europe 6% Greater China 17% Geography Direct to Consumer 87% Wholesale & Other 13% Channel
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32 Coach Growth Strategies CREATE EMOTIONAL CONNECTIONS THROUGH BRAND BUILDING LEAD WITH INNOVATION THAT ENCOURAGES SELF - EXPRESSION INNOVATE OMNICHANNEL EXPERIENCES
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34 S I N C E O U R B E G I N N I N G I N 1 9 9 3 , W E ’ V E B E L I E V E D T H AT S T Y L E I S A L A N G U A G E O F O P T I M I S M – W E L C O M I N G , T H O U G H T F U L , A N D D E L I G H T F U L LY U N E X P E C T E D . W E D E S I G N N O T O N LY W H AT ’ S B E A U T I F U L T O S E E , B U T W H AT F E E L S G O O D T O L I V E I N A N D E N J O Y T O G E T H E R. T O D AY, A S A G L O B A L L I F E S T Y L E B R A N D A C R O S S H A N D B A G S , C L O T H E S , S H O E S , J E W E L R Y A N D M O R E , W E A I M T O B R I N G J O Y T O E V E R Y D AY M O M E N T S – T H R O U G H A P O P O F C O L O R , A N U N E X P E C T E D D E TA I L , O R A T O U C H O F P L AY F U L V E R S AT I L I T Y. B E C A U S E I N E V E R Y T H I N G T H AT W E C R E AT E , W E I G N I T E A S PA R K T H AT C A N T U R N E V E R Y D AY I N T O S O M E T H I N G M O R E B E A U T I F U L .
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35 As of FY25. $ 1.2B NET SALES 360 DIRECTLY OPERATED STORES ~ 40 COUNTRIES 4,000 EMPLOYEES
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36 Kate Spade Revenue Breakdown As of FY25. Handbags 52% Accessories 22% Footwear 5% Other 21% Category Direct to Consumer 84% Wholesale & Other 16% Channel North America 78% Rest of World 3% Other Asia 10% Europe 5% Greater China 4% Geography
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37 Kate Spade Growth Strategies FUEL BRAND HEAT & DRIVE CUSTOMER ACQUISITION BUILD HANDBAG BLOCKBUSTERS MAXIMIZE OMNICHANNEL COHESIVENESS
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Corporate Responsibility
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39 Ambition: To Make Every Beautiful Choice a Responsible Choice CREATE PRODUCTS WITH CARE SUSTAIN THE PLANET POWER OF OUR PEOPLE UPLIFT OUR COMMUNITIES The Fabric of Change
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Appendix
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41 Management utilizes 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 . 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 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 . Due to the sale of Stuart Weitzman on August 4 , 2025 , the Company presents Pro forma sales and related growth rates, which exclude Stuart Weitzman’s Net sales from both the current and prior year periods . The segment operating income and supplemental segment SG&A expenses presented in the Consolidated Segment Data, and GAAP to non - GAAP Reconciliation Table, as well as SG&A expense ratio, and operating margin, are considered non - GAAP measures . These measures have been presented both including and excluding acquisition and divestiture costs and organizational efficiency costs for the three months ended September 27 , 2025 ; meanwhile, they have been presented both including and excluding acquisition costs for the three months ended September 28 , 2024 . In addition, Operating Income (loss), Interest expense, Other expense (income), Provision for income taxes, Net income (loss), and Net Income (loss) per diluted common share, have been presented both including and excluding acquisition and divestiture costs and organizational efficiency costs for the three months ended September 27 , 2025 ; meanwhile, they have been presented both including and excluding acquisition costs for the three months ended September 28 , 2024 . The Company also presents Adjusted Free Cash Flow, which is a non - GAAP measure, and is calculated by taking Net cash provided by (used in) operating activities less Purchases of property and equipment, plus Items affecting comparability including Acquisition and Divestiture Costs and Organizational Efficiency Costs , to the extent they were cash in nature and recorded through SG&A, and Changes in operating assets and liabilities of items affecting comparability . The Company believes that Adjusted Free Cash Flow is an important liquidity measure of the cash that is available after capital expenditures for operational expenses, investment in our business and items affecting comparability . The Company believes that Adjusted Free Cash Flow is useful to investors because it measures the Company’s ability to generate or use cash . Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet, invest in future growth and return capital to stockholders .
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42 Selected Financial Results (unaudited) For the quarter ended September 27, 2025 and September 28, 2024 (1) Pro forma Net sales and related growth rates exclude Net sales of the Stuart Weitzman Business on a reported and constant cur ren cy basis, in both periods presented. (2) Refer to reconciliation between GAAP and Non - GAAP measures. in USD millions, except per share data, unaudited September 27, 2025 September 28, 2024 % Change Constant Currency % Change Net sales 1,704.6 1,507.5 13% 12% Pro Forma Net sales (1) 1,690.0 1,453.8 16% 16% Gross profit 1,300.5 1,134.9 15% Gross margin 76.3% 75.3% 100 bps Non-GAAP Gross profit (2) 1,292.8 1,134.9 14% Non-GAAP Gross margin (2) 76.5% 75.3% 120 bps Operating income 328.2 252.0 30% Operating margin 19.3% 16.7% 260 bps Non-GAAP Operating income (2) 353.9 285.4 24% Non-GAAP Operating margin (2) 20.9% 18.9% 200 bps Earnings per diluted share 1.28 0.79 61% Non-GAAP Earnings per diluted share (2) 1.38 1.02 35% Quarter Ended
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43 Detail to Net Sales For the quarter ended September 27, 2025 and September 28, 2024 (1) Pro Forma Net sales and related growth rates exclude Net sales of the Stuart Weitzman Business on a reported and constant cur re ncy basis. in millions, unaudited September 27, 2025 September 28, 2024 % Change Constant Currency % Change Coach $1,429.8 $1,170.6 22 % 21 % Kate Spade 260.2 283.2 (8)% (9)% Stuart Weitzman 14.6 53.7 (73)% (73)% Total Tapestry 1,704.6 1,507.5 13 % 12 % Total Tapestry Pro Forma (1) 1,690.0 1,453.8 16 % 16 % Quarter Ended
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44 Consolidated Segment Data and GAAP to Non - GAAP Reconciliation For the quarter ended September 27, 2025 (1) For the first quarter of fiscal 2026, prior to the completion of the sale on August 4, 2025, Stuart Weitzman Net sales were $ 14. 6 million and Cost of sales were $6.9 million. (*) Relates to costs incurred by the Company in connection with the divestiture of the Stuart Weitzman Business. (**) Relates to organizational efficiency costs, primarily related to technology costs and severance costs. in millions, except per share data; unaudited GAAP BASIS (AS REPORTED) ACQUISITION AND DIVESTITURE COSTS (*) ORGANIZATIONAL EFFICIENCY COSTS (**) NON-GAAP BASIS (EXCLUDING ITEMS) Coach $1,126.0 $ - $ - $1,126.0 Kate Spade 166.8 - - 166.8 Stuart Weitzman (1) 7.7 7.7 - 0.0 Gross profit 1,300.5 7.7 - 1,292.8 Coach 638.6 - 1.2 637.4 Kate Spade 161.2 - 0.2 161.0 Stuart Weitzman 8.7 8.7 - - Corporate 163.8 13.7 9.6 140.5 Selling, general and administrative expenses 972.3 22.4 11.0 938.9 Coach 487.4 - (1.2) 488.6 Kate Spade 5.6 - (0.2) 5.8 Stuart Weitzman (1.0) (1.0) - - Corporate (163.8) (13.7) (9.6) (140.5) Operating income (loss) 328.2 (14.7) (11.0) 353.9 Interest expense, net 12.8 (0.1) - 12.9 Other (income) expense (3.3) 0.1 - (3.4) Provision for income taxes 43.9 (1.3) (2.1) 47.3 Net income (loss) 274.8 (13.4) (8.9) 297.1 Net income (loss) per diluted common share 1.28 (0.06) (0.04) 1.38
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45 Consolidated Segment Data and GAAP to Non - GAAP Reconciliation For the quarter ended September 28, 2024 (*) Relates to costs incurred by the Company in connection with the previously terminated Capri Acquisition. in millions, except per share data; unaudited GAAP BASIS (AS REPORTED) ACQUISITION COSTS (*) NON-GAAP BASIS (EXCLUDING ITEMS) Coach $916.1 $ - $916.1 Kate Spade 189.6 - 189.6 Stuart Weitzman 29.2 - 29.2 Gross profit 1,134.9 - 1,134.9 Coach 529.5 - 529.5 Kate Spade 162.6 - 162.6 Stuart Weitzman 36.6 - 36.6 Corporate 154.2 33.4 120.8 Selling, general and administrative expenses 882.9 33.4 849.5 Coach 386.6 - 386.6 Kate Spade 27.0 - 27.0 Stuart Weitzman (7.4) - (7.4) Corporate (154.2) (33.4) (120.8) Operating income (loss) 252.0 (33.4) 285.4 Interest expense, net 30.7 37.4 (6.7) Provision for income taxes 39.1 (15.8) 54.9 Net income (loss) 186.6 (55.0) 241.6 Net income (loss) per diluted common share 0.79 (0.23) 1.02
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46 Adjusted Free Cash Flow GAAP to Non - GAAP Reconciliation Adjusted Free Cash Flow is calculated by taking Net cash provided by (used in) operating activities less Purchases of propert y a nd equipment, plus Items affecting comparability of Acquisition and Divestiture Costs and Organizational Efficiency Costs, to the extent they were cash in nature and recorded through SG&A, and Changes in operating assets and liabilities of items affecting compar abi lity. For the quarter ended September 27, 2025 and September 28, 2024 in millions, unaudited September 27, 2025 September 28, 2024 Net cash provided by (used in) operating activities (GAAP) $112.6 $119.5 Purchases of property and equipment (32.4) (25.6) Items affecting comparability - Acquisition and Divestiture Costs 14.6 70.8 Items affecting comparability - Organizational Efficiency Costs 8.3 - Changes in operating assets and liabilities of items affecting comparability Accrued liabilities (0.4) (130.7) Other assets - 1.5 Other liabilities - - Accounts payable - 5.5 Adjusted Free Cash Flow (Non-GAAP) 102.7 41.0 Quarter Ended
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