What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2023-08-17 compared with 2022-08-18 · 104 added, 127 removed, 331 unchanged (41% of the section changed)

5 unchanged sentences

Tapestry, Inc.

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

(the "Company") is a leading New York-based house of iconic accessories and lifestyle brands.

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

3 unchanged sentences

Together, we can stretch what’s possible.

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:

Operating with a clearly defined purpose and strategy for each brand and an unwavering focus on the consumer at the core of everything we do.

• Leveraging Data and Leading with a Digital-First Mindset:

Building significant data and analytics capabilities to drive decision-making and increase efficiency;

Offering immersive customer experiences across our e-commerce and social channels to meet the needs of consumers who are increasingly utilizing digital platforms to engage with brands;

Rethinking the role of stores with an intent to optimize our fleet.

• Transforming into a Leaner and More Responsive Organization:

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 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").

Building on the success of the strategic growth plan from fiscal 2020 through fiscal 2022 (the “Acceleration Program”), in the first quarter of fiscal 2023, the Company introduced the 2025 growth strategy (“ future speed”), designed to amplify and extend the competitive advantages of its brands, with a focus on four strategic priorities:

• Building Lasting Customer Relationships:

The Company aims to leverage Tapestry’s transformed business model to drive customer lifetime value through a combination of increased customer acquisition, retention and reactivation.

• Fueling Fashion Innovation & Product Excellence:

The Company aims to drive sustained growth in core handbags and small leathergoods, while accelerating gains in footwear and lifestyle products.

• Delivering Compelling Omni-Channel Experiences:

The Company aims to extend its omni-channel leadership to meet the customer wherever they shop, delivering growth online and in stores.

• Powering Global Growth:

The Company aims to support balanced growth across regions, prioritizing North America and China, its largest markets, while capitalizing on opportunities in under-penetrated geographies such as Southeast Asia and Europe.

Covid-19 Impact

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, 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 Covid-19 pandemic has resulted in varying degrees of business disruption for the Company since it began in fiscal 2020 and has impacted all regions around the world, resulting in restrictions and shutdowns implemented by national, state, and local authorities.

Such disruptions continued during the first half of fiscal 2023, and the Company's results in Greater China (mainland China, Hong Kong SAR, Macao SAR, and Taiwan) were adversely impacted as a result of the Covid-19 pandemic.

Starting in December 2022, certain government restrictions were lifted in the region and business trends have improved.

The Company continues to monitor the latest developments regarding the Covid-19 pandemic and potential impacts on our business, operating results and outlook.

The Company has three reportable segments:

• Coach includes global sales of Coach products to customers through Coach operated stores, including e-commerce sites and concession shop-in-shops, and sales to wholesale customers and through independent third party distributors.

• Coach - Includes global sales primarily of Coach brand products to customers through Coach operated stores, including e-commerce sites and concession shop-in-shops, sales to wholesale customers and through independent third-party distributors.

This segment represented 74.5% of total net sales in fiscal 2023.

5 unchanged sentences

These costs primarily include administrative and information systems expense.

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.

Coach is a global fashion house of accessories and lifestyle collections, founded in New York in 1941.

Inspired by the vision of Expressive Luxury and the inclusive and courageous spirit of its hometown, the brand makes beautiful things, crafted to last – for you to be yourself in.

Coach has built a legacy of craft and a community that champions the courage to be real.

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

36 unchanged sentences

Fiscal 2021 4,787 2,215 3,185

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.

In fiscal 2024, we expect minimal change in overall store count with a reduction in store count primarily in Japan and North America, partially offset by an increase in store count 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.

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

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

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

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

We enhance our presentation with 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.

1 unchanged sentence

The wholesale business for Coach comprised approximately 10% of total segment net sales for fiscal 2023.

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 1, 2023 and July 2, 2022, 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.

Today, it is a global lifestyle brand synonymous with joy, delivering seasonal collections of handbags, ready-to-wear, jewelry, footwear, gifts, home décor and more.

Since its launch in 1993 with a collection of six essential handbags, kate spade new york has always been colorful, bold and optimistic.

Today, it is a global lifestyle brand that designs extraordinary things for the everyday, delivering seasonal collections of handbags, ready-to-wear, jewelry, footwear, gifts, home décor and more.

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.

36 unchanged sentences

Fiscal 2021 2,844 1,431 2,160

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.

In fiscal 2024, we expect minimal change in overall store count with an increase in store count in Greater China, partially offset by a reduction in store count in Japan and North America.

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.

For Kate Spade, we have e-commerce sites in the U.S., Canada, Greater 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 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.

Wholesale — The wholesale business for Kate Spade comprised approximately 11% of total segment net sales for fiscal 2023.

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.

1 unchanged sentence

Stuart Weitzman

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.

The brand's focus on creating effortless shoes - each engineered to empower women with both confidence and comfort - has resonated around the world and continues to inspire women to conquer every day, one step at a time.

Founded in 1986, Stuart Weitzman has been inspired by women who are confident, sexy, bold – and, above all, strong.

By combining its artisanal Spanish craftsmanship and precisely engineered fit, the New York City based global luxury footwear brand creates shoes that empower women to stand strong.

Stores — Stuart Weitzman products are primarily sold in retail and outlet stores.

22 unchanged sentences

Fiscal 2022 74,836 84,070 158,906

88,394 80,450 168,844

Net change vs.

2 unchanged sentences

Fiscal 2021 (1)

88,394 80,450 168,844

Net change vs.

4 unchanged sentences

Fiscal 2022 1,919 1,378 1,589

1,842 1,437 1,624

Fiscal 2021 (1)

1,842 1,437 1,624

(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.

In fiscal 2024, we expect minimal change in overall store count with a modest reduction in store count in North America and a modest increase in store count in Greater China.

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.

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

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

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.

Wholesale — The wholesale business for Stuart Weitzman comprised approximately 34% of total segment net sales for fiscal 2023.

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

3 unchanged sentences

Our brands take an active role in the design process and control the marketing and distribution of products in our worldwide licensing relationships.

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

Brand Category Partner Calendar Year Expiration

Coach Tech Accessories Vinci 2023

Our key licensing relationships and their fiscal year expirations as of July 1, 2023 are as follows:

Brand Category Partner Fiscal Year Expiration

Coach Jewelry and Soft Accessories Centric 2024

3 unchanged sentences

Kate Spade Tableware and Housewares Lenox 2024

Kate Spade Fashion Bedding HTA 2023

Kate Spade Tech Accessories Vinci 2025

Kate Spade Fashion Bedding Himatsingka 2024

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

Kate Spade Eyewear Safilo 2031

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.

4 unchanged sentences

Fiscal Year Ended

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

July 1, 2023 July 2, 2022 July 3, 2021

Amount % of total

16 unchanged sentences

These collections are designed to meet the fashion and functional requirements of our broad and diverse consumer base.

Women’s Accessories — Women’s accessories include small leather goods which complement our handbags, including wallets, money pieces, wristlets and cosmetic cases.

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

Women’s Accessories — Women’s accessories include small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches and cosmetic cases.

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

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

DESIGN AND MERCHANDISING

23 unchanged sentences

Tapestry carefully balances its commitments to a limited number of “better brand” partners that have demonstrated integrity, quality and reliable delivery.

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.

The Company continues to evaluate new manufacturing sources and geographies to deliver high quality products at competitive costs and to mitigate the impact of manufacturing in inflationary markets.

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.

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

We expect finished good manufacturers to undergo a social compliance audit before being approved as a Tapestry supplier.

Manufacturers working with our licensed partners must have had an acceptable social compliance audit conducted within the prior six months of their onboarding date.

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.

We also conduct periodic evaluations of existing, previously approved finished good suppliers.

We believe that our manufacturing partners are in material compliance with the Company’s integrity standards.

1 unchanged sentence

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 and 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 key 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.

1 unchanged sentence

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 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 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%).

During fiscal 2023, 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 2023, Kate Spade products were manufactured primarily in Vietnam, Cambodia, the Philippines and mainland China.

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

Stuart Weitzman products were primarily manufactured in Spain.

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 leverages multi-brand fulfillment centers where appropriate.

During fiscal 2023, Stuart Weitzman had three vendors, all located in Spain, who individually provided over 10% of the brand's total units (approximately 37% across the three, in the aggregate).

The Company’s distribution network is designed to support the movement of each brand's products from our manufacturers to fulfillment centers around the world.

These fulfillment centers are either directly operated by the Company or by independent third parties, with some supporting multiple brands.

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.

These facilities are also integrated into our Enterprise Resource Planning ("ERP") system, ensuring accurate inventory reporting.

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.

In addition, in fiscal 2023, the Company opened a new multi-brand fulfillment center located in Las Vegas, Nevada that increase capacity and continue to enhance fulfillment capabilities in North America.

The Company also has two third-party facilities in Toronto, Canada and Tijuana, Mexico.

Globally, we utilize regional fulfillment centers in mainland China, the Netherlands, the United Kingdom, and Spain, owned and operated by third parties, that support multiple countries.

We also utilize local fulfillment centers, through third-parties in Japan, parts of Greater China, South Korea, Singapore, Malaysia, Spain, the U.K., Canada, and Australia.

INFORMATION SYSTEMS

1 unchanged sentence

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, 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, 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.

We are continually enhancing our digital technology platforms to elevate our e-commerce capabilities direct-to-consumer functionalities, and overall omni-channel experience, by utilizing cloud-based technology infrastructure.

For example, we will continue to enhance certain of our machine learning models to improve our customer capture and segmentation capabilities.

In fiscal 2021, the Company began implementing a cloud-based digital platform to enhance our omnichannel capabilities, across all brands in North America, Europe and Japan.

This shared enterprise digital strategy affords the Company more productive and efficient capabilities for digital and in-store selling and engagement.

This implementation was substantially completed in 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.

The Board of Directors has ultimate oversight of the Company’s risk management policies and procedures, and has delegated primary responsibility for monitoring the risks and programs in this area to the Audit Committee, which receives quarterly updates on information security and privacy risk and compliance.

The Board of Directors receives periodic updates on these topics as well.

The Board of Directors (the "Board") has ultimate oversight of the Company’s risk management policies and procedures, and has delegated primary responsibility for monitoring the risks and programs in this area to the Audit Committee, which receives quarterly updates on information security and privacy risk and compliance.

The Board receives periodic updates on these topics as well.

As part of the Company’s compliance programs, all global employees are required to take annual training on information security, including cybersecurity, and global data privacy requirements and compliance measures.

1 unchanged sentence

Additionally, we maintain network security and cyber liability insurance in order to provide a level of financial protection in the event of certain covered cyber losses and data breaches.

TRADEMARKS AND PATENTS

Tapestry owns all of the material trademark rights around the world used in connection with the production, marketing, distribution and sale of all branded products for Coach, Stuart Weitzman and Kate Spade.

In addition, it licenses trademarks and copyrights used in connection with the production, marketing and distribution of certain categories of goods and limited edition collaborative special projects.

INTELLECTUAL PROPERTY

Tapestry owns COACH, KATE SPADE and STUART WEITZMAN, as well as all of the material trademark, design and patent-rights related to the production, marketing, distribution and sale of our products in the United States and other countries in which our products are principally sold.

In addition, it licenses trademarks and copyrights used in connection with the production, marketing and distribution of certain categories of goods and limited edition collaborations.

Tapestry also owns and maintains registrations in countries around the world for trademarks in relevant classes of products.

Major trademarks include TAPESTRY, COACH, STUART WEITZMAN, KATE SPADE and KATE SPADE NEW YORK.

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;

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 and COACHTOPIA for the COACH 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.

Tapestry is not dependent on any one particular trademark or design patent although Tapestry believes that the Coach, Stuart Weitzman and Kate Spade names are important for its business.

In addition, Tapestry owns a number of design patents and utility patents for its brands' product designs.

Tapestry aggressively polices its trademarks, and pursues infringers both domestically and internationally.

It pursues counterfeiters through leads generated internally, as well as through its network of investigators, the respective online reporting form for each brand, the Tapestry hotline and business partners around the world.

The Company expects that its material trademarks will remain in full force and effect for as long as it continues to use and renew them.

and NUDIST and 5050 for the Stuart Weitzman brand.

Tapestry is not dependent on any one particular trademark or design patent although Tapestry believes that the Coach, Stuart Weitzman and Kate Spade New York trademarks are important for its business.

In addition, Tapestry owns a number of copyrights, design patents and utility patents for its brands' product designs.

Tapestry aggressively polices its intellectual property, and pursues infringers both domestically and internationally.

It pursues counterfeiters through leads generated internally, as well as through its network of investigators, law enforcement and customs officials, the respective online reporting form for each brand, the Tapestry hotline and business partners around the world.

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

1 unchanged sentence

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.

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.

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 weather and macroeconomic events, and pandemics such as Covid-19.

GOVERNMENT REGULATION

7 unchanged sentences

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.

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

6 unchanged sentences

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 ("2025 Goals") and a shared objective:

As a people-centered and purpose led Company, Tapestry believes that a better-made future is one that is both beautiful and responsible.

Our Environmental, Social and Corporate Governance (“ESG”) strategy, the Fabric of Change , aims to unite teams across the Company’s business to work to meet our Corporate Responsibility Goals ("ESG Goals") and a shared objective:

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:

The Fabric of Change focuses on three pillars:

Our People, Our Planet and Our Communities.

• Our People:

◦ We aim to bolster Tapestry’s purpose and culture by embedding equity, inclusion and diversity throughout our organization, holding our leaders accountable for our equity, inclusion and diversity ("EI&D") goals and attracting and retaining talent with a compelling and fulfilling employee experience.

◦ We aim to foster inclusivity and diversity through four interconnected principles:

talent, culture, community, and marketplace.

Our equity, inclusion and diversity ("EI&D") goals focus on attracting and retaining talent and building a compelling and fulfilling employee experience.

◦ We have set 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.

◦ We 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 basis 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 utilizing 100% renewable energy in our own operations;

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

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

• Our Communities:

1 unchanged sentence

◦ We have set 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 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 Company’s ESG and Corporate Responsibility Strategy, including oversight, management and identification of risks, is ultimately governed by the Board of Directors and overseen by an 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.

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.

Additional information on Our Social Fabric and 2025 Corporate Responsibility Goals can be found at www.tapestry.com/responsibility.

Additional information on the Fabric of Change and Corporate Responsibility Goals can be found at www.tapestry.com/responsibility.

The content on this website and the content in our Corporate Responsibility Reports are not incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC.

21 unchanged sentences

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

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:

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

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

To support these actions, we are guided by four interconnected principles:

Attracting, retaining and growing top talent - making us an employer of choice in a rapidly evolving talent marketplace.

Fostering a culture of inclusion, where people and ideas from everywhere are welcomed.

Nurturing the vibrancy of the communities in which we live and work to advance equity, opportunity and dignity for all.

• Marketplace:

Develop solutions that set the standard for excellence through our platform of brands – for employees, customers, vendors, suppliers and our investors.

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.

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.

Embracing our responsibility in the marketplace as a global fashion company.

We are committed to affecting positive change for our industry and deliver on our value proposition to stakeholders - consumers, investors and future talent.

Our global EI&D Champion Network supports and engages our professional community by creating an environment where all are welcomed.

This network includes our five employee business resource groups (“EBRGs”), two task forces and regional inclusion councils to support and engage our employees.

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.

We have established a global multi-year EI&D learning road map, including bespoke skill-building programs to accommodate our dynamic employee population.

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 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.

Tapestry is committed to the support of historically underrepresented and marginalized 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 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”.

In 2023, we were recognized by Civic 50 as one of the 50 Most Community-Minded Companies.

Additionally, we have been certified as a "Great Place to Work" for 2023.

7 unchanged sentences

We strive to pay each employee fairly and competitively across our brands.

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.

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

Approximately 2,500 of our employees, including nearly all of our store managers, received an annual long-term equity award in 2023, 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 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.

To support employees in achieving their career and financial goals, the Company also provides access to learning opportunities on personal finances as well as physical and mental wellness through various platforms as available based on location.

Talent Acquisition and Development

12 unchanged sentences

We provide our employees with supplemental resources to achieve wellness such as access to our Employee Assistance Program, regular employee programming and subscriptions to Headspace, a smartphone application dedicated to meditation and mindfulness.

The Company announced the establishment of an Associate Relief Fund, beginning in fiscal year 2024, which will provide emergency assistance for events considered a disaster or hardship.

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

2 unchanged sentences

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.

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.

"Management’s Discussion and Analysis of Financial Condition and Results of Operations" for additional information about the Company's response to the Covid-19 pandemic.

FINANCIAL INFORMATION ABOUT GEOGRAPHIC AREAS

4 unchanged sentences

No information contained on any of our websites is intended to be included as part of, or incorporated by reference into, this Annual Report on Form 10-K.

The Company has included the Chief Executive Officer (“CEO”) and Chief Financial Officer certifications regarding its public disclosure required by Section 302 of the Sarbanes-Oxley Act of 2002 as Exhibit 31.1 to this Form 10-K.

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