Slides
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2 This presentation contains certain “forward-looking statements” based on management’s current expectations. Forward -looking statements 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,” "should," "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 stretch what’s possible,” similar expressions, and variations or negatives of these words. They include, without limitation, statements regarding future anticipated capital expenditures. Statements herein regarding o ur 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 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 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 re sults 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 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. In addition, purchases of shares of the Company’s common stock will be made subject to market conditions and at prevailing ma rket prices. Please refer to the Company’s latest Annual Report on Form 10-K 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.
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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 Va l u es
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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 new 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 boundaries, 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 INNOV ATION & 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 V ery 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 EXPERIENCEMARKETINGOPERATIONSPRICINGASSORTMENT PLANNINGDESIGN 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 Ya ng 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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$1.0 billion390bps $2.5 billion 34% 18% 18 Q2 Highlights Achieved record quarterly revenue, operating profit, and EPS with growth exceeding expectations DELIVERED REVENUE OF DROVE GLOBAL SALES(1) GROWTH OF ACQUIRED OVER 3.7 million EXPANDED OPERATING MARGIN(1) BY ACHIEVED $2.69 IN EPS(1) REPRESENTING GENERATED OVER WITH DOUBLE-DIGIT GROWTH IN NORTH AMERICA, EUROPE, AND TOTAL APAC VERSUS PRIOR YEAR, FUELED BY 25% GROWTH AT COACH NEW CUSTOMERS GLOBALLY, DRIVEN BY AN INCREASE IN GEN Z DRIVEN BY GROSS MARGIN EXPANSION AND SG&A LEVERAGE GROWTH VERSUS PRIOR YEAR, EXCEEDING EXPECTATIONS IN ADJUSTED FREE CASH FLOW(1) IN THE QUARTER (1) Pro forma Net sales and related growth rates exclude Net sales of the Stuart Weitzman business. Operating Profit, Earnings Per Share (“EPS”), and Adjusted Free Cash Flow 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 Q2 Growth rates shown on a pro forma constant currency basis, which excludes the net sales of the Stuart Weitzman business. North America Q2 +17% VS. LY Growth led by 27% increase at Coach, with gross and operating margin expansion in the region Greater China Q2 +34% VS. LY Broad-based growth across channels and continued market share gains Europe Q2 +22% VS. LY Growth continued driven by increased local consumer spend, which was fueled by strong new customer acquisition, notably with Gen Z Other Asia Q2 +12% VS. LY Growth in the region led by Australia and South Korea Japan Q2 -6% VS. LY Sales declined, as expected, driven by an intentional pullback in promotions
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20 JOANNE CREVOISERAT, CHIEF EXECUTIVE OFFICER “Our second quarter outperformance reflects the compounding impact of our Amplify strategy, driving deeper consumer engagement, accelerated growth, and record results. This holiday season, our talented teams brought creativity, craftsmanship, and value to consumers around the world, building new and lasting connections that fuel enduring brand desire and demand. As we move forward, we do so with momentum and confidence. By harnessing our proven strategies and structural advantages, we are raising our outlook for the fiscal year, reinforcing our commitment to driving durable growth and long-term value creation.”
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TAPESTRY COACH KATE SPADE $2.50 B $2.14 B $360 M +18% vs. LY +25% vs. LY -14% vs. LY $1.89 B $1.67 B $219 M 75.5% margin 77.9% margin 61.0% margin $1.17 B $823 M $203 M 46.7% of sales 38.4% of sales 56.4% of sales $720 M $847 M $17 M 28.8% margin 39.5% margin 4.6% margin EARNINGS PER $2.69 DILUTED SHARE +34% vs. LY PRO FORMA NET SALES1 GROSS PROFIT SG&A EXPENSES OPERATING INCOME 21 P&L Overview by Brand: FY26 Q2 1 Pro forma Net sales and related growth rates exclude Net sales of the Stuart Weitzman business on a constant currency basis. Financials provided on a non-GAAP basis (full reconciliation available in appendix). The sale of the Stuart Weitzman Business was completed in August 2025.
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22 Coach Highlights: FY26 Q2 Delivered exceptional revenue growth of 25%, with double-digit gains in North America (+27%), Greater China (+37%), and Europe (+26%) Acquired 2.9 million new customers globally, led by continued growth with Gen Z, while driving gains with existing customers, reflecting broad and increasing brand desire and reach Delivered compelling innovation across multiple iconic platforms, with outperformance in the Tabby family, New York family, including the Brooklyn and Empire, and Teri, Juliet, and Laurel Fueled accelerated growth in core leathergoods, with both average unit retail and unit volumes increasing at mid-teens rates — demonstrating diversified drivers of sustainable growth and the relevance of the brand’s distinctive Expressive Luxury positioning Achieved high-single-digit growth in footwear, fueled by the continued success of the Soho family and the launch of the Margot family, building lifetime value with the brand’s target Gen Z consumer Increased marketing spend by approximately 40% versus prior year, including a shift toward top-of-funnel brand building to drive long-term demand and customer acquisition Drove cultural relevance through storytelling that highlights the brand purpose and product offering, with “The Gift for New Adventures” campaign driving momentum across key markets
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23 Kate Spade Highlights: FY26 Q2 Revenue declined 14%, as expected, reflecting actions to reset the brand for durable and profitable growth, which included a deliberate pullback in promotional activity Drove progress against stated KPIs and areas of strategic focus, with a lift in consideration and improvement in Gen Z acquisition trends, driven by handbags Reinforced Uplifting Luxury positioning through “Spark Something Beautiful” campaign, which supported an improvement in purchase intent among Gen Z consumers Drove success in handbag blockbusters led by the Duo, Kayla, Margot, and 454, which outperformed the balance of the offering with higher AUR and strong Gen Z acquisition Brought more focus to the assortment through a 40% reduction in handbag styles, supporting lower promotional activity, higher full-price selling, and handbag AUR growth overall Remained focused on maximizing compelling omni-channel customer experiences; tested updates to the visual experience and merchandising approach in 10 store locations, which delivered a lift in conversion and ADT and outperformance versus the balance of the chain, with plans to roll out the format to additional locations in North America by year-end
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24 Raised Fiscal 2026 Revenue, Margin, EPS, and Cash Flow Outlook PRIOR FY26 FULL YEAR OUTLOOK CURRENT FY26 FULL YEAR OUTLOOK FY26 Q3 OUTLOOK REVENUE In the area of $7.3 billion Over $7.75 billion n/a PRO FORMA REVENUE GROWTH1 6% to 7% growth, excluding 70 bps FX tailwind 14% growth, excluding 70 bps FX tailwind 14% growth, excluding over 150 bps FX tailwind REVENUE GROWTH1 BY BRAND Coach: low -double -digit growth Kate Spade: high -single digit decline Coach: high -teens percentage growth Kate Spade: high -single digit decline Coach: high -teens percentage growth Kate Spade: high -single -digit decline GROSS MARGIN Decline in the area of 50 bps due to a 230 bps headwind from incremental tariff and duties Increase in the area of 20 bps, led by stronger - than-expected operational expansion Decline due entirely to tariff -related headwinds SG&A EXPENSE At least 100 bps of leverage Roughly 160 bps of leverage Over 150 bps of leverage OPERATING MARGIN Expansion in the area of 50 bps Expansion of approximately 180 bps Expansion in the area of 70 bps NET INTEREST EXPENSE Approximately $65 million Approximately $65 million n/a TAX RATE Approximately 18% Approximately 17% Roughly 14% SHARE COUNT Approximately 212 million shares Approximately 211 million shares n/a DILUTED ADJUSTED EPS $5.45 to $5.60, up 7% to 10% vs. prior year $6.40 to $6.45, up over 25% vs. prior year Approximately $1.25 , up over 20% vs. prior year FREE CASH FLOW $1.3 billion In the area of $1.5 billion n/a CAPEX & CLOUD COMPUTING In the area of $200 million In the area of $200 million n/a Embeds U.S. trade and tax policies as of February 1, 2026, including the impact of OECD’s Pillar Two guidance; Includes foreign currency exchange rates using spot rates at the time 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; and Excludes non-recurring costs associated with the Company’s organizational efficiency efforts. 1 Pro forma revenue growth rates exclude Net sales of the Stuart Weitzman business on a constant currency basis.
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01 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 CREATIONFOUNDATIONAL COMMITMENTS 25 Capital Allocation Priorities Focused on Driving Growth, Profitability, and Shareholder Value 03 04
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26 Committed to Creating V alue 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 $1.2 billion in common stock in Fiscal 2026, an increase from prior outlook of $1.0 billion Spent $400 million in the second quarter to repurchase approximately 3.6 million shares of common stock – for a total of $900 million or approximately 8.3 million shares repurchased at an average stock price of $109 year-to-date DIVIDEND PAYMENTS On track to return $1.5 billion or 100% of expected 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 SINCE OUR BEGINNING IN 1993, WE’VE BELIEVED THAT STYLE IS A LANGUAGE OF OPTIMISM – WELCOMING, THOUGHTFUL, AND DELIGHTFULLY UNEXPECTED. WE DESIGN NOT ONLY WHAT’S BEAUTIFUL TO SEE, BUT WHAT FEELS GOOD TO LIVE IN AND ENJOY TOGETHER . TODAY , AS A GLOBAL LIFESTYLE BRAND ACROSS HANDBAGS, CLOTHES, SHOES, JEWELRY AND MORE, WE AIM TO BRING JOY TO EVERYDAY MOMENTS – THROUGH A POP OF COLOR, AN UNEXPECTED DETAIL, OR A TOUCH OF PLAYFUL VERSATILITY . BECAUSE IN EVERYTHING THAT WE CREATE, WE IGNITE A SPARK THAT CAN TURN EVERY DAY INTO SOMETHING MORE BEAUTIFUL.
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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 and six months ended December 27, 2025; meanwhile, they have been presented both including and excluding acquisition costs for the three and six months ended December 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 three and six months ended December 27, 2025; meanwhile, they have been presented both including and excluding acquisition costs for the three and six months ended December 28, 2024. Loss on extinguishment of debt has been presented both including and excluding acquisition costs for the three and six months ended December 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 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 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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in USD millions, except per share data, unaudited December 27, 2025 December 28, 2024 % Change Constant Currency % Change Net sales 2,502.4 2,195.4 14 % 14 % Pro Forma Net sales1 2,502.4 2,125.7 18 % 18 % Gross profit 1,888.4 1,633.1 16 % Gross margin 75.5% 74.4% 110 bps Non-GAAP Gross profit2 1,888.4 1,633.1 16 % Non-GAAP Gross margin 2 75.5% 74.4% 110 bps Operating income 716.4 492.8 45 % Operating margin 28.6% 22.4% 620 bps Non-GAAP Operating income2 719.8 548.2 31 % Non-GAAP Operating margin 2 28.8% 24.9% 390 bps Earnings per diluted share 2.68 1.38 94 % Non-GAAP Earnings per diluted share 2 2.69 2.00 34 % Quarter Ended 42 Selected Financial Results (unaudited) For the quarter ended December 27, 2025 and December 28, 2024 1 Pro forma Net sales and related growth rates exclude Net sales of the Stuart Weitzman Business on a reported and constant curre ncy basis, in both periods presented. 2 Refer to reconciliation between GAAP and Non-GAAP measures.
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43 Detail to Net Sales For the quarter ended December 27, 2025 and December 28, 2024 1 Pro Forma Net sales and related growth rates exclude Net sales of the Stuart Weitzman Business on a reported and constant curre ncy basis. in millions, unaudited December 27, 2025 December 28, 2024 % Change Constant Currency % Change Coach $2,142.4 $1,709.3 25 % 25 % Kate Spade 360.0 416.4 (14)% (14)% Stuart Weitzman - 69.7 NM NM Total Tapestry 2,502.4 2,195.4 14 % 14 % Total Tapestry Pro Forma 1 2,502.4 2,125.7 18 % 18 % Quarter Ended
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in millions, except per share data; unaudited GAAP BASIS (AS REPORTED) ACQUISITION AND DIVESTITURE COSTS (*) ORGANIZATIONAL EFFICIENCY COSTS (**) NON-GAAP BASIS (EXCLUDING ITEMS) Coach $1,669.0 $ - $ - $1,669.0 Kate Spade 219.4 - - 219.4 Stuart Weitzman 1 - - - - Gross profit 1,888.4 - - 1,888.4 Coach 822.5 - - 822.5 Kate Spade 203.1 - 0.3 202.8 Stuart Weitzman - - - - Corporate 146.4 (0.8) 3.9 143.3 Selling, general and administrative expenses 1,172.0 (0.8) 4.2 1,168.6 Coach 846.5 - - 846.5 Kate Spade 16.3 - (0.3) 16.6 Stuart Weitzman - - - - Corporate (146.4) 0.8 (3.9) (143.3) Operating income (loss) 716.4 0.8 (4.2) 719.8 Interest expense, net 17.4 - - 17.4 Other (income) expense 1.9 - - 1.9 Provision for income taxes 135.8 - - 135.8 Net income (loss) 561.3 0.8 (4.2) 564.7 Net income (loss) per diluted common share 2.68 - (0.01) 2.69 44 Consolidated Segment Data and GAAP to Non-GAAP Reconciliation For the quarter ended December 27, 2025 1 For the first six months 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.
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45 Consolidated Segment Data and GAAP to Non-GAAP Reconciliation For the quarter ended December 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 $1,318.3 $ - $1,318.3 Kate Spade 273.6 - 273.6 Stuart Weitzman 41.2 - 41.2 Gross profit 1,633.1 - 1,633.1 Coach 697.4 - 697.4 Kate Spade 205.6 - 205.6 Stuart Weitzman 42.2 - 42.2 Corporate 195.1 55.4 139.7 Selling, general and administrative expenses 1,140.3 55.4 1,084.9 Coach 620.9 - 620.9 Kate Spade 68.0 - 68.0 Stuart Weitzman (1.0) - (1.0) Corporate (195.1) (55.4) (139.7) Operating income (loss) 492.8 (55.4) 548.2 Loss on extinguishment of debt 120.1 119.4 0.7 Interest expense, net 24.5 22.8 1.7 Provision for income taxes 34.9 (57.8) 92.7 Net income (loss) 310.4 (139.8) 450.2 Net income (loss) per diluted common share 1.38 (0.62) 2.00
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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 property and 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 comparability. For the quarter ended December 27, 2025 and December 28, 2024 in millions, unaudited December 27, 2025 December 28, 2024 Net cash provided by (used in) operating activities (GAAP) $1,081.1 $506.0 Purchases of property and equipment (43.6) (30.9) Items affecting comparability - Acquisition and Divestiture Costs (1.0) 78.2 Items affecting comparability - Organizational Efficiency Costs 1.6 - Changes in operating assets and liabilities of items affecting comparability Accrued liabilities 1.8 230.0 Other assets - (13.4) Other liabilities - - Accounts payable - 1.6 Adjusted Free Cash Flow (Non-GAAP) 1,039.9 771.5 Quarter Ended
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