Tapestry, Inc. Provides Update on COVID-19 Response Initiatives
26 Marzo 2020 - 4:45AM
Business Wire
Tapestry, Inc. (NYSE: TPR), a leading New York-based house of
modern luxury accessories and lifestyle brands, today announced a
coordinated set of initiatives intended to support its employees
and communities as well as to enhance financial flexibility during
the economic disruption caused by the global COVID-19 pandemic.
“In this period of unprecedented volatility, we are focused on
our stakeholders, including our employees and stockholders. We are
taking immediate steps to support our employees and local
communities. In addition, out of an abundance of caution, we have
acted to augment our strong liquidity and reinforce our financial
flexibility,” said Jide Zeitlin, Chairman and Chief Executive
Officer of Tapestry, Inc. “We have an 80-year history of
successfully navigating external crises. Our three brands are
powerful and resonate deeply with consumers globally. This, along
with the resilience of our teams, underscores our confidence in the
future.”
Distribution Network
Tapestry continues to closely monitor developments and is
committed to taking appropriate actions to protect the health and
safety of its employees, customers and communities.
- In light of continued efforts to slow the transmission of
COVID-19, Tapestry has extended store closures in North America and
Europe for an additional two weeks (through April 10th). The
Company will reassess store closure decisions on a bi-weekly basis.
Employees at closed locations will continue to receive pay and
benefits over the next four weeks.
- Across all three brands, nearly all of the Company’s stores in
China have re-opened and customers are gradually returning to our
stores. Elsewhere in Asia, the majority of our stores are open, but
operating on shortened hours.
- Tapestry’s e-commerce platforms and distribution centers remain
operational globally, across all major regions. Our brands continue
to engage with customers online and through social media. Tapestry
has implemented enhanced measures to safeguard the health, safety
and well-being of team members who are working in its distribution
facilities.
Community Support
Giving back to the community has always been one of Tapestry’s
core values.
- During this crisis, our foundations will match gifts made by
Tapestry employees in North America to support qualified charitable
COVID-19 causes, up to $10,000 per employee under Tapestry’s
matching gift program. The Coach Foundation will also make an
additional contribution to an organization crowd-sourced by
employees in North America.
- Importantly, the Coach and kate spade new york Foundations are
actively pursuing opportunities to partner with private and public
sector entities to provide assistance to the most vulnerable.
- Finally, the Company will be donating 15,000 masks to hospitals
in the U.S., the U.K. and Spain, with additional masks expected to
be delivered in April.
Financial Flexibility
Tapestry has a long history of successfully navigating economic
cycles and global crises. The Company closed calendar 2019 with
$1.2 billion in cash and short-term investments. In order to
preserve cash and pre-emptively ensure that the company maintains
ample liquidity, the Company is taking the following steps:
- Drawing down $700 million from its $900 million revolving
credit facility to add to cash balances.
- Suspending its quarterly cash dividend beginning in the fourth
quarter of fiscal 2020. The Company’s previously announced
quarterly cash dividend of $0.3375 cents per common share payable
on March 30, 2020 is not affected by this suspension. Tapestry
remains committed to returning capital to shareholders through a
dividend on a long-term basis and will evaluate the program when
the environment normalizes.
- Suspending its share repurchase program. The Company has $600
million remaining on its current share repurchase authorization
following $300 million in repurchases completed in the first
quarter of fiscal year 2020.
- Reviewing every opportunity to eliminate non-essential
operating expenses, while reducing capital expenditures and tightly
managing inventories.
The Company will provide an update on the operational and
financial impacts of the coronavirus outbreak on its global
business during its third quarter fiscal 2020 conference call
scheduled for April 30, 2020.
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, statements regarding the Company’s dividend and share
repurchase program and the statements that can be identified by the
use of forward-looking terminology such as "may," "will," “can,”
"should," “confident,” “future,” "expect," "intend," "estimate,"
"continue," "project," "guidance," "forecast," “outlook,”
“believe,” "anticipate," “proactive,” “preemptive,” “excited
about,” “moving,” “leveraging,” “capitalizing,” “developing,”
“drive,” “targeting,” “assume,” “plan,” “build,” “pursue,”
“maintain,” “on track,” “well positioned to,” “commit,” “look
forward to,” “to acquire,” “achieve,” “strategic vision,” “growth
opportunities” 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, the risk of
cybersecurity threats and privacy or data security breaches, the
impact of tax legislation, the impact of the COVID-19 outbreak,
etc. Please refer to the Company’s latest Annual Report on Form
10-K, Quarterly Report on Form 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200326005180/en/
Tapestry, Inc. Analysts & Media: Andrea Shaw Resnick 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
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