Slides
Page 2
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," "could," "if," "continue," "expect," "confiden ce," "goals," "trends," "anticipate.” “future," "plan," "potential," "position,“ “create,” "build," "fuel," "deliver," "believe," "see," "will," "would," "achieve,“ “assume,” “embed,” “compound,” “approaching,” “guidance,” “i ncr ease,” “expand,” “opportunity,” "strategic,“ “grow,” "growth," "forecast," "outlook," "commit/commitment," "innovation," "drive," "leverage," "effort,“ “long - term,” “return,” “maximize,” “sustain,” "Amplify strateg y," "stretch what’s possible," "ignite," "future - proof," "lead," "momentum," "durable," "durability," "conviction," "ambition," "raise," "target," "advance," "reinforce," "sustainable," "resilient," "aim," "inspir e," "streamline," "priorities," "ahead," similar expressions, and variations or negatives of these words. They include, without limitation, statements regarding future anticipated capital expenditures. Statements herein rega rdi ng our 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 f orw ard - 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 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 economic conditions, recession and inflationary measures; ▪ The impact of international trade disputes and the risks associated with potential changes to international trade and policy 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; ▪ Our exposure to international risks, including currency fluctuations and changes in economic or political conditions in the markets where we sell or source our products; ▪ Our ability to retain the value of our brands and to 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 Amplify strategy; ▪ The effect of existing and new competition in the marketplace; ▪ Our ability to successfully identify and implement any sales, acquisitions or strategic transactions on attractive terms or at all; ▪ Our ability to achieve intended benefits, cost savings and synergies from acquisitions; ▪ Our 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, and the development, use, governance and regulation of artificial intelligence technologies; ▪ Our 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 rke t 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 n o o bligation to revise or update any such forward - looking statements for any reason, except as required by law.
Page 3
3 Purpose Stretch What’s Possible [breaking boundaries] [continuous innovation] Purpose
Page 4
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
Page 5
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.
Page 6
6 Figures as of FY26, excluding Stuart Weitzman. $8B NET SALES ~1,300 DIRECTLY OPERATED STORES ~50 COUNTRIES ~20,600 EMPLOYEES
Page 7
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
Page 8
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
Page 9
Iconic Brands
Page 10
10 Attractive TAM Note: Total addressable population sourced from Euromonitor and reflects 18 – 64 - year - old qualified females. Point of Market Entry reflects our core 18 - to - 27 - year - old qualified females. WE BRING Expressive & Uplifting Luxury to Very Large Audiences 278M 2.0B 8.3B FY26 ADDRESSABLE POPULATION GLOBAL POPULATION GLOBAL ADDRESSABLE POPULATION POINT OF MARKET ENTRY (AGED 18 - 27)
Page 11
11 Attractive Core Categories Source: TPR Market Sizing Model (informed by Euromonitor, Bain Altagamma , BCG Altagamma , McKinsey BoF ). 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 36 40 42 44 46 49 52 51 55 65 71 73 72 74 22 22 22 23 23 23 23 23 24 21 20 22 24 20 22 23 24 25 25 26 24 23 27 28 30 30 31 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 33 34 35 37 38 40 43 46 50 48 47 52 55 57 61 68 71 74 78 74 65 92 99 103 102 78 5% CAGR 105
Page 12
12 Global, Flexible DTC Model Figures as of FY26. Excludes Stuart Weitzman. Handbags 58% Accessories 28% Footwear 6% Other 8% Category North America 63% Rest of World 2% Other Asia 11% Europe 7% Greater China 17% Geography Stores 56% Wholesale & Other 13% Digital 31% 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 ▪ Proprietary data, technology and AI capabilities enhance consumer engagement and decision making
Page 13
CUSTOMER EXPERIENCE MARKETING OPERATIONS PRICING ASSORTMENT PLANNING DESIGN 13 Consumer - led & Data - driven Capabilities Embedding Consumer Insights, Data, and AI ACROSS THE VALUE CHAIN
Page 14
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 Adopting AI - powered data infrastructures across demand forecasting, inventory optimization, and factory allocation
Page 15
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
Page 16
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 combines proprietary technology and AI with unique consumer insights Disciplined financial operations , driving margin expansion, resilient balance sheet, robust cash flow, and compounding earnings growth Track record and commitment to strong shareholder returns and value creation 16 Our Investment Thesis is Compelling
Page 17
Results Overview & Financial Outlook
Page 18
$700 million 230bps $1.9 billion 32% 12% 18 FY27 Q1 Highlights Revenue, margin, and earnings growth ahead of expectations and strength around the world DELIVERED REVENUE OF DROVE GLOBAL SALES (1) GROWTH OF ACQUIRED APPROXIMATELY 2.6 million EXPANDED OPERATING MARGIN (1) BY ACHIEVED $1.82 IN EPS (1) REPRESENTING RETURNED APPROXIMATELY ABOVE EXPECTATIONS, WITH BROAD - BASED GROWTH ACROSS REGIONS VERSUS PRIOR YEAR, LED BY 16% GROWTH AT COACH NEW CUSTOMERS GLOBALLY, DRIVEN BY AN INCREASE IN GEN Z DRIVEN BY GROSS MARGIN EXPANSION AND SG&A LEVERAGE, OUTPACING EXPECTATIONS GROWTH VERSUS PRIOR YEAR, EXCEEDING EXPECTATIONS TO SHAREHOLDERS THROUGH DIVIDENDS AND SHARE REPURCHASES (1) Pro forma Net sales and related growth rates exclude the Net sales of the Stuart Weitzman Business and are presented on a con sta nt currency basis. Operating Margin, and Earnings Per Share (“EPS”) provided on a non - GAAP basis. Refer to Appendix for GAAP to non - GAAP reconciliations.
Page 19
19 Revenue Trends by Geography: FY27 Q1 Growth rates shown on a pro forma constant currency basis, which excludes the net sales of the Stuart Weitzman business. North America Q1: +4% VS. LY Revenue increase led by 7% growth at Coach, with both revenue and margins exceeding guidance Greater China Q1: +39% VS. LY Growth fueled by strong customer acquisition and broad - based growth across channels Europe Q1: +22% VS. LY Growth driven by increased local consumer spend, which was fueled by strong new customer acquisition, notably with Gen Z Other Asia Q1: +23% VS. LY Growth in the region led by South Korea and Australia Japan Q1: +4% VS. LY Returned to growth following strategic actions in the region to support long - term growth
Page 20
20 JOANNE CREVOISERAT, CHIEF EXECUTIVE OFFICER “ Our first quarter marked a powerful start to the year, with revenue, margin, and earnings growth ahead of expectations and strength around the world . Our Amplify strategy continues to bring new consumers to our brands through our distinctive combination of creativity, craftsmanship, and value . Building on this outperformance , we are raising our full year outlook , reflecting our confidence in the durability of our growth. Behind these results are advantages that compound over time, including our deep consumer understanding, data - driven approach, and global scale . Together, they reinforce our conviction that our greatest opportunities are ahead of us as we continue to drive long - term value for our customers, our teams, and our shareholders.”
Page 21
21 P&L Overview by Brand: FY27 Q1 Unaudited. 1 Pro forma Net sales exclude Net sales of the Stuart Weitzman business. Growth rates are shown on a pro forma constant currenc y 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. TAPESTRY COACH KATE SPADE PRO FORMA NET SALES 1 $1.89B $1.66B $233M +12% vs. LY +16% vs. LY - 10% vs. LY GROSS PROFIT $1.49B $1.34B $154M 78.7% margin 80.5% margin 66.0% margin SG&A EXPENSES $1.05B $746M $160M 55.5% of sales 45.0% of sales 68.7% of sales OPERATING INCOME (LOSS) $439M $590M $(6)M 23.2% margin 35.5% margin - 2.7% margin EARNINGS PER $1.82 DILUTED SHARE +32% vs. LY
Page 22
22 Coach Highlights: FY27 Q1 Delivered 16% constant currency revenue growth at increasing gross margin and profitability, with strength across geographies, including North America up 7%, Greater China rising 41%, Europe increasing 27%, and Japan returning to growth at 5% Acquired over 2.1 million new customers globally, led by Gen Z, while also driving growth with existing customers Fueled growth in core leathergoods, with handbag AUR up low - double - digits and unit volumes increasing low - single - digits, reflecting notable strength at $200 to $500 and a planned unit decline below $200 as the brand intentionally deemphasized promotional price points Delivered innovation and broad - based strength across the assortment, led by outperformance of the icons; the New York, Tabby, and Teri families reinforced leadership within the core category Advanced the One Coach strategy, creating a stronger, more consistent global brand expression Achieved over 20% growth in footwear, driven by success of the Margot family and sneakers Launched Live Your Story campaign, creating connection and empowering self - expression through music, which includes a new global partnership with Spotify Drove higher traffic and dwell times in Expressive Luxury stores, particularly among Gen Z, exceeding investment targets; rollout planned to cover 80% of traffic by FY30
Page 23
23 Kate Spade Highlights: FY27 Q1 Advanced a deliberate, phased strategy to streamline the business, solidify the foundation, and position the brand for sustainable, profitable growth Continued making strategic investments to support long - term growth; revenue declined 10%, consistent with guidance, while gross margin expanded 190 basis points Recently appointed Jonathan Saunders as Executive Creative Director, working alongside brand CEO, Eva Erdmann to bring Uplifting Luxury to life for a new generation of consumers Launched Fall campaign featuring new global brand ambassador Tyla, which achieved greater reach and strong organic engagement with Gen Z consumers, whose brand consideration and purchase intent rose after engaging with the campaign Welcomed nearly 500K new customers entering the brand at higher AUR, driven by handbags which includes blockbuster families of Margot, 454, and Duo Drove a sales lift in stores with light - touch renovations through higher conversion and average transaction value; approximately 50 locations completed with plans to add another 30 locations over the balance of the year
Page 24
24 Raised Fiscal 2027 Revenue, Operating Margin, and EPS Outlook FY27 Q2 OUTLOOK CURRENT FY27 FULL YEAR OUTLOOK PRIOR FY27 FULL YEAR OUTLOOK REVENUE n/a $8.5 to $8.6 billion $8.4 to $8.5 billion PRO FORMA REVENUE GROWTH 1 5% to 6% growth on a constant currency basis, 70 - basis point tailwind from FX 6% to 7% growth on a constant currency basis, 30 - basis point tailwind from FX Mid - single - digit growth on a nominal and constant currency basis, 40 - basis point tailwind from FX REVENUE GROWTH 1 BY BRAND Coach: high - single - digit growth, including mid - single digit growth in North America Kate Spade: low - double digit decline Coach: high - single - digit growth, including mid - single digit growth in North America Kate Spade: high - single digit decline Coach: high - single - digit growth Kate Spade: high - single digit decline GROSS MARGIN Increase by approximately 170 basis points Increase by approximately 80 basis points Increase by approximately 30 basis points SG&A EXPENSE Expense deleverage of roughly 120 basis points Approximately 20 bps of leverage Approximately 20 bps of leverage OPERATING MARGIN Expansion of 50 basis points Expansion of approximately 100 basis points Expansion of 50 basis points OPERATING MARGIN BY BRAND n/a Coach: operating margin of approximately 36% Kate Spade: modest operating loss Corporate: expense leverage Coach: maintain operating margin of nearly 36% Kate Spade: modest operating loss Corporate: expense leverage NET INTEREST EXPENSE n/a Approximately $60 million Approximately $55 million TAX RATE n/a Approximately 18% Approximately 18.5% SHARE COUNT n/a Approximately 200 million shares Approximately 203 million shares DILUTED ADJUSTED EPS Approximately $3.05, a low - teens increase vs. LY $8.25 to $8.35, growing 17% to 18% vs. LY $7.80 to $7.90, growing low - double - digits vs. LY FREE CASH FLOW n/a Approaching $1.7 billion Approaching $1.7 billion CAPEX & CLOUD COMPUTING n/a In the area of $300 million or 3% to 4% of revenue In the area of $300 million or 3% to 4% of revenue Excludes the impact of the 53rd week in Fiscal 2027, which is expected to contribute an additional percentage point to annual re venue growth and have a neutral impact on operating margin for the full fiscal year; embeds a low - to - mid - 20% tariff rate on U.S. inventory receipts in Fiscal 2027, resulting in a modest net benefit from tariffs year - over - year; embeds current global tax policies, including the im pact of OECD 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. 1 Pro forma Net sales and related growth rates exclude the Net sales of the Stuart Weitzman Business and are presented on a con st ant currency basis.
Page 25
$0.18 $0.05 $0.04 $0.10 $0.06 $0.02 Operational Tariff & Duties Tax & Share Repurchases Share Repurchases Higher Revenue Tax 25 EPS provided on a non - GAAP basis. Excludes the impact of the 53rd week in Fiscal 2027 . Increased FY27 EPS Growth Outlook Q1 outperformance , incremental share repurchases, and confidence in the future drive a $0.45 increase to the FY27 EPS Outlook Prior FY27 EPS Outlook $7.80 – $7.90 Q1 Outperformance +$0.27 Low double - digit growth vs. FY26 Current FY27 EPS Outlook $8.25 – $8.35 17 % – 18% growth vs. FY26 Updated Outlook for Q2 – Q4 +$0.18 Driven by North America Direct Driven by Revenue, Gross Margin, and Operating Margin
Page 26
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 26 Capital Allocation Priorities Focused on Driving Growth, Profitability, and Shareholder Value 03 04
Page 27
Now expects to return ~$2.0 billion in FY27, which includes ~$700 billion returned to shareholders in the first quarter 27 Committed to Creating Value for Shareholders ▪ Continues to anticipate an annual dividend of $1.85 per share in Fiscal 2027 ▪ Goal over time to continue to increase the dividend at least in line with earnings SHARE REPURCHASES ▪ Bought back $600 million in common stock in the first quarter, repurchasing approximately 4.6 million shares at an average share price of approximately $130 ▪ Expects to buy back $1.7 billion in common stock in Fiscal 2027, an increase of $350 million versus prior guidance DIVIDEND PAYMENTS
Page 28
Overview by Brand
Page 30
30 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.
Page 31
31 As of FY26. $6.9B NET SALES ~970 DIRECTLY OPERATED STORES ~45 COUNTRIES ~14,600 EMPLOYEES
Page 32
32 Coach Revenue Breakdown As of FY26. Handbags 58% Accessories 29% Footwear 6% Other 7% Category North America 61% Rest of World 1% Other Asia 11% Europe 7% Greater China 20% Geography Direct to Consumer 87% Wholesale & Other 13% Channel
Page 33
33 Coach Growth Strategies CREATE EMOTIONAL CONNECTIONS THROUGH BRAND BUILDING LEAD WITH INNOVATION THAT ENCOURAGES SELF - EXPRESSION INNOVATE OMNICHANNEL EXPERIENCES
Page 35
35 S I N C E 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 , A N D O U R P U R P O S E I S T O S PA R K J O Y T H AT S P R E A D S . T O D AY, T H AT P U R P O S E I S S H A P E D B Y A C O N S U M E R S E E K I N G C O N N E C T I O N , B E L O N G I N G A N D L I G H T N E S S I N E V E R Y D AY L I F E . F O R H E R , W E C R E AT E A W O R L D T H AT F E E L S P O S I T I V E A N D U P L I F T I N G , W H E R E L U X U R Y A N D W A R M T H C O- E X I S T. O U R D E S I G N S A R E F E M I N I N E C L A S S I C S W I T H A T W I S T: B A L A N C I N G C R A F T W I T H A P L AY F U L S P I R I T, B L E N D I N G T H O U G H T F U L F U N C T I O N , I N T E N T I O N A L C O L O R , A N D U N E P E C T E D D E TA I L S T H AT F E E L G O O D T O L I V E W I T H A N D E A S Y T O L O V E . B E C A U S E I N E V E R Y T H I N G 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 .
Page 36
36 As of FY26. $ 1.1B NET SALES ~325 DIRECTLY OPERATED STORES ~ 30 COUNTRIES ~3,900 EMPLOYEES
Page 37
37 Kate Spade Revenue Breakdown As of FY26. Direct to Consumer 82% Wholesale & Other 18% Channel North America 77% Rest of World 4% Other Asia 11% Europe 5% Greater China 3% Geography Handbags 55% Accessories 22% Footwear 5% Other 18% Category
Page 38
38 FUEL BRAND HEAT & DRIVE CUSTOMER ACQUISITION BUILD HANDBAG BLOCKBUSTERS MAXIMIZE OMNICHANNEL COHESIVENESS Kate Spade Growth Strategies
Page 39
Corporate Responsibility
Page 40
40 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
Page 41
Appendix
Page 42
42 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 affecting comparability, 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 in 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 net sales and related growth rates, which exclude Stuart Weitzman’s Net sales from the prior year period . Greater China includes mainland China, Taiwan, Hong Kong SAR, and Macao SAR . Other Asia includes Australia, South Korea, Malaysia, Singapore, and other countries primarily within Asia . Other primarily represents royalties earned from the Company's licensing partners and sales in the Middle East . The Company presents certain non - GAAP measures, including segment operating income (loss), segment SG&A expenses, segment gross profit, SG&A expense ratio, operating margin, Operating Income (loss), Provision for income taxes, Net income (loss) and Net Income (loss) per diluted common share, which exclude items affecting comparability such as D istribution Network Optimization Costs, A cquisition and Divestiture C osts and O rganizational Efficiency Costs , as applicable . A reconciliation to the most directly comparable GAAP measures is provided in the tables accompanying this release . The Company also presents Adjusted Free Cash Flow, which is a non - GAAP measure, and is calculated as Net cash provided by (used in) operating activities less Purchases of property and equipment, adjusted for the cash impacts of Items affecting comparability included in operating cash flows related to Distribution Network Optimization Costs, Acquisition and Divestiture Costs and Organizational Efficiency Costs , 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 .
Page 43
43 Selected Financial Results (unaudited) For the Quarter Ended September 26, 2026 and September 27, 2025 Quarter Ended in USD millions, except per share data, unaudited September 26, 2026 September 27, 2025 % Change Constant Currency % Change Net sales 1,894 1,705 11% 11% Pro Forma Net sales1 1,894 1,690 12% 12% Gross profit 1,488 1,301 14% Gross margin 78.6% 76.3% 230 bps Non-GAAP Gross profit2 1,490 1,293 15% Non-GAAP Gross margin2 78.7% 76.5% 220 bps Operating income 424 328 29% Operating margin 22.4% 19.3% 310 bps Non-GAAP Operating income2 439 354 24% Non-GAAP Operating margin2 23.2% 20.9% 230 bps Earnings per diluted share 1.76 1.28 38% Non-GAAP Earnings per diluted share2 1.82 1.38 32% 1 Pro forma Net sales exclude Net sales of the Stuart Weitzman business. Growth rates are shown on a pro forma constant currenc y basis. 2 Refer to reconciliation between GAAP and Non - GAAP measures.
Page 44
44 Detail to Net Sales For the Quarter Ended September 26, 2026 and September 27, 2025 Quarter Ended in millions, unaudited September 26, 2026 September 27, 2025 % Change Constant Currency % Change Coach $1,661 $1,430 16% 16% Kate Spade 233 260 (10)% (10)% Stuart Weitzman — 15 NM NM Total Tapestry 1,894 1,705 11% 11% Total Tapestry Pro Forma1 1,894 1,690 12% 12% 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.
Page 45
45 Consolidated Segment Data and GAAP to Non - GAAP Reconciliation For the Quarter Ended September 26, 2026 in millions, except per share data; unaudited GAAP BASIS (AS REPORTED) DISTRIBUTION NETWORK OPTIMIZATION COSTS (*) NON-GAAP BASIS (EXCLUDING ITEMS) Coach $1,336 $— $1,336 Kate Spade 152 (2) 154 Gross profit 1,488 (2) 1,490 Coach 746 — 746 Kate Spade 172 12 160 Corporate 146 1 145 Selling, general and administrative expenses 1,064 13 1,051 Coach 590 — 590 Kate Spade (20) (14) (6) Corporate (146) (1) (145) Operating income (loss) 424 (15) 439 Interest expense, net 13 — 13 Provision for income taxes 51 (4) 55 Net income (loss) 360 (11) 371 Net income (loss) per diluted common share 1.76 (0.06) 1.82 (*) Relates primarily to costs to transition from our Ohio fulfillment center to a third - party facility in Pennsylvania.
Page 46
46 Consolidated Segment Data and GAAP to Non - GAAP Reconciliation For the Quarter Ended September 27, 2025 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 $— $— $1,126 Kate Spade 167 — — 167 Stuart Weitzman1 8 8 — — Gross profit 1,301 8 — 1,293 Coach 639 — 1 638 Kate Spade 161 — — 161 Stuart Weitzman 9 9 — — Corporate 164 14 10 140 Selling, general and administrative expenses 973 23 11 939 Coach 487 — (1) 488 Kate Spade 6 — — 6 Stuart Weitzman (1) (1) — — Corporate (164) (14) (10) (140) Operating income (loss) 328 (15) (11) 354 Interest expense, net 13 — — 13 Other (income) expense (4) — — (4) Provision for income taxes 44 (2) (2) 48 Net income (loss) 275 (13) (9) 297 Net income (loss) per diluted common share 1.28 (0.06) (0.04) 1.38 1 For the first quarter of fiscal 2026, prior to the completion of the sale on August 4, 2025, Stuart Weitzman Net sales were $ 15 million and Cost of sales were $7 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.
Page 47
47 Adjusted Free Cash Flow GAAP to Non - GAAP Reconciliation For the Quarter Ended September 26, 2026 and September 27, 2025 Quarter Ended in millions, unaudited September 26, 2026 September 27, 2025 Net cash provided by (used in) operating activities (GAAP) $197 $113 Purchases of property and equipment (48) (32) Items affecting comparability - Acquisition and Divestiture Costs — 15 Items affecting comparability - Organizational Efficiency Costs — 8 Items affecting comparability - Distribution Network Optimization Costs 15 — Changes in operating assets and liabilities of items affecting comparability Accrued liabilities 1 (1) Other assets1 (109) — Adjusted Free Cash Flow (Non-GAAP) 56 103 Adjusted Free Cash Flow is calculated as Net cash provided by (used in) operating activities less Purchases of property and e qui pment, adjusted for the cash impacts of Items affecting comparability included in operating cash flows related to Acquisition and Divestiture Costs, Organizational Efficiency Costs and Distribution Network Optimizatio n C osts, and Changes in operating assets and liabilities of items affecting comparability. 1 Primarily relates to the cash collection of the IEEPA tariff refund.
Page 48
© 2026 Tapestry, Inc.