- \n
- Delivered Q4 Revenue of $1.62 Billion, Growing 126% vs. Prior Year and Outpacing FY19 Pre-Pandemic Levels<\/b><\/li>\n<\/ul>\n
- \n
- Reported Q4 GAAP EPS of $0.69 and non-GAAP EPS of $0.74, Significantly Ahead of Both FY20 and FY19<\/b><\/li>\n<\/ul>\n
- \n
- Generated Triple-Digit Global Digital Gains in FY21 to Reach Approximately $1.6 Billion in E-Commerce Sales Fueled by New Customer Acquisition<\/b><\/li>\n<\/ul>\n
- \n
- Achieved Full Year Operating Income and EPS Increases Compared to Both FY20 and FY19 Driven by Over 300 Basis Points of Gross Margin Expansion<\/b><\/li>\n<\/ul>\n
- \n
- Initiates Financial Outlook for Accelerated Growth and Profitability in FY22<\/b><\/li>\n<\/ul>\n
NEW YORK–(BUSINESS WIRE<\/a>)–Link<\/a> to Download Q4 and Full Year 2021 Earnings Presentation, Including Brand Highlights\n<\/p>\n
This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20210819005260\/en\/<\/a><\/p>\n
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<\/p>\n(Photo: Business Wire)<\/p>\n<\/div>\n
\nTapestry, Inc. (NYSE: TPR), a leading New York-based house of modern luxury accessories and lifestyle brands, today reported results for the fiscal fourth quarter and year ended July 3, 2021.\n<\/p>\n
\nJoanne Crevoiserat, Chief Executive Officer of Tapestry, Inc., said, \u201cWe delivered standout results in Fiscal 2021 \u2013 a transformational year for Tapestry. Through our Acceleration Program, we sharpened our focus on the consumer, leaned into digital and data and became a more agile organization. We reached customers in new ways and adapted to a rapidly changing environment, fueled by the power of our brands and passionate teams. Importantly, the traction of our strategy is clearly evidenced by our financial performance. We achieved a record annual operating margin as Tapestry, outperforming our expectations across Coach, Kate Spade and Stuart Weitzman, while investing for our future. The year was capped by a successful fourth quarter, highlighted by revenue exceeding pre-pandemic levels led by Digital and China \u2013 two areas of significant opportunity.\u201d\n<\/p>\n
\n\u201cBuilding on this momentum and the increasing demand for our categories, we are focused on driving our next phase of growth. We are in a position of strength, supported by our clear strategy, compelling brands and differentiated platform. We believe these competitive advantages will enable us to win with consumers and capture market share. Our conviction is underscored by the plans announced today to return over $750 million to shareholders in Fiscal 2022 alone. Overall, we remain confident in our ability to accelerate growth and profitability across our portfolio long-term, enhancing value for all stakeholders.\u201d\n<\/p>\n
Capital Deployment<\/span><\/b><\/p>\n
\nGiven the Company\u2019s results, including its robust balance sheet and strong free cash flow generation, as well as its outlook for growth, the Board of Directors approved the reinstatement of the Company\u2019s shareholder return programs.\n<\/p>\n
\nThe Board declared a quarterly cash dividend of $0.25 per common share payable on September 27, 2021 to shareholders of record as of the close of business on September 7, 2021, with an anticipated annual dividend rate of $1.00 per share. Over time, the Company intends to increase its dividend at a faster rate than earnings growth. Further, the Company intends to repurchase approximately $500 million worth of stock in Fiscal 2022 under its current authorization. Taken together, Tapestry plans to deploy over $750 million to shareholders in Fiscal 2022 through dividends and share repurchases, reflecting a balanced approach to shareholder returns. The Company and its Board of Directors will evaluate its dividend and share repurchase programs on a regular basis with a target of increasing the overall level of returns upon more visibility into a normalization in the external environment.\n<\/p>\n
\nIn addition, the Company intends to repay its July 2022 bonds, totaling $400 million, at the end of Fiscal 2022. This is consistent with the Company\u2019s goal to reduce leverage through a combination of organic profit growth and debt repayment.\n<\/p>\n
\nThese actions underscore the Company\u2019s conviction in its ability to drive long-term, sustainable growth and commitment to enhancing value for its stakeholders.\n<\/p>\n
53rd<\/sup> Week Discussion<\/span><\/b><\/p>\n
\nThe results for the fourth quarter and fiscal year ending July 3, 2021 included 14 and 53 weeks, respectively, while the same periods in Fiscal 2020 included 13 and 52 weeks, respectively. The additional week contributed $93 million to Tapestry\u2019s revenue and $0.09 to earnings per diluted share in Fiscal 2021. For a complete reconciliation of revenue and operating income by segment, please refer to Financial Schedules 3 and 4 included herein.\n<\/p>\n
The following financial information is presented inclusive of the 14th<\/sup> and 53rd<\/sup> week for the fiscal fourth quarter and full year 2021, respectively, unless otherwise noted. In addition, due to the significant impact of Covid-19 on prior-year figures, this release will also include comparisons to Fiscal 2019 (\u2018pre-pandemic\u2019) for additional context.<\/i><\/p>\n
Tapestry, Inc. Fiscal Fourth Quarter and Full Year 2021 Highlights<\/span><\/b><\/p>\n
Fourth Quarter 2021:<\/i><\/b><\/p>\n
- \n
- \nIncreased revenue by 126% compared to last year, exceeding pre-pandemic levels, driven by growth at Coach\n<\/li>\n
- \nMaintained strength in Digital, which grew over 35% versus prior year and over 200% as compared to pre-pandemic levels, while improving sequential revenue trends in-stores on both a one and two-year basis\n<\/li>\n
- \nPosted strong trends in Mainland China, with sales growth of approximately 60% compared to FY20 and over 40% versus pre-pandemic levels; realized continued topline momentum in North America, rising approximately 165% versus FY20 and a high-teens percentage against FY19\n<\/li>\n
- \nExpanded overall gross margin through deliberate actions to lower promotional activity and raise AUR\n<\/li>\n
- \nRe-invested structural SG&A savings in the business through higher marketing spend; achieved increased payout under the Company\u2019s Annual Incentive Plan given its outperformance; actioned purpose-led initiatives, including a contribution of $25 million towards the endowment of the newly established Tapestry Foundation\n<\/li>\n
- \nDelivered operating income growth and margin expansion \u2013 ahead of both FY20 and FY19 \u2013 for the fourth consecutive quarter\n<\/li>\n<\/ul>\n
Full Year 2021:<\/i><\/b><\/p>\n
- \n
- \nOutperformed internal expectations at each brand across revenue, gross margin, and operating income metrics\n<\/li>\n
- \nAchieved $1.6 billion in Digital sales, representing triple-digit growth versus prior year; Increased Digital sales by $1 billion since FY19\n<\/li>\n
- \nRealized peak operating income and operating margin as Tapestry, Inc.\n<\/li>\n
- \nGenerated $1.21 billion of free cash flow, which funded investments in the business and the full pay down of the Company\u2019s $700 million revolver\n<\/li>\n<\/ul>\n
Acceleration Program Highlights<\/span><\/b><\/p>\n
\nIn the fiscal fourth quarter, the Company continued to make meaningful progress against its Acceleration Program to sharpen its focus on the consumer, leverage data to lead with a digital-first mindset and transform into a leaner and more responsive organization:\n<\/p>\n
- \n
- Recruited over 900,000 new customers through the Company\u2019s e-commerce channels in North America in the fourth quarter, resulting in nearly 4 million new customers for the fiscal year<\/b>, representing an increase versus prior year;\n<\/li>\n
- Continued to deliver an increase in number of repeat transactions <\/b>versus prior year and reactivated lapsed customers across brands<\/b>;\n<\/li>\n
- Drove high-single digit revenue gains with Chinese consumers globally<\/b> compared to pre-pandemic levels;\n<\/li>\n
- Effectively reduced SKU counts by approximately 40% and improved assortment productivity<\/b>, supported by data and analytics, resulting in stronger overall AUR and gross margin through higher IMUs and lower promotional activity and increased inventory turn for the fiscal year;<\/b><\/li>\n
- Optimized global fleet<\/b> with 59 net closures in FY21 compared to FY20, representing a net decrease of 90 doors over the past two years; Achieved $200 million of gross expense savings in Fiscal 2021 <\/b>through a streamlined organization and operating structureand remain on track to realize gross run-rate savings of $300 million in FY22.<\/b><\/li>\n<\/ul>\n
Overview of Fourth Quarter 2021 Tapestry, Inc. Results<\/span><\/b><\/p>\n
- \n
- Net sales <\/b>totaled $1.62 billion for the fourth quarter as compared to $715 million in the prior year, representing a 126% increase. <\/i>On a 13-week basis, net sales increased 113% versus prior year and rose 1% as compared to pre-pandemic levels.\n<\/li>\n
- Gross profit<\/b> totaled $1.17 billion on a reported basis, while gross margin was 72.2%. This compared to prior year reported gross profit of $499 million and gross margin of 69.8%. On a non-GAAP basis, gross profit was $1.16 billion, while gross margin was 71.7%, as compared to prior year gross profit of $507 million and gross margin of 71.0%.\n<\/li>\n
- SG&A expenses<\/b> totaled $906 million on a reported basis and represented 56.1% of sales compared to $779 million and 109.0%, respectively, in the year ago quarter. On a non-GAAP basis, SG&A expenses were $886 million and represented 54.8% of sales as compared to $577 million and 80.8%, respectively, in the year ago period. SG&A expenses for the fourth quarter of fiscal 2021 included a $25 million contribution associated with the establishment of the Tapestry Foundation as recently announced.\n<\/li>\n
- Operating income<\/b> was $260 million on a reported basis, while operating margin was 16.1% versus an operating loss of $280 million and an operating margin of (39.2)% in the prior year. On a non-GAAP basis, operating income was approximately $272 million, while operating margin was 16.9%, which compares to an operating loss of $70 million and an operating margin of (9.8)% in the prior year.\n<\/li>\n
- Net interest expense <\/b>was $16 million in the quarter as compared to approximately $20 million in the year ago period.\n<\/li>\n
- Other expense<\/b> was $1 million versus approximately $500 thousand in the prior year.\n<\/li>\n
- Net income <\/b>for the quarter was $200 million on a reported basis, with earnings per diluted share of $0.69. This compared to a net loss of $294 million with a loss per diluted share of $1.06 in the prior year period. The reported tax rate for the quarter was 17.5% compared to 2.3% in the prior year period. On a non-GAAP basis, net income for the quarter was $212 million with earnings per diluted share of $0.74. On a 13-week basis, non-GAAP earnings per diluted share was $0.65. This compared to a non-GAAP net loss of $70 million with a loss per diluted share of $0.25 in the prior year period. The non-GAAP tax rate for the quarter was 16.7% compared to 22.3% in the prior year.\n<\/li>\n<\/ul>\n
Overview of Full Year 2021 Tapestry, Inc. Results<\/span><\/b><\/p>\n
- \n
- Net sales <\/b>totaled $5.75 billion for the full year 2021 as compared to $4.96 billion in the prior year, representing a 16% increase. On a 52-week basis, net sales increased 14% versus prior year and declined 6% as compared to fiscal 2019 pre-pandemic levels.\n<\/li>\n
- Gross profit<\/b> totaled $4.08 billion on a reported basis, while gross margin was 71.0%. This compared to prior year reported gross profit of $3.24 billion and gross margin of 65.3%. On a non-GAAP basis, gross profit was $4.07 billion, while gross margin was 70.9%, as compared to prior year gross profit of $3.36 billion and gross margin of 67.7%.\n<\/li>\n
- SG&A expenses<\/b> totaled $3.11 billion on a reported basis and represented 54.2% of sales compared to $3.79 billion and 76.4%, respectively, in the prior year. On a non-GAAP basis, SG&A expenses were $2.98 billion and represented 51.8% of sales as compared to $2.92 billion and 58.8%, respectively, in the prior year.\n<\/li>\n
- Operating income<\/b> was $968 million on a reported basis, while operating margin was 16.8% versus an operating loss of $551 million and an operating margin of (11.1)% in the prior year. On a non-GAAP basis, operating income was $1.10 billion, while operating margin was 19.1%, which compares to operating income of $438 million and an operating margin of 8.8% in the prior year.\n<\/li>\n
- Net interest expense <\/b>was $71 million for the full year as compared to $60 million in the prior year.\n<\/li>\n
- Other income<\/b> was $1 million versus an expense of $13 million in the prior year.\n<\/li>\n
- Net income <\/b>for the year was $834 million on a reported basis, with earnings per diluted share of $2.95. This compared to a net loss of $652 million with a loss per diluted share of approximately $2.34 in the prior year. The reported tax rate for the year was 7.0% compared to (4.5)% in the prior year. On a non-GAAP basis, net income for the year was $841 million with earnings per diluted share of $2.97. On a 52-week basis, non-GAAP earnings per diluted share was $2.88. This compared to non-GAAP net income of $271 million with earnings per diluted share of $0.97 in the prior year. The non-GAAP tax rate for the full year was 17.9% compared to 25.7% in the prior year.\n<\/li>\n<\/ul>\n
Balance Sheet and Cash Flow Highlights<\/span><\/b><\/p>\n
- \n
- Cash, cash equivalents and short-term investments<\/b> totaled $2.02 billion and total borrowings outstanding<\/b> were $1.59 billion.\n<\/li>\n
- Inventory<\/b> at year-end was $735 million versus ending inventory of $737 million a year ago.\n<\/li>\n
- Free cash flow<\/b> was an inflow of $1.21 billion in Fiscal 2021 as compared to $202 million in the prior year; CapEx<\/b> was $116 million in Fiscal 2021 versus $205 million in Fiscal 2020.\n<\/li>\n<\/ul>\n
Non-GAAP Reconciliation<\/span><\/b><\/p>\n
\nDuring the fiscal fourth quarter of 2021, the Company recorded certain items that decreased the Company\u2019s net income and earnings per diluted share by $13 million and approximately $0.05, respectively. On a full year basis, these charges lowered the Company\u2019s reported net income by $7 million or $0.02 per diluted share. Please refer to the financial schedules 3, 4, 5 and 6 included herein for a detailed reconciliation of the Company\u2019s reported to non-GAAP results. These items included:\n<\/p>\n
- \n
- Impairment: <\/b>$8 million of pre-tax benefits in the fourth quarter reflecting a reversal of raw material reserves, which was established in fiscal 2020 as a result of the projected impact of Covid-19. For the fiscal year, the Company recorded $38 million of pre-tax charges related mainly to impairment of store assets, primarily as a result of the continued impact of Covid-19.\n<\/li>\n
- Acceleration Program<\/b>: $21 million of pre-tax charges in the fourth quarter and $90 million of pre-tax charges in the full year. These charges were primarily associated with professional fees incurred as a result of the development and execution of the Company\u2019s comprehensive strategic initiatives, share-based compensation, as well as actions to streamline the Company’s organization, which include severance. The Company continues to expect to incur total pre-tax charges of $205 to $220 million over the life of the Acceleration Program, including $30 to $45 million in remaining charges, primarily consisting of professional fees and share-based compensation.\n<\/li>\n
- CARES Act Tax Impact: <\/b>$95 million of tax benefits recorded in the full year, with no benefit recorded in the fourth quarter. These credits were primarily related to the Coronavirus Aid, Relief, and Economic Securities Act, most notably the NOL carryback claim.\n<\/li>\n<\/ul>\n
Fiscal Year 2022 Outlook<\/span><\/b><\/p>\n
\nThe Company\u2019s Fiscal 2022 outlook is provided on a non-GAAP basis and excludes anticipated Acceleration Program charges as described in the \u201cFiscal Year 2022 Outlook – Non-GAAP Adjustments\u201d section of this press release.\n<\/p>\n
\nBased on current strong underlying business trends, the Company expects the following:\n<\/p>\n
- \n
- Revenue<\/b> of approximately $6.4 billion, representing mid-teens growth versus the prior year on a 52-week, comparable basis, which would mark a record level of sales for the Company.\n<\/li>\n
- Net interest expense<\/b> of approximately $65 million. The Company anticipates paying down its July 2022 bonds at the end of Fiscal 2022.\n<\/li>\n
- Tax rate<\/b> of approximately 18.5% assuming a continuation of current tax laws.\n<\/li>\n
- Weighted average diluted share count<\/b> in the area of 283 million, approximately even with prior year, with share repurchase activity expected to offset dilution.\n<\/li>\n
- Earnings per diluted share <\/b>of $3.30 to $3.35, <\/b>reflecting leverage to the bottom line.\n<\/li>\n<\/ul>\n
\nPlease note due to the ongoing dynamic nature of the Covid-19 crisis and lack of visibility, financial results could differ materially from the current outlook due to a number of external events, including the potential for more widespread resurgences of the pandemic globally and resulting pressure on store traffic trends, as well as further supply chain disruptions, including potential continued production and distribution delays as well as increased costs, not contemplated in the Company\u2019s estimates.\n<\/p>\n
Conference Call Details<\/span><\/b><\/p>\n
\nThe Company will host a conference call to review these results at 8:00 a.m. (ET) today, August 19, 2021. Interested parties may listen to the conference call via live webcast by accessing www.tapestry.com\/investors<\/a> or calling 1-866-847-4217 or 1-203-518-9845 and providing the Conference ID 6727129. A telephone replay will be available starting at 12:00 p.m. (ET) today, for a period of five business days. To access the telephone replay, call 1-800-283-4641 or 1-402-220-0851. A webcast replay of the earnings conference call will also be available for five business days on the Tapestry website. Presentation slides have also been posted to the Company\u2019s website at www.tapestry.com\/investors<\/a>.\n<\/p>\n
Upcoming Events<\/span><\/b><\/p>\n
\nThe Company expects to report Fiscal 2022 first quarter results on Thursday, November 11, 2021. To receive notification of future announcements, please register at www.tapestry.com\/investors<\/a> (“Subscribe to E-Mail Alerts”).\n<\/p>\n
About Tapestry, Inc.<\/span><\/b><\/p>\n
\nOur global house of brands unites the magic of Coach, kate spade new york and Stuart Weitzman. Each of our brands are unique and independent, while sharing a commitment to innovation and authenticity defined by distinctive products and differentiated customer experiences across channels and geographies. We use our collective strengths to move our customers and empower our communities, to make the fashion industry more sustainable, and to build a company that\u2019s equitable, inclusive, and diverse. Individually, our brands are iconic. Together, we can stretch what\u2019s possible. To learn more about Tapestry, please visit www.tapestry.com<\/a>. For important news and information regarding Tapestry, visit the Investor Relations section of our website at www.tapestry.com\/investors<\/a>. In addition, investors should continue to review our news releases and filings with the SEC. We use each of these channels of distribution as primary channels for publishing key information to our investors, some of which may contain material and previously non-public information. The Company\u2019s common stock is traded on the New York Stock Exchange under the symbol TPR.\n<\/p>\n
This information to be made available in this press release may contain forward-looking statements based on management’s current expectations. Forward-looking statements include, but are not limited to, the statements under \u201cFiscal Year 2022 Outlook,\u201d and statements regarding the Acceleration Program, including future charges under and future impacts of this program, the potential impact of the Covid-19 pandemic and success of mitigating actions, statements regarding the Company\u2019s capital deployment plans, and statements that can be identified by the use of forward-looking terminology such as “may,” “will,” \u201ccan,\u201d “should,” “expect,” \u201cpotential,\u201d “intend,” “estimate,” “continue,” “project,” “guidance,” “forecast,” \u201coutlook,\u201d “anticipate,” \u201cgoal,\u201d \u201cleveraging,\u201d \u201csharpening,\u201d transforming,\u201d \u201ccreating,\u201d accelerating,\u201d \u201cenhancing,\u201d leaning into,\u201d \u201cinnovation,\u201d \u201cdrive,\u201d \u201ctargeting,\u201d \u201cassume,\u201d \u201cplan,\u201d \u201cprogress,\u201d \u201coptimistic,\u201d \u201cconfident,\u201d \u201cconviction,\u201d \u201cfuture,\u201d \u201cuncertain backdrop,\u201d \u201cemerge,\u201d \u201con track,\u201d \u201cpositioned to,\u201d \u201clook forward to,\u201d \u201clooking ahead,\u201d \u201cto acquire,\u201d \u201cachieve,\u201d \u201cstrategic,\u201d \u201csteady recovery,\u201d \u201cgrowth,\u201d \u201cview,\u201d \u201cstretching what\u2019s possible,\u201d or comparable terms. Future results may differ materially from management’s current expectations, based upon a number of important factors, including risks and uncertainties such as the impact of the Covid-19 pandemic, the ability to control costs and successfully execute our growth strategies, expected economic trends, the ability to anticipate consumer preferences, risks associated with operating in international markets and our global sourcing activities, our ability to achieve intended benefits, cost savings and synergies from acquisitions, the risk of cybersecurity threats and privacy or data security breaches, the impact of pending and potential future legal proceedings, and the impact of legislation, etc. Please refer to the Company\u2019s latest Annual Report on Form 10-K, quarterly report on 10-Q and its other filings with the Securities and Exchange Commission for a complete list of risks and important factors. The Company assumes no obligation to revise or update any such forward-looking statements for any reason, except as required by law. <\/i><\/p>\n
Schedule 1: Consolidated Statement of Operations<\/i><\/b><\/p>\n
\n
\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n TAPESTRY, INC.<\/span><\/b><\/td>\n<\/tr>\n \n \n CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS<\/span><\/b><\/td>\n<\/tr>\n \n \n For the Quarters and Years Ended July 3, 2021 and June 27, 2020<\/span><\/b><\/td>\n<\/tr>\n \n \n (in millions, except per share data)<\/span><\/b><\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n (unaudited)<\/b><\/p>\n<\/td>\n
\n \n (unaudited)<\/b><\/p>\n<\/td>\n
\n \n (audited)<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n QUARTER ENDED<\/b><\/p>\n<\/td>\n
\n \n YEAR ENDED<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n July 3,
\n
2021<\/b><\/p>\n<\/td>\n\n \n June 27,
\n
2020<\/b><\/p>\n<\/td>\n\n \n July 3,
\n
2021<\/b><\/p>\n<\/td>\n\n \n June 27,
\n
2020<\/b><\/p>\n<\/td>\n<\/tr>\n\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Net sales<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n1,615.4\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n714.8\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n5,746.3\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n4,961.4\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Cost of sales<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n449.3\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n215.9\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,664.4\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,722.1\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Gross Profit<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,166.1\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n498.9\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n4,081.9\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n3,239.3\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Selling, general and administrative expenses<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n906.4\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n778.9\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n3,113.9\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n3,790.1\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Operating income (loss)<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n259.7\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(280.0)\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n968.0\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(550.8)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Interest expense, net<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n16.4\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n20.3\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n71.4\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n60.1\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Other expense (gain)<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1.1\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n0.5\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(0.7)\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n13.3\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Income before provision for income taxes<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n242.2\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(300.8)\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n897.3\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(624.2)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Provision for income taxes<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n42.4\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(7.0)\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n63.1\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n27.9\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Net income (loss)<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n199.8\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n(293.8)\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n834.2\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n(652.1)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Net income (loss) per share:<\/td>\n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Basic<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n0.72\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n(1.06)\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n3.00\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n(2.34)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Diluted<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n0.69\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n(1.06)\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n2.95\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n(2.34)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Shares used in computing net income (loss) per share:<\/td>\n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Basic<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n279.2\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n276.2\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n277.9\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n278.6\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Diluted<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n287.6\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n276.2\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n283.0\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n278.6\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n Schedule 2: Detail to Net Sales<\/i><\/b><\/p>\n
\n
\n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n TAPESTRY, INC.<\/span><\/b><\/td>\n<\/tr>\n \n DETAIL TO NET SALES<\/span><\/b><\/td>\n<\/tr>\n \n For the Quarters and Years Ended July 3, 2021 and June 27, 2020<\/span><\/b><\/td>\n<\/tr>\n \n (in millions)<\/span><\/b><\/td>\n<\/tr>\n \n (unaudited)<\/span><\/b><\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n QUARTER ENDED<\/b><\/p>\n<\/td>\n
\n \n \n \n \n <\/tr>\n \n \n \n \n \n July 3,
\n
2021<\/b><\/p>\n<\/td>\n\n \n June 27,
\n
2020<\/b><\/p>\n<\/td>\n\n \n % Change vs.
\n
FY20<\/b><\/p>\n<\/td>\n\n \n Constant Currency %
\n
Change vs. FY20<\/b><\/p>\n<\/td>\n\n \n % Change vs.
\n
FY19<\/b><\/p>\n<\/td>\n<\/tr>\n\n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Coach<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n1,188.9\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n517.4\n<\/p>\n<\/td>\n
\n \n \n130 %\n<\/p>\n<\/td>\n
\n \n \n125 %\n<\/p>\n<\/td>\n
\n \n \n8 %\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Kate Spade<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n341.6\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n164.1\n<\/p>\n<\/td>\n
\n \n \n108 %\n<\/p>\n<\/td>\n
\n \n \n106 %\n<\/p>\n<\/td>\n
\n \n \n3 %\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Stuart Weitzman<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n84.9\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n33.3\n<\/p>\n<\/td>\n
\n \n \n156 %\n<\/p>\n<\/td>\n
\n \n \n146 %\n<\/p>\n<\/td>\n
\n \n \n– %\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Total Tapestry<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n1,615.4\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n714.8\n<\/p>\n<\/td>\n
\n \n \n126 %\n<\/p>\n<\/td>\n
\n \n \n122 %\n<\/p>\n<\/td>\n
\n \n \n7 %\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n YEAR ENDED<\/b><\/td>\n \n \n \n \n \n <\/tr>\n \n \n \n \n \n July 3,
\n
2021<\/b><\/p>\n<\/td>\n\n \n June 27,
\n
2020<\/b><\/p>\n<\/td>\n\n \n % Change vs.
\n
FY20<\/b><\/p>\n<\/td>\n\n \n Constant Currency %
\n
Change vs. FY20<\/b><\/p>\n<\/td>\n\n \n % Change vs.
\n
FY19<\/b><\/p>\n<\/td>\n<\/tr>\n\n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Coach<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n4,253.1\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n3,525.7\n<\/p>\n<\/td>\n
\n \n \n21 %\n<\/p>\n<\/td>\n
\n \n \n19 %\n<\/p>\n<\/td>\n
\n \n \n– %\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Kate Spade<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,210.0\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,149.5\n<\/p>\n<\/td>\n
\n \n \n5 %\n<\/p>\n<\/td>\n
\n \n \n5 %\n<\/p>\n<\/td>\n
\n \n \n(11)%\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Stuart Weitzman<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n283.2\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n286.2\n<\/p>\n<\/td>\n
\n \n \n(1)%\n<\/p>\n<\/td>\n
\n \n \n(3)%\n<\/p>\n<\/td>\n
\n \n \n(27)%\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Total Tapestry<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n5,746.3\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n4,961.4\n<\/p>\n<\/td>\n
\n \n \n16 %\n<\/p>\n<\/td>\n
\n \n \n14 %\n<\/p>\n<\/td>\n
\n \n \n(5)%\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n Schedule 3: Items Affecting Comparability \u2013 4Q21<\/i><\/b><\/p>\n
\n
\n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n TAPESTRY, INC.<\/span><\/b><\/td>\n<\/tr>\n \n GAAP TO NON-GAAP RECONCILIATION<\/span><\/b><\/td>\n<\/tr>\n \n (in millions, except per share data)<\/span><\/b><\/td>\n<\/tr>\n \n (unaudited)<\/span><\/b><\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n For the Quarter Ended July 3, 2021<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n Items Affecting Comparability<\/b><\/p>\n<\/td>\n
\n <\/tr>\n \n \n \n \n GAAP Basis
\n
(As Reported)<\/b><\/p>\n<\/td>\n\n \n Impairment<\/b><\/p>\n<\/td>\n
\n \n Acceleration
\n
Program<\/b><\/p>\n<\/td>\n\n \n Non-GAAP Basis
\n
(Excluding Items)<\/b><\/p>\n<\/td>\n<\/tr>\n\n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Cost of sales<\/b><\/td>\n \n \n \n \n \n \n \n <\/tr>\n \n Coach<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n898.0\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n8.1\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n889.9\n<\/p>\n<\/td>\n<\/tr>\n
\n Kate Spade<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n221.0\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n221.0\n<\/p>\n<\/td>\n<\/tr>\n
\n Stuart Weitzman<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n47.1\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n47.1\n<\/p>\n<\/td>\n<\/tr>\n
\n Gross profit(1)<\/sup><\/b><\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n1,166.1\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n8.1\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n1,158.0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n SG&A expenses<\/b><\/td>\n \n \n \n \n \n \n \n <\/tr>\n \n Coach<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n519.3\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n0.7\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n518.6\n<\/p>\n<\/td>\n<\/tr>\n
\n Kate Spade<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n185.8\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n0.1\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n185.7\n<\/p>\n<\/td>\n<\/tr>\n
\n Stuart Weitzman<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n50.1\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(1.2)\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n51.3\n<\/p>\n<\/td>\n<\/tr>\n
\n Corporate<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n151.2\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n21.3\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n129.9\n<\/p>\n<\/td>\n<\/tr>\n
\n SG&A expenses<\/b><\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n906.4\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n20.9\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n885.5\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n <\/tr>\n \n Operating income (loss)<\/b><\/td>\n \n \n \n \n \n \n \n <\/tr>\n \n Coach<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n378.7\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n8.1\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(0.7)\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n371.3\n<\/p>\n<\/td>\n<\/tr>\n
\n Kate Spade<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n35.2\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(0.1)\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n35.3\n<\/p>\n<\/td>\n<\/tr>\n
\n Stuart Weitzman<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(3.0)\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1.2\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(4.2)\n<\/p>\n<\/td>\n<\/tr>\n
\n Corporate<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(151.2)\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(21.3)\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(129.9)\n<\/p>\n<\/td>\n<\/tr>\n
\n Operating income (loss)<\/b><\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n259.7\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n8.1\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n(20.9)\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n272.5\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Provision for income taxes<\/b><\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n42.4\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n2.0\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(2.2)\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n42.6\n<\/p>\n<\/td>\n<\/tr>\n
\n Net income (loss)<\/b><\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n199.8\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n6.1\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n(18.7)\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n212.4\n<\/p>\n<\/td>\n<\/tr>\n
\n Net income (loss) per diluted common share<\/b><\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n0.69\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n0.02\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n(0.07)\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n0.74\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n (1) <\/sup>Adjustments within Gross profit are recorded within Cost of sales.<\/td>\n<\/tr>\n<\/table>\n The amounts reflected above include the impact of the additional week on the fourth quarter of Fiscal 2021. The following table quantifies the impact of the additional week on Net Sales and Operating Income by Segment:<\/i><\/p>\n
\n
\n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n TAPESTRY, INC.<\/span><\/b><\/td>\n<\/tr>\n \n - Net interest expense<\/b> of approximately $65 million. The Company anticipates paying down its July 2022 bonds at the end of Fiscal 2022.\n<\/li>\n
- Acceleration Program<\/b>: $21 million of pre-tax charges in the fourth quarter and $90 million of pre-tax charges in the full year. These charges were primarily associated with professional fees incurred as a result of the development and execution of the Company\u2019s comprehensive strategic initiatives, share-based compensation, as well as actions to streamline the Company’s organization, which include severance. The Company continues to expect to incur total pre-tax charges of $205 to $220 million over the life of the Acceleration Program, including $30 to $45 million in remaining charges, primarily consisting of professional fees and share-based compensation.\n<\/li>\n
- Inventory<\/b> at year-end was $735 million versus ending inventory of $737 million a year ago.\n<\/li>\n
- Gross profit<\/b> totaled $4.08 billion on a reported basis, while gross margin was 71.0%. This compared to prior year reported gross profit of $3.24 billion and gross margin of 65.3%. On a non-GAAP basis, gross profit was $4.07 billion, while gross margin was 70.9%, as compared to prior year gross profit of $3.36 billion and gross margin of 67.7%.\n<\/li>\n
- Gross profit<\/b> totaled $1.17 billion on a reported basis, while gross margin was 72.2%. This compared to prior year reported gross profit of $499 million and gross margin of 69.8%. On a non-GAAP basis, gross profit was $1.16 billion, while gross margin was 71.7%, as compared to prior year gross profit of $507 million and gross margin of 71.0%.\n<\/li>\n
- Continued to deliver an increase in number of repeat transactions <\/b>versus prior year and reactivated lapsed customers across brands<\/b>;\n<\/li>\n
- Recruited over 900,000 new customers through the Company\u2019s e-commerce channels in North America in the fourth quarter, resulting in nearly 4 million new customers for the fiscal year<\/b>, representing an increase versus prior year;\n<\/li>\n
- Initiates Financial Outlook for Accelerated Growth and Profitability in FY22<\/b><\/li>\n<\/ul>\n
- Achieved Full Year Operating Income and EPS Increases Compared to Both FY20 and FY19 Driven by Over 300 Basis Points of Gross Margin Expansion<\/b><\/li>\n<\/ul>\n
- Generated Triple-Digit Global Digital Gains in FY21 to Reach Approximately $1.6 Billion in E-Commerce Sales Fueled by New Customer Acquisition<\/b><\/li>\n<\/ul>\n
- Reported Q4 GAAP EPS of $0.69 and non-GAAP EPS of $0.74, Significantly Ahead of Both FY20 and FY19<\/b><\/li>\n<\/ul>\n