Tapestry — Feb 6, 2025 release

Balance Sheet and Cash Flow Highlights • Cash, cash equivalents and short-term investments totaled $1.0 billion and total borrowings outstanding were $2.7   billion, representing net debt of $1.7 billion.  The Company’s leverage ratio, based on gross debt to adjusted EBITDA, was 1.6x at quarter-end.  In addition, Tapestry expects to repay its April 2025 bonds, totaling $303 million, at maturity. • Inventory was $937 million compared to the prior year’s ending inventory of $825 million, representing an increase versus prior year, as expected . • Cash flow from operating activities for the second fiscal quarter was an inflow of $506 million compared to an inflow $827 million in the prior year. On a year-to-date basis, cash flow from operating activities was an inflow of $626 million compared to an inflow of $902 million in the prior year. Adjusted free cash flow for the second fiscal quarter   was an inflow of $891 million compared to an inflow of $859 million in the prior year.  On a year-to-date basis, adjusted free cash flow was an inflow of $932 million compared to an inflow of approximately $925 million in the prior year. 6 • CapEx and implementation costs related to Cloud Computing for the second fiscal quarter was $39 million versus $30 million a year ago.  On a year-to-date basis, CapEx and implementation costs related to Cloud Computing was $69 million versus $59 million a year ago. Non-GAAP Reconciliation During the second fiscal quarter of 2025, Tap