Maryland
|
|
001-16153
|
|
52-2242751
|
(State or Other Jurisdiction
of Incorporation)
|
|
(Commission
File Number)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $0.01 par value
|
TPR
|
New York Stock Exchange
|
|
TAPESTRY, INC.
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ David E. Howard
|
|
|
David E. Howard
|
|
|
Senior Vice President, General Counsel and Secretary
|
Announces Acceleration Program with Multi-Year Initiatives to Drive Profitable Growth Across the Portfolio
NEW YORK--(BUSINESS WIRE)--August 13, 2020--Tapestry, Inc. (NYSE: TPR), a leading New York-based house of modern luxury accessories and lifestyle brands, today reported results for the fiscal fourth quarter and year ended June 27, 2020.
Joanne Crevoiserat, Interim Chief Executive Officer of Tapestry, Inc., said, “Our fourth quarter results reflected our effective and values-led approach to navigating the Covid-19 pandemic. This performance exceeded internal expectations, demonstrating the power of our unique brands and the decisive actions taken to adapt our business to the rapidly evolving environment and enhance financial flexibility. I am incredibly proud of our global teams for the resilience, passion and commitment they have shown during these unprecedented times. Looking forward, Tapestry’s next chapter of growth is ours to write. While the backdrop remains volatile, it has not changed our long-term objectives. Rather, it has been a catalyst to accelerate our strategic agenda. Through our Acceleration Program, we are transforming into a world-class consumer centric organization that is more agile and data-driven with a digital-first mindset. We believe these initiatives will create stronger connections with our customers, fueling accelerated growth and profitability for Tapestry and each of our brands."
Tapestry, Inc. Fiscal Fourth Quarter 2020 Highlights
Acceleration Program
The guiding principle of the Company’s Acceleration Program is to better meet the needs of each of its brands' unique customers by:
The Company believes the successful execution of these priorities will fuel desire for the Coach, Kate Spade and Stuart Weitzman brands, driving accelerated revenue growth, higher gross margins and substantial operating leverage across Tapestry’s portfolio. The Company estimates that it will realize approximately $300 million in gross run rate expense savings from these initiatives, including $200 million projected for fiscal 2021. Key strategies by brand include:
Coach
Kate Spade
Stuart Weitzman
Overview of Fourth Quarter 2020 Tapestry, Inc. Results
The following results include the impact of Covid-19. Please note the Company is not providing comparable store sales figures, as the Company believes this will not be a valuable measure given the business environment and number of store closures during the quarter.
Fiscal fourth quarter results by brand were as follows:
Coach Fourth Quarter 2020 Results
Kate Spade Fourth Quarter 2020 Results
Stuart Weitzman Fourth Quarter 2020 Results
Overview of Full Year 2020 Tapestry, Inc. Results
The following results include the impact of Covid-19. Please note the Company is not providing comparable store sales figures, as the Company believes this will not be a valuable measure given the business environment and number of store closures during the second half of the fiscal year.
Full Year 2020 results by brand were as follows:
Coach Full Year 2020 Results
Kate Spade Full Year 2020 Results
Stuart Weitzman Full Year 2020 Results
Non-GAAP Reconciliation
During the fourth fiscal quarter of 2020, the Company recorded certain items that reduced reported operating income by $210 million or $0.81 per diluted share. On a full year basis, these charges lowered the Company’s reported operating income by $989 million or $3.31 per diluted share. Please refer to the financial tables included herein for a detailed reconciliation of the Company’s reported to non-GAAP results. These items included:
Impairments:
In the fourth quarter of fiscal 2020, the Company recorded $117 million of pre-tax impairment charges. On a full year basis, the Company recorded $840 million of pre-tax impairment charges. These impairment charges were to indefinite-lived brand intangible assets, goodwill, lease ROU assets, which were established in conjunction with the adoption of the new lease accounting standard, property and equipment assets, as well as increases in inventory reserves. These charges were primarily as a result of a decline in both current and future expected cash flows, exacerbated by the Covid-19 pandemic, which resulted in a decline in sales driven by closures of a significant portion of stores and traffic declines globally.
Acceleration Program:
The Company is undergoing a review of its business under its multi-year growth agenda. This multi-faceted, multi-year strategic growth plan (the "Acceleration Program") reflects: (i) actions to streamline the Company's organization; (ii) select store closures as the Company optimizes its fleet (including store closure costs incurred as brands exit certain regions in which they currently operate); and, (iii) professional fees and compensation costs incurred as a result of the development and execution of the Company’s comprehensive strategic initiatives aimed at increasing profitability. Under the Acceleration Program, the Company expects to incur total charges of approximately $185 to $200 million. This includes charges of $87 million recorded in the fourth quarter and fiscal year 2020. These charges were primarily due to organization-related changes, driven by severance, and store closure costs, which include lease termination penalties, removal or modification of lease assets and liabilities established in connection with the adoption of the new lease accounting standard, as well as inventory reserves and accelerated depreciation under the Plan. Therefore, the Company expects to incur approximately $100 to $115 million in additional charges under its Acceleration Program, of which the majority is estimated to be cash and expected to be recorded in fiscal 2021.
Organization-related & Integration Costs:
In the fourth quarter of fiscal 2020, the Company recorded $1 million in pre-tax charges associated with its Organization-related & Integration activities. On a full year basis, the Company recorded $33 million in pre-tax charges associated with its Organization-related & Integration activities. Most of these charges are primarily related to professional fees.
ERP Implementation:
In addition, in the fourth quarter of fiscal 2020, the Company recorded $5 million in pre-tax charges associated with its ERP implementation activities. On a full year basis, the Company recorded $29 million in pre-tax charges associated with its ERP implementation activities.
Conclusion
Ms. Crevoiserat continued, “We have a clear vision, strong teams and three powerful brands supported by Tapestry’s unique, enabling platform. I am confident that our strategy is the right one for our future. We are committed to strengthening our brands and organization by focusing first and foremost on the consumer, leveraging digital and data more fully, and creating a culture of empowerment and entrepreneurship to enhance responsiveness. As we enter the new fiscal year, we are taking deliberate actions to lower promotional activity and increase AURs across brands, resulting in gross margin expansion, while creating a scalable agile framework, notably through targeted reductions in SG&A. These initiatives are designed to create a strong foundation for profitable expansion over our planning horizon. Therefore, assuming continued steady recovery as we emerge from the pandemic, we would expect a return to sustained topline growth in the second half of fiscal 2021, with bottom line growth in each of fiscal 2021, 2022 and 2023.”
Fiscal Year 2021 Outlook
Given the dynamic nature of the Covid-19 crisis and lack of visibility, the potential financial impact to our business cannot be accurately projected. Therefore, the Company is not providing detailed guidance for fiscal 2021. The Company also notes that fiscal 2021 will include a 53rd week.
Conference Call Details
The Company will host a conference call to review these results at 8:00 a.m. (ET) today, August 13, 2020. Interested parties may listen to the conference call via live webcast by accessing www.tapestry.com/investors on the Internet or calling 1-877-510-8087 or 1-862-298-9015 and providing the Conference ID 8871729. A telephone replay will be available starting at 12:00 p.m. (ET) today, for a period of five business days. To access the telephone replay, call 1-800-585-8367 or 1-404-537-3406 and enter the Conference ID 8871729. A webcast replay of the earnings conference call will also be available for five business days on the Tapestry website. Presentation slides have also been posted to the Company’s website at www.tapestry.com/investors.
Upcoming Events
The Company expects to report fiscal 2021 first quarter results on Thursday, October 29, 2020. To receive notification of future announcements, please register at www.tapestry.com/investors ("Subscribe to E-Mail Alerts").
Tapestry, Inc. is a New York-based house of modern luxury lifestyle brands. The Company’s portfolio includes Coach, Kate Spade and Stuart Weitzman. Our Company and our brands are founded upon a creative and consumer-led view of luxury that stands for inclusivity and approachability. 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. To learn more about Tapestry, please visit www.tapestry.com. The Company’s common stock is traded on the New York Stock Exchange under the symbol TPR.
This information to be made available in this press release may contain forward-looking statements based on management's current expectations. Forward-looking statements include, but are not limited to, the statements under “Acceleration Program,” and “Fiscal Year 2021 Outlook,” and statements regarding the potential impact of the Covid-19 pandemic and success of mitigating actions, statements regarding Acceleration Program, and statements that can be identified by the use of forward-looking terminology such as "may," "will," “can,” "should," "expect," "intend," "estimate," "continue," "project," "guidance," "forecast," “outlook,” “roadmap,” "anticipate," “excited,” “moving,” “leveraging,” “sharpening,” transforming,” “deepening,” “creating,” accelerating,” “enhancing,” “crystalizing,” instilling,” “reenergizing,” leaning into,” “capturing,” “renewing,” “restoring,” “strengthening,” “establishing,” “capitalizing,” “developing,” “drive,” “targeting,” “assume,” “plan,” “build,” “pursue,” “maintain,” “progress,” “future,” “emerge,” “assure,” “on track,” “well positioned to,” “look forward to,” “looking ahead,” “to acquire,” “achieve,” “strategic vision,” “strategic agenda,” “long-term objectives,” “ongoing headwinds,” “steady recovery,” “growth opportunities,” “view,” or comparable terms. Future results may differ materially from management's current expectations, based upon a number of important factors, including risks and uncertainties such as the impact of the Covid-19 pandemic, the ability to control costs and successfully execute our growth strategies, expected economic trends, the ability to anticipate consumer preferences, risks associated with operating in international markets, our ability to achieve intended benefits, cost savings and synergies from acquisitions, the risk of cybersecurity threats and privacy or data security breaches, and the impact of legislation, etc. Please refer to the Company’s latest Annual Report on Form 10-K, quarterly report on 10-Q and its other filings with the Securities and Exchange Commission for a complete list of risks and important factors. The Company assumes no obligation to revise or update any such forward-looking statements for any reason, except as required by law. |
|
|||||||||||||||||||||||
TAPESTRY, INC. | |||||||||||||||||||||||
GAAP TO NON-GAAP RECONCILIATION | |||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
For the Quarter Ended June 27, 2020 | ||||||||||||||||||||||
|
|
|
Items Affecting Comparability |
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
GAAP Basis
(As Reported) |
|
ERP Implementation |
|
Organization-related
& Integration Costs |
|
Impairment |
|
Acceleration
Program |
|
Non-GAAP Basis
(Excluding Items) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Coach |
|
381.0 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
381.0 |
|
Kate Spade |
|
106.5 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
106.5 |
|
Stuart Weitzman |
|
11.4 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(8.4 |
) |
|
|
19.8 |
|
Gross profit(1) |
$ |
498.9 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(8.4 |
) |
|
$ |
507.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
SG&A expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Coach |
|
412.0 |
|
|
|
- |
|
|
|
0.6 |
|
|
|
58.8 |
|
|
|
18.5 |
|
|
|
334.1 |
|
Kate Spade |
|
175.2 |
|
|
|
- |
|
|
|
(1.0 |
) |
|
|
26.2 |
|
|
|
13.6 |
|
|
|
136.4 |
|
Stuart Weitzman |
|
92.4 |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
32.0 |
|
|
|
17.6 |
|
|
|
42.9 |
|
Corporate |
|
99.3 |
|
|
|
4.9 |
|
|
|
1.8 |
|
|
|
- |
|
|
|
28.9 |
|
|
|
63.7 |
|
SG&A expenses |
$ |
778.9 |
|
|
$ |
4.9 |
|
|
$ |
1.3 |
|
|
$ |
117.0 |
|
|
$ |
78.6 |
|
|
$ |
577.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Coach |
|
(31.0 |
) |
|
|
- |
|
|
|
(0.6 |
) |
|
|
(58.8 |
) |
|
|
(18.5 |
) |
|
|
46.9 |
|
Kate Spade |
|
(68.7 |
) |
|
|
- |
|
|
|
1.0 |
|
|
|
(26.2 |
) |
|
|
(13.6 |
) |
|
|
(29.9 |
) |
Stuart Weitzman |
|
(81.0 |
) |
|
|
- |
|
|
|
0.1 |
|
|
|
(32.0 |
) |
|
|
(26.0 |
) |
|
|
(23.1 |
) |
Corporate |
|
(99.3 |
) |
|
|
(4.9 |
) |
|
|
(1.8 |
) |
|
|
- |
|
|
|
(28.9 |
) |
|
|
(63.7 |
) |
Operating income (loss) |
$ |
(280.0 |
) |
|
$ |
(4.9 |
) |
|
$ |
(1.3 |
) |
|
$ |
(117.0 |
) |
|
$ |
(87.0 |
) |
|
$ |
(69.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Provision for income taxes |
|
(7.0 |
) |
|
|
(0.3 |
) |
|
|
15.7 |
|
|
|
6.2 |
|
|
|
(8.4 |
) |
|
|
(20.2 |
) |
Net income (loss) |
$ |
(293.8 |
) |
|
$ |
(4.6 |
) |
|
$ |
(17.0 |
) |
|
$ |
(123.2 |
) |
|
$ |
(78.6 |
) |
|
$ |
(70.4 |
) |
Net income (loss) per diluted common share |
$ |
(1.06 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.45 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.25 |
) |
(1) Adjustments within Gross profit are recorded within Cost of sales. |
|
|||||||||||||||||||||||
TAPESTRY, INC. | |||||||||||||||||||||||
GAAP TO NON-GAAP RECONCILIATION | |||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
For the Year Ended June 27, 2020 | ||||||||||||||||||||||
|
|
|
Items Affecting Comparability |
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
GAAP Basis
(As Reported) |
|
ERP Implementation |
|
Organization-related
& Integration Costs |
|
Impairment |
|
Acceleration
Program |
|
Non-GAAP Basis
(Excluding Items) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Coach |
|
2,411.6 |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
(61.9 |
) |
|
|
- |
|
|
|
2,473.6 |
|
Kate Spade |
|
682.9 |
|
|
|
- |
|
|
|
(1.2 |
) |
|
|
(32.3 |
) |
|
|
- |
|
|
|
716.4 |
|
Stuart Weitzman |
|
144.8 |
|
|
|
- |
|
|
|
(4.3 |
) |
|
|
(9.8 |
) |
|
|
(8.4 |
) |
|
|
167.3 |
|
Gross profit(1) |
$ |
3,239.3 |
|
|
$ |
- |
|
|
$ |
(5.6 |
) |
|
$ |
(104.0 |
) |
|
$ |
(8.4 |
) |
|
$ |
3,357.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
SG&A expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Coach |
|
1,822.2 |
|
|
|
- |
|
|
|
0.5 |
|
|
|
116.7 |
|
|
|
18.5 |
|
|
|
1,686.5 |
|
Kate Spade |
|
782.2 |
|
|
|
- |
|
|
|
0.1 |
|
|
|
92.9 |
|
|
|
13.6 |
|
|
|
675.6 |
|
Stuart Weitzman |
|
766.2 |
|
|
|
- |
|
|
|
(2.0 |
) |
|
|
526.7 |
|
|
|
17.6 |
|
|
|
223.9 |
|
Corporate |
|
419.5 |
|
|
|
28.5 |
|
|
|
29.2 |
|
|
|
- |
|
|
|
28.9 |
|
|
|
332.9 |
|
SG&A expenses |
$ |
3,790.1 |
|
|
$ |
28.5 |
|
|
$ |
27.8 |
|
|
$ |
736.3 |
|
|
$ |
78.6 |
|
|
$ |
2,918.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Coach |
|
589.4 |
|
|
|
- |
|
|
|
(0.6 |
) |
|
|
(178.6 |
) |
|
|
(18.5 |
) |
|
|
787.1 |
|
Kate Spade |
|
(99.3 |
) |
|
|
- |
|
|
|
(1.3 |
) |
|
|
(125.2 |
) |
|
|
(13.6 |
) |
|
|
40.8 |
|
Stuart Weitzman |
|
(621.4 |
) |
|
|
- |
|
|
|
(2.3 |
) |
|
|
(536.5 |
) |
|
|
(26.0 |
) |
|
|
(56.6 |
) |
Corporate |
|
(419.5 |
) |
|
|
(28.5 |
) |
|
|
(29.2 |
) |
|
|
- |
|
|
|
(28.9 |
) |
|
|
(332.9 |
) |
Operating income (loss) |
$ |
(550.8 |
) |
|
$ |
(28.5 |
) |
|
$ |
(33.4 |
) |
|
$ |
(840.3 |
) |
|
$ |
(87.0 |
) |
|
$ |
438.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Provision for income taxes |
|
27.9 |
|
|
|
(6.0 |
) |
|
|
3.8 |
|
|
|
(55.3 |
) |
|
|
(8.4 |
) |
|
|
93.8 |
|
Net income (loss) |
$ |
(652.1 |
) |
|
$ |
(22.5 |
) |
|
$ |
(37.2 |
) |
|
$ |
(785.0 |
) |
|
$ |
(78.6 |
) |
|
$ |
271.2 |
|
Net income (loss) per diluted common share |
$ |
(2.34 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.13 |
) |
|
$ |
(2.82 |
) |
|
$ |
(0.28 |
) |
|
$ |
0.97 |
|
(1) Adjustments within Gross profit are recorded within Cost of sales. |
|
|
|
|
||||||||||||
TAPESTRY, INC. | |||||||||||||||
GAAP TO NON-GAAP RECONCILIATION | |||||||||||||||
(in millions, except per share data) | |||||||||||||||
(unaudited) | |||||||||||||||
|
|
|
|
|
|
|
|||||||||
|
For the Quarter Ended June 29, 2019 | ||||||||||||||
|
|
|
Items Affecting Comparability |
|
|
||||||||||
|
|
|
|
|
|
|
|||||||||
|
GAAP Basis
(As Reported) |
|
ERP Implementation |
|
Integration &
Acquisition |
|
Non-GAAP Basis
(Excluding Items) |
||||||||
|
|
|
|
|
|
|
|||||||||
Cost of sales |
|
|
|
|
|
|
|
||||||||
Coach |
|
764.9 |
|
|
|
- |
|
|
|
0.1 |
|
|
|
764.8 |
|
Kate Spade |
|
205.6 |
|
|
|
- |
|
|
|
(0.9 |
) |
|
|
206.5 |
|
Stuart Weitzman |
|
28.7 |
|
|
|
- |
|
|
|
(17.9 |
) |
|
|
46.6 |
|
Gross profit(1) |
$ |
999.2 |
|
|
$ |
- |
|
|
$ |
(18.7 |
) |
|
$ |
1,017.9 |
|
|
|
|
|
|
|
|
|||||||||
SG&A expenses |
|
|
|
|
|
|
|
||||||||
Coach |
|
464.9 |
|
|
|
- |
|
|
|
1.6 |
|
|
|
463.3 |
|
Kate Spade |
|
180.3 |
|
|
|
- |
|
|
|
4.4 |
|
|
|
175.9 |
|
Stuart Weitzman |
|
58.3 |
|
|
|
- |
|
|
|
2.8 |
|
|
|
55.5 |
|
Corporate |
|
124.6 |
|
|
|
11.8 |
|
|
|
11.6 |
|
|
|
101.2 |
|
SG&A expenses |
$ |
828.1 |
|
|
$ |
11.8 |
|
|
$ |
20.4 |
|
|
$ |
795.9 |
|
|
|
|
|
|
|
|
|||||||||
Operating income (loss) |
|
|
|
|
|
|
|
||||||||
Coach |
|
300.0 |
|
|
|
- |
|
|
|
(1.5 |
) |
|
|
301.5 |
|
Kate Spade |
|
25.3 |
|
|
|
- |
|
|
|
(5.3 |
) |
|
|
30.6 |
|
Stuart Weitzman |
|
(29.6 |
) |
|
|
- |
|
|
|
(20.7 |
) |
|
|
(8.9 |
) |
Corporate |
|
(124.6 |
) |
|
|
(11.8 |
) |
|
|
(11.6 |
) |
|
|
(101.2 |
) |
Operating income (loss) |
$ |
171.1 |
|
|
$ |
(11.8 |
) |
|
$ |
(39.1 |
) |
|
$ |
222.0 |
|
|
|
|
|
|
|
|
|||||||||
Provision for income taxes |
|
10.0 |
|
|
|
(3.1 |
) |
|
|
(21.3 |
) |
|
|
34.4 |
|
Net income (loss) |
$ |
148.9 |
|
|
$ |
(8.7 |
) |
|
$ |
(17.8 |
) |
|
$ |
175.4 |
|
Net income (loss) per diluted common share |
$ |
0.51 |
|
|
$ |
(0.03 |
) |
|
$ |
(0.07 |
) |
|
$ |
0.61 |
|
(1) Adjustments within Gross profit are recorded within Cost of sales. |
|
|
|
|
||||||||||||||||
TAPESTRY, INC. | |||||||||||||||||||
GAAP TO NON-GAAP RECONCILIATION | |||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
|
For the Year Ended June 29, 2019 | ||||||||||||||||||
|
|
|
Items Affecting Comparability |
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
|
GAAP Basis
(As Reported) |
|
ERP Implementation |
|
Integration &
Acquisition |
|
Impact of Tax
Legislation |
|
Non-GAAP Basis
(Excluding Items) |
||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
Cost of sales |
|
|
|
|
|
|
|
|
|
||||||||||
Coach |
|
2,996.4 |
|
|
|
- |
|
|
|
(1.9 |
) |
|
|
- |
|
|
|
2,998.3 |
|
Kate Spade |
|
863.6 |
|
|
|
- |
|
|
|
(6.3 |
) |
|
|
- |
|
|
|
869.9 |
|
Stuart Weitzman |
|
193.7 |
|
|
|
- |
|
|
|
(19.6 |
) |
|
|
- |
|
|
|
213.3 |
|
Gross profit(1) |
$ |
4,053.7 |
|
|
$ |
- |
|
|
$ |
(27.8 |
) |
|
$ |
- |
|
|
$ |
4,081.5 |
|
|
|
|
|
|
|
|
|
|
|||||||||||
SG&A expenses |
|
|
|
|
|
|
|
|
|
||||||||||
Coach |
|
1,848.0 |
|
|
|
- |
|
|
|
7.1 |
|
|
|
- |
|
|
|
1,840.9 |
|
Kate Spade |
|
698.2 |
|
|
|
- |
|
|
|
14.5 |
|
|
|
- |
|
|
|
683.7 |
|
Stuart Weitzman |
|
245.2 |
|
|
|
- |
|
|
|
15.0 |
|
|
|
- |
|
|
|
230.2 |
|
Corporate |
|
442.6 |
|
|
|
36.9 |
|
|
|
30.0 |
|
|
|
- |
|
|
|
375.7 |
|
SG&A expenses |
$ |
3,234.0 |
|
|
$ |
36.9 |
|
|
$ |
66.6 |
|
|
$ |
- |
|
|
$ |
3,130.5 |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
|
||||||||||
Coach |
|
1,148.4 |
|
|
|
- |
|
|
|
(9.0 |
) |
|
|
- |
|
|
|
1,157.4 |
|
Kate Spade |
|
165.4 |
|
|
|
- |
|
|
|
(20.8 |
) |
|
|
- |
|
|
|
186.2 |
|
Stuart Weitzman |
|
(51.5 |
) |
|
|
- |
|
|
|
(34.6 |
) |
|
|
- |
|
|
|
(16.9 |
) |
Corporate |
|
(442.6 |
) |
|
|
(36.9 |
) |
|
|
(30.0 |
) |
|
|
- |
|
|
|
(375.7 |
) |
Operating income (loss) |
$ |
819.7 |
|
|
$ |
(36.9 |
) |
|
$ |
(94.4 |
) |
|
$ |
- |
|
|
$ |
951.0 |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Provision for income taxes |
|
122.8 |
|
|
|
(9.4 |
) |
|
|
(25.8 |
) |
|
|
9.2 |
|
|
|
148.8 |
|
Net income (loss) |
$ |
643.4 |
|
|
$ |
(27.5 |
) |
|
$ |
(68.6 |
) |
|
$ |
(9.2 |
) |
|
$ |
748.7 |
|
Net income (loss) per diluted common share |
$ |
2.21 |
|
|
$ |
(0.09 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.03 |
) |
|
$ |
2.57 |
|
(1) Adjustments within Gross profit are recorded within Cost of sales. |
The Company reports information in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). The Company's management does not, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Further, the non-GAAP measures utilized by the Company may be unique to the Company, as they may be different from non-GAAP measures used by other companies. The financial information presented above, as well as gross margin, SG&A expense ratio, and operating margin, have been presented both including and excluding the effect of certain items related to the Company’s Impairment, ERP Implementation, Organization-related and Integration Costs and Acceleration Program for the fourth quarter of fiscal year 2020 and full fiscal year 2020 and ERP Implementation, Integration & Acquisition-Related Costs and the Impact of Tax Legislation for the fourth quarter of fiscal year 2019 and full fiscal year 2019. |
|
The Company operates on a global basis and reports financial results in U.S. dollars in accordance with GAAP. Percentage increases/decreases in net sales for the Company and each segment have been presented both including and excluding currency fluctuation effects from translating foreign-denominated sales into U.S. dollars and compared to the same periods in the prior quarter and fiscal year. The Company calculates constant currency revenue results by translating current period revenue in local currency using the prior year period’s currency conversion rate. |
|
Due to fact that a significant majority of the Company’s stores were closed or operating under shortened operating hours over the course of the second half of the fiscal year, net sales changes for the Company and each segment are based on absolute sales dollar changes and are not presented in accordance with the Company’s comparable sales definition utilized in prior quarters. |
|
Management utilizes these non-GAAP and constant currency measures to conduct and evaluate its business during its regular review of operating results for the periods affected and to make decisions about Company resources and performance. The Company believes presenting these non-GAAP measures, which exclude items that are not comparable from period to period, is useful to investors and others in evaluating the Company’s ongoing operating and financial results in a manner that is consistent with management’s evaluation of business performance and understanding how such results compare with the Company’s historical performance. Additionally, the Company believes presenting these metrics on a constant currency basis will help investors and analysts to understand the effect of significant year-over-year foreign currency exchange rate fluctuations on these performance measures and provide a framework to assess how business is performing and expected to perform excluding these effects. |
|
|||||
TAPESTRY, INC. | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
At June 27, 2020 and June 29, 2019 | |||||
(in millions) | |||||
|
|
|
|||
|
(unaudited) |
|
(audited) | ||
|
June 27,
2020 |
|
June 29,
2019 |
||
ASSETS |
|
|
|
||
|
|
|
|||
Cash, cash equivalents and short-term investments |
$ |
1,434.4 |
|
$ |
1,233.8 |
Receivables |
|
193.3 |
|
|
298.1 |
Inventories |
|
736.9 |
|
|
778.3 |
Other current assets |
|
188.5 |
|
|
246.6 |
|
|
|
|||
Total current assets |
|
2,553.1 |
|
|
2,556.8 |
|
|
|
|||
Property and equipment, net |
|
775.2 |
|
|
938.8 |
Lease right-of-use assets |
|
1,757.0 |
|
|
- |
Other noncurrent assets |
|
2,838.9 |
|
|
3,381.7 |
|
|
|
|||
Total assets |
$ |
7,924.2 |
|
$ |
6,877.3 |
|
|
|
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||
|
|
|
|||
Accounts payable |
$ |
130.8 |
|
$ |
243.6 |
Accrued liabilities |
|
511.0 |
|
|
673.6 |
Short-term lease liabilities |
|
388.8 |
|
|
- |
Current debt |
|
711.5 |
|
|
0.8 |
|
|
|
|||
Total current liabilities |
|
1,742.1 |
|
|
918.0 |
|
|
|
|||
Long-term debt |
|
1,587.9 |
|
|
1,601.9 |
Long-term lease liabilities |
|
1,799.8 |
|
|
- |
Other liabilities |
|
518.0 |
|
|
844.0 |
|
|
|
|||
Stockholders' equity |
|
2,276.4 |
|
|
3,513.4 |
|
|
|
|||
Total liabilities and stockholders' equity |
$ |
7,924.2 |
|
$ |
6,877.3 |
|
||||
TAPESTRY, INC. | ||||
STORE COUNT | ||||
At March 28, 2020 and June 27, 2020 | ||||
(unaudited) | ||||
|
|
|
|
|
|
As of |
|
|
As of |
Directly-Operated Store Count: | March 28, 2020 | Openings | (Closures) | June 27, 2020 |
|
|
|
|
|
Coach |
|
|
|
|
North America |
381 |
- |
(6) |
375 |
International |
591 |
4 |
(12) |
583 |
|
|
|
|
|
Kate Spade |
|
|
|
|
North America |
220 |
2 |
(9) |
213 |
International |
204 |
8 |
(5) |
207 |
|
|
|
|
|
Stuart Weitzman |
|
|
|
|
North America |
71 |
- |
(13) |
58 |
International |
87 |
- |
(14) |
73 |
|
||||
TAPESTRY, INC. | ||||
STORE COUNT | ||||
At June 29, 2019 and June 27, 2020 | ||||
(unaudited) | ||||
|
|
|
|
|
|
As of |
|
|
As of |
Directly-Operated Store Count: | June 29, 2019 | Openings | (Closures) | June 27, 2020 |
|
|
|
|
|
Coach |
|
|
|
|
North America |
391 |
5 |
(21) |
375 |
International |
595 |
24 |
(36) |
583 |
|
|
|
|
|
Kate Spade |
|
|
|
|
North America |
213 |
17 |
(17) |
213 |
International |
194 |
36 |
(23) |
207 |
|
|
|
|
|
Stuart Weitzman |
|
|
|
|
North America |
71 |
4 |
(17) |
58 |
International |
76 |
15 |
(18) |
73 |
Tapestry, Inc.
Analysts & Media:
Andrea Shaw Resnick
Interim Chief Financial Officer
Global Head of Investor Relations and Corporate Communications
212/629-2618
aresnick@tapestry.com
Christina Colone
Vice President, Investor Relations
212/946-7252
ccolone@tapestry.com