Nicola Glass named Creative Director of Kate Spade

NEW YORK, 2017-Nov-11 — /EPR Retail News/ — Tapestry, Inc. (NYSE:TPR) (SEHK:6388), a leading New York-based house of modern luxury accessories and lifestyle brands, today (Nov. 8, 2017) announced the appointment of Nicola Glass as Creative Director of Kate Spade. She is expected to join the company early in the new calendar year, and will succeed Deborah Lloyd, the brand’s current creative director who, in the wake of the Tapestry, Inc.acquisition, made the decision to exit the brand in 2018. Ms. Glass will ultimately report to the Brand President and Chief Executive Officer of Kate Spade, a role currently held by Tapestry, Inc.’s Chief Executive Officer, Victor Luis, in an interim capacity. Ms. Glass will be responsible for leading all creative aspects of the Kate Spade brand, including all product design, brand imagery and store environments.

“The appointment of Nicola Glass marks an important milestone in the next chapter of the Kate Spade brand,” said Victor Luis, Chief Executive Officer of Tapestry, Inc. “There are very few creative executives like her, who have both the talent to lead creative teams and the appreciation and understanding of how to scale a growing handbag and accessories-driven business. We are extremely pleased that she will be leading the strong creative team already in place, while bringing her unique aesthetic and personal style to Kate Spade. Nicola fully understands the feminine, fun and fashionable style of Kate Spade and is excited to bring its distinctive style to global audiences. Her depth and breadth of experience will be an invaluable asset to the business in general – and especially the design and brand teams – as we grow and develop the business globally.”

Ms. Glass joins Kate Spade from Michael Kors where she currently holds the role of Senior Vice President of Accessories Design overseeing all design and development of Michael Kors Collection and MICHAEL Michael Kors. She leads a team including all accessory, hardware and technical design, and is responsible for sourcing and developing all leathers and fabrics. Ms. Glass has been with Michael Kors since 2004, contributing to the business and holding successively more senior roles over her 13-year tenure with the company. Prior to Michael Kors she worked at Gucci as an accessories designer. Ms. Glass holds a Masters of the Arts in Fashion Accessories from the Royal College of Art, London.

Victor Luis added, “Nicola’s sensitivity and appreciation of Kate Spade along with her leadership skills, and deep design experience, uniquely qualify her to provide creative direction for Kate Spade. I am confident that her expertise – grounded in accessories – will enable her to build upon the brand’s fun, feminine and fashionable positioning to create innovative product and brand imagery, delighting customers in a singularly Kate Spadeway, full of color and playful sophistication.”

“I’m very honored to be joining Kate Spade as the new Creative Director,” said Ms. Glass. “It is a brand I’ve long admired and I look forward to leading the team in this next chapter of Kate Spade’s evolution and growth.” Ms. Glass will succeed Deborah Lloyd, who has been President and Chief Creative Officer of Kate Spade since November 2007. “We have great admiration for Deborah’s accomplishments and her vision and creative leadership have been instrumental to the growth of Kate Spade,” said Victor Luis. “We wish her every success in the future and look forward to welcoming Nicola.”

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. The Company’s Hong Kong Depositary Receipts are traded on The Stock Exchange of Hong Kong Limited under the symbol 6388.

Neither the Hong Kong Depositary Receipts nor the Hong Kong Depositary Shares evidenced thereby have been or will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States or to, or for the account of, a U.S. Person (within the meaning of Regulation S under the Securities Act), absent registration or an applicable exemption from the registration requirements. Hedging transactions involving these securities may not be conducted unless in compliance with the Securities Act.

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, 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,” “anticipate,” “moving,” “leveraging,” “developing,” “driving,” “targeting,” “assume,” “plan,” “pursue,” “look forward to,” “achieve” 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 expected economic trends, the ability to anticipate consumer preferences, the ability to control costs and successfully execute our transformation and operational efficiency initiatives and growth strategies and our ability to achieve intended benefits, cost savings and synergies from acquisitions, etc. Please refer to the Company’s latest Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission for a complete list of risks and important factors.

Analysts & Media:
Andrea Shaw Resnick
212-629-2618
Global Head of Investor Relations and Corporate Communications

Christina Colone
212-946-7252
Senior Director, Investor Relations

Source: Tapestry, Inc.

Coach, Inc. reports of strong fourth quarter 2017 results

Coach, Inc. reports of strong fourth quarter 2017 results

 

NEW YORK, 2017-Aug-16 — /EPR Retail News/ — Coach, Inc. (NYSE:COH) (SEHK:6388), a leading New York-based house of modern luxury accessories and lifestyle brands, today (Aug. 15, 2017) reported fourth quarter and full year results for the period ended July 1, 2017.

Victor Luis, Chief Executive Officer of Coach, Inc., said, “Our strong fourth quarter results – in which we achieved mid-single-digit North America comparable store sales for the Coach brand and drove solid growth at Stuart Weitzman – capped an excellent FY17 performance for the company. For the year, we posted a double-digit increase in net income as we continued to make progress on our brand and company transformation plan. We generated positive Coach brand North American comps in each quarter, while driving solid international Coach brand sales gains, notably in Europe and Mainland China. Importantly, the Coach brand evolved across the key consumer pillars of product, stores and marketing, with strategic actions including a broader 1941 collection, dual gender runway shows, the execution of a differentiated store concept and new collaborations and campaigns further elevating brand perception.”

“We were also very pleased with the overall contribution of the Stuart Weitzman brand as we invested in the brand, both in stores and most significantly in people, bringing in the key leadership and design talent to drive performance in both growing the global footwear category and in their nascent accessories business.”

“We also took a major step in our corporate transformation with the acquisition of Kate Spade & Company, which closed in July, becoming the first New York-based house of modern luxury lifestyle brands. Kate Spade brings a new, unique brand attitude and an additional consumer segment to the Coach, Inc. portfolio and we expect that this acquisition will enhance our position in the attractive and growing $80 billion global premium handbag and accessories, footwear and outerwear market.”

53rd Week Discussion – Fiscal 2016:

The results for the fiscal fourth quarter and year ending July 1, 2017 included 13 and 52 weeks, while the fiscal year ending July 2, 2016 included 14 and 53 weeks, respectively. As previously reported, the 53rd week contributed about $84 million to 2016 fiscal fourth quarter and year sales, including $77 million in Coach brand revenue and $7 million associated with Stuart Weitzman. The additional week added $0.07 to earnings per diluted share in fiscal 2016.

Non-Cash Charges and Non-GAAP Reconciliation Items – Fiscal 2017:

Non-Cash Charges:

During the fourth fiscal quarter of 2017, the Company recorded non-cash impairment charges related to stores and a negotiated reduction in a purchase commitment which increased SG&A expenses by $20 million on both a reported and non-GAAP basis.

Non-GAAP Reconciliation Items:

In addition, the Company also recorded the following on a reported basis:

  • Operational Efficiency Plan: Fourth fiscal quarter charges of approximately $7 million, primarily related to organizational efficiency and technology infrastructure costs. Full fiscal year charges of approximately $24 million, primarily related to organizational efficiency, technology infrastructure costs and to a lesser extent, network optimization costs.
  • Stuart Weitzman Acquisition-Related Costs: Fourth fiscal quarter income of approximately $28 million, consisting of $35 million in income associated with a reduction in estimated contingent purchase price payments, included in Coach brand results, partially offset by $7 million of integration-related costs included in Stuart Weitzman results. Full year income of approximately $6 million, consisting of a net of $27 million in income primarily associated with a reduction in estimated contingent purchase price payments, included in Coach brand results, partially offset by $21 million of integration-related costs included in Stuart Weitzman results.
  • Kate Spade Acquisition-Related Costs: Fourth fiscal quarter and full year charges of approximately $17 million, which relate to fees for bridge financing and acquisition-related costs.

During the fiscal fourth quarter of 2017, these three items decreased the Company’s consolidated reported gross profit by approximately $2 million, decreased SG&A expenses by about $16 million and increased interest expense by approximately $10 million. Including the net positive impact on the provision for income taxes, reported net income was favorably impacted by $10 million or about $0.03 per diluted share in the fourth quarter.

During the full fiscal year of 2017, these three items decreased the Company’s consolidated reported gross profit by approximately $3 million, increased SG&A expenses by about $22 million and increased interest expense by approximately $10 million. Including the net positive impact on the provision for income taxes, reported net income was negatively impacted by $18 million or about $0.06 per diluted share in fiscal 2017.

Overview of Fourth Quarter 2017 Consolidated, Coach, Inc. Results:

  • Net sales totaled $1.13 billion for the fourth fiscal quarter as compared to $1.15 billion in the prior year. Excluding the additional week included in fiscal 2016 results, net sales increased 6% on a reported basis and 7% on a constant currency basis. As planned, the Company’s strategic decision to elevate the Coach brand’s positioning in the North American wholesale channel through a reduction in promotional events and door closures negatively impacted sales growth by approximately 60 basis points in the quarter.
  • Gross profit totaled $755 million on a reported basis, while gross margin for the quarter was 66.5% on a reported basis compared to 67.8% in the prior year. On a non-GAAP basis, gross profit totaled $757 million, while gross margin was 66.8% as compared to 67.8% in the prior year.
  • SG&A expenses totaled $562 million on a reported basis and represented 49.5% of sales compared to 57.7% in the year-ago quarter. On a non-GAAP basis, SG&A expenses were $577 million and represented 50.9% of sales, including $20 million or approximately 180 basis points in non-cash charges as noted above, as compared to 52.7% in the year-ago period.
  • Operating income for the quarter on a reported basis totaled $193 million, while operating margin was 17.0% versus 10.1% in the prior year. On a non-GAAP basis, operating income was $180 million, while operating margin was 15.8%, including approximately 180 basis points of non-cash charges as noted, versus 15.1% in last year’s fourth quarter.
  • Net interest expense was $14 million in the quarter on a reported basis, including $10 million in expense associated with bridge financing in connection with the acquisition of Kate Spade & Company as compared to $7 million in the year ago period. On a non-GAAP basis, net interest expense was $4 million.
  • Net income for the quarter on a reported basis totaled $152 million, with earnings per diluted share of $0.53. This compared to reported net income in the fourth quarter of FY16 of $82 million with earnings per diluted share of $0.29. On a non-GAAP basis, net income for the quarter totaled $142 million, with earnings per diluted share of $0.50. This compared to non-GAAP net income in the fourth quarter of FY16 of $126 million with earnings per diluted share of $0.45, including $0.07 associated with the additional week.

Coach Brand Fourth Quarter of 2017 Results:

  • Net sales for the Coach brand totaled $1.05 billion for the fourth fiscal quarter as compared to $1.07 billion in the prior year. Excluding the additional week included in fiscal 2016 results, net sales increased 5% on a reported basis and 7% on a constant currency basis.

Fourth fiscal quarter sales results in each of Coach’s primary segments were as follows:

  • Total North American Coach brand sales were $586 million versus $606 million last year, including $44 million associated with additional week of sales in the prior fiscal year. On a 13-week versus 13-week basis, total North American Coach brand sales increased 4% over prior year, while North American direct sales rose 5% on a dollar basis and 6% on a constant currency basis for the quarter. Both North American aggregate and bricks and mortar comparable store sales rose approximately 4%. As planned, sales at North American department stores declined approximately 40% at a POS and approximately 20% on a net sales basis as the company has now started to anniversary the pullback in shipments into the channel.
  • International Coach brand sales were $442 million as compared to $450 million last year, including approximately $32 million associated with additional week of sales in the prior fiscal year. On a 13-week versus 13-week basis, total sales increased 6% in dollars and 9% on a constant currency basis. Greater China sales increased 3% versus prior year in dollars and 7% in constant currency on a 13-week basis, driven by double-digit growth and positive comparable store sales on the Mainland, offset, in part, by softness in Hong Kong and Macau. In Japan, on a 13-week basis, sales declined 3% in dollars and approximately 1% in constant currency. Sales for the remaining directly operated businesses in Asia decreased mid-single digits in dollars and declined similarly in constant currency on a 13-week basis, due primarily to weakness in Korea where macroeconomic and geopolitical headwinds continued to pressure spending from domestic consumers and tourists. Europe was very strong on a 13-week versus 13-week basis, driven by double-digit growth in the directly operated channels and benefiting from the planned shift in wholesale shipment timing as previously announced. As expected, international wholesale increased on a net sales basis due to shipment timing, while POS sales declined as weaker tourist location results offset domestic growth.
  • Gross profit for the Coach brand totaled $705 million on both a reported and non-GAAP basis. Gross margin for the quarter was 67.4%, including approximately 20 basis points of pressure from currency, as compared to 68.8% in the prior year period on both a reported and non-GAAP basis reflecting, in part, the anticipated negative impact of channel mix.
  • SG&A expenses totaled $511 million for the Coach brand on a reported basis and represented 48.8% of sales compared to 58.1% in the year-ago quarter. On a non-GAAP basis, SG&A expenses were $531 million and represented 50.8% of sales as compared to 52.8% in the year-ago period.
  • Operating income for the Coach brand on a reported basis was $195 million, while operating margin was 18.6% versus 10.7% in the prior year. On a non-GAAP basis, operating income was $174 million, while operating margin was 16.6% versus 16.0% in last year’s fourth quarter.

Stuart Weitzman Fourth Quarter of 2017 Results:

  • Net sales for the Stuart Weitzman brand totaled $88 million for the fourth fiscal quarter compared to $84 million reported in the same period of the prior year. Excluding the additional week included in fiscal 2016 results, net sales increased 15% on a reported basis and 16% on a constant currency basis.
  • Gross profit for the Stuart Weitzman brand totaled $49 million on a reported basis, while gross margin for the quarter was 56.2% as compared to 54.8% in the prior year. On a non-GAAP basis, gross profit totaled $52 million, while gross margin was 58.9% as compared to 55.2% in the prior year period.
  • SG&A expenses for the Stuart Weitzman brand were $51 million on a reported basis and represented 58.1% of sales as compared to 52.6% of sales in the prior year’s fourth quarter on a reported basis. On a non-GAAP basis, SG&A expenses were $46 million or 52.5% of sales as compared to 50.8% of sales in the prior year reflecting in part the increase in store occupancy costs, as well as the company’s strategic investments in team and infrastructure.
  • Operating income for the Stuart Weitzman brand was a loss of $2 million on a reported basis, while operating margin was (1.8%) versus 2.2% in the prior year. On a non-GAAP basis, operating income was $6 million or 6.4% of sales versus 4.4% in the prior year.

Overview of Full Year 2017 Consolidated, Coach, Inc. Results:

  • Net sales totaled $4.49 billion for fiscal year 2017 as compared to $4.49 billion in the prior year. Excluding the additional week included in fiscal 2016 results, net sales increased 2% on both a reported and constant currency basis. As planned, the company’s strategic decision to elevate the Coach brand’s positioning in the North American wholesale channel through a reduction in promotional events and door closures negatively impacted sales growth by approximately 150 basis points in fiscal 2017.
  • Gross profit totaled $3.08 billion on a reported basis, while gross margin for the year was 68.6% as compared to 67.9% in the prior year. On a non-GAAP basis, gross profit also totaled $3.08 billion, while gross margin was 68.7% compared to 68.0% in the prior year.
  • SG&A expenses totaled $2.29 billion on a reported basis and represented 51.1% of sales compared to 53.4% a year ago. On a non-GAAP basis, SG&A expenses were $2.27 billion and represented 50.6% of sales, including $20 million or 50 basis points in non-cash charges as noted above, as compared to 50.7% a year ago, reflecting in part the company’s continued investment in Stuart Weitzman.
  • Operating income for the year totaled $787 million on a reported basis, while operating margin was 17.5% versus 14.5% a year ago. On a non-GAAP basis, operating income was $813 million, while operating margin was 18.1%, including 50 basis points in non-cash charges as noted above, versus 17.3% a year ago.
  • Net interest expense was $28 million on a reported basis including $10 million in expense associated with bridge financing in connection with the acquisition of Kate Spade & Company as compared to $27 million in fiscal 2016. On a non-GAAP basis, net interest expense was approximately $19 million.
  • Net income totaled $591 million on a reported basis, with earnings per diluted share of $2.09. This compared to reported net income in the prior year of $461 million with earnings per diluted share of $1.65. On a non-GAAP basis, net income was $609 million with earnings per diluted share of $2.15. This compared to $552 million a year ago with earnings per diluted share of $1.98, including $0.07 associated with the additional week.

The company also announced that its Board of Directors declared a quarterly cash dividend of $0.3375 per common share, maintaining an annual rate of $1.35. The dividend is payable on October 2, 2017 to shareholders of record as of the close of business on September 8, 2017.

Mr. Luis added, “Three years ago we laid out an ambitious plan to transform the Coach brand, with a goal of increasing relevancy and improving consumer perceptions. During this time, we’ve done just that, by making the necessary and significant investments across all aspects of the Coach brand and business. We are extremely pleased with the progress we’ve made, having largely attained our strategic goals, in spite of the impact of the volatile retail and macroeconomic environment on our core category. Today, after the successful integration of Stuart Weitzman and the acquisition of Kate Spade, we are at an exciting and pivotal moment in our journey. In an unpredictable environment, we are evolving to drive our long-term success by reinventing ourselves, moving from a single-brand, specialty retailer, to a true house of emotional, desirable brands built on our unique values. We are transforming into an entirely different, truly multi-brand company, creating a more agile organization and infrastructure to support a new corporate structure, while making certain each brand has the resources in place to innovate and drive its distinct personality.”

“Naturally, we are focused on driving top and bottom-line growth for Coach, Inc., but we are also committed to taking the right steps to achieve sustainable long-term profitability through the health of our brands, by making the appropriate investments and carefully managing our distribution channels. This balance is critical to informing our strategic plan as we move forward into the next chapter as the first New York-based house of modern luxury lifestyle brands,” Mr. Luis concluded.

Fiscal Year 2018 Outlook

The following fiscal 2018 guidance is provided on a non-GAAP basis and includes projected Kate Spade results subsequent to the closing of the transaction on July 11, 2017.

The company expects revenues for fiscal 2018 to increase about 30% versus fiscal 2017, to $5.8 to $5.9 billion, with low-single digit organic growth and the acquisition of Kate Spade adding over $1.2 billion in revenue.

In addition, the company is projecting operating income growth of 22% to 25% versus fiscal 2017 driven by mid-single digit organic growth, the acquisition of Kate Spade, and estimated synergies of $30-$35 million. These synergies are expected to offset in part the reduction in profitability from the strategic and deliberate pullback of Kate Spade wholesale disposition and online flash sales channels. Taken together, the Kate Spade business and resulting synergies are expected to contribute approximately $130-$140 million to operating income.

Interest expense is expected to be approximately $90 million for the year while the full year fiscal 2018 tax rate is projected at about 25% to 26%.

Overall, the company is projecting earnings per diluted share in the range of $2.35-$2.40, an increase of about 10% to 12% for the year, including low-to-mid- single digit accretion from the acquisition of Kate Spade, consistent with the previously communicated forecast.

Fiscal Year 2018 Outlook – Non-GAAP Disclosure:

The company is not able to provide a full reconciliation of the non-GAAP financial measures to GAAP because certain material items that impact these measures, such as the timing and exact amount of charges related to our acquisition and integration related charges, have not yet occurred or are out of the company’s control. Accordingly, a reconciliation of our non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort. Where possible, the company has identified the estimated impact of the items excluded from its fiscal 2018 guidance.

This fiscal 2018 non-GAAP guidance excludes (1) expected pre-tax charges of around $10 million attributable to the company’s Operational Efficiency Plan and (2) currently estimated Kate Spade acquisition and integration costs and short-term purchase accounting impacts. The company expects to pay $40-$45 million related to acquisition transaction fees and currently estimates that it will incur approximately $150-$200 million in pre-tax charges in fiscal 2018, which are attributable to Kate Spade integration-related costs. The company continues to fully develop its integration plan.

In fiscal 2018, the company is adopting Accounting Standard Update (ASU) 2016-09 for the accounting of employee share-based payments, which was issued by the Financial Accounting Standards Board. This will affect the company’s effective tax rate because certain tax impacts that were previously recorded to equity will now be included in income tax expense. Further, because the tax impacts are defined by the company’s stock price when Restricted Stock Units (RSUs) and Performance Restricted Stock Units (PRSUs) vest and when employees exercise their stock options, the timing and the amount of the impact cannot be estimated. The majority of RSUs and PRSUs vest in the first quarter of the fiscal year, and accordingly, it is likely that the first fiscal quarter could be most impacted.

Change in Reportable Segments:

Given the acquisition of Kate Spade & Company in July 2017, the company intends to change its reportable segments beginning in fiscal 2018. The company’s new reportable segments will be as follows: Coach, Kate Spade, and Stuart Weitzman.

This change in reporting is consistent with how the company now runs the business, establishes the overall business strategy, allocates resources, and assesses performance. Segment information under these new reportable segments will be provided in an 8-K filed with the SEC in conjunction with the company’s fiscal 2018 first quarter earnings announcement.

Conference Call Details:

Coach will host a conference call to review these results at 8:30 a.m. (ET) today, August 15, 2017. Interested parties may listen to the webcast by accessing www.coach.com/investors on the Internet or dialing into 1-877-510-8087 or 1-862-298-9015 and providing the Conference ID 44861138. 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 above. A webcast replay of the earnings conference call will also be available for five business days on the Coach website.

The company expects to report fiscal 2018 first quarter financial results on Tuesday, November 7, 2017. To receive notification of future announcements, please register at www.coach.com/investors (“Subscribe to E-Mail Alerts”).

Coach, Inc. is a New York-based house of modern luxury lifestyle brands. The company’s portfolio includes the Coach, kate spade new york, and Stuart Weitzman brands. Our company and our brands are founded upon a 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. Coach, Inc.’s common stock is traded on the New York Stock Exchange under the symbol COH and Coach’s Hong Kong Depositary Receipts are traded on The Stock Exchange of Hong Kong Limited under the symbol 6388.

Neither the Hong Kong Depositary Receipts nor the Hong Kong Depositary Shares evidenced thereby have been or will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States or to, or for the account of, a U.S. Person (within the meaning of Regulation S under the Securities Act), absent registration or an applicable exemption from the registration requirements. Hedging transactions involving these securities may not be conducted unless in compliance with the Securities Act.

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 “Fiscal Year 2018 Outlook,” as well as 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,” “anticipate,” “moving,” “leveraging,” “developing,” “driving,” “targeting,” “assume,” “plan,” “pursue,” “look forward to,” “achieve” 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 expected economic trends, the ability to anticipate consumer preferences, the ability to control costs and successfully execute our transformation and operational efficiency initiatives and growth strategies and our ability to achieve intended benefits, cost savings and synergies from acquisitions, etc. Please refer to Coach Inc.’s latest Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission for a complete list of risks and important factors.

Contact:
Analysts & Media:
Andrea Shaw Resnick
212-629-2618
Global Head of Investor Relations and Corporate Communications

Christina Colone
212-946-7252
Senior Director, Investor Relations

Source: Coach, Inc.

###

COACH, INC. to present at Baird’s Global Consumer, Technology & Services Conference on June 7, 2017

NEW YORK, 2017-Jun-01 — /EPR Retail News/ — Coach, Inc. (NYSE:COH) (SEHK:6388), a leading New York design house of modern luxury accessories and lifestyle brands, today (May 31, 2017) announced that Victor Luis, Chief Executive Officer, and Kevin Wills, Chief Financial Officer, will present at Baird’s Global Consumer, Technology & Services Conference in New York City on Wednesday, June 7, 2017 at 11:35 a.m. EDT.

The audio portion of the presentation will be webcast live and archived for a period of five business days and is available to the general public. To access the audio portion of the presentation, log onto: www.coach.com/investors or onto http://wsw.com/webcast/baird48/coh.

Coach, Inc. is a leading New York design house of modern luxury accessories and lifestyle brands. The Coach brand was established in New York City in 1941, and has a rich heritage of pairing exceptional leathers and materials with innovative design. Coach is sold worldwide through Coach stores, select department stores and specialty stores, and through Coach’s website at www.coach.com. In 2015, Coach acquired Stuart Weitzman, a global leader in designer footwear, sold in more than 70 countries and through its website at www.stuartweitzman.com. Coach, Inc.’s common stock is traded on the New York Stock Exchange under the symbol COH and Coach’s Hong Kong Depositary Receipts are traded on The Stock Exchange of Hong Kong Limited under the symbol 6388.

Neither the Hong Kong Depositary Receipts nor the Hong Kong Depositary Shares evidenced thereby have been or will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States or to, or for the account of, a U.S. Person (within the meaning of Regulation S under the Securities Act), absent registration or an applicable exemption from the registration requirements. Hedging transactions involving these securities may not be conducted unless in compliance with the Securities Act.

The information to be made available in this presentation may contain forward-looking statements based on management’s current expectations. Forward-looking statements include, but are not limited to, 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,” “anticipated,” “moving,” “leveraging,” “targeting,” “on track to return,” “to achieve” 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 expected economic trends, the ability to anticipate consumer preferences, the ability to control costs and successfully execute our transformation and operational efficiency initiatives and growth strategies and our ability to achieve intended benefits, cost savings and synergies from acquisitions, etc. Please refer to Coach Inc.’s latest Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission for a complete list of risks and important factors.

Analysts & Media:
Andrea Shaw Resnick
212-629-2618
Global Head Investor Relations & Corporate Communications

Christina Colone
212-946-7252
Senior Director, Investor Relations

Source: Coach, Inc.

Coach, Inc. signs definitive agreement to acquire Kate Spade & Company for $2.4 billion

Acquisition Expected to be Accretive in Fiscal 2018 and to Reach Double-Digit Accretion by Fiscal 2019 on a non-GAAP Basis

NEW YORK, 2017-May-10 — /EPR Retail News/ — Coach, Inc. (NYSE:COH) (SEHK:6388), a leading New York design house of modern luxury accessories and lifestyle brands, today (03.08.17) announced it has signed a definitive agreement to acquire Kate Spade & Company (NYSE:KATE). Under the terms of the transaction Kate Spadeshareholders will receive $18.50 per share in cash for a total transaction value of $2.4 billion. The transaction represents a 27.5% percent premium to the unaffected closing price of Kate Spade’s shares as of December 27, 2016, the last trading day prior to media speculation of a transaction. The transaction has been unanimously approved by the Boards of Directors of Kate Spade & Company and Coach, Inc.

Victor Luis, Chief Executive Officer of Coach, Inc. said, “Kate Spade has a truly unique and differentiated brand positioning with a broad lifestyle assortment and strong awareness among consumers, especially millennials. Through this acquisition, we will create the first New York-based house of modern luxury lifestyle brands, defined by authentic, distinctive products and fashion innovation. In addition, we believe Coach’s extensive experience in opening and operating specialty retail stores globally, and brand building in international markets, can unlock Kate Spade’s largely untapped global growth potential. We are confident that this combination will strengthen our overall platform and provide an additional vehicle for driving long-term, sustainable growth.”

Craig A. Leavitt, Chief Executive Officer of Kate Spade & Company, said, “Following a thorough review of strategic alternatives, reaching an agreement to join Coach’s portfolio of global brands will maximize value for our shareholders and positions Kate Spade for long-term success as we continue our evolution into a powerful, global, multi-channel lifestyle brand. We look forward to working with Coach’s leadership team to leverage their expertise across the business as we continue to innovate and build long-term loyalty with consumers and expand across our product category and geographic axes of growth.”

Kevin Wills, Coach’s Chief Financial Officer added, “Due to the complementary nature of our respective businesses, we believe that we can realize a run rate of approximately $50 million in synergies within three years of the deal closing. These cost synergies will be realized through operational efficiencies, improved scale and inventory management, and the optimization of Kate Spade’s supply chain network. At the same time, to ensure the long-term viability and health of the Kate Spade brand, and similar to the steps Coach has itself taken over the last three years, we plan to reduce sales in Kate Spade’s wholesale disposition and online flash sales channels. Therefore, the reduction in profitability from the pullback in these channels will be offset by the realization of these substantial synergies. As a result, we expect that the acquisition will be accretive in fiscal 2018 on a non-GAAP basis, and will reach double-digit accretion by fiscal 2019, also on a non-GAAP basis.”

Mr. Luis concluded, “The acquisition of Kate Spade is an important step in Coach’s evolution as a customer-focused, multi-brand organization. The combination enhances our position in the attractive global premium handbag and accessories, footwear and outerwear categories, bringing product, brand positioning and customer diversification to the portfolio, and establishing scale in key functions with the resources to invest in talent and innovation. In addition, we believe the Kate Spade brand will benefit from our best-in-class supply chain and strong corporate infrastructure.”

Strategic Rationale

The combination of Coach, Inc. and Kate Spade & Company will create a leading luxury lifestyle company with a more diverse multi-brand portfolio supported by significant expertise in handbag design, merchandising, supply chain and retail operations as well as solid financial acumen. Coach’s history and heritage, multi-channel, international distribution model, and seasoned leadership team uniquely position it to drive long-term sustainable growth for Kate Spade. Coach is focused on preserving Kate Spade’s brand independence as well as retaining key talent, ensuring a smooth transition to Coach, Inc.’s ownership.

Transaction Details

The transaction is not subject to a financing condition. Coach has secured committed bridge financing from BofA Merrill Lynch. The $2.4 billion purchase price is expected to be funded by a combination of senior notes, bank term loans and approximately $1.2 billion of excess Coach cash, a portion of which will be used to repay an expected $800 million 6-month term loan. The transaction is expected to close in the third quarter of calendar 2017, subject to customary closing conditions, including the tender of a majority of the outstanding Kate Spade & Company shares pursuant to the offer and receipt of required regulatory approvals.

Advisors

Coach’s financial advisor is Evercore Group L.L.C. and its legal advisor is Fried, Frank, Harris, Shriver & Jacobson LLP. Kate Spade & Company’s financial advisor is Perella Weinberg Partners LP and its legal advisor is Paul, Weiss, Rifkind, Wharton & Garrison LLP.

Conference Call

Coach, Inc. and Kate Spade & Company will hold a conference call and webcast at 8:30 a.m. EDT today, May 8, 2017, to discuss the transaction. Interested parties may listen to the webcast by accessing www.coach.com/investors or www.katespadeandcompany.com on the Internet, or dialing into 1-888-802-8577 or 1-973-935-8754 and providing the Conference ID 20303086. An investor presentation will also be available for download at www.coach.com/investors.

A telephone replay will be available starting at 12:00 p.m. EDT 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 20303086. A webcast replay of the conference call will also be available for five business days.

About Coach

Coach, Inc. is a leading New York design house of modern luxury accessories and lifestyle brands. The Coach brand was established in New York City in 1941, and has a rich heritage of pairing exceptional leathers and materials with innovative design. Coach is sold worldwide through Coach stores, select department stores and specialty stores, and through Coach’s website at www.coach.com. In 2015, Coach acquired Stuart Weitzman, a global leader in designer footwear, sold in more than 70 countries and through its website at www.stuartweitzman.com. Coach, Inc.’s common stock is traded on the New York Stock Exchange under the symbol COH and Coach’s Hong Kong Depositary Receipts are traded on The Stock Exchange of Hong Kong Limited under the symbol 6388.

About Kate Spade & Company

Kate Spade & Company (NYSE:KATE) operates principally under two global, multichannel lifestyle brands: kate spade new york and Jack Spade New York™. The Company’s four category pillars – women’s, men’s, children’s and home – span demographics, genders and geographies. Known for crisp color, graphic prints and playful sophistication, kate spade new york aims to inspire a more interesting life. The kate spade new york collection includes the Madison Avenue, Broome Streetand on purpose labels. Jack Spade New York offers a timeless and versatile assortment of bags, sportswear and tailored clothing founded on the aesthetic of simple, purposeful design. The Company also owns Adelington Design Group, a private brand jewelry design and development group. Visit www.katespadeandcompany.com for more information.

Neither the Hong Kong Depositary Receipts nor the Hong Kong Depositary Shares evidenced thereby have been or will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States or to, or for the account of, a U.S. Person (within the meaning of Regulation S under the Securities Act), absent registration or an applicable exemption from the registration requirements. Hedging transactions involving these securities may not be conducted unless in compliance with the Securities Act.

Additional Information and Where You Can Find It

The tender offer referred to in this press release has not yet commenced. This press release is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell, securities, nor is it a substitute for the tender offer materials that will be filed with the U.S. Securities and Exchange Commission(“SEC”). The solicitation and offer to buy the issued and outstanding shares of Kate Spade & Company common stock will only be made pursuant to an offer to purchase and related tender offer materials described more fully below. At the time the tender offer is commenced, a subsidiary of Coach, Inc. will file a tender offer statement with the SEC on Schedule TO containing an offer to purchase, form of letter of transmittal and related materials, and Kate Spade & Company will file with the SEC a tender offer solicitation/recommendation statement on Schedule 14D-9 with respect to the tender offer. INVESTORS AND STOCKHOLDERS ARE URGED TO READ THE TENDER OFFER STATEMENT AND RELATED MATERIALS (INCLUDING THE OFFER TO PURCHASE, RELATED LETTER OF TRANSMITTAL AND OTHER TENDER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT CAREFULLY (WHEN THEY BECOME AVAILABLE) AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TENDER OFFER THAT SHOULD BE READ PRIOR TO MAKING A DECISION TO TENDER SHARES. These materials will be sent free of charge to all Kate Spade & Company stockholders. In addition, all of those materials (and all other tender offer documents filed or furnished by Kate Spade & Company or Coach, Inc. or any of its subsidiaries with the SEC) will be available at no charge from the SEC through its website at www.sec.gov. The Schedule TO (including the offer to purchase and related materials) and the Schedule 14D-9 (including the solicitation/recommendation statement), once filed, may also be obtained for free by contacting the Information Agent for the tender offer which will be named in the Schedule TO.

In addition to the offer to purchase, the related letter of transmittal and certain other tender offer documents, as well as the Solicitation/Recommendation Statement, Coach, Inc. and Kate Spade & Company file annual, quarterly and current reports and other information with the SEC. You may read and copy any reports or other information filed by Coach, Inc. or Kate Spade & Company at the SEC public reference room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. Coach, Inc.’s and Kate Spade & Company’s filings with the SEC are also available to the public from commercial document-retrieval services and at the SEC’s website at www.sec.gov.

Cautionary Statement Regarding Forward-Looking Statements

This report may contain “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, and variations or negatives of these words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the consummation of the proposed transaction and the anticipated benefits thereof. Such statements involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of Coach, Inc. and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any statements regarding the expected benefits and costs of the tender offer, the merger and the other transactions contemplated by the merger agreement by and between Kate Spade & Company and Coach, Inc.; the expected timing of the completion of the tender offer and the merger; the ability of Coach, Inc. (and its subsidiary) and Kate Spade & Company to complete the tender offer and the merger considering the various conditions to the tender offer and the merger, some of which are outside the parties’ control, including those conditions related to regulatory approvals; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits may not materialize as expected; that the tender offer and the merger may not be timely completed, if at all; that, prior to the completion of the transaction, Kate Spade & Company’s business may not perform as expected due to transaction-related uncertainty or other factors; that the parties are unable to successfully implement integration strategies; and other risks that are described in Coach, Inc.’s latest Annual Report on Form 10-K and its other filings with the SEC. Coach, Inc. and Kate Spade & Company assume no obligation and do not intend to update these forward-looking statements.

SOURCE: Coach, Inc.

Contacts:

Coach
Analysts & Media:
Andrea Shaw Resnick, 212-629-2618
Global Head of Investor Relations and Corporate Communications
AResnick@coach.com

Christina Colone, 212-946-7252
Senior Director, Investor Relations
CColone@coach.com

Kate Spade & Company
Investor Relations:
Priya Trivedi, 201-295-6110
Vice President, Finance & Treasurer
PTrivedi@katespade.com

Media:
Emily Garbaccio, 212-739-6552
Vice President, Communications
EGarbaccio@katespade.com

Additional Contacts:
Media
Abernathy MacGregor
Tom Johnson / Pat Tucker, 212-371-5999
tbj@abmac.com / pct@abmac.com

 

Coach, Inc. 3Q- FY2017: Our solid performance was very much in line with our expectations and our strategic initiatives

Coach, Inc. 3Q- FY2017: Our solid performance was very much in line with our expectations and our strategic initiatives

 

  • Coach Brand North America Comparable Store Sales Increased 3% in the Third Quarter
  • Third Quarter GAAP EPS was $0.43 Versus $0.40 a Year Ago, Up 7%; Non-GAAP EPS was $0.46 Versus $0.44 a Year Ago, Up 4%
  • Maintains Fiscal 2017 Guidance

NEW YORK, 2017-May-03 — /EPR Retail News/ — Coach, Inc. (NYSE:COH) (SEHK:6388), a leading New York design house of modern luxury accessories and lifestyle brands, today (May 2, 2017) reported third quarter results for the period ended April 1, 2017.

Victor Luis, Chief Executive Officer of Coach, Inc., said, “Our solid performance this quarter was very much in line with our expectations and our strategic initiatives. In a volatile and complex global environment, we delivered continued positive comparable store sales for the Coach brand in North America and gross margin expansion in each segment, while tightly controlling costs. We continued to drive growth in our directly-operated Europe and Mainland China businesses, which represent the most significant geographic opportunities for our brands. And, despite our deliberate pullback in the North America wholesale channel and the impact of calendar shifts, we delivered earnings growth. Importantly, we announced a new leadership structure and strengthened our Coach brand team, a critical step in Coach, Inc.’s evolution as a customer-focused, multi-brand organization.”

Overview of Third Quarter 2017 Consolidated, Coach, Inc. Results:

  • Net sales totaled $995 million for the third fiscal quarter, a decrease of 4% on a reported basis and 3% on a constant currency basis. As planned, the Company’s strategic decision to elevate the Coach brand’s positioning in the North American wholesale channel through a reduction in promotional events and door closures negatively impacted sales growth by approximately 150 basis points in the quarter.
  • Gross profit totaled $706 million, a decrease of 1% on a reported and non-GAAP basis. Gross margin for the quarter expanded 190 basis points from prior year to 70.9% on both a reported and non-GAAP basis.
  • SG&A expenses totaled $555 million on a reported basis, a decrease of 4%, and represented 55.7% of sales compared to 56.0% in the year-ago quarter. On a non-GAAP basis, SG&A expenses were $544 million, a decrease of 3%, or 54.6% of sales as compared to 54.3% in the year ago period, reflecting in part the Company’s continued investment in Stuart Weitzman.
  • Operating income for the quarter on a reported basis totaled $151 million, an increase of 13%, while operating margin was 15.2% versus 13.0%. On a non-GAAP basis, operating income was $162 million, an increase of 7%, while operating margin was 16.3% versus 14.7%.
  • Net interest expense was $4 million in the quarter as compared to $7 million in the year ago period.
  • Net income for the quarter on a reported basis totaled $122 million, with earnings per diluted share of $0.43. This compared to reported net income in the third quarter of FY16 of $112 million with earnings per diluted share of $0.40. On a non-GAAP basis, net income for the quarter totaled $130 million compared to $124 million a year ago, an increase of 5%, with earnings per diluted share of $0.46, up 4% versus prior year.

Coach Brand Third Quarter of 2017 Results:

  • Net sales for the Coach brand totaled $915 million for the third fiscal quarter, a decrease of approximately 4% on a reported and constant currency basis, consistent with expectations. As planned, the strategic actions in the North America wholesale channel negatively impacted sales growth by about 150 basis points.

Third fiscal quarter sales results in each of Coach’s primary segments were as follows:

  • Total North American Coach brand sales decreased 5% on a reported and constant currency basis to $474 million versus $499 million last year. Both North American aggregate and bricks and mortar comparable store sales rose approximately 3% despite the negative impact of the shift in timing of Easter. Total North American direct sales declined 2% for the quarter, reflecting the change in the fiscal calendar on non-comparable sales. As planned, sales at North American department stores declined approximately 40% on both a POS and net sales basis.
  • International Coach brand sales totaled $430 million compared to $448 million a year ago, a decrease of approximately 4% on a reported basis, including approximately 70 basis points of pressure related to foreign currency translation. Greater China sales declined 2% versus prior year in dollars and increased 2% on a constant currency basis, driven by strong growth and positive comparable store sales in Mainland China, offset by continued softness in Hong Kong and Macau. In Japan, sales rose 2% in dollars and decreased 1% in constant currency. Sales for the remaining directly-operated businesses in Asia decreased low-double digits on a reported and constant currency basis, due primarily to weakness in Korea where macroeconomic and geopolitical headwinds have pressured spending from domestic consumers and tourists. Sales in the directly operated channels in Europe remained strong, growing at a double-digit rate in constant currency, while total sales decreased modestly in dollars and rose slightly in constant currency, reflecting the impact of the planned shift in wholesale shipment timing. As expected, international wholesale declined on a net sales basis due to shipment timing with the fourth quarter, while POS sales also declined.
  • Gross profit for the Coach brand totaled $656 million, a decrease of 2% on a reported and non-GAAP basis. Gross margin for the quarter increased 180 basis points over prior year, including approximately 20 basis points of benefit from currency, to 71.7% on both a reported and non-GAAP basis.
  • SG&A expenses totaled $509 million for the Coach brand on a reported basis, down 5% versus prior year, and represented 55.6% of sales compared to 56.3% of sales in the prior year’s third quarter. On a non-GAAP basis, SG&A expenses were $500 million, a decrease of 4%, and represented 54.6% of sales versus 54.8% in the year ago period.
  • Operating income for the Coach brand on a reported basis was $147 million, an increase of 14%, while operating margin was 16.1% compared to operating margin of 13.6% a year ago. On a non-GAAP basis, operating income was $156 million, an increase of 8%, while operating margin was 17.1% compared to operating margin of 15.1% on a non-GAAP basis a year ago.

Stuart Weitzman Third Quarter of 2017 Results:

  • Net sales for the Stuart Weitzman brand totaled $80 million for the third fiscal quarter compared to $79 million reported in the same period of the prior year, an increase of 1%, impacted by wholesale shipment timing.
  • Gross profit for the Stuart Weitzman brand totaled $50 million, an increase of 8% versus prior year, on a reported and non-GAAP basis. Gross margin for the quarter was 62.1%, an increase of approximately 390 basis points over prior year, on a reported and non-GAAP basis, reflective, in part, of channel mix, the benefit of currency, and lower promotional levels.
  • SG&A expenses for the Stuart Weitzman brand were $46 million on a reported basis, compared to $41 million in the prior year, and represented 57.3% of sales compared to 52.3% of sales in the prior year’s third quarter. On a non-GAAP basis, SG&A expenses were $44 million compared to $39 million in the prior year due to an increase in store occupancy costs as well as the Company’s strategic investments in team and infrastructure. As a percentage of sales, SG&A was 55.2% compared to 48.9% of sales a year ago.
  • Operating income for the Stuart Weitzman brand was $4 million or 4.7% of sales as reported compared to $5 million or 5.9% of sales in the prior year’s third quarter. On a non-GAAP basis, operating income was $6 million or 6.9% of sales versus $7 million or 9.3% of sales in the prior year.

Mr. Luis continued, “At Stuart Weitzman, we’re executing on our plan, driving global awareness and brand relevance, and gaining traction with the millennial consumer. The response to spring newness has been particularly strong, and we continue to expect sales to increase at a double-digit pace for both the fourth quarter and the year. We’re also making key brand investments in management and creative talent, as well as infrastructure to support long-term, multi-category growth. To this end, we’re especially excited about the arrival of Giovanni Morelli, who joins the brand this week as Creative Director.”

During the third quarter of FY17, the Company recorded the following under its previously announced plans:

  • Operational Efficiency Plan: charges of approximately $6 million, primarily related to organizational efficiency and technology infrastructure costs.
  • Acquisition-Related Costs: charges of approximately $5 million associated with the acquisition of Stuart Weitzman (which primarily includes charges attributable to contingent payments and integration-related activities).

These actions taken together increased the Company’s consolidated reported SG&A expenses by about $11 million, negatively impacting reported net income by $8 million after tax or about $0.03 per diluted share in the third quarter.

“While the retail environment remains uncertain, our strategic vision for our brands and our company remains clear. The traction we’ve achieved to date on our transformation plan and the success of our integration of Stuart Weitzman give us continued confidence in our direction. Moreover, with our new leadership structure, Coach, Inc. is well positioned to continue its journey as a global house of brands and to focus on opportunities to drive long-term and sustainable growth,” Mr. Luis concluded.

Fiscal Year 2017 Outlook:

The following fiscal 2017 guidance is provided on a non-GAAP, 52-week basis versus 52-week basis.

The Company is maintaining its operational outlook for fiscal 2017 as outlined in January.

The Company continues to expect revenues for fiscal 2017 to increase low-single digits, including the impact of currency.

In addition, the Company is maintaining its operating margin forecast for Coach, Inc. of between 18.5-19.0% for fiscal 2017. This guidance incorporates the negative impact of both Stuart Weitzman and the strategic decision to elevate the Coach brand’s positioning in the North American wholesale channel, including a reduction in promotional events and the closure of about 25% of doors.

Interest expense is now expected to be in the area of $20 million for the year while the full year fiscal 2017 tax rate is still projected at about 26%.

Taken together, the Company continues to project double-digit growth in both net income and earnings per diluted share for the year.

Fiscal Year 2017 Outlook – Non-GAAP Disclosure:

The Company is not able to provide a full reconciliation of the non-GAAP financial measures to GAAP because certain material items that impact these measures, such as the timing and exact amount of charges related to our Operational Efficiency Plan and acquisition related charges, have not yet occurred or are out of the Company’s control. Accordingly, a reconciliation of our non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort. The Company has identified the estimated impact of the items excluded from its fiscal 2017 guidance.

This fiscal 2017 non-GAAP guidance excludes (1) expected pre-tax charges of around $20 million to $35 million attributable to the Company’s Operational Efficiency Plan (which will primarily include the costs of replacing and updating the Company’s core technology platforms, organizational efficiency costs, as well as network optimization costs) and (2) expected pre-tax Stuart Weitzman acquisition-related charges of around $20 million (which primarily include the impact of contingent purchase price payments, subject to achieving a certain revenue target, and office lease termination charges).

Conference Call Details:

Coach will host a conference call to review these results at 8:30 a.m. (ET) today, May 2, 2017. Interested parties may listen to the webcast by accessing www.coach.com/investors on the Internet or dialing into 1-877-510-8087 or 1-862-298-9015 and providing the Conference ID 44859438. 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 above. A webcast replay of the earnings conference call will also be available for five business days on the Coach website.

The Company expects to report fourth quarter financial results on Tuesday, August 8, 2017. To receive notification of future announcements, please register at www.coach.com/investors (“Subscribe to E-Mail Alerts”).

Coach, Inc. is a leading New York design house of modern luxury accessories and lifestyle brands. The Coach brand was established in New York City in 1941, and has a rich heritage of pairing exceptional leathers and materials with innovative design. Coach is sold worldwide through Coach stores, select department stores and specialty stores, and through Coach’s website at www.coach.com. In 2015, Coach acquired Stuart Weitzman, a global leader in designer footwear, sold in more than 70 countries and through its website at www.stuartweitzman.com. Coach, Inc.’s common stock is traded on the New York Stock Exchange under the symbol COH and Coach’s Hong Kong Depositary Receipts are traded on The Stock Exchange of Hong Kong Limited under the symbol 6388.

Neither the Hong Kong Depositary Receipts nor the Hong Kong Depositary Shares evidenced thereby have been or will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States or to, or for the account of, a U.S. Person (within the meaning of Regulation S under the Securities Act), absent registration or an applicable exemption from the registration requirements. Hedging transactions involving these securities may not be conducted unless in compliance with the Securities Act.

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 “Fiscal Year 2017 Outlook,” as well as 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,” “anticipated,” “moving,” “leveraging,” “targeting,” “maintaining,” “assume,” “plan,” “pursue,” “look forward to,” “on track to return,” “to achieve” 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 expected economic trends, the ability to anticipate consumer preferences, the ability to control costs and successfully execute our transformation and operational efficiency initiatives and growth strategies and our ability to achieve intended benefits, cost savings and synergies from acquisitions, etc. Please refer to Coach Inc.’s latest Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission for a complete list of risks and important factors.

Analysts & Media:
Andrea Shaw Resnick
212-629-2618
Global Head of Investor Relations and Corporate Communications

Christina Colone
212-946-7252
Senior Director
Investor Relations

Source: Coach, Inc.

###

Coach announces the appointment of Kevin G. Wills as CFO

NEW YORK, 2017-Jan-07 — /EPR Retail News/ — Coach, Inc. (NYSE: COH) (SEHK: 6388), a leading New York design house of modern luxury accessories and lifestyle brands, today (Jan. 4, 2017) announced the appointment of Kevin G. Wills as Chief Financial Officer, effective no later than March 2017.

Mr. Wills joins Coach from AlixPartners LLP, a global business advisory firm, where he has served as Managing Director and Chief Financial Officer since March 2014. At AlixPartners, Mr. Wills is responsible for all financial management, capital restructuring and mergers and acquisitions. Prior to AlixPartners, Mr. Wills was Executive Vice President and Chief Financial Officer of Saks Incorporated, owner of the Saks Fifth Avenue, Saks.com and Off 5th franchises, where he worked for nearly 16 years in various finance, strategic-planning, administration and operations positions. He also played an instrumental role in Saks’ sale to Hudson’s Bay Company (TSX: HBC). Before joining Saks Inc., Mr. Wills served as Vice President and Controller for Tennessee Valley Authority, an energy producer. Mr. Wills started his career in 1988 as a Business Assurance Manager for Coopers and Lybrand (now known as PwC), an accounting and financial services firm. He has a BS in Business Administration from Tennessee Technological University and is a Certified Public Accountant. In addition, Mr. Wills is currently Chairman of the Board of Healthways, Inc. (NASDAQ: HWAY), where he has been a Director since 2012.

“Kevin brings nearly 30 years of broad-based and relevant retail and finance experience to Coach. His expertise and strong operational track record make him a valuable addition to the leadership team,” said Victor Luis, Chief Executive Officer of Coach, Inc. “As we continue to execute our transformation plan, I have confidence that in Kevin we are adding a proven strategic business partner who will be an important part of Coach, Inc.’s next chapter of growth as a multi-brand company.”

“I am delighted to join Coach, an exceptional company with strong global brands and a disciplined focus on financial results. I very much look forward to playing a key role as the firm executes its long-term global growth strategy,” said Mr. Wills.

Mr. Wills replaces Jane Nielsen, who departed from Coach in August 2016. Andrea Shaw Resnick, who has held the position of Interim CFO since that time, will continue as Global Head of Investor Relations and Corporate Communications. “Andrea is a proven leader who ensured that we didn’t miss a beat during her time as interim CFO. Our entire leadership team appreciates her important and ongoing contributions to Coach, Inc.,” added Mr. Luis.

Coach, Inc. is a leading New York design house of modern luxury accessories and lifestyle brands. The Coach brand was established in New York City in 1941, and has a rich heritage of pairing exceptional leathers and materials with innovative design. Coach is sold worldwide through Coach stores, select department stores and specialty stores, and through Coach’s website at www.coach.com. In 2015, Coach acquired Stuart Weitzman, a global leader in designer footwear, sold in more than 70 countries and through its website at www.stuartweitzman.com. Coach, Inc.’s common stock is traded on the New York Stock Exchange under the symbol COH and Coach’s Hong Kong Depositary Receipts are traded on The Stock Exchange of Hong Kong Limited under the symbol 6388.

Neither the Hong Kong Depositary Receipts nor the Hong Kong Depositary Shares evidenced thereby have been or will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States or to, or for the account of, a U.S. Person (within the meaning of Regulation S under the Securities Act), absent registration or an applicable exemption from the registration requirements. Hedging transactions involving these securities may not be conducted unless in compliance with the Securities Act.

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, 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,” “anticipated,” “moving,” “leveraging,” “targeting,” “assume,” “plan,” “pursue,” “look forward to,” “on track to return,” “to achieve” 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 expected economic trends, the ability to anticipate consumer preferences, the ability to control costs and successfully execute our transformation and operational efficiency initiatives and growth strategies and our ability to achieve intended benefits, cost savings and synergies from acquisitions, etc. Please refer to Coach, Inc.’s latest Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission for a complete list of risks and important factors.

Contact:
Analysts & Media:
Andrea Shaw Resnick

212/629-2618
Interim Chief Financial Officer
Global Head of Investor Relations and Corporate Communications

Christina Colone

212/946-7252
Senior Director, Investor Relations

Source: Coach, Inc.

Coach opens its newest flagship at 685 Fifth Avenue in New York City

Stuart Weitzman Opens Separate Flagship at Same Location

NEW YORK, 2016-Nov-20 — /EPR Retail News/ — Coach, Inc. (NYSE:COH) (SEHK:6388), a leading New York design house of modern luxury accessories and lifestyle brands, today (Nov. 17, 2016) announced the opening of its newest flagship in one of the world’s most prestigious shopping districts at 685 Fifth Avenue in New York City. Timed to coincide with the brand’s 75th anniversary year, this unique retail concept marks a defining moment in both the company’s history and brand transformation.

The 20,000 square foot retail space dedicated to the Coach brand, designed by Executive Creative Director Stuart Vevers in partnership with William Sofield, Designer and President of Studio Sofield, showcases the brand’s distinctive modern luxury positioning. Specifically, the interior features an impressive blackened steel and concrete staircase, which creates a sense of discovery while shopping, as well as a glass enclosed, vintage inspired elevator. Throughout the three-level flagship is a mix of eclectic and bespoke furniture and objects, accented by custom-designed cabinetry, warm lighting, proprietary carpets and fine millwork. Additional architectural elements include a glass-block facade, expansive windows and a captivating mechanized conveyor belt installed with a rotation of Coach products. The center atrium houses a 12-foot sculpture of Coach’s dinosaur, Rexy, designed by renowned artist Billie Achilleos, and constructed entirely from Coach bags and proprietary hardware. In addition, a monumental contemporary sculpture, Scribing the Void, created by Brooklyn artist Kurt Steger traces the surface of iconic rock formations in Central Park, and is a nod to Coach’s New York City roots.

Victor Luis, Chief Executive Officer of Coach, Inc. said, “With Coach House, we are celebrating our New York heritage and 75-year history of craftsmanship. The flagship features the full expression of our women’s and men’s collections including bags, small leather goods, footwear, and ready-to-wear, in addition to offering a full range of customization and leather services. Together with the opening of the adjacent Stuart Weitzman flagship store, we are bringing two global brands born in New York City to one iconic location.”

The company is also launching two concepts unique to Coach House flagships that speak to the brand’s heritage of leather craftsmanship and innovative design. First, the Made to Order Rogue, which allows customers to create a bespoke Rogue bag, selecting from nine points of customization and over one million possible combinations. Second, the Coach House Workshop – which is the first of its kind – offering expanded leather and craftsmanship services, including special monogramming and exclusive vintage product, featuring a resident master craftsman with nearly 30 years of experience in the New York Workshopat Coach’s headquarters.

Andre Cohen, President North America and Global Marketing, added, “We are thrilled to open a true home for the Coach brand on the corner of Fifth Avenue and 54th Street, an address globally recognized for fashion. We’re confident that our modern luxury store environment will be warmly embraced by discerning New York shoppers and international visitors alike.”

Coach, Inc. is a leading New York design house of modern luxury accessories and lifestyle brands. The Coach brand was established in New York City in 1941, and has a rich heritage of pairing exceptional leathers and materials with innovative design. Coach is sold worldwide through Coach stores, select department stores and specialty stores, and through Coach’s website at www.coach.com. In 2015, Coach acquired Stuart Weitzman, a global leader in designer footwear, sold in more than 70 countries and through its website at www.stuartweitzman.com. Coach, Inc.’s common stock is traded on the New York Stock Exchange under the symbol COH and Coach’s Hong Kong Depositary Receipts are traded on The Stock Exchange of Hong Kong Limited under the symbol 6388.

Neither the Hong Kong Depositary Receipts nor the Hong Kong Depositary Shares evidenced thereby have been or will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States or to, or for the account of, a U.S. Person (within the meaning of Regulation S under the Securities Act), absent registration or an applicable exemption from the registration requirements. Hedging transactions involving these securities may not be conducted unless in compliance with the Securities Act.

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 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,” “anticipated,” “moving,” “leveraging,” “targeting,” “assume,” “plan,” “pursue,” “look forward to,” “on track to return,” “to achieve” 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 expected economic trends, the ability to anticipate consumer preferences, the ability to control costs and successfully execute our transformation and operational efficiency initiatives and growth strategies and our ability to achieve intended benefits, cost savings and synergies from acquisitions, etc. Please refer to Coach Inc.’s latest Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission for a complete list of risks and important factors.

Analysts & Media Contact:
Andrea Shaw Resnick
212-629-2618
Interim Chief Financial Officer
Global Head of Investor Relations and Corporate Communications

Christina Colone
212-946-7252
Senior Director, Investor Relations

Source: Coach, Inc.