Tapestry — Feb 6, 2025 release

Shareholder Return Programs Given Tapestry’s strong operational results, robust balance sheet, significant free cash flow generation, and outlook for growth, the Company expects to return more than $2 billion or over 100 percent of its free cash flow in Fiscal 2025 to shareholders through dividends and share repurchases: • Dividend : The Company’s Board of Directors declared a quarterly cash dividend of $0.35 per common share payable on March 24, 2025 to shareholders of record as of the close of business on March 6, 2025.  In Fiscal 2025, as previously announced, Tapestry expects to maintain its annual dividend rate of $1.40 per common share. 3 • Share Repurchases : As previously announced, during the quarter the Company executed a $2 billion Accelerated Share Repurchase program (‘ASR’). Tapestry received an initial delivery of 28.4 million shares of common stock on November 26, 2024 under the ASR program. The total number of shares purchased by Tapestry will be based on the volume-weighted average price of Tapestry common stock on specified dates during the term of each ASR agreement, less a discount, and subject to adjustments pursuant to the terms and conditions of the ASR agreements.  In addition to the ASR program, the Company has $800 million remaining under its previous share repurchase authorization. Overview of Fiscal 2025 Second Quarter Financial Results • Net sales totaled $2.20 billion, representing 5% growth versus prior year on both a reported and constant currency basis.  FX represented a 30-basis point headwind in the quarter due to the appreciation of the U.S. Dollar. • Gross profit totaled $1.63 billion, while gross margin was 74.4%, driven by operational improvements of 260 basis points, as well as a benefit o