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Item 1. Business

2024-08-15 compared with 2023-08-17 · 154 added, 262 removed, 173 unchanged (71% of the section changed)

Founded in 1941, Coach, Inc., the predecessor to Tapestry, Inc.

(the "Company"), was incorporated in the state of Maryland in 2000.

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

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

(the "Company") is a house of iconic accessories and lifestyle brands.

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

Each of our brands are unique and independent, while sharing a commitment to innovation and authenticity defined by distinctive products and differentiated customer experiences across channels and geographies.

We use our collective strengths to move our customers and empower our communities, to make the fashion industry more sustainable and to build a company that’s equitable, inclusive and diverse.

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Together, we can stretch what’s possible.

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:

Founded in 1941, Coach, Inc., the predecessor to Tapestry, Inc., was incorporated in the state of Maryland in 2000.

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

The Company has three reportable segments:

• Coach - Coach is a global fashion house of accessories and lifestyle collections, founded in New York City 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 craftsmanship and a community that champions the courage to be real.

Coach includes global sales of primarily Coach brand products to customers through our direct-to-consumer ("DTC"), wholesale and licensing businesses.

This segment represented 76.4% of total net sales in fiscal 2024.

• Kate Spade - 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.

Kate Spade includes global sales of primarily kate spade new york brand products to customers through our DTC, wholesale and licensing businesses.

This segment represented 20.0% of total net sales in fiscal 2024.

• Stuart Weitzman - Since 1986, New York City based global luxury footwear brand Stuart Weitzman has combined its signature artisanal craftsmanship and precise engineering to empower women to stand strong.

Having perfected the art of shoemaking for over 35 years, the brand continues to expand its assortment to feature handbags and men's footwear, all the while staying true to its ethos of inspiring strength and confidence with every step.

Stuart Weitzman includes global sales of primarily Stuart Weitzman brand products to customers through our DTC and wholesale businesses.

This segment represented 3.6% of total net sales in fiscal 2024.

In addition to these reportable segments, the Company has certain corporate costs that are not directly attributable to its brands;

therefore, they are not allocated to its segments.

Such costs primarily include certain overhead expenses related to corporate functions as well as certain administration, corporate occupancy, information technology, and depreciation costs.

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

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.

The Company's brands aim 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:

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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 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 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.

• 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 21.3% of total net sales in fiscal 2023.

• 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 4.2% of total net sales in fiscal 2023.

Corporate, which is not a reportable segment, represents certain costs that are not directly attributable to a brand.

These costs primarily include administrative and information systems expense.

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.

DIRECT TO CONSUMER BUSINESS

Our DTC business consists of channels that provide us with immediate, controlled access to consumers.

This includes retail and outlet stores, brand e-commerce sites as well as concession shop-in-shops.

Direct-to-consumer revenues were approximately 87% of total net sales in fiscal 2024.

• Stores - Our brands operate freestanding retail stores, 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.

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.

The outlet store design, visual presentations and customer service levels support and reinforce the brand's image.

Through these outlet stores, we target value-oriented customers in established outlet centers that are close to major markets.

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

North America International Total

Fiscal 2023 330 609 939

Net change vs.

prior year (13) 7 (6)

prior year (3.8) % 1.2 % (0.6) %

Fiscal 2022 343 602 945

Net change vs.

prior year (11) 17 6

prior year (3.1) % 2.9 % 0.6 %

Fiscal 2021 354 585 939

Net change vs.

prior year (21) 2 (19)

prior year (5.6) % 0.3 % (2.0) %

Square Footage

Fiscal 2023 1,618,310 1,396,898 3,015,208

Net change vs.

prior year (41,503) 37,917 (3,586)

prior year (2.5) % 2.8 % (0.1) %

Fiscal 2022 1,659,813 1,358,981 3,018,794

Net change vs.

prior year (34,903) 62,978 28,075

prior year (2.1) % 4.9 % 0.9 %

Fiscal 2021 1,694,716 1,296,003 2,990,719

Net change vs.

prior year (63,952) 10,674 (53,278)

prior year (3.6) % 0.8 % (1.8) %

Average Square Footage

Fiscal 2023 4,904 2,294 3,211

Fiscal 2022 4,839 2,257 3,194

Fiscal 2021 4,787 2,215 3,185

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, 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 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.

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 2023.

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 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.

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.

Through these outlet stores, we target value-oriented customers in established outlet centers that are close to major markets.

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

North America International Total

Fiscal 2023 205 192 397

Net change vs.

prior year (2) 1 (1)

prior year (1.0) % 0.5 % (0.3) %

Fiscal 2022 207 191 398

Net change vs.

prior year (3) (6) (9)

prior year (1.4) % (3.0) % (2.2) %

Fiscal 2021 210 197 407

Net change vs.

prior year (3) (10) (13)

prior year (1.4) % (4.8) % (3.1) %

Square Footage

Fiscal 2023 589,561 277,710 867,271

Net change vs.

prior year (3,088) 2,423 (665)

prior year (0.5) % 0.9 % (0.1) %

Fiscal 2022 592,649 275,287 867,936

Net change vs.

prior year (4,537) (6,692) (11,229)

prior year (0.8) % (2.4) % (1.3) %

Fiscal 2021 597,186 281,979 879,165

Net change vs.

prior year (6,301) (9,343) (15,644)

prior year (1.0) % (3.2) % (1.7) %

Average Square Footage

Fiscal 2023 2,876 1,446 2,185

Fiscal 2022 2,863 1,441 2,181

Fiscal 2021 2,844 1,431 2,160

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, Greater China, Japan and several throughout Europe.

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

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.

As of July 1, 2023 and July 2, 2022, Kate Spade did not have any customers who individually accounted for more than 10% of the segment's total net sales.

2024 vs 2023 2023 vs 2022

Store Count 2024 2023 2022 Amount % Amount %

North America 324 330 343 (6) (1.8) % (13) (3.8) %

International 606 609 602 (3) (0.5) % 7 1.2 %

Total Coach 930 939 945 (9) (1.0) % (6) (0.6) %

North America 197 205 207 (8) (3.9) % (2) (1.0) %

International 181 192 191 (11) (5.7) % 1 0.5 %

Total Kate Spade 378 397 398 (19) (4.8) % (1) (0.3) %

Stuart Weitzman

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.

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

Through outlet stores, we target value-oriented customers in established outlet centers that are close to major markets.

The following table shows the number of Stuart Weitzman directly operated locations and their total and average square footage:

North America 34 36 39 (2) (5.6) % (3) (7.7) %

International 60 57 61 3 5.3 % (4) (6.6) %

Total Stuart Weitzman 94 93 100 1 1.1 % (7) (7.0) %

North America 555 571 589 (16) (2.8) % (18) (3.1) %

International 847 858 854 (11) (1.3) % 4 0.5 %

Total Tapestry 1,402 1,429 1,443 (27) (1.9) % (14) (1.0) %

2024 vs 2023 2023 vs 2022

Square Footage 2024 2023 2022 Amount % Amount %

North America 4,905 4,904 4,839 1 — % 65 1.3 %

International 2,342 2,294 2,257 48 2.1 % 37 1.6 %

Total Coach 3,235 3,211 3,194 24 0.7 % 17 0.5 %

North America 2,949 2,876 2,863 73 2.5 % 13 0.5 %

International 1,439 1,446 1,441 (7) (0.5) % 5 0.3 %

Total Kate Spade 2,226 2,185 2,181 41 1.9 % 4 0.2 %

Stuart Weitzman

North America International Total

Fiscal 2023 36 57 93

Net change vs.

prior year (3) (4) (7)

prior year (7.7) % (6.6) % (7.0) %

Fiscal 2022 39 61 100

Net change vs.

prior year (9) 5 (4)

prior year (18.8) % 8.9 % (3.8) %

Fiscal 2021 (1)

Net change vs.

prior year (10) (17) (27)

prior year (17.2) % (23.3) % (20.6) %

Square Footage

Fiscal 2023 68,592 78,171 146,763

Net change vs.

prior year (6,244) (5,899) (12,143)

prior year (8.3) % (7.0) % (7.6) %

Fiscal 2022 74,836 84,070 158,906

Net change vs.

prior year (13,558) 3,620 (9,938)

prior year (15.3) % 4.5 % (5.9) %

Fiscal 2021 (1)

88,394 80,450 168,844

Net change vs.

prior year (14,390) (8,732) (23,122)

prior year (14.0) % (9.8) % (12.0) %

Average Square Footage

Fiscal 2023 1,905 1,371 1,578

Fiscal 2022 1,919 1,378 1,589

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 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 Greater China.

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

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

North America 1,938 1,905 1,919 33 1.7 % (14) (0.7) %

International 1,338 1,371 1,378 (33) (2.4) % (7) (0.5) %

Total Stuart Weitzman 1,555 1,578 1,589 (23) (1.5) % (11) (0.7) %

North America 4,029 3,987 3,951 42 1.1 % 36 0.9 %

International 2,078 2,043 2,012 35 1.7 % 31 1.5 %

Total Tapestry 2,850 2,820 2,804 30 1.1 % 16 0.6 %

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

We have e-commerce sites in our major markets 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 BUSINESS

Our wholesale business primarily includes major department stores, specialty stores, and third-party digital partners.

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

We enhance our presentation with proprietary 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 to the consumers of our wholesale partners in each local market.

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 1, 2023 and July 2, 2022, 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.

Wholesale represented approximately 12% of our total net sales for fiscal 2024.

As of June 29, 2024, there were no customers who individually accounted for more than 10% of each segment’s total net sales.

LICENSING BUSINESS

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 fiscal year expirations as of July 1, 2023 are as follows:

Our key licensing relationships and their fiscal year expirations as of June 29, 2024 are as follows:

Brand Category Partner Fiscal Year Expiration

Coach Jewelry and Soft Accessories Centric 2024

Coach Watches Movado 2025

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Kate Spade Tableware and Housewares Lenox 2025

Kate Spade Fashion Bedding Himatsingka 2024

Kate Spade Watches Fossil 2025

Kate Spade Sleepwear Komar 2025

Kate Spade Stationery and Gift Lifeguard Press 2026

Kate Spade Tech Accessories Case-Mate 2027

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.

Products made under license are, in most cases, sold through stores and wholesale business 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.

Our licensing partners generally pay royalties on their net sales of our branded products.

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Fiscal Year Ended

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

June 29, 2024 July 1, 2023 July 2, 2022

Amount % of total

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Women's Handbags $ 721.0 10.9 % $ 779.6 11.7 % $ 819.5 12.2 %

Other Products 332.4 5.0 319.0 4.8 269.3 4.7

Women's Accessories 316.8 4.7 306.9 4.6 307.0 4.6

Other Products 296.6 4.4 332.4 5.0 319.0 4.8

Total Kate Spade $ 1,334.4 20.0 % $ 1,418.9 21.3 % $ 1,445.5 21.6 %

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• 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 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 housewares and home accessories, such as fashion bedding and tableware, and stationery and gifts are included in this category.

DESIGN AND MERCHANDISING

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this ensures that Coach, Kate Spade and Stuart Weitzman speak to their customers with a voice and positioning unique to their brand.

Designers have access to the brands' extensive archives of product designs, which are a valuable resource for new product concepts.

Designers have access to the brands' extensive archives of product designs, which are a valuable resource for product concepts.

Our designers collaborate with strong merchandising teams that analyze sales, market trends and consumer preferences to identify market opportunities that help guide each season's design process and create a globally relevant product assortment.

Leveraging our strategic investments in data and analytics tools across Tapestry's platform, merchandisers are able to gain a deeper understanding of customer behavior that empowers our teams to respond to changes in consumer preferences and demand as well as scale opportunities across brands with greater speed and efficiency.

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

Leveraging our strategic investments that we have made in data and analytics tools, merchandisers are able to gain a deeper understanding of customer behavior which empowers our teams to respond to changes in consumer preferences and demand as well as scale opportunities across brands with greater speed and efficiency.

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

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.

Our design and merchandising teams also work in close collaboration with all of our licensing partners to ensure that the licensed products are conceptualized and designed to address the intended market opportunity and convey the distinctive perspective and lifestyle associated with our brands.

We use a 360-degree approach to marketing for each of our brands, synchronizing our efforts across all channels to ensure consistency at every touchpoint.

We use a 360-degree approach to marketing for each of our brands, synchronizing our efforts across all business channels to ensure consistency at every touchpoint.

Our global marketing strategy is to deliver a consistent, relevant and multi-layered message every time the consumer comes in contact with our brands through our communications and visual merchandising.

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We engage in several consumer communication initiatives globally, including direct marketing activities at a national, regional and local level.

Total expenses attributable to the Company's marketing-related activities in fiscal 2023 were $570.7 million, or approximately 9% of net sales, compared to $551.6 million in fiscal 2022, or approximately 8% of net sales.

Total expenses attributable to the Company's marketing-related activities in fiscal 2024 were $616.8 million, representing over 9% of net sales, compared to $570.7 million in fiscal 2023, representing less than 9% of net sales.

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

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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.

Manufacturers working with our licensed partners are expected to 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.

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

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 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).

During fiscal 2024, manufacturers of Coach products were primarily located in Vietnam, Cambodia, the Philippines and India and no individual vendor provided 10% or more of the brand's total inventory purchases.

During fiscal 2024, Kate Spade products were manufactured primarily in Vietnam, Cambodia, mainland China, and the Philippines and no individual vendor provided 10% or more of the brand's total inventory purchases.

Stuart Weitzman products were primarily manufactured in

During fiscal 2024, Stuart Weitzman had two vendors, both located in Spain, who individually provided over 10% of the brand's total units (approximately 23% across both, 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.

These fulfillment centers are either directly operated by the Company or by independent third parties, some of which support 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.

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

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

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

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.

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

The Company also has third-party facilities in Canada and Mexico.

Globally, we utilize regional fulfillment centers in mainland China, the Netherlands, the United Kingdom, Singapore 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, Malaysia, Spain, the U.K., Canada and Australia.

INFORMATION SYSTEMS

3 unchanged sentences

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 (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.

We also conduct periodic internal and third-party assessments to test our cybersecurity controls, perform cyber simulations and annual tabletop exercises, and continually evaluate our privacy notices, policies and procedures surrounding our handling and control of personal data and the systems we have in place to help protect us from cybersecurity or personal data breaches.

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.

The Company utilizes a cloud based digital platform which connects our customer shopping sites, Order Management Systems, Point of Sale systems, and product management systems into one platform with a shared codebase.

This platform allows us to be a more dynamic and responsive company providing best-in-class service to our customers from all brands across North America, Europe and Japan.

Refer to Part I, Item 1C, "Cybersecurity" for further information on our cybersecurity risk management, strategy and governance.

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 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 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.

In addition, the Company 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 and services.

In addition, Tapestry owns trade dress, 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 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.

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

COVID-19 PANDEMIC

Such disruptions persisted into the beginning 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.

Towards the end of the first half of fiscal 2023, certain government restrictions were lifted in the region and business trends improved.

During fiscal 2024, the Covid-19 pandemic did not materially impact our business or operating results.

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

GOVERNMENT REGULATION

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and other countries or may impact the cost of such products.

The Company is not materially restricted by quotas or other government restrictions in the operation of its business, however customs duties do represent a component of total product cost.

The Company is not materially restricted by quotas or other government restrictions in the operation of its business;

however, customs duties do represent a component of total product cost.

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.

As a result, the Company is subject to stringent government regulations and restrictions, adding significant complexity 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, safety and sustainability 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 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.

The Company faces intense competition from many other brands in the product lines and markets that we participate.

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.

Over the last decade, these 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.

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

CORPORATE RESPONSIBILITY

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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.

The Fabric of Change focuses on three pillars:

Our People, Our Planet and Our Communities.

• Our People:

◦ 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.

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

The Fabric of Change focuses on four pillars:

Power of Our People, Sustain the Planet, Uplift Our Communities and Create Products with Care.

• Power of Our People:

◦ We aim to foster a culture of purpose and fulfillment at Tapestry by embedding Equity, Inclusion and Diversity (“EI&D") throughout our organization and attracting and retaining talent with a compelling and engaging 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 basis level.

• Our Planet:

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

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

• Our Communities:

◦ We aim to support and empower the communities where our employees live and work, and provide the resources and investment needed to strengthen the regions where we operate, through volunteer efforts, philanthropic initiatives, product donations, and social impact programming.

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

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.

◦ We have set goals focused on utilizing 100% renewable energy in our own operations globally, reducing waste in our corporate and fulfillment centers and minimizing water use across our company and supply chain.

We also have greenhouse gas (“GHG”) emissions reduction targets for Scope 1, 2, 3 and Scope 3 Forest, Land and Agriculture that have been validated by Science Based Targets initiative.

• Uplift Our Communities:

◦ We aim to empower the communities where our employees live and work, and provide the resources and capacity needed to support supply chain partners in the regions where we operate.

◦ We have set goals focused on volunteer service hours completed by our employees around the world, financial and product donations to nonprofit organizations globally, and ensuring people working in the factories crafting our products will have access to empowerment programs during the workday.

• Create Products with Care:

◦ We aim to increase the use of innovative materials and focus on production methods that design out waste and pollution, keep products in use and restore natural systems.

◦ We have set goals focused on tracing and mapping our raw materials, increasing the recycled content in our consumer packaging and targets to increase the uptake of sourcing environmentally preferred materials.

The Company’s ESG and corporate responsibility strategy, including oversight, management and identification of risks, is ultimately governed by the Board of Directors (the "Board") and overseen by an ESG Steering Committee, which is comprised of members of our executive leadership team, and driven by an ESG Task Force, 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 ESG goals and other ESG related initiatives.

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

Additional information on the Fabric of Change and ESG 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.

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Where differences intersect, new thinking emerges.

So we cultivate a place for people who are both warm and rigorous, work that is both challenging and fun, a culture led by both head and heart.

We cultivate a place for people who are both warm and rigorous, work that is both challenging and fun and a culture led by both head and heart.

Most of all, we bring together the unique spirits of our people and our brands and give them a place to move their work and our industry forward.

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Governance and Oversight

Our Board of Directors and its committees provide governance and oversight of the Company's strategy, including over issues of human capital management.

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.

Our Board and its committees provide governance and oversight of the Company's strategy, including over issues of human capital management.

The Board has designated the Human Resources Committee of the Board (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 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.

The full Board and the HR Committee receive 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 1, 2023, the Company employed approximately 18,500 employees globally.

As of June 29, 2024, the Company employed approximately 18,600 employees globally.

Of these employees, approximately 14,700 employees worked in retail locations, of which 6,100 were part-time employees.

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

We know that having a diverse range of perspectives, backgrounds and experiences makes us more innovative and successful and it brings us closer to our consumer.

We believe that having a diverse range of perspectives, backgrounds and experiences makes us more innovative and successful and brings us closer to our consumer.

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

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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.

Fostering a culture of inclusion and belonging, 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.

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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.

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

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.

This network includes our six employee business resource groups, three 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 skill-building programs to accommodate our dynamic employee population.

We have curated a catalogue of learning and development content, tools and resources, 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 historically underrepresented and marginalized groups through our corporate efforts.

Tapestry is committed to the support of historically excluded 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”.

Our focus on fostering an equitable work environment has led to continued recognition from Forbes on the list of “Best Employers for Diversity”, a top scoring company on the Disability:IN Disability Equality Index and the Human Rights Campaign’s list of “Best Place to Work for LGBTQ Equality”.

In 2024, 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 2024.

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

The Company monitors the representation of women and ethnic minorities at different levels throughout the company, and discloses this information in our website at www.tapestry.com/responsibility/our-people.

The Company is dedicated to building a workforce with leadership teams better reflecting the customers we serve and the communities in which we operate.

The Company monitors the representation of women and racial or ethnic minorities at different levels throughout the Company, and discloses this information on our website at www.tapestry.com/responsibility/our-people.

Total Rewards

Tapestry is dedicated to being a place where our employees love to work, where they feel recognized and rewarded for all that they do.

Maintaining a competitive program helps us attract, motivate and retain the key talent we need to achieve outstanding business and financial results.

Maintaining a competitive total compensation program helps us attract, motivate and retain the key talent we need to achieve outstanding business and financial results.

To accomplish this goal, we strive to appropriately align our total compensation with the pay, benefits and rewards offered by companies that compete with us for talent in the marketplace.

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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 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.

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 to provide store employees with the opportunity to earn sales incentives.

Approximately 2,400 of our employees, including nearly all of our store managers, received an annual long-term equity award in 2024, which aligns employee interests with those of our stockholders, rewards employees for enhancing stockholder value and supports retention of key 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.

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

Our benefits, along with competitive pay, include medical benefits and paid wellness days for directly hired full-time and part-time employees.

Additionally, we offer parental leave for directly hired full-time employees.

The Company also offers retirement benefits for all employees.

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 based on the location of the employee.

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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 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.

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 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.

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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

At Tapestry, we are committed to providing a safe working environment for our people, as well as supporting our people in achieving and maintaining their health and well-being goals.

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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.

In fiscal year 2024, the Company established an Associate Relief Fund, which provides 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.

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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.

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

FINANCIAL INFORMATION ABOUT GEOGRAPHIC AREAS

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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 Exhibits 31.1 and 31.2, respectively to this Form 10-K.

The Company has included the Chief Executive Officer (“CEO”) and Chief Financial Officer ("CFO") certifications regarding its public disclosure required by Section 302 of the Sarbanes-Oxley Act of 2002 as Exhibits 31.1 and 32.1 and Exhibits 31.2 and 32.2, respectively 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