Financial Data and Key Metrics Changes - The company achieved record revenue of $1.5 billion in Q1 2023, with an 8% increase in EPS on a currency-neutral basis, despite facing FX headwinds and COVID disruptions in China [38][39][40] - Revenue rose over 5% on a constant currency basis, with international markets delivering 11% growth compared to the prior year [39][40] - Gross margin declined due to freight pressure and FX headwinds, but operational gross margin expanded versus the prior year [42][44] Business Line Data and Key Metrics Changes - Coach brand saw a 4% increase in revenue on a constant currency basis, driven by growth in core leather goods and successful product introductions [16][24] - Kate Spade's revenue rose 10% in constant currency, with a 7% gain in North America and 23% growth in international markets [24][25] - Stuart Weitzman experienced growth in North America, aided by strength in the wholesale channel, while facing challenges in Greater China due to COVID [32][33] Market Data and Key Metrics Changes - In North America, sales rose slightly, with a nearly 45% increase on a two-year basis, while digital sales remained over 3x ahead of pre-pandemic levels [41][42] - International markets showed strong growth, with Europe sales increasing by 24% and APAC revenue rising by 9% despite challenges in Greater China [39][40] - The company noted a decline of 11% in Greater China sales due to COVID-related headwinds, although this was an improvement from the previous quarter [40] Company Strategy and Development Direction - The company is focused on driving sustainable growth through a consumer-centric and data-driven approach, emphasizing agility and innovation [9][10] - There is a commitment to enhancing omnichannel experiences and building lasting customer relationships, with a focus on emotional storytelling and product innovation [11][12][19][30] - The company plans to maintain disciplined pricing strategies and manage promotional activities carefully to support brand health [74][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating near-term challenges while remaining focused on long-term growth initiatives [37][58] - The outlook for fiscal 2023 has been tempered due to expectations of a delayed recovery in China, but the company remains optimistic about growth in other regions [48][50] - Management highlighted the importance of staying close to customers and adapting to changing market conditions [62][71] Other Important Information - The company plans to return approximately $1 billion to shareholders in fiscal 2023, including share repurchases and dividends [47][58] - Inventory levels were reported to be 39% above the prior year, with proactive measures taken to align inventory with updated revenue outlooks [45][46] Q&A Session Summary Question: Outlook heading into holiday - Management highlighted strong Q1 performance and expressed confidence in product offerings and inventory positioning for the holiday season, while maintaining realistic expectations given macro uncertainties [61][62] Question: Guidance details for North America and China - Management provided context on the guidance adjustments, noting a delay in the recovery for China and a modestly below-expectation performance in North America, while emphasizing ongoing investments in long-term growth [67][68][69] Question: Promotional and pricing strategy - Management discussed the focus on AUR increases and disciplined promotional strategies, noting no pushback from customers on recent price increases [74][75] Question: New customer acquisition trends - Management reported 1.4 million new customers in North America and emphasized the importance of omnichannel engagement, with customers shopping across both online and in-store channels [78][79] Question: Pricing analytics and SKU management - Management reiterated the focus on delivering value and innovation, with plans to continue driving AUR growth while managing promotional activities effectively [84][86]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended October 1, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 1-16153 Tapestry, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No ...

tapestry | --- | --- | --- | |-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ...

tapestry the impact of the ongoing Covid-19 pandemic, including impacts on our supply chain due to temporary closures of our manufacturing partners, price increases, temporary store . closures, as well as production, shipping and fulfillment constraints; · the impact of economic conditions; · the ability to successfully execute our multi-year growth agenda under our Acceleration . Program; the impact of tax and other legislation; and ● this presentation contains certain "forward-looking statements" based on ...

Financial Data and Key Metrics Changes - Tapestry achieved record annual revenue of $6.7 billion in fiscal year 2022, reflecting a 18% increase compared to the previous year and a 35% increase versus pre-pandemic levels [13][43][60] - Earnings per share (EPS) for the year increased by 20% compared to last year and 35% compared to pre-pandemic levels, reaching $3.80 to $3.90 for fiscal year 2023 [43][56][60] - Free cash flow for the fiscal year was $759 million, with $1.9 billion returned to shareholders, including $1.6 billion in share repurchases [49][50][60] Business Line Data and Key Metrics Changes - Coach brand delivered 18% top line growth in fiscal year 2022, with a 15% increase over fiscal 2019 levels, and achieved a strong operating margin of 30% [17][18] - Kate Spade recorded over $1.4 billion in revenue, representing a 22% growth, while Stuart Weitzman maintained double-digit sales gains for the fiscal year [26][36] - Digital sales reached $2 billion for Tapestry, more than tripling from fiscal 2019 levels, with e-commerce representing nearly 30% of Coach's sales [12][23][33] Market Data and Key Metrics Changes - North America drove strong sales growth, with a 12% increase in the fourth quarter, while Greater China faced a 32% decline due to pandemic-related disruptions [44][45] - Japan saw over 25% sales growth on a constant currency basis, and Europe experienced approximately 65% growth compared to the previous year [46] - Digital channel sales rose high single digits in the quarter, while store and wholesale channels also saw continued growth [46] Company Strategy and Development Direction - Tapestry's strategic growth agenda, named the Acceleration Program, focuses on consumer-centricity, digital leadership, and operational efficiencies to drive brand building and high-return investments [9][10][16] - The company aims to expand customer reach, particularly among younger audiences, while increasing purchase frequency and retention rates across its brands [24][34] - Tapestry is committed to enhancing its digital capabilities and investing in high-growth opportunities in China and other markets [40][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to connect with consumers and deliver strong results despite challenging macroeconomic conditions [65] - The outlook for fiscal year 2023 anticipates constant currency revenue growth of 6% to 7%, with a reported revenue growth of 3% to 4% [54][60] - Management acknowledged potential headwinds, including currency fluctuations, ongoing COVID-related disruptions, and inflationary pressures, while emphasizing the strength of their brands and pricing power [53][56] Other Important Information - Tapestry achieved $300 million in run-rate expense savings, which supported growth initiatives and increased brand marketing to 8% of sales [14][15] - The company has made significant progress on corporate responsibility commitments, including partnerships for social justice and sustainability initiatives [15] Q&A Session Summary Question: Confidence in delivering strong year for shareholders - Management highlighted the acquisition of 15 million new customers in North America and record revenue levels, emphasizing the strength of their brands and the success of the Acceleration Program [65] Question: Shape of the year and GSP impact - Management provided insights on expected growth moderation in North America and anticipated improvements in China, with a potential $90 million annual benefit from GSP if passed retroactively [70][74] Question: Health of the store fleet and e-commerce impact - Management expressed confidence in the store fleet's profitability and emphasized the importance of physical stores while also highlighting significant growth in digital sales [76] Question: AUR trends and ticket increases - Management confirmed slight AUR decline in North America for Coach but anticipated a return to AUR growth with planned ticket increases [80] Question: SKU reduction and data analytics in product design - Management explained the use of data analytics to drive SKU reduction and improve product assortment, emphasizing the blend of creativity and analytics in the design process [83][85]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended July 2, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 1-16153 Tapestry, Inc. (Exact name of registrant as specified in its charter) Maryland 52-2242751 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identifi ...

Financial Data and Key Metrics Changes - Revenue rose 13% compared to the prior year, with double-digit growth at each brand [55] - Earnings per diluted share for the quarter was $0.51, in line with the prior year and well ahead of expectations [61] - Gross margin improved due to higher full-price sell-throughs and lower discounting, despite $63 million pressure from incremental freight [59] Business Line Data and Key Metrics Changes - Coach achieved a sales increase of 11% compared to the prior year, with nearly 20% growth in North America [19] - Kate Spade's revenue rose 19%, including a 25% increase in North America [32] - Stuart Weitzman delivered significant operating margin expansion, with AUR growth over 20% in North America [44][46] Market Data and Key Metrics Changes - North America fueled results with 22% growth, while sales in Greater China declined at a low-teens rate [55] - Europe saw nearly 60% sales growth compared to last year, while Japan experienced mid-single-digit growth [57] - Digital sales grew over 20%, representing approximately 30% of total business [15][29] Company Strategy and Development Direction - The company is focused on building lasting relationships with customers to increase lifetime value through continuous innovation [10] - Emphasis on digital leadership and leveraging consumer data to enhance customer connections and execution [11] - The Acceleration Program has brought in nearly 13 million new customers over 21 months, with a focus on driving sustainable growth [14][18] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the resilience of the Chinese consumer and long-term growth opportunities despite near-term COVID-related headwinds [17] - The company expects to achieve $2 billion in digital revenue in fiscal '22, with further runway ahead [15] - Confidence in the ability to maintain margins and drive growth through pricing power and brand strength [88] Other Important Information - The company plans to return approximately $1.9 billion to shareholders in fiscal 2022, including $1.6 billion in share repurchases [64][77] - Inventory at quarter end was 30% above the prior year, primarily due to elevated in-transits amid supply chain challenges [62] Q&A Session Summary Question: Headwinds in China and positive trends elsewhere - Management noted strong growth in all regions outside of China, with North America delivering 22% growth, offsetting challenges in China due to COVID [80][82] Question: GSP potential and fiscal year outlook - Management highlighted strong brand momentum and consumer engagement, indicating confidence in future growth despite not providing explicit guidance [85][89] Question: Average unit retail momentum and promotional activity - Management confirmed pricing power across brands, with no consumer pushback on price increases, and emphasized the importance of maintaining brand value [92][94] Question: Demand deceleration in North America - Management observed strong consumer engagement and increasing acquisition metrics, indicating continued demand across categories [101] Question: Shanghai distribution center reopening and freight costs - Management provided insights on the slow reopening of the Shanghai distribution center and anticipated improvements in freight costs moving forward [110][116]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended April 2, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 1-16153 Tapestry, Inc. Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Re ...

Financial Data and Key Metrics Changes - Revenue increased by 27% compared to the prior year, with an 18% rise against pre-pandemic levels, reflecting a 9-point sequential acceleration driven by improved store trends and continued strength in the digital channel [42] - Earnings per diluted share for the quarter was $1.33, an increase of 15% compared to the prior year and over 20% versus FY '20 [45] - The company ended the quarter with $1.65 billion in cash and investments, and total borrowings of $1.6 billion [46] Business Line Data and Key Metrics Changes - Coach achieved 24% sales growth compared to last year, with revenue trends accelerating 20% above pre-pandemic levels [18] - Kate Spade sales grew 33% compared to last year, with an 18-point sequential acceleration against pre-pandemic levels [29] - Stuart Weitzman drove 37% revenue growth compared to last year, returning to pre-pandemic sales levels [35] Market Data and Key Metrics Changes - North America delivered over 35% revenue growth compared to last year, accelerating to 25% growth on a 2-year basis [42] - Sales in Greater China rose high single digits, including a mid-single-digit increase in Mainland China, with nearly 35% growth compared to 2 years ago [43][16] - Digital sales represented one-third of total business, with a 30% increase compared to last year, nearly tripling pre-pandemic levels [13] Company Strategy and Development Direction - The company is focused on a consumer-centric approach, leveraging data to enhance engagement and drive customer lifetime value [11] - Significant investments in digital capabilities are aimed at improving customer experience and driving conversion [13] - The company anticipates continued growth in China, viewing it as a meaningful long-term opportunity across brands [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term potential of the multi-brand portfolio despite near-term volatility due to the pandemic [57] - The company expects revenue to reach approximately $6.75 billion, marking a record for the company, with strong double-digit growth anticipated across all brands [51] - Management acknowledged supply chain constraints but emphasized strong consumer demand and the ability to navigate challenges [50] Other Important Information - The company plans to return over $1.5 billion to shareholders in fiscal '22, an increase from the prior outlook of $1.25 billion [48] - The gross margin contracted due to investments in freight to maintain product flow, but it remains nearly 150 basis points ahead of pre-pandemic levels [44] Q&A Session Summary Question: Can you elaborate on the inflection at Kate Spade and its long-term potential? - Management highlighted a significant inflection in Kate Spade with 33% sales growth and strong operating margins, aiming to build it into a $2 billion brand [60][61] Question: Can you provide more details on the inventory dynamics and expected revenue headwinds? - Management indicated that strong demand outpaced supply, particularly for Kate Spade, which may moderate growth rates in the short term but is not reflective of brand strength [64][66] Question: What is the outlook for digital sales and its impact on store fleet? - Management noted that digital sales are expected to reach $2 billion, representing a margin benefit, while also emphasizing the importance of stores as touchpoints for consumers [72][74] Question: How is the current environment in China affecting growth? - Management reported growth in China, with a focus on digital engagement and strong brand affinity, despite some near-term COVID-related pressures [77][78] Question: What are the company's strategies regarding pricing and sustainability? - Management expressed confidence in maintaining pricing power while focusing on sustainability initiatives, including a commitment to net zero by 2050 [84][91]

tapestry ACHIEVED 2-YEAR REVENUE GROWTH OF 18% REFLECTING 9 POINT IMPROVEMENT VS. PRIOR QUARTER GLOBAL DIGITAL SALES ROSE APPROXIMATELY 30% VS. 2Q21 AND NEARLY TRIPLED VS. PRE-PANDEMIC LEVELS IN NORTH AMERICA, RECRUITED NEARLY 3 million NEW CUSTOMERS ACROSS CHANNELS GROSS MARGIN EXPANDED BY APPROXIMATELY 135 bps OPERATING MARGIN EXPANDED BY APPROXIMATELY 170 bps RETURNED OVER $550 million VS. PRE-PANDEMIC LEVELS VS. PRE-PANDEMIC LEVELS OF CAPITAL TO SHAREHOLDERS IN 2Q22 Non-GAAP Financials. See http://www.t ...