What changed in this filing

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Item 1. Business

2022-08-18 compared with 2021-08-19 · 120 added, 118 removed, 338 unchanged (41% of the section changed)

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During fiscal 2015, the Company acquired Stuart Weitzman Holdings LLC, a luxury women's footwear company.

During the first quarter of fiscal 2018, the Company acquired Kate Spade & Company, a lifestyle accessories and ready-to-wear company.

During fiscal 2018, the Company acquired Kate Spade & Company, a lifestyle accessories and ready-to-wear company.

Later in fiscal 2018, the Company changed its name to Tapestry, Inc.

Tapestry, Inc.

is a leading New York-based house of modern luxury accessories and lifestyle brands.

is a leading New York-based house of accessible luxury accessories and lifestyle brands.

Our global house of brands unites the magic of Coach, kate spade new york and Stuart Weitzman.

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Together, we can stretch what’s possible.

Acceleration Program

The Company has implemented a strategic growth plan after undergoing a review of its business under its multi-year growth agenda (the "Acceleration Program").

The guiding principle of the Company’s multi-year growth agenda under the Acceleration Program is to better meet the needs of each of its brands' unique customers by:

In fiscal 2020, the Company announced and embarked on a strategic multi-year growth plan (the "Acceleration Program").

The guiding principle under the Acceleration Program is to better meet the needs of each of its brands' unique customers by:

• Sharpening our Focus on the Consumer:

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Moving with greater agility, simplifying internal processes and empowering teams to act quickly to meet the rapidly changing needs of the consumer.

The Company achieved approximately $200 million of gross run rate expense savings in fiscal 2021 and remains on track to realize gross run-rate savings of $300 million.

The Company achieved approximately $200 million and $300 million of annual gross run rate expense savings in fiscal 2021 and fiscal 2022, respectively.

The Company does not expect to incur expenses related to the Acceleration Program in the fiscal year ending July 1, 2023 ("fiscal 2023").

Covid-19 Impact

Our business has been significantly impacted by Covid-19.

The outbreak of Covid-19 has continued to impact a significant majority of the regions in which we operate, resulting in significant global business disruptions.

In response, the Company took strategic actions to reinforce its liquidity and financial flexibility, as well as to comply with local regulations to protect employees and customers.

While the ongoing pandemic continues to present challenges, such as the supply chain related pressures facing the industry, store closures and other additional actions necessary to protect our stakeholders, the Company has been adapting to the current environment by remaining flexible in the short-term while continuing to focus on its long-term strategy and multi-year growth agenda.

While the ongoing pandemic continues to present challenges, such as the supply chain related pressures facing the industry, increased freight costs, temporary closures and other additional necessary actions to protect our stakeholders, the Company has been adapting to the current environment by remaining flexible in the short-term while continuing to focus on its long-term strategy and multi-year growth agenda.

The Company has three reportable segments:

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This segment represented 73.6% of total net sales in fiscal 2022.

• Kate Spade includes global sales primarily of kate spade new york brand products to customers through Kate Spade operated stores, including e-commerce sites, sales to wholesale customers, through concession shop-in-shops and through independent third party distributors.

• Kate Spade includes global sales primarily of kate spade new york brand products to customers through Kate Spade operated stores, including e-commerce sites and concession shop-in-shops, sales to wholesale customers and through independent third party distributors.

This segment represented 21.6% of total net sales in fiscal 2022.

• Stuart Weitzman includes global sales of Stuart Weitzman brand products primarily through Stuart Weitzman operated stores, including e-commerce sites, sales to wholesale customers and through independent third party distributors.

• Stuart Weitzman includes global sales of Stuart Weitzman brand products primarily through Stuart Weitzman operated stores, sales to wholesale customers, through e-commerce sites and through independent third party distributors.

This segment represented 4.8% of total net sales in fiscal 2022.

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These costs primarily include administrative and information systems expense.

Coach is a leading design house of modern luxury accessories and lifestyle collections, with a long-standing reputation built on quality craftsmanship.

Founded in 1941, Coach is a leading design house of accessible luxury accessories and lifestyle collections, with a long-standing reputation built on quality craftsmanship.

Defined by a free-spirited, all-American attitude, the brand approaches design with a modern vision, reimagining luxury for today with an authenticity and innovation that is uniquely Coach.

All over the world, the Coach name is synonymous with effortless New York style.

Stores — Coach operates freestanding flagship, retail and outlet stores as well as concession shop-in-shop locations.

Stores — Coach operates freestanding retail stores, including flagships, and outlet stores as well as concession shop-in-shop locations.

These stores are located in regional shopping centers, metropolitan areas throughout the world and established outlet centers.

Coach flagship stores, which offer the fullest expression of the Coach brand, are located in tourist-heavy, densely populated cities globally.

Retail stores carry an assortment of products depending on their size, location and customer preferences.

Coach operates a limited number of flagship stores that offer the fullest expression of the Coach brand and are located in tourist-heavy, densely populated cities globally.

Coach outlet stores serve as an efficient means to sell manufactured-for-outlet product and discontinued retail inventory outside the retail channel.

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Fiscal 2020 4,690 2,205 3,177

In fiscal 2022, we expect minimal change in overall store count with increases in store locations and square footage in Greater China and Japan, mostly offset by a reduction in store count in North America.

Digital — We view our digital platforms as instruments to deliver Coach brand products to customers directly, with the benefit of added accessibility, so that consumers can purchase Coach brand products wherever they choose.

Consumers also have the ability to place e-commerce orders through point-of-sale mobile devices located within our retail stores.

In fiscal 2023, we expect minimal change in overall store count with a reduction in store count primarily in North America and Japan, partially offset by increases in store locations and square footage in Greater China.

Digital — We view our digital platforms as instruments to deliver Coach products to customers directly, with the benefit of added accessibility, so that consumers can purchase Coach products wherever they choose.

For Coach, we have e-commerce sites in the U.S., Canada, Japan, mainland China, several throughout Europe, Australia and several throughout the rest of Asia.

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Wholesale — We work closely with our wholesale partners to ensure a clear and consistent product presentation.

We enhance our presentation through the creation of shop-in-shops with proprietary Coach brand fixtures within the department store environment.

We enhance our presentation of proprietary Coach brand fixtures within the department store environment in select locations.

We custom tailor our assortments through wholesale product planning and allocation processes to match the attributes of our department store consumers in each local market.

We continue to closely manage inventories in this channel given the current highly promotional environment at point-of-sale.

We utilize automatic replenishment with major accounts in an effort to optimize inventory levels across wholesale doors.

The wholesale business for Coach brand comprised approximately 9% of total segment net sales for fiscal 2021.

We continue to closely monitor inventories held by our wholesale customers in an effort to optimize inventory levels across wholesale doors.

The wholesale business for Coach comprised approximately 10% of total segment net sales for fiscal 2022.

As of July 2, 2022, Coach's products are sold in over approximately 1,700 wholesale and distributor locations globally.

Coach has developed relationships with a select group of distributors who sell Coach products through travel retail locations and in certain international countries where Coach does not have directly operated retail locations.

As of July 3, 2021 and June 27, 2020, Coach did not have any customers who individually accounted for more than 10% of the segment's total net sales.

As of July 2, 2022 and July 3, 2021, Coach did not have any customers who individually accounted for more than 10% of the segment's total net sales.

Since its launch in 1993 with a collection of six essential handbags, kate spade new york has always stood for color, wit, optimism and femininity.

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Known for its rich heritage and unique brand DNA, kate spade new york offers a distinctive point of view, and celebrates communities of women around the globe who live their perfectly imperfect lifestyles.

Stores — Kate Spade operates freestanding flagship, specialty retail and outlet stores as well as concession shop-in-shops.

These stores are located in regional shopping centers, metropolitan areas throughout the world and established outlet centers.

Kate Spade flagship locations, which offer the fullest expression of the Kate Spade brand, are located in key strategic markets including tourist-heavy, densely populated cities globally.

Retail stores carry an assortment of products depending on their size, location and customer preferences.

Stores — Kate Spade operates freestanding retail stores, including flagships, and outlet stores as well as concession shop-in-shops.

These stores are located in regional shopping centers and metropolitan areas throughout the world as well as established outlet centers.

Kate Spade retail stores carry an assortment of products depending on their size, location and customer preferences.

Kate Spade operates a limited number of flagship locations which offer the fullest expression of the Kate Spade brand and are located in key strategic markets including tourist-heavy, densely populated cities globally.

Kate Spade outlet stores serve as an efficient means to sell manufactured-for-outlet product and discontinued retail inventory outside the retail channel.

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The following table shows the number of Kate Spade directly-operated locations and their total and average square footage:

North America International (1)

North America International Total

Fiscal 2022 207 191 398

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Fiscal 2020 2,833 1,407 2,130

(1) Fiscal 2019 includes the addition of 21 stores acquired as a result of the Kate Spade distributor acquisitions in Australia, Malaysia and Singapore.

We expect to modestly reduce our store count in North America and Japan in the next fiscal year as the Company looks to drive increased profitability and shift our focus with greater emphasis on digital channels.

Digital — We view our digital platforms as instruments to deliver Kate Spade brand products to customers directly with the benefit of added accessibility as consumers can purchase Kate Spade brand products wherever they choose.

Consumers also have the ability to place e-commerce orders through point-of-sale mobile devices located within our retail stores.

We expect to modestly reduce our store count in North America and Japan in fiscal 2023 as the Company looks to drive increased profitability and shift our focus with greater emphasis on digital channels.

Digital — We view our digital platforms as instruments to deliver Kate Spade products to customers directly with the benefit of added accessibility as consumers can purchase Kate Spade products wherever they choose.

For Kate Spade, we have e-commerce sites in the U.S., Canada, mainland China, Japan and several throughout Europe.

Additionally, we continue to leverage various third-party digital platforms to sell our products to customers.

Wholesale — As of July 3, 2021, Kate Spade brand's products are sold in approximately 900 wholesale and distributor locations, primarily in the U.S, Canada and Europe.

The most significant wholesale partnerships primarily include sales of kate spade new york products.

The wholesale business for Kate Spade brand comprised approximately 9% of total segment net sales for fiscal 2021.

Wholesale — As of July 2, 2022, Kate Spade's products are sold in approximately 1,000 wholesale and distributor locations, primarily in the U.S, Canada and Europe.

We continue to closely monitor inventories held by our wholesale customers in an effort to optimize inventory levels across wholesale doors.

The wholesale business for Kate Spade comprised approximately 11% of total segment net sales for fiscal 2022.

Kate Spade has developed relationships with a select group of distributors who sell Kate Spade products through travel retail locations and in certain international countries where Kate Spade does not have directly operated retail locations.

As of July 3, 2021 and June 27, 2020, Kate Spade did not have any customers who individually accounted for more than 10% of the segment's total net sales.

As of July 2, 2022 and July 3, 2021, Kate Spade did not have any customers who individually accounted for more than 10% of the segment's total net sales.

Stuart Weitzman

Stuart Weitzman is a leading accessories brand that is synonymous with strength in femininity.

Founded in 1986, Stuart Weitzman is a leading accessories brand that is synonymous with strength in femininity.

Defined by an energetic, bold and purpose-driven attitude, Stuart Weitzman is known for its unique approach to melding fashion, function and fit in every silhouette.

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Stuart Weitzman

North America International (1)

North America International Total

Fiscal 2022 39 61 100

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Fiscal 2021 (1)

88,394 80,450 168,844

Net change vs.

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Fiscal 2021 (1)

1,842 1,437 1,624

Fiscal 2020 1,772 1,222 1,465

(1) Fiscal 2019 includes the addition of 18 stores acquired as a result of the distributor acquisitions in Southern China and Australia.

During fiscal 2021, we exited certain regions in which we previously operated in efforts to optimize our fleet under the Acceleration Program.

(1) During fiscal 2021, we exited certain regions previously operated in to optimize our fleet under the Acceleration Program.

In fiscal 2023, we expect a modest increase in store count and square footage in mainland China and a slight reduction in store count and square footage in North America.

Digital — We view our digital platform as an instrument to deliver Stuart Weitzman brand products to customers directly with the benefit of added accessibility as consumers can purchase Stuart Weitzman brand products wherever they choose.

Digital — We view our digital platform as an instrument to deliver Stuart Weitzman products to customers directly with the benefit of added accessibility as consumers can purchase Stuart Weitzman brand products wherever they choose.

For Stuart Weitzman, we have e-commerce sites in the U.S, Canada and mainland China.

Additionally, we continue to leverage a third-party digital platform to sell our products to customers.

Wholesale — Stuart Weitzman brand products are primarily sold through approximately 900 wholesale and distributor locations globally, which include multi-brand boutiques.

The wholesale business for Stuart Weitzman brand comprised approximately 29% of total segment net sales for fiscal 2021.

Wholesale — Stuart Weitzman products are primarily sold through approximately 900 wholesale and distributor locations globally, which include multi-brand boutiques.

The wholesale business for Stuart Weitzman comprised approximately 34% of total segment net sales for fiscal 2022.

We continue to closely monitor inventories held by our wholesale customers in an effort to optimize inventory levels across wholesale doors.

Stuart Weitzman has developed relationships with a select group of distributors who sell Stuart Weitzman products through travel retail locations and in certain international countries where Stuart Weitzman does not have directly operated retail locations.

As of July 3, 2021 and June 27, 2020, Stuart Weitzman did not have any customers who individually accounted for more than 10% of the segment's total net sales.

As of July 2, 2022 and July 3, 2021, Stuart Weitzman did not have any customers who individually accounted for more than 10% of the segment's total net sales.

Refer to Note 17, "Segment Information," for further information about the Company's segments.

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Our key licensing relationships and their calendar year expirations as of July 2, 2022 are as follows:

Brand Category Partner Expiration

Coach Jewelry Centric 2022

Coach Tech Accessories Incipio 2023

Brand Category Partner Calendar Year Expiration

Coach Tech Accessories Vinci 2023

Coach Jewelry and Soft Accessories Centric 2024

Coach Watches Movado 2025

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Coach Fragrance Interparfums 2026

Kate Spade Tech Accessories Incipio 2021

Kate Spade Tableware and Housewares Lenox 2022

Kate Spade Fashion Bedding HTA 2023

Kate Spade Tech Accessories Vinci 2025

Kate Spade Watches Fossil 2025

Kate Spade Sleepwear Komar 2025

Kate Spade Eyewear Safilo 2026

Kate Spade Stationery and Gift Lifeguard Press 2026

Kate Spade Fragrance Interparfums 2030

Products made under license are, in most cases, sold through stores and wholesale channels and, with the Company's approval, the licensees have the right to distribute products selectively through other venues, which provide additional, yet controlled, exposure of our brands.

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Fiscal Year Ended

July 3, 2021 June 27, 2020 June 29, 2019

July 2, 2022 July 3, 2021 June 27, 2020

Amount % of total

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Women's Handbags $ 2,574.8 38 % $ 2,302.3 40 % $ 1,852.0 37 %

Men's 769.3 13 688.0 14 862.0 14

Women's Accessories 942.5 14 776.7 14 645.4 13

Men's 904.8 14 769.3 13 688.0 14

Other Products 499.2 7 404.8 7 340.3 7

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Also included in this category are novelty accessories (including address books, time management accessories, travel accessories, sketchbooks and portfolios), key rings and charms.

Men’s — Men’s includes bag collections (including business cases, computer bags, messenger-style bags, backpacks and totes), small leather goods (including wallets, card cases, travel organizers and belts), footwear, watches, sunglasses, novelty accessories and ready-to-wear items.

Other Products — These products primarily include women's footwear, eyewear (such as sunglasses), jewelry (including bracelets, necklaces, rings and earrings), fragrances, watches, certain women's seasonal lifestyle apparel collections, including outerwear, ready-to-wear and cold weather accessories, such as gloves, scarves and hats.

Men’s — Men’s includes bag collections (including business cases, computer bags, messenger-style bags, backpacks and totes), small leather goods (including wallets, card cases, travel organizers and belts), footwear, watches, fragrances, sunglasses, novelty accessories and ready-to-wear items.

Other Products — These products primarily include women's footwear, eyewear (such as sunglasses), jewelry (including bracelets, necklaces, rings and earrings), women's fragrances, watches, certain women's seasonal lifestyle apparel collections, including outerwear, ready-to-wear and cold weather accessories, such as gloves, scarves and hats.

In addition, Kate Spade brand kids footwear items, housewares and home accessories, such as fashion bedding and tableware, and stationery and gifts are included in this category.

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Our merchandising teams are committed to managing the product life cycle to maximize sales and profitability across all channels.

In fiscal year 2021, the Company took actions to reduce its SKU counts by 40% to 45% in order to optimize its product assortment to drive profitability.

The product category teams, each comprised of design, merchandising, product development and sourcing specialists help each brand execute design concepts that are consistent with the brand's strategic direction.

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Total expenses attributable to the Company's marketing-related activities in fiscal 2022 were $551.6 million, or approximately 8% of net sales, compared to $395.2 million in fiscal 2021, or approximately 7% of net sales.

Our wide range of marketing activities utilize a variety of media, including print, digital, social and out-of-home.

Our wide range of marketing activities utilize a variety of media, including digital, social, print and out-of-home.

Our respective brand websites serve as effective communication vehicles by providing an immersive brand experience, showcasing the fullest expression across all product categories.

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The Company continues to evaluate new manufacturing sources and geographies to deliver the finest quality products at the best cost and to mitigate the impact of manufacturing in inflationary markets.

Before partnering with a new vendor, the Company evaluates each facility by conducting a quality and business practice standards audit.

Our raw material suppliers, independent manufacturers and licensing partners must achieve and maintain high quality standards, which are an integral part of our brands' identity.

Before partnering with a new manufacturing vendor for finished goods, the Company evaluates each facility by conducting a quality and business practice standards review.

In addition, for manufacturers of finished goods we request a social compliance report that was conducted within six months of the date of submission.

Suppliers that fail to meet our standards are not approved until an acceptable report is provided.

Periodic evaluations of existing, previously approved facilities are conducted on a recurring basis.

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These independent manufacturers each or in aggregate support a broad mix of product types, materials and a seasonal influx of new, fashion-oriented styles, which allows us to meet shifts in marketplace demand and changes in consumer preferences.

Our raw material suppliers, independent manufacturers and licensing partners must achieve and maintain high quality standards, which are an integral part of our brands' identity.

One of our keys to success lies in the rigorous selection of raw materials.

We have longstanding relationships with purveyors of fine leathers and hardware.

Although our products are manufactured by independent manufacturers, we maintain a strong level of oversight in the selection of the raw materials that are used in all of our products.

Compliance with quality control standards is monitored through on-site quality inspections at independent manufacturing facilities.

Although our products are manufactured by independent manufacturers, we maintain a strong level of oversight in the selection of the raw materials and compliance with quality control standards is monitored through on-site quality inspections at independent manufacturing facilities.

We maintain strong oversight of the supply chain process for each of our brands from design through manufacturing.

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This broad-based, global manufacturing strategy is designed to optimize the mix of cost, lead times and construction capabilities.

We have and may continue to experience disruptions at third-party manufacturing facilities across certain geographies.

We have and may continue to experience disruptions at third-party manufacturing facilities across certain geographies due to Covid-19.

Refer to "Executive Overview" in Item 7.

"Management’s Discussion and Analysis of Financial Condition and Results of Operations" for additional information.

During fiscal 2021, manufacturers of Coach products were primarily located in Vietnam, Cambodia and the Philippines and no individual vendor provided 10% or more of the brand's total purchases.

During fiscal 2021, Kate Spade products were manufactured primarily in Vietnam, Cambodia and mainland China.

Kate Spade had one vendor, located in Vietnam, who individually provided over 10% of the brand's total purchases.

The level of products manufactured in each country is expected to change for Coach and Kate Spade during fiscal 2022 as the brands continue to further diversify their supply chains globally.

During fiscal 2022, manufacturers of Coach products were primarily located in Vietnam, Cambodia, the Philippines and Indonesia and no individual vendor provided 10% or more of the brand's total purchases.

During fiscal 2022, Kate Spade products were manufactured primarily in Vietnam, Cambodia, Indonesia and China.

Kate Spade had one vendor, located in Indonesia, who individually provided over 10% of the brand's total purchases (or approximately 11%).

Stuart Weitzman products were primarily manufactured in Spain.

During fiscal 2021, Stuart Weitzman had two vendors, both located in Spain, who individually provided over 10% of the brand's total units (or approximately 26% in the aggregate).

During fiscal 2022, Stuart Weitzman had four vendors, all located in Spain, who individually provided over 10% of the brand's total units (or approximately 44% in the aggregate).

The Company’s fulfillment network is designed to ship each brand's products from our manufacturers to fulfillment centers around the world for inspection, storage, order processing and delivery.

These fulfillment centers are either directly operated by the Company or operated by independent third parties, and the Company began to leverage multi-brand fulfillment centers where appropriate.

These fulfillment centers are either directly operated by the Company or operated by independent third parties, and the Company leverages multi-brand fulfillment centers where appropriate.

Our facilities use bar code scanning warehouse management systems, where our fulfillment center employees use handheld scanners to read product bar codes.

This allows for accurate storage and order processing, and allows us to provide excellent service to our customers.

Our products are primarily shipped to retail stores and wholesale customers, while some facilities also ship direct to consumer orders in markets where we have an e-commerce presence.

North America product fulfillment occurs at our facilities in the U.S.

and Canada, which utilize our automated warehouse management system and electronic data interchange system, while the unique requirements of the direct to consumer business are supported by our order management and e-commerce sites as well as distribution systems operated by a third-party.

The Company also operates local fulfillment centers in Spain, Italy, the Netherlands, U.K., Japan, Greater China, South Korea, Malaysia, Australia and Singapore, which are operated by third parties.

The Company leverages other third party service providers as needed for product fulfillment in periods of high demand.

Refer to Item 2.

“Properties” for the Company’s key fulfillment centers.

In July 2021, the Company entered into a lease agreement for a facility to be located in Las Vegas, Nevada.

Our products are primarily shipped to retail stores, wholesale customers and e-commerce customers.

Product fulfillment occurs at facilities throughout the world that are either company run or managed by third parties.

In North America we maintain fulfillment centers in Jacksonville, Florida, and West Chester, Ohio, operated by Tapestry.

Globally we utilize fulfillment centers in mainland China, the Netherlands, the United Kingdom, and Spain, owned and operated by third-parties.

We also utilize local fulfillment centers, through third-parties in Japan, parts of Greater China (mainland China, Hong Kong SAR, Macao SAR, and Taiwan), South Korea, Singapore, Malaysia, Spain, the U.K., Canada, Australia, and starting in fiscal 2023 in Mexico which will support the market in the United States.

These facilities utilize automated warehouse management systems that interface to our Enterprise Resource Planning ("ERP") system.

In fiscal 2022, the Company entered into a lease agreement for a facility to be located in Las Vegas, Nevada.

This facility is expected to become a multi-brand fulfillment center that is intended to increase capacity and continue to enhance fulfillment capabilities.

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Our information technology platform is a key capability used to support digital growth and drive consumer centricity and data-driven decision making.

We are continually working on enhancing our digital technology platforms and elevating our e-commerce capabilities through new functionalities to our direct-to-consumer channels.

In fiscal 2021, we successfully migrated the majority of our technology infrastructure to be cloud based.

As part of our efforts to further streamline our information systems as part of a multi-brand platform, in fiscal 2020, the Company completed its multi-year Enterprise Resource Planning ("ERP") implementation, which supports the flow of information across all our brands and functions, including:

• Deployment of global finance, accounting, supply chain and human resource information systems across all brands.

• Implementation of a global consolidation system, which provides a common platform for financial reporting.

The Company is also implementing a point-of-sale system which supports all in-store transactions, distributes management reporting for each store, and collects sales and payroll information on a daily basis.

We are continually working on enhancing our digital technology platforms and elevating our e-commerce capabilities through new functionalities to our direct-to-consumer channels, including enhancements to our omni-channel, utilizing cloud based technology infrastructure.

The Company began implementing a point-of-sale system in fiscal 2021 which supports all in-store transactions, distributes management reporting for each store, and collects sales and payroll information on a daily basis.

This daily collection of store sales and inventory information results in early identification of business trends and provides a detailed baseline for store inventory replenishment.

The implementation is complete for Coach and Stuart Weitzman stores and expected to be implemented for Kate Spade North America and Europe in fiscal 2022.

Refer to Item 1A.

"Risk Factors, " for further information as it relates to the Company's ERP system implementation efforts.

The implementation is complete for Coach, Stuart Weitzman and Kate Spade Europe stores.

The Kate Spade North America rollout is in-progress, and expected to be completed in the first quarter of fiscal 2023.

The Company maintains global information security and privacy compliance programs, comprised of risk management policies and procedures surrounding the Company’s information systems, cybersecurity practices and protection of consumer and employee personal data and confidential information.

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It also owns brand-specific trademarks such as COACH and Horse & Carriage Design, COACH and Story Patch Design, COACH and Lozenge Design, COACH and Tag Design, Signature C Design for the COACH brand;

kate spade new york and Spade Design, live colorfully and Walk on Air for the kate spade new york brand;

kate spade new york and Spade Design, and spade flower monogram for the kate spade new york brand;

and the stacked Stuart Weitzman Logo for the Stuart Weitzman brand.

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The Company's results are typically affected by seasonal trends.

During the first fiscal quarter, we build inventory for the winter and holiday season.

During the first fiscal quarter, we typically build inventory for the winter and holiday season.

In the second fiscal quarter, working capital requirements are reduced substantially as we generate higher net sales and operating income, especially during the holiday season.

Fluctuations in net sales, operating income and operating cash flows of the Company in any fiscal quarter may be affected by the timing of wholesale shipments and other events affecting retail sales, including adverse weather conditions or other macroeconomic events, such as Covid-19.

In fiscal 2022, due to the increased in-transit times, the Company started to build inventory in the fourth fiscal quarter for the fiscal 2023 winter and holiday season.

Fluctuations in net sales, operating income and operating cash flows of the Company in any fiscal quarter may be affected by the timing of wholesale shipments and other events affecting retail sales, including macroeconomic events, such as Covid-19, or adverse weather conditions.

GOVERNMENT REGULATION

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To maximize opportunities, the Company operates complex supply chains through foreign trade zones, bonded logistic parks and other strategic initiatives such as free trade agreements.

For example, we have historically received benefits from duty-free imports on certain products from certain countries pursuant to the U.S.

General System of Preferences ("GSP") program.

The GSP program expired in the third quarter of fiscal 2021, resulting in additional duties that have negatively impacted gross margin.

Additionally, the Company operates a direct import business in many countries worldwide.

As a result, the Company is subject to stringent government regulations and restrictions with respect to its cross-border activity either by the various customs and border protection agencies or by other government agencies which control the quality and safety of the Company’s products.

agencies which control the quality and safety of the Company’s products.

The Company maintains an internal global trade, customs and product compliance organization to help manage its import/export and regulatory affairs activity.

The global premium women's and men's handbag, accessories and footwear categories are highly competitive.

The product categories in which we operate are highly competitive.

The Company competes primarily with European and American luxury and accessible luxury brands as well as private label retailers.

Over the last decade, these industries have grown and are expected to continue to grow, encouraging the entry of new competitors as well as increasing the competition from existing competitors.

In varying degrees, depending on the product category involved, we compete on the basis of style, price, customer service, quality, brand prestige and recognition, among others.

Over the last decade, these luxury and accessible luxury brands have grown and are expected to continue to grow, encouraging the entry of new competitors as well as increasing the competition from existing competitors.

This increased competition drives interest in these brand loyal categories.

We believe, however, that we have significant competitive advantages because of the recognition of our brands and the acceptance of our brands by consumers.

CORPORATE RESPONSIBILITY

As a people-centered and purpose led Company, Tapestry’s corporate responsibility framework, Our Social Fabric, unites teams across the Company’s business to work to meet our 2025 Corporate Responsibility Goals and a shared objective:

to create the modern luxury company of the future that balances true fashion authority with meaningful, positive change.

to create the accessible luxury company of the future that balances true fashion authority with meaningful, positive change.

Our Social Fabric focuses on three pillars:

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◦ We have set 2025 goals focused on building diversity in our leadership team, reducing differences in our employee survey results based on gender and ethnicity, focusing on progression and establishing core wellness standards to enable our employees to manage their work and personal lives.

◦ Beginning in fiscal year 2022, we will tie 10% of leadership annual incentive compensation to EI&D goals on a global level.

◦ We tie 10% of leadership annual incentive compensation to EI&D goals on a global level.

• Our Planet:

◦ We aim to sustain and restore our planet through continuous innovation in solutions that improve biodiversity and reduce our impact on climate change with a focus on renewable energy, increased use of environmentally preferred materials and production methods, and circular business models that design out waste and pollution, keep products in use, and restore natural systems.

◦ We have set 2025 goals focused on measurably reducing our greenhouse gas emissions;

◦ We have set 2025 goals focused on utilizing 100% renewable energy in our own operations;

tracing and mapping our raw materials, environmentally responsible sourcing of leather, increasing the recycled content of our packaging, reducing waste in our corporate and distribution centers and water across our company and supply chain.

We have also committed to procure 100% renewable energy in the Company’s stores, offices and fulfillment centers by 2025.

We have also committed to setting science-based emissions reduction targets in line with Science Based Targets initiative (SBTi's) criteria and 1.5⁰C.

• Our Communities:

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◦ We have set 2025 goals focused on volunteerism programs, philanthropic initiatives and supply chain empowerment programs.

The Company’s corporate responsibility strategy, including oversight, management and identification of risks, is ultimately governed by Board of Directors and driven by an Environmental, Social and Corporate Governance ("ESG") Task Force, which is comprised of senior leaders and cross-functional members from major business functions.

The Company’s corporate responsibility strategy, including oversight, management and identification of risks, is ultimately governed by Board of Directors and overseen by an Environmental, Social and Corporate Governance ("ESG") Steering Committee, which is comprised of members of our executive leadership team, and driven by an ESG Task Force, which is comprised of senior leaders and cross-functional members from major business functions.

The Board approves long-term sustainability goals, strategic moves or major plans of action and receives updates at least annually.

During fiscal 2021, the Governance and Nominations Committee of the Board received quarterly updates on sustainability strategy.

Tapestry's Governance and Nominations Committee of the Board receives quarterly updates on sustainability strategy, including climate-related topics, progress towards the 2025 goals and other ESG related initiatives.

The Company is a signatory to the United Nations ("UN") Global Compact, and as such, our corporate responsibility strategy is aligned with the UN Sustainable Development Goals.

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This global house of brands was built by unconventional entrepreneurs and unexpected solutions, so when we say we believe in dreams, we mean we believe in making them happen.

We’re always on a journey to becoming our best, but you can count on this:

Here, everyone's voice is valued, ambitions are supported, and work is recognized.

Where differences intersect, new thinking emerges.

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The Board has designated the Human Resources Committee of the Board of Directors (the “HR Committee”) as the primary committee responsible for the Company’s human capital strategy, overseeing executive compensation programs, performance and talent development, succession planning, engagement and regular review of employee benefits and well-being strategies.

Together with the Board, the HR Committee also provides oversight of the Company’s equity, inclusion and diversity strategies.

Together with the Board, the HR Committee also provides oversight of the Company’s EI&D strategies.

The full Board of Directors and the HR Committee receive at least quarterly updates on the Company’s talent development strategies and other applicable areas of human capital management.

Unlocking the power of our people is a key strategic focus area for the Company, supported by significant engagement from the Company’s senior leadership on talent development and human capital management, as reflected in the key programs and focus areas described below.

As of July 3, 2021, the Company employed approximately 16,400 globally.

As of July 2, 2022, the Company employed approximately 18,100 employees globally.

Of these employees, approximately 14,400 employees worked in retail locations, of which 5,500 were part-time employees.

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The Company believes that its relations with its employees are good, and has never encountered a strike or work stoppage.

Equity, Inclusivity and Diversity

Equity, Inclusion and Diversity

Our company name Tapestry, represents the diversity of our brands and the diversity of our people.

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Our goal is to create a culture that is equitable, inclusive and diverse - where all of our employees, customers and stakeholders thrive.

Our overachieving Equity, Inclusion and Diversity strategy is grounded in our purpose and values and will be a core element to unlocking the power of our people.

Our EI&D strategy is grounded in our purpose and values and will be a core element to unlocking the power of our people.

There are four pillars under this strategy:

Attract, retain and reward top diverse talent and enable them to thrive, personally and professionally in our global community.

Attracting, retaining and developing top talent with a compelling and fulfilling employee experience.

Empower people to express their distinctive strengths and power our engine of growth through leadership development, education and engagement programs.

Serve the communities that need the most support through empowerment programs, donations and volunteering.

Serve the communities in which we live and work through strategic partnerships that advance EI&D priorities.

• Marketplace.

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The Company has established an Inclusion Council, led by a diverse team of passionate employees, as well as several employee resource groups (“ERGs”) and task forces, connecting our employees to communities with the support of their colleagues and encouraging cultural awareness.

Additionally, we believe educating the constituents of our Company is crucial in achieving EI&D.

We have established a global multi-year Equity, Inclusion and Diversity learning road map, including bespoke inclusion and unconscious bias training programs to accommodate our dynamic employee population.

In fiscal 2022 the Company appointed a Chief Inclusion and Social Impact Officer, a newly created position to continue to shape and deliver the Company's EI&D strategy and oversee the Company's social impact efforts through advocacy, philanthropy and volunteerism.

Additionally, we believe educating our employees is crucial in achieving our EI&D goals.

We have established a global multi-year EI&D learning road map, including bespoke inclusion and unconscious bias training programs to accommodate our dynamic employee population.

In fiscal 2022 the Company launched Inclusion Works, a peer learning online platform with a group-centered experience, bite-size content, and actionable learning.

Furthermore, the Company has focused on providing employees with resources to foster continuing education and conversation on EI&D through 'Tapestry UNSCRIPTED', which is an internal speaker series for our employees designed to bring our values to life.

We feel hosting bold conversations like these about our values provides an opportunity for us to be inspired, discover ideas, and ignite personal passions.

We feel hosting bold conversations about our values provides an opportunity for us to be inspired, discover ideas, and ignite personal passions.

Tapestry is committed to the support of underrepresented groups through our corporate efforts.

We are a member of the CEO Action for Diversity and Inclusion, the largest business coalition committed to advancing Diversity and Inclusion.

Our focus on fostering an equitable work environment has led to recognition from Forbes on the list of “Best Employers for Diversity” and Human Rights Campaign’s list of “Best Place to Work for LGBTQ Equality” in 2020.

Our focus on fostering an equitable work environment has led to continued recognition from Forbes on the list of “Best Employers for Diversity” and Human Rights Campaign’s list of “Best Place to Work for LGBTQ Equality”.

Additionally, we have been certified as a "Great Place to Work" for 2022.

The Company is dedicated to building a workforce with leadership teams better reflecting our general corporate population in North America.

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Tapestry's primary compensation principle is to "pay for performance." Tapestry's practice is to pay a competitive base salary and to provide employees with the opportunity to earn an annual bonus tied to Tapestry's and its brands' financial performance.

Approximately 2,200 of our employees, including nearly all of our store managers, received an annual long term equity award in 2021, which supports alignment of employee interests with those of our stockholders, rewards employees for enhancing stock holder value and supports retention of key employees.

In July 2021, Tapestry announced that it is committing to a $15 U.S.

minimum wage for hourly employees effective September 5, 2021.

Approximately 2,000 of our employees, including nearly all of our store managers, received an annual long term equity award in 2022, which align employee interests with those of our stockholders, rewards employees for enhancing stock holder value and supports retention of key employees.

In the first quarter of fiscal 2022, Tapestry announced that it is committing to a $15 U.S.

minimum wage for hourly employees.

Our benefits package is designed to be competitive and comprehensive, which varies by location and jurisdiction.

Our benefits, along with competitive pay, includes medical benefits and paid sick leave, in accordance with local policies and regulations, for directly hired full-time and part-time employees.

Our benefits, along with competitive pay, includes medical benefits and paid wellness days and parental leave, in accordance with local policies and regulations, for directly hired full-time and part-time employees.

In fiscal 2022 we transitioned from sick days to wellness days to better reflect the purpose of this paid time off.

The Company also offers retirement benefits for its employees, which are managed in accordance with local jurisdictions.

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We are committed to helping our employees develop the knowledge, skills and abilities needed for continued success, and encourage employee development at all levels and every career stage.

Our development programs serve to enable individual and team success through targeted initiatives and resources, offering a wide-ranging curriculum focused on professional and leadership development for leaders, managers, and individual contributors, including through our Common Thread people management program, Emerging Leaders High-Potential Program and Leader Transition Acceleration Program, in addition to other trainings and education facilitated through the Company for all employees.

Our development programs enable individual and team success through targeted initiatives and resources, offering a wide-ranging curriculum focused on professional and leadership development for leaders, managers, and individual contributors, including through our Common Thread people management program, Emerging Leaders High-Potential Program, Leader Transition Acceleration Program, and third-party learning platforms in addition to other trainings and education facilitated through the Company for all employees.

As a company, performance management is critical to our ability to reach our goals and foster a culture of success.

By having a dynamic, performance-driven culture, we can achieve greater results, maximize employee, manager and team performance and offer exciting development and career opportunities.

As our focus extends beyond the performance of our employees, but on the performance of our Company as a whole, we have mechanisms in place to facilitate comprehensive upward feedback through robust cross-functional feedback tools and a cadence of regular pulse surveys that inform on how we can continue to strive for excellence in our work culture.

As our focus extends beyond the performance of our employees to the performance of our Company as a whole, we have mechanisms in place to facilitate comprehensive upward feedback through robust cross-functional feedback tools and a cadence of regular pulse surveys that inform on how we can continue to strive for excellence in our work culture.

Well-being and Safety

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At Tapestry, we believe in encouraging and empowering our employees to take part in building a welcoming and inclusive community.

We provide all employees supplemental time-off to perform community service through nonprofits of their personal choice and through team and Company sponsored volunteering events.

In our commitment to supporting our communities, we have three foundations designated to provide monetary support to nonprofit organizations across communities that we are a part of.

We provide all employees with supplemental time-off to perform community service through nonprofits of their personal choice and through team and Company sponsored volunteering events.

In our commitment to supporting our communities, we have three foundations which provide monetary support to nonprofit organizations across communities that we are a part of.

Additionally, on an annual basis, our foundations match up to $10,000 in donations to eligible non-profits per employee in North America.

Beginning in fiscal 2020, we had to make changes to our operations in order to continue to prioritize the health and safety of our people in response to the Covid-19 pandemic.

The Company implemented various safety measures, such as store closures in adherence to local regulation, increased sanitization, physical distancing and limited capacity, temperature and wellness checks as well as distribution of personal protective gear at our facilities.

To do so, we engaged medical professionals to consult on our health and safety protocols through facilitation of Covid-19 education webinars for our employees on topics ranging from pandemic safety, vaccine education and mental wellness.

We have also provided our employees with additional paid time off to receive their Covid-19 vaccine and recover from any resulting side effects.

Many of our corporate employees have worked remotely since March 2020 and the Company continues to explore flexible work options through added resources and implementation of a hybrid working environment.

To do so, we engaged medical professionals to consult on our health and safety protocols and provide Covid-19 education webinars for our employees on topics ranging from pandemic safety, vaccine education and mental wellness.

We have also provided our employees with additional paid time off to receive their Covid-19 vaccine, booster and to recover from any resulting side effects.

As the landscape of this pandemic evolves, we continue to adapt and enforce safety protocols at our retail stores, distribution centers and corporate offices.

Our corporate offices have transitioned to a hybrid model, with flexible work options for most of our corporate employees.

However, we continue to monitor and comply with all local and federal Covid-19 guidance and adjust our operations accordingly.

Refer to the "Executive Overview" in Item 7.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business