Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Tapestry Inc    TPR

TAPESTRY INC (TPR)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

TAPESTRY : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/09/2018 | 11:14pm CEST
The following discussion of the Company's financial condition and results of
operations should be read together with the Company's condensed consolidated
financial statements and notes to those statements included elsewhere in this
document. When used herein, the terms "the Company," "Tapestry," "we," "us" and
"our" refer to Tapestry, Inc., including consolidated subsidiaries. References
to "Coach," "Stuart Weitzman," "Kate Spade" or "kate spade new york" refer only
to the identified brand.
EXECUTIVE OVERVIEW
Tapestry is a leading New York-based house of modern luxury accessories and
lifestyle brands. The Company and its brands are founded upon a creative and
consumer-led view that stands for inclusivity and approachability. The Coach
brand was established in New York City in 1941 and is a leading design house of
modern luxury accessories and lifestyle collections, with a long-standing
reputation built on quality craftsmanship. The Company acquired Stuart Weitzman,
a leader in women's designer footwear, during the fourth quarter of fiscal 2015.
On July 11, 2017, the Company completed its acquisition of Kate Spade. From
handbags, accessories and ready-to-wear, kate spade new york's products invite
women around the world to live every day uniquely and to the fullest.
Prior to fiscal 2018, the Company had three reportable segments: North America
(Coach brand), International (Coach brand) and Stuart Weitzman. Beginning in
fiscal 2018 and as a result of the Kate Spade acquisition, the Company aligned
its reportable segments with the new structure of its business. As a result, the
Company has three reportable segments:
•     Coach - Includes worldwide sales of Coach brand products to customers

through Coach operated stores, including the Internet, concession

shop-in-shops and sales to wholesale customers and independent third party

distributors.

• Kate Spade - Includes worldwide sales primarily of kate spade new york

brand products to customers through Kate Spade operated stores, including

      the Internet, concession shop-in-shops, independent third party
      distributors and wholesale customers.


•     Stuart Weitzman - Includes worldwide sales of Stuart Weitzman brand

products to customers primarily through wholesale customers, numerous third

party distributors and Stuart Weitzman operated stores, including the

Internet.


Each of our brands is unique and independent, while sharing a commitment to
innovation and authenticity defined by distinctive products and differentiated
customer experiences across channels and geographies. Our success does not
depend solely on the performance of a single channel, geographic area or brand.
Integration and Acquisitions
During the first quarter of fiscal 2018, the Company completed its acquisition
of Kate Spade & Company. During the third quarter of fiscal 2018, the Company
completed its acquisition of certain distributors for the Coach and Stuart
Weitzman brands and obtained operational control of the Kate Spade Joint
Ventures. The operating results of the respective entity have been consolidated
in the Company's operating results commencing on the date of each acquisition.
As a result, the Company incurred charges related to the integration and
acquisition of the businesses. These charges are primarily associated with
purchase price accounting adjustments, acquisition costs, inventory-related
charges, contractual payments and organization-related expenses. The Company
continues to develop its plans for integration, and currently estimates that it
will incur approximately $20-30 million in pre-tax charges, of which
approximately $5-10 million are expected to be non-cash charges, for the
remainder of fiscal 2018.
Refer to Note 4, "Integration and Acquisition Costs," and "GAAP to Non-GAAP
Reconciliation," herein, for further information.
Operational Efficiency Plan
During the fourth quarter of fiscal 2016, the Company announced a series of
operational efficiency initiatives focused on creating an agile and scalable
business model (the "Operational Efficiency Plan"). The significant majority of
the charges under this plan were recorded within SG&A expenses and were
substantially completed by the end of fiscal 2017. These charges are associated
with organizational efficiencies, primarily related to the reduction of
corporate staffing levels globally, as well as accelerated depreciation, mainly
associated with information systems retirement, technology infrastructure
charges related to the initial costs of replacing and updating our core
technology platforms, and international supply chain and office location
optimization. The Company has incurred charges to date of $77.4 million. The
remaining charges under this plan are expected to be approximately $5 million
and will be recorded within Corporate.
Refer to Note 5, "Restructuring Activities," and "GAAP to Non-GAAP
Reconciliation," herein, for further information.

                                       26
--------------------------------------------------------------------------------

Tax Legislation
On December 22, 2017, H.R.1, formerly known as the Tax Cuts and Jobs Act (the
"Tax Legislation") was enacted. The Tax Legislation significantly revises the
U.S. tax code by (i) lowering the U.S federal statutory income tax rate from 35%
to 21%, (ii) implementing a territorial tax system, (iii) imposing a one-time
transition tax on deemed repatriated earnings of foreign subsidiaries
("Transition Tax"), (iv) requiring current inclusion of global intangible low
taxed income ("GILTI") of certain earnings of controlled foreign corporations in
U.S. federal taxable income, (v) creating the base erosion anti-abuse tax
("BEAT"), (vi) implementing bonus depreciation that will allow for full
expensing of qualified property, and (vii) limiting deductibility of interest
and executive compensation expense, among other changes. Notable changes include
the following:
•      The Company expects to receive the full benefit of the rate reduction in

fiscal 2019, as compared with the partial rate reduction it will receive

in fiscal 2018 based on the pro-rated number of days the new rate applies

to the current fiscal year. In the current year, the U.S federal statutory

income tax rate will be approximately 28%, which will further decline to

21% in fiscal 2019.

• Foreign earnings that may exist after December 31, 2017 will generally be

eligible for a 100% dividends received exemption, however companies may be

subject to the alternative BEAT and GILTI tax regimes which would increase

       the U.S federal statutory income tax rate above 21%. With limited
       exception, these tax regimes do not impact the Company until fiscal year
       2019. Based on current facts and circumstances the Company believes that
       GILTI is the tax regime most likely to apply. Under the GILTI regime a

portion of the Company's foreign earnings that may exist will be subject

to U.S. taxation. To the extent a company's foreign operations are subject

to GILTI and there is an existing outside basis difference in the

Company's foreign investments that exists within the reporting period, the

       Company may need to record a deferred tax liability for some portion of
       the anticipated additional tax resulting from future GILTI
       inclusions. Outside-basis difference is generally defined as the

difference between an entity's financial statement carrying amount and the

tax basis of the parent's investment in that entity's stock. Outside basis

differences typically arise from things such as the entity earning income,

post-acquisition, that has yet to be distributed to the parent company, or

purchase accounting adjustments recorded on acquisition that increase or

decrease the entity's book value on the face of its financial statements,

       but do not provide any additional tax basis as the adjustments must be
       ignored for tax purposes. For companies subject to GILTI, the FASB has
       indicated that companies are allowed to choose to record a deferred tax
       liability related to the outside basis difference in the fiscal year of

enactment or to record the future tax associated with GILTI as a period

cost in the period those foreign earnings are included on the U.S. tax

return. Given that the Company is still evaluating whether an outside

       basis difference in foreign investments exists and to what extent it will
       be subject to GILTI, the Company has recorded no additional deferred tax
       liability as of the quarter ended March 31, 2018.


•      The Tax Legislation includes what many believe is an unintended
       consequence that results in certain Qualified Improvement Property

("QIP"), which includes much of the Company's leasehold improvements,

being ineligible for bonus depreciation. The Company has estimated fiscal

year 2018 depreciation expense based on how the law was drafted, with no

       consideration of the perceived legislative intent. The Company has
       estimated its capital expenditures by class to estimate depreciation
       expense for purposes of forecasting the rate change adjustment of our
       deferred tax balance. If Tax Legislation for QIP is adjusted, it will
       impact the rate change adjustment amount, which in turn will impact the
       Company's estimated annual effective tax rate for fiscal 2018.

• At this time, it is unknown whether certain states in which the Company

operates will conform to the Tax Legislation or adopt an alternative

regime. The Company continues to monitor developments; at this time all

material aspects of its provision for income tax for the quarter ended

March 31, 2018 are recorded based on its historical approach to state tax

       expense.


•      Other provisions of the new legislation that are not applicable to the

Company until fiscal 2019 include, but are not limited to, the provisions

limiting deductibility of interest and executive compensation expense.

Based on current facts and circumstances, we do not anticipate the impact

of these provisions to be material to the overall financial statements.


The Company expects further impact in the remainder of fiscal 2018 and in fiscal
2019 as it finalizes the calculations to determine the proper inclusion of the
Transition Tax and to re-measure its deferred tax balance. Based on currently
available information, it is impossible to predict the amount of anticipated
adjustment and whether this adjustment will be beneficial or detrimental to our
effective tax rate. Additional analysis required to complete the Transition Tax
calculation includes, but is not limited to, (i) completing a foreign earnings
and profit study to determine the Company's deferred foreign income since 1986,
including all acquisitions; (ii) determining foreign taxes paid against deferred
foreign income; and (iii) determining whether the Company has an Overall Foreign
Loss. The Company's estimated adjustment may also be affected by other analysis
related to the Tax Legislation, including, but not limited to, the calculation
of deemed repatriation of deferred foreign income and the state tax effect of
adjustments made to federal temporary differences, such as the full expensing of
qualified property which may not be allowed from a state tax perspective.


                                       27
--------------------------------------------------------------------------------

Current Trends and Outlook
Global consumer retail traffic remains relatively inconsistent across channels
and geographies, which has led to a more promotional environment in the
fragmented retail industry due to increased competition and a desire to offset
traffic softness with increased levels of conversion. While certain developed
geographic regions are withstanding these pressures better than others, the
level of consumer travel and spending on discretionary items remains constrained
due to the economic uncertainty. Further declines in traffic could result in
store impairment charges if expected future cash flows of the related asset
group do not exceed the carrying value.
During the third quarter of fiscal 2018, Stuart Weitzman results were negatively
impacted by supply chain operational challenges including production delays,
which caused lower than expected sales, as the brand was not prepared for the
level of complexity and new development as it transitions to a new creative
vision. The Company is in the process of adding infrastructure and capacity to
support this vision with quality and on-time deliveries. While these efforts are
under way, the Company expects to experience some negative impacts through the
Fall/Winter Season.
After stronger than expected economic performance in calendar 2017, including
improvements in the labor and housing market as well as modest growth in overall
consumer spending, the U.S. economic outlook has improved and moderate economic
growth is expected to continue in calendar 2018. Several organizations that
monitor the world's economy, including the International Monetary Fund, observed
economic strengthening across the majority of the globe in 2017 and are
projecting broad-based accelerated economic strengthening for 2018, but
anticipate that the current growth rates are unlikely to persist in the long
term. It is still, however, too early to understand what kind of sustained
impact these trends or changes in tax legislation will have on consumer
discretionary spending.
Risk of volatility or a worsening of the macroeconomic environment remains due
to political uncertainty and potential changes to international trade
agreements. Political and economic instability or changing macroeconomic
conditions that exist or may arise in our major markets may contribute to the
uncertainty as to whether current positive trends will be sustained, including
but not limited to the impact of the United Kingdom ("U.K.") voting to leave the
European Union ("E.U.") in its referendum on June 23, 2016, commonly known as
"Brexit." On March 29, 2017, the U.K. triggered Article 50 of the Lisbon Treaty
formally starting negotiations with the E.U. The U.K. has two years to complete
these negotiations.
Additional macroeconomic events including foreign exchange rate volatility in
various parts of the world, recent and evolving impacts of economic and
geopolitical events in Hong Kong, Macau and mainland China ("Greater China"),
the impact of terrorist acts (particularly in Europe), disease epidemics and a
slowdown in emerging market growth (particularly in Asia) have contributed to
this uncertainty. Our results have been impacted by foreign exchange rate
fluctuations, and will continue to fluctuate with future volatility.
We will continue to monitor these trends and evaluate and adjust our operating
strategies and cost management opportunities to mitigate the related impact on
our results of operations, while remaining focused on the long-term growth of
our business and protecting the value of our brands.
For a detailed discussion of significant risk factors that have the potential to
cause our actual results to differ materially from our expectations, see Part I,
Item 1A. "Risk Factors" disclosed in our Annual Report on Form 10-K for the
fiscal year ended July 1, 2017 and Part II, Item 1A."Risk Factors" of Form 10-Q
for the quarterly period ended on December 30, 2017.



                                       28
--------------------------------------------------------------------------------


THIRD QUARTER FISCAL 2018 COMPARED TO THIRD QUARTER FISCAL 2017
The following table summarizes results of operations for the third quarter of
fiscal 2018 compared to the third quarter of fiscal 2017. All percentages shown
in the table below and the discussion that follows have been calculated using
unrounded numbers.
                                                    Three Months Ended
                               March 31, 2018            April 1, 2017            Variance
                                            (millions, except per share data)

                                           % of                    % of
                             Amount     net sales     Amount    net sales     Amount       %
Net sales                  $ 1,322.4       100.0 %   $ 995.2       100.0 %   $ 327.2     32.9 %
Gross profit                   908.9        68.7       705.7        70.9       203.2     28.8
SG&A expenses                  749.9        56.7       554.6        55.7       195.3     35.3
Operating income               159.0        12.0       151.1        15.2         7.9      5.1
Interest expense, net           16.9         1.3         4.0         0.4        12.9       NM
Provision for income taxes       1.8         0.1        24.9         2.5       (23.1 )   92.7
Net income                     140.3        10.6       122.2        12.3        18.1     14.7
Net income per share:
Basic                      $    0.49$  0.44$  0.05     12.6 %
Diluted                    $    0.48$  0.43$  0.05     11.8 %





NM - Not meaningful
GAAP to Non-GAAP Reconciliation
The Company's reported results are presented in accordance with accounting
principles generally accepted in the United States of America ("GAAP"). The
reported results during the third quarter of fiscal 2018 and fiscal 2017 reflect
the impact of the Operational Efficiency Plan and Integration and Acquisition
costs, as well as the impact of the new tax legislation in the third quarter of
fiscal 2018, as noted in the following tables. Refer to "Non-GAAP Measures"
herein for further discussion on the Non-GAAP measures.
Third Quarter Fiscal 2018 Items
                                                                     Three 

Months Ended March 31, 2018

                                                                                                                                    Non-GAAP Basis
                            GAAP Basis                                          Integration &                                         (Excluding
                           (As Reported)      Operational Efficiency Plan        Acquisition          Impact of Tax Legislation         Items)
                                                                     (millions, except per share data)
Gross profit             $     908.9         $                 -             $         (4.1 )       $                 -             $       913.0
SG&A expenses                  749.9                         2.9                       18.3                           -                     728.7
Operating income               159.0                        (2.9 )                    (22.4 )                         -                     184.3
Income before provision
for income taxes               142.1                        (2.9 )                    (22.4 )                         -                     167.4
Provision for income
taxes                            1.8                        (1.0 )                    (12.1 )                       5.4                       9.5
Net income                     140.3                        (1.9 )                    (10.3 )                      (5.4 )                   157.9
Diluted net income per
share                           0.48                           -                      (0.04 )                     (0.02 )                    0.54

In the third quarter of fiscal 2018 the Company incurred charges as follows: • Operational Efficiency Plan - Total charges of $2.9 million represent

technology infrastructure costs. Refer to the "Executive Overview" herein

and Note 5, "Restructuring Activities," for further information regarding

       this plan.



                                       29
--------------------------------------------------------------------------------
•      Integration & Acquisitions Costs - Total charges of $22.4 million,
       attributable to the integration and acquisition of Kate Spade and the

acquisition of certain distributors for the Coach and Stuart Weitzman

brands and assumed operational control of the Kate Spade Joint Ventures.

These charges include:

• Organizational costs as a result of integration

• Limited life purchase accounting adjustments

• Professional fees


Refer to the "Executive Overview" herein and Note 4, "Integration & Acquisitions
Costs," for more information.
•      Impact of Tax Legislation - Total charges of $5.4 million primarily

related to the net impact of the transition tax and re-measurement of

deferred tax balances. Refer to the "Executive Overview" herein and Note

14, "Income Taxes," for further information.


These actions taken together decreased the Company's provision for income taxes
by $7.7 million, increased SG&A expenses by $21.2 million and increased cost of
sales by $4.1 million, negatively impacting net income by $17.6 million or $0.06
per diluted share.
The following table summarizes the GAAP to Non-GAAP Reconciliation by reportable
segment through operating income for the third quarter of fiscal 2018:
                                                             Three Months 

Ended March 31, 2018

                                                                                                                       Non-GAAP Basis
                         GAAP Basis                           Kate                                                       (Excluding
                        (As Reported)      Coach(1)(2)     Spade(1)(2)    

Stuart Weitzman(1)(2) Corporate(2) Items)

                                                                         (millions)
COGS
Integration &
Acquisition                                      (1.0 )          (1.0 )                  (2.1 )                 -
Gross profit          $         908.9     $      (1.0 )$      (1.0 )   $              (2.1 )      $          -      $       913.0

SG&A
Integration &
Acquisition                                       0.2             9.1                     4.7                 4.3
Operational
Efficiency Plan                                     -               -                       -                 2.9
SG&A                  $         749.9     $       0.2$       9.1     $               4.7        $        7.2$       728.7

Operating income      $         159.0     $      (1.2 )$     (10.1 )   $              (6.8 )      $       (7.2 )$       184.3




(1)  During the first quarter of fiscal 2018, the Company completed its

acquisition of Kate Spade & Company. During the third quarter of fiscal

2018, the Company completed its acquisition of certain distributors for the

Coach and Stuart Weitzman brands and obtained operational control of the

Kate Spade Joint Ventures. The operating results of the respective entity

have been consolidated in the Company's operating results commencing on the

     date of each acquisition.


(2)  Refer to Note 4, "Integration and Acquisition Costs," and Note 5,
     "Restructuring Activities," for further information.



                                       30
--------------------------------------------------------------------------------

Third Quarter Fiscal 2017 Items

Three Months Ended April 1, 2017

                                                                                                                         Non-GAAP Basis
                                          GAAP Basis                                                                       (Excluding
                                         (As Reported)    Operational Efficiency Plan      Integration & Acquisition         Items)
                                                                        (millions, except per share data)
Gross profit                             $     705.7     $                 -             $                 -             $       705.7
SG&A expenses                                  554.6                     6.4                             4.5                     543.7
Operating income                               151.1                    (6.4 )                          (4.5 )                   162.0
Income before provision for income taxes       147.1                    (6.4 )                          (4.5 )                   158.0
Provision for income taxes                      24.9                    (1.6 )                          (1.2 )                    27.7
Net income                                     122.2                    (4.8 )                          (3.3 )                   130.3
Diluted net income per share                    0.43                   (0.02 )                         (0.01 )                    0.46

In the third quarter of fiscal 2017, the Company incurred charges as follows: • Operational Efficiency Plan - $6.4 million primarily related to

       organizational efficiency costs and technology infrastructure.


• Integration & Acquisitions Costs - $4.5 million total charges related to

the acquisition of Stuart Weitzman Holdings LLC related to charges

attributable to integration-related activities and contingent payments.


These actions taken together increased the Company's SG&A expenses by $10.9
million, negatively impacting net income by $8.1 million or $0.03 per diluted
share.
The following table summarizes the GAAP to Non-GAAP Reconciliation by reportable
segment through operating income for the third quarter of fiscal 2017:
                                                            Three Months Ended April 1, 2017
                                                                                                                    Non-GAAP Basis
                         GAAP Basis                                                                                   (Excluding
                        (As Reported)         Coach         Kate Spade       Stuart Weitzman(1)     Corporate(1)        Items)
                                                                       (millions)
COGS
Integration &
Acquisition                                         -                 -                    -                 -
Gross profit          $         705.7     $         -     $           -     $              -       $         -      $       705.7

SG&A
Integration &
Acquisition                                         -                 -                  1.7               2.8
Operational
Efficiency Plan                                     -                 -                    -               6.4
SG&A                  $         554.6     $         -     $           -     $            1.7       $       9.2$       543.7

Operating income      $         151.1     $         -     $           -     $           (1.7 )     $      (9.2 )$       162.0





(1)  Refer to Note 4, "Integration and Acquisitions Costs," and Note 5,
     "Restructuring Activities," for further information.







                                       31
--------------------------------------------------------------------------------


Tapestry, Inc. Summary - Third Quarter of Fiscal 2018
Currency Fluctuation Effects
The change in net sales for the third quarter of fiscal 2018 compared to fiscal
2017 has been presented both including and excluding currency fluctuation
effects.
Net Sales
Net sales in the third quarter of fiscal 2018 increased 32.9% or $327.2 million
to $1.32 billion, primarily due to the Kate Spade acquisition and due to
increased revenues from Coach and Stuart Weitzman. Excluding the favorable
effects of foreign currency, net sales increased by 29.9% or $297.9 million.
Gross Profit
Gross profit increased 28.8% or $203.2 million to $908.9 million in the third
quarter of fiscal 2018 from $705.7 million in the third quarter of fiscal 2017.
Gross margin for the third quarter of fiscal 2018 was 68.7% as compared to 70.9%
in the third quarter of fiscal 2017. Excluding non-GAAP charges of $4.1 million
in the third quarter of fiscal 2018, as discussed in the "GAAP to non-GAAP
Reconciliation" herein, gross profit increased 29.4% or $207.3 million to $913.0
million in the third quarter of fiscal 2018, and gross margin decreased to 69.0%
from 70.9% in the third quarter of fiscal 2017. The increase in gross profit is
primarily driven by the acquisition of Kate Spade of $173.3 million and
increases in Coach of $36.2 million.
Selling, General and Administrative Expenses
The Company includes inbound product-related transportation costs from our
service providers within cost of sales. The Company, similar to some companies,
includes certain transportation-related costs related to our distribution
network in SG&A expenses rather than in cost of sales; for this reason, our
gross margins may not be comparable to that of entities that include all costs
related to their distribution network in cost of sales.
SG&A expenses increased 35.3% or $195.3 million to $749.9 million in the third
quarter of fiscal 2018 as compared to $554.6 million in the third quarter of
fiscal 2017. As a percentage of net sales, SG&A expenses increased to 56.7%
during the third quarter of fiscal 2018 as compared to 55.7% during the third
quarter of fiscal 2017. Excluding non-GAAP charges of $21.2 million and $10.9
million in the third quarter of fiscal 2018 and fiscal 2017, respectively, SG&A
expenses increased $185.0 million to $728.7 million from the third quarter of
fiscal 2017; and SG&A expenses as a percentage of net sales increased, to 55.1%
in the third quarter of fiscal 2018 from 54.6% in the third quarter of fiscal
2017. This increase is primarily due to the acquisition of Kate Spade of $159.4
million, as well as increases in Coach of $17.0 million and Stuart Weitzman of
$6.8 million.
Corporate expenses, which are included within SG&A expenses discussed above but
are not directly attributable to a reportable segment, remained fairly
consistent with a slight decrease of 0.1% or $0.2 million to $74.1 million in
the third quarter of fiscal 2018 as compared to $74.3 million in the third
quarter of fiscal 2017. Excluding non-GAAP charges of $7.2 million and $9.2
million in the third quarter of fiscal 2018 and fiscal 2017, respectively, SG&A
expenses increased 2.8% or $1.8 million in the third quarter of fiscal 2018 as
compared to the third quarter of fiscal 2017.
Operating Income
Operating income increased 5.1% or $7.9 million to $159.0 million in the third
quarter of fiscal 2018 as compared to $151.1 million in the third quarter of
fiscal 2017. Operating margin was 12.0% in the third quarter of fiscal 2018 as
compared to 15.2% in the third quarter of fiscal 2017. Excluding non-GAAP
charges of $25.3 million in the third quarter of fiscal 2018 and $10.9 million
in the third quarter of fiscal 2017, operating income increased 13.7% or $22.3
million to $184.3 million from $162.0 million in the third quarter of fiscal
2017; and operating margin was 13.9% in the third quarter of fiscal 2018 as
compared to 16.3% in the third quarter of fiscal 2017. The increase in operating
income is primarily driven by growth in Coach of $19.2 million and the
acquisition of Kate Spade of $13.9 million, partially offset by a decrease in
Stuart Weitzman of $9.0 million.
Interest Expense, net
Interest expense, net totaled $16.9 million in the third quarter of fiscal 2018
as compared to $4.0 million in the third quarter of fiscal 2017 due to the debt
borrowings that occurred to finance the Kate Spade acquisition.
Provision for Income Taxes
The effective tax rate was 1.3% in the third quarter of fiscal 2018 as compared
to 16.9% in the third quarter of fiscal 2017. The effective tax rate of 1.3% in
the third quarter of fiscal 2018 includes the impacts of the Operational
Efficiency Plan and Integration & Acquisitions, partially offset by the impact
of the Tax Legislation. Excluding non-GAAP charges, the effective tax rate was
5.6% in the third quarter of 2018 as compared to 17.5% in the third quarter of
fiscal 2017. The decrease in our effective tax rate was primarily attributable
to the adoption of ASU No. 2016-09 and the impact of the Tax Legislation which
lowered the U.S federal statutory income tax.

                                       32
--------------------------------------------------------------------------------


Net Income
Net income increased $18.1 million to $140.3 million in the third quarter of
fiscal 2018 as compared to $122.2 million in the third quarter of fiscal 2017.
Excluding non-GAAP charges, net income increased 21.0% or $27.6 million to
$157.9 million in the third quarter of fiscal 2018 as compared to $130.3 million
in the third quarter of fiscal 2017. This increase was primarily due to an
increase in gross profit and lower provision for income taxes, partially offset
by an increase in SG&A expenses.
Net Income per Share
Net income per diluted share increased 11.8% to $0.48 in the third quarter of
fiscal 2018 as compared to $0.43 in the third quarter of fiscal 2017. Excluding
non-GAAP charges, net income per diluted share increased 18.0% to $0.54 in the
third quarter of fiscal 2018 from $0.46 in the third quarter of fiscal 2017,
primarily due to higher net income partially offset by an increase in shares.
Segment Performance - Third Quarter of Fiscal 2018
The following tables summarize results of operations by reportable segment for
the third quarter of fiscal 2018 compared to the third quarter of fiscal 2017.
All percentages shown in the tables below and the discussion that follows have
been calculated using unrounded numbers.
Coach
                                        Three Months Ended
                     March 31, 2018           April 1, 2017           Variance
                                            (millions)
                                % of                    % of
                  Amount     net sales     Amount    net sales     Amount      %
Net sales        $  969.3       100.0 %   $ 915.3       100.0 %   $  54.0    5.9 %
Gross profit        691.3        71.3       656.1        71.7        35.2    5.4
SG&A expenses       450.4        46.5       433.2        47.3        17.2    4.0
Operating income    240.9        24.9       222.9        24.4        18.0    8.1


Coach Net Sales increased 5.9% or $54.0 million to $969.3 million in the third
quarter of fiscal 2018. Excluding the favorable impact of foreign currency, net
sales increased 3.1% or $28.7 million. Comparable store sales for Coach
increased $21.3 million or 2.8% as compared to the third quarter of fiscal 2017.
Excluding the impact of the Internet, comparable store sales increased 1.9%. The
increase in comparable store sales is primarily led by North America, primarily
due to conversion and to a lesser extent the calendar shift for Easter, which
was partially offset by decreases in South Korea. Non-comparable store sales
increased by $11.4 million primarily due to Greater China and Europe, partially
offset by declines in North America due to store closures. These increases were
partially offset by lower wholesale sales which decreased by $3.3 million
primarily due to lower international wholesale sales, excluding the net benefit
of the expiration of the footwear license at the end of fiscal 2017 and bringing
this business in-house.
Coach Gross Profit increased 5.4% or $35.2 million to $691.3 million in the
third quarter of fiscal 2018 from $656.1 million in the third quarter of fiscal
2017. Gross margin decreased 40 basis points to 71.3% in the third quarter of
fiscal 2018 from 71.7% in the third quarter of fiscal 2017. Excluding non-GAAP
charges of $1.0 million in the third quarter of fiscal 2018, Coach gross profit
increased 5.5% or $36.2 million to $692.3 million from $656.1 million in the
third quarter of fiscal 2017, and gross margin decreased 30 basis points to
71.4% from 71.7% in the third quarter of fiscal 2017. Gross margin in the third
quarter of fiscal 2018 was favorably impacted by foreign currency by
approximately 50 basis points. Excluding the impact of foreign currency in both
periods, gross margin decreased 30 basis points. The decrease in gross margin
was primarily due to the negative impact of the expiration of the footwear
license of 50 basis points.
Coach SG&A Expenses increased 4.0% or $17.2 million to $450.4 million as
compared to $433.2 million in the third quarter of fiscal 2017. Excluding
non-GAAP charges of $0.2 million in the third quarter of fiscal 2018, SG&A
expenses increased 3.9% or $17.0 million to $450.2 million in the third quarter
of fiscal 2018; and SG&A expenses as a percentage of net sales decreased to
46.4% during the third quarter of fiscal 2018 as compared to 47.3% during the
third quarter of fiscal 2017. The $17.0 million increase is due to higher
expenses in Greater China and Europe due to new store openings partially offset
by decreases in store-related costs in North America.
Coach Operating Income increased 8.1% or $18.0 million to $240.9 million in the
third quarter of fiscal 2018, resulting in an operating margin of 24.9%, as
compared to $222.9 million and 24.4%, respectively in the third quarter of
fiscal 2017. Excluding non-GAAP charges, Coach operating income increased 8.7%
or $19.2 million to $242.1 million from $222.9 million in the third quarter of
fiscal 2017; and operating margin was 25.0% in the third quarter of fiscal 2018
as compared to 24.4% in the third quarter

                                       33
--------------------------------------------------------------------------------


of fiscal 2017. This increase is due to an increase in gross profit of $36.2
million, partially offset by higher SG&A expenses of $17.0 million.
Kate Spade
                                          Three Months Ended
                     March 31, 2018               April 1, 2017             Variance
                                              (millions)
                                % of                            % of
                  Amount     net sales         Amount         net sales    Amount   %
Net sales        $  269.3       100.0 %   $     -                - %           NM   NM
Gross profit        172.3        64.0           -                -             NM   NM
SG&A expenses       168.5        62.6           -                -             NM   NM
Operating income      3.8         1.4           -                -             NM   NM





NM - Not meaningful
Kate Spade Net Sales totaled $269.3 million in the third quarter of fiscal 2018.
Comparable store sales for the period declined 9.3% primarily due to the
strategic pullback in Internet flash sales. Excluding the impact of the Internet
business, comparable store sales declined 1.2%.
Kate Spade Gross Profit totaled $172.3 million in the third quarter of fiscal
2018, resulting in a gross margin of 64.0%. Excluding non-GAAP charges of $1.0
million, gross profit totaled $173.3 million, resulting in a gross margin of
64.3%.
Kate Spade SG&A Expenses were $168.5 million in the third quarter of fiscal
2018. As a percentage of net sales, SG&A expenses were 62.6% during the third
quarter of fiscal 2018. Excluding non-GAAP charges of $9.1 million, SG&A
expenses were $159.4 million or 59.2% of sales.
Kate Spade Operating Income totaled $3.8 million in the third quarter of fiscal
2018, resulting in an operating margin of 1.4%. Excluding non-GAAP charges, Kate
Spade operating income totaled $13.9 million, resulting in an operating margin
of 5.1%.
Stuart Weitzman
                                                Three Months Ended
                           March 31, 2018           April 1, 2017            Variance
                                                    (millions)
                                      % of                    % of
                         Amount    net sales     Amount    net sales     Amount       %
Net sales               $ 83.8       100.0  %   $  79.9       100.0 %   $  3.9      4.8  %
Gross profit              45.3        54.1         49.6        62.1       (4.3 )   (8.7 )
SG&A expenses             56.9        68.0         47.1        58.9       

9.8 20.9 Operating (loss) income (11.6 ) (13.9 ) 2.5 3.2 (14.1 ) NM





NM - Not meaningful
Stuart Weitzman Net Sales increased 4.8% or $3.9 million to $83.8 million in the
third quarter of fiscal 2018. Excluding the favorable impact of foreign
currency, net sales increased 2.0% or $1.6 million. This increase was primarily
due to higher sales in the retail business of $6.0 million, primarily due to the
direct ownership of the Northern China distributor, higher comparable store
sales and the impact of net store openings, partially offset by a $3.9 million
decrease in wholesale sales primarily due to supply chain operational
challenges.
Stuart Weitzman Gross Profit decreased 8.7% or $4.3 million to $45.3 million
during the third quarter of fiscal 2018 from $49.6 million in the third quarter
of fiscal 2017. Gross margin decreased 800 basis points to 54.1% in the third
quarter of fiscal 2018 from 62.1% in the third quarter of fiscal 2017. Excluding
non-GAAP charges of $2.1 million in the third quarter of fiscal 2018, Stuart
Weitzman gross profit decreased 4.4% or $2.2 million to $47.4 million in the
third quarter of fiscal 2018, and gross margin decreased 550 basis points to
56.6%. The year over year change in gross margin was negatively impacted by
foreign currency by 220 basis points, primarily due to the Euro. Excluding the
impact of foreign currency, gross margin decreased 330

                                       34
--------------------------------------------------------------------------------


basis points due to an increased level of promotional sales mix as a result of
higher inventory levels and supply chain operational challenges.
Stuart Weitzman SG&A Expenses increased 20.9% or $9.8 million to $56.9 million
in the third quarter of fiscal 2018 as compared to $47.1 million in the third
quarter of fiscal 2017. As a percentage of net sales, SG&A expenses increased to
68.0% during the third quarter of fiscal 2018 as compared to 58.9% during the
third quarter of fiscal 2017. Excluding non-GAAP charges of $4.7 million and
$1.7 million in the third quarter of fiscal 2018 and 2017, respectively, SG&A
expenses increased 15.2% or $6.8 million to $52.2 million during the third
quarter of fiscal 2018; and SG&A expenses as a percentage of net sales
increased, to 62.4% in the third quarter of fiscal 2018 from 56.7% in the third
quarter of fiscal 2017. This increase is primarily due to higher marketing
expenses, as well as the direct ownership of the Northern China distributor.
Stuart Weitzman Operating Income decreased $14.1 million to an operating loss of
$11.6 million in the third quarter of fiscal 2018, resulting in an operating
margin of (13.9)%, as compared to an operating income of $2.5 million and
operating margin of 3.2% in fiscal 2017. Excluding non-GAAP charges, Stuart
Weitzman operating income decreased $9.0 million to an operating loss of $4.8
million from an operating income of $4.2 million in the third quarter of fiscal
2017; and operating margin was (5.8)% in the third quarter of fiscal 2018 as
compared to 5.3% in the third quarter of fiscal 2017. The decrease in operating
income was due to higher SG&A expenses and a decrease in gross profit.



                                       35
--------------------------------------------------------------------------------


FIRST NINE MONTHS FISCAL 2018 COMPARED TO FIRST NINE MONTHS FISCAL 2017
The following table summarizes results of operations for the first nine months
of fiscal 2018 compared to the first nine months of fiscal 2017. All percentages
shown in the table below and the discussion that follows have been calculated
using unrounded numbers.
                                                   Nine Months Ended
                        March 31, 2018               April 1, 2017                  Variance
                                           (millions, except per share data)

                                     % of                        % of
                      Amount      net sales       Amount      net sales       Amount           %
Net sales          $  4,396.3        100.0 %   $  3,354.5        100.0 %   $  1,041.8         31.1  %
Gross profit          2,850.7         64.8        2,326.6         69.4          524.1         22.5
SG&A expenses         2,367.1         53.8        1,732.2         51.6          634.9         36.7
Operating income        483.6         11.0          594.4         17.7         (110.8 )      (18.7 )
Interest expense,
net                      59.6          1.4           14.8          0.4           44.8           NM
Provision for
income taxes            238.2          5.4          140.3          4.2           97.9         69.8
Net income              185.8          4.2          439.3         13.1         (253.5 )      (57.7 )
Net income per
share:
   Basic           $     0.65$     1.57$    (0.92 )      (58.4 )%
   Diluted         $     0.65$     1.56$    (0.91 )      (58.5 )%





NM - Not meaningful
GAAP to Non-GAAP Reconciliation
The Company's reported results are presented in accordance with GAAP. The
reported results during the first nine months of fiscal 2018 and fiscal 2017
reflect the impact of the Operational Efficiency Plan and Integration and
Acquisition costs, as well as the impact of the new tax legislation in the first
nine months of fiscal 2018, as noted in the following tables. Refer to "Non-GAAP
Measures" herein for further discussion on the Non-GAAP Measures.
First Nine Months of Fiscal 2018 Items
                                                                     Nine 

Months Ended March 31, 2018

                                                                                                                                   Non-GAAP Basis
                            GAAP Basis                                          Integration &                                        (Excluding
                           (As Reported)      Operational Efficiency Plan        Acquisition         Impact of Tax Legislation         Items)
                                                                     (millions, except per share data)
Gross profit             $       2,850.7     $                 -             $       (110.9 )      $                 -             $     2,961.6
SG&A expenses                    2,367.1                     9.5                      160.4                          -                   2,197.2
Operating income                   483.6                    (9.5 )                   (271.3 )                        -                     764.4
Income before provision
for income taxes                   424.0                    (9.5 )                   (271.3 )                        -                     704.8
Provision for income
taxes                              238.2                    (3.1 )                    (79.3 )                    199.6                     121.0
Net income                         185.8                    (6.4 )                   (192.0 )                   (199.6 )                   583.8
Diluted net income per
share                               0.65                   (0.02 )                    (0.67 )                    (0.69 )                    2.03

In the first nine months of fiscal 2018 the Company incurred charges as follows: • Operational Efficiency Plan - Total charges of $9.5 million primarily

       related to technology infrastructure costs. Refer to the "Executive
       Overview" herein and Note 5, "Restructuring Activities," for further
       information regarding this plan.

• Integration & Acquisitions Costs - Total charges of $271.3 million,

primarily attributable to the integration and acquisition of Kate Spade,

       and to a lesser extent the acquisition of certain distributors for the
       Coach and Stuart Weitzman brands and assumed operational control of the
       Kate Spade Joint Ventures. These charges include:

• Limited life purchase accounting adjustments

                                       36
--------------------------------------------------------------------------------

• Professional fees

•            Severance and other costs related to contractual agreements with
             certain Kate Spade executives

• Organizational costs as a result of integration

• Inventory reserves established primarily for the destruction of inventory


Refer to the "Executive Overview" herein and Note 4, "Integration & Acquisitions
Costs," for more information.
•      Impact of Tax Legislation - Total charges of $199.6 million primarily

related to the net impact of the transition tax and re-measurement of

deferred tax balances. Refer to the "Executive Overview" herein and Note

14, "Income Taxes," for further information.


These actions taken together increased the Company's provision for income taxes
by $117.2 million, SG&A expenses by $169.9 million and cost of sales by $110.9
million, negatively impacting net income by $398.0 million, or $1.38 per diluted
share.
The following table summarizes the GAAP to Non-GAAP Reconciliation by reportable
segment through operating income for the first nine months of fiscal 2018:
                                                             Nine Months 

Ended March 31, 2018

                                                                                                                      Non-GAAP Basis
                         GAAP Basis                            Kate                                                     (Excluding
                        (As Reported)      Coach(1)(2)     Spade(1)(2)     
Stuart Weitzman(1)(2)     Corporate(2)        Items)
                                                                        (millions)
COGS
Integration &
Acquisition                                      (1.0 )         (106.4 )                  (3.5 )                -
Gross profit          $       2,850.7$      (1.0 )$     (106.4 )   $              (3.5 )     $          -     $     2,961.6

SG&A
Integration &
Acquisition                                       0.2            106.6                     6.5               47.1
Operational
Efficiency Plan                                     -                -                       -                9.5
SG&A                  $       2,367.1$       0.2$      106.6     $               6.5       $       56.6$     2,197.2

Operating income      $         483.6     $      (1.2 )$     (213.0 )   $             (10.0 )     $      (56.6 )$       764.4





(1)  During the first quarter of fiscal 2018, the Company completed its

acquisition of Kate Spade & Company. During the third quarter of fiscal

2018, the Company completed its acquisition of certain distributors for the

Coach and Stuart Weitzman brands and obtained operational control of the

Kate Spade Joint Ventures. The operating results of the respective entity

have been consolidated in the Company's operating results commencing on the

     date of each acquisition.


(2)  Refer to Note 4, "Integration and Acquisition Costs," and Note 5,
     "Restructuring Activities," for further information.



                                       37
--------------------------------------------------------------------------------

First Nine Months of Fiscal 2017 Items

                                                              Nine Months Ended April 1, 2017
                                                                                                            Non-GAAP Basis
                                    GAAP Basis                                          Integration &         (Excluding
                                  (As Reported)      Operational Efficiency Plan         Acquisition            Items)
                                                             (millions, except per share data)
Gross profit                     $    2,326.6       $                 -             $          (0.6 )       $     2,327.2
SG&A expenses                         1,732.2                      17.2                        20.9               1,694.1
Operating income                        594.4                     (17.2 )                     (21.5 )               633.1
Income before provision for
income taxes                            579.6                     (17.2 )                     (21.5 )               618.3
Provision for income taxes              140.3                      (4.3 )                      (6.2 )               150.8
Net income                              439.3                     (12.9 )                     (15.3 )               467.5
Diluted net income per share             1.56                     (0.05 )                     (0.05 )                1.66

In the first nine months of fiscal 2017, the Company incurred charges as follows: • Operational Efficiency Plan - Total charges of $17.2 million primarily

related to organizational efficiency costs, technology infrastructure

       costs and, to a lesser extent, network optimization costs.


•      Integration & Acquisitions Costs - Total charges of $21.5 million total
       charges related to the acquisition of Stuart Weitzman Holdings LLC, of
       which $20.7 million is primarily related to charges attributable to

integration-related activities and contingent payments and $0.8 million is

       related to the limited life impact of purchase accounting, primarily due
       to the amortization of the inventory step-up and distributor
       relationships.


These actions taken together increased the Company's SG&A expenses by $38.1
million and cost of sales by $0.6 million, negatively impacting net income by
$28.2 million, or $0.10 per diluted share.
The following table summarizes the GAAP to Non-GAAP Reconciliation by reportable
segment through operating income for the first nine months of fiscal 2017:
                                                            Nine Months Ended April 1, 2017
                                                                                                                    Non-GAAP Basis
                        GAAP Basis                                                                                    (Excluding
                       (As Reported)        Coach          Kate Spade       Stuart Weitzman(1)      Corporate(1)        Items)
                                                                       (millions)
COGS
Integration &
Acquisition                                       -                  -                  (0.6 )                -
Gross profit         $       2,326.6     $        -     $            -     $            (0.6 )     $          -     $     2,327.2

SG&A
Integration &
Acquisition                                       -                  -                  12.7                8.2
Operational
Efficiency Plan                                   -                  -                     -               17.2
SG&A                 $       1,732.2     $        -     $            -     $            12.7       $       25.4$     1,694.1

Operating income     $         594.4     $        -     $            -     $           (13.3 )     $      (25.4 )$       633.1





(1)  Refer to Note 4, "Integration and Acquisition Costs," and Note 5,
     "Restructuring Activities," for further information.







                                       38
--------------------------------------------------------------------------------


Tapestry, Inc. Summary - First Nine Months of Fiscal 2018
Currency Fluctuation Effects
The change in net sales for the first nine months of fiscal 2018 compared to
fiscal 2017 has been presented both including and excluding currency fluctuation
effects.
Net Sales
Net sales in the first nine months of fiscal 2018 increased 31.1% or $1.04
billion to $4.40 billion, primarily due to the Kate Spade acquisition as well as
increased revenues from Coach and Stuart Weitzman. Excluding the effects of
foreign currency, net sales increased by 30.3% or $1.02 billion.
Gross Profit
Gross profit increased 22.5% to $2.85 billion during the first nine months of
fiscal 2018 from $2.33 billion in the first nine months of fiscal 2017. Gross
margin for the first nine months of fiscal 2018 was 64.8% as compared to 69.4%
in the first nine months of fiscal 2017. Excluding non-GAAP charges of $110.9
million and $0.6 million in the first nine months of fiscal 2018 and 2017,
respectively, as discussed in the "GAAP to Non-GAAP Reconciliation" herein,
gross profit increased 27.3% or $634.4 million to $2.96 billion in the first
nine months of fiscal 2018, and gross margin decreased to 67.4% from 69.4% in
the first nine months of fiscal 2017. The increase in gross profit is primarily
driven by the acquisition of Kate Spade of $613.0 million and increases in Coach
of $20.5 million.
Selling, General and Administrative Expenses
SG&A expenses increased 36.7% or $634.9 million to $2.37 billion in the first
nine months of fiscal 2018 as compared to $1.73 billion in the first nine months
of fiscal 2017. As a percentage of net sales, SG&A expenses increased to 53.8%
during the first nine months of fiscal 2018 as compared to 51.6% during the
first nine months of fiscal 2017. Excluding non-GAAP charges of $169.9 million
and $38.1 million in the first nine months of fiscal 2018 and 2017,
respectively, SG&A expenses increased $503.1 million from the first nine months
of fiscal 2017; and SG&A expenses as a percentage of net sales decreased to
50.0% in the first nine months of fiscal 2018 from 50.5% in the first nine
months of fiscal 2017. The increase is primarily due to the acquisition of Kate
Spade of $485.8 million.
Corporate expenses, which are included within SG&A expenses discussed above but
are not directly attributable to a reportable segment, increased 14.4% or $31.2
million to $249.1 million in the first nine months of fiscal 2018 as compared to
$217.9 million in the first nine months of fiscal 2017. Excluding non-GAAP
charges of $56.6 million and $25.4 million in the first nine months of fiscal
2018 and 2017, respectively, SG&A expenses remained flat in the first nine
months of fiscal 2018 as compared to the first nine months of fiscal 2017.
Operating Income
Operating income decreased $110.8 million to $483.6 million in the first nine
months of fiscal 2018 as compared to $594.4 million in the first nine months of
fiscal 2017. Operating margin was 11.0% in the first nine months of fiscal 2018
as compared to 17.7% in the first nine months of fiscal 2017. Excluding non-GAAP
charges of $280.8 million in the first nine months of fiscal 2018 and $38.7
million in the first nine months of fiscal 2017, operating income increased
20.8% or $131.3 million to $764.4 million from $633.1 million in the first nine
months of fiscal 2017; and operating margin was 17.4% in the first nine months
of fiscal 2018 as compared to 18.9% in the first nine months of fiscal 2017. The
increase in operating income is primarily driven by the acquisition of Kate
Spade of $127.2 million.
Interest Expense, net
Interest expense, net totaled $59.6 million in the first nine months of fiscal
2018 as compared to $14.8 million in the first nine months of fiscal 2017 due to
the debt borrowings that occurred to finance the Kate Spade acquisition.
Provision for Income Taxes
The effective tax rate was 56.2% in the first nine months of fiscal 2018 as
compared to 24.2% in the first nine months of fiscal 2017. Excluding non-GAAP
charges, the effective tax rate was 17.2% in the first nine months of fiscal
2018 as compared to 24.4% in the first nine months of fiscal 2017. The decrease
in the effective tax rate was primarily attributable to the Tax Legislation
which lowered the U.S federal statutory income tax and the adoption of ASU No.
2016-09.
Net Income
Net income decreased $253.5 million to $185.8 million in the first nine months
of fiscal 2018 as compared to $439.3 million in the first nine months of fiscal
2017. Excluding non-GAAP charges, net income increased 24.9% or $116.3 million
to $583.8 million in the first nine months of fiscal 2018 as compared to $467.5
million in the first nine months of fiscal 2017. This increase was primarily due
to higher operating income, as well as a decrease in the provision for income
taxes.

                                       39
--------------------------------------------------------------------------------


Net Income per Share
Net income per diluted share decreased 58.5% to $0.65 in the first nine months
of fiscal 2018 as compared to $1.56 in the first nine months of fiscal 2017.
Excluding non-GAAP charges, net income per diluted share increased 22.5% to
$2.03 in the first nine months of fiscal 2018 from $1.66 in the first nine
months of fiscal 2017, primarily due to higher net income partially offset by an
increase in shares outstanding.
Segment Performance - First Nine Months of Fiscal 2018
The following tables summarize results of operations by reportable segment for
the first nine months of fiscal 2018 compared to the first nine months of fiscal
2017. All percentages shown in the table below and the discussion that follows
have been calculated using unrounded numbers.
Coach
                                          Nine Months Ended
                     March 31, 2018             April 1, 2017            Variance
                                              (millions)
                                 % of                      % of
                   Amount     net sales      Amount     net sales     Amount      %
Net sales        $ 3,122.6       100.0 %   $ 3,068.8       100.0 %   $  53.8    1.8 %
Gross profit       2,169.4        69.5       2,149.9        70.1        19.5    0.9
SG&A expenses      1,369.0        43.8       1,356.0        44.2        13.0    1.0
Operating income     800.4        25.6         793.9        25.9         6.5    0.8


Coach Net Sales increased 1.8% or $53.8 million to $3.12 billion in the first
nine months of fiscal 2018. Excluding the favorable impact of foreign currency,
net sales increased 1.1% or $32.9 million. Comparable store sales for Coach
increased $35.5 million or 1.4% as compared to the first nine months of fiscal
2017. Excluding the impact of the Internet, comparable store sales increased
0.4%. The increase in comparable store sales is primarily due to increases in
North America, Japan and Greater China, partially offset by declines in other
parts of Asia. Non-comparable stores increased by $26.3 million, primarily
driven by new stores in Greater China, Europe and Asia partially offset by store
closures in North America. These increases were partially offset by a decrease
in wholesale of $23.8 million, primarily due to lower international wholesale
sales, excluding the net benefit of the expiration of the footwear license at
the end of fiscal 2017 and bringing this business in-house.
Coach Gross Profit increased 0.9% or $19.5 million to $2.17 billion in the first
nine months of fiscal 2018 from $2.15 billion in the first nine months of fiscal
2017. Excluding non-GAAP charges of $1.0 million in the first nine months of
fiscal 2018, Coach gross profit increased 1.0% or $20.5 million. Gross margin
decreased 60 basis points to 69.5% in the first nine months of fiscal 2018 from
70.1% in the first nine months of fiscal 2017 on a GAAP and non-GAAP basis.
Gross margin in the first nine months of fiscal 2018 was negatively impacted by
foreign currency by approximately 10 basis points. Excluding the impact of
foreign currency in both periods, gross margin decreased 50 basis points. The
decrease in gross margin was primarily due to the negative impact of the
expiration of the footwear license of 40 basis points and promotional activity,
partially offset by favorable product mix.
Coach SG&A Expenses increased 1.0% or $13.0 million to $1.37 billion as compared
to $1.36 billion in the first nine months of fiscal 2017. As a percentage of net
sales, SG&A expenses decreased to 43.8% during the first nine months of fiscal
2018 as compared to 44.2% during the first nine months of fiscal 2017. Excluding
non-GAAP charges of $0.2 million in the first nine months of fiscal 2018, SG&A
expenses increased 0.9% or $12.8 million during the first nine months of fiscal
2018. The $12.8 million increase is primarily due to higher store-related costs
in Europe and Greater China associated with new store openings, partially offset
by lower marketing expenses in North America.
Coach Operating Income increased 0.8% or $6.5 million to $800.4 million in the
first nine months of fiscal 2018, resulting in an operating margin of 25.6%, as
compared to $793.9 million and 25.9%, respectively in the first nine months of
fiscal 2017. Excluding non-GAAP charges, Coach operating income increased 1.0%
or $7.7 million to $801.6 million from $793.9 million in the first nine months
of fiscal 2017; and operating margin was 25.7% in the first nine months of
fiscal 2018 as compared to 25.9% in the first nine months of fiscal 2017. The
increase in operating income was due to an increase in gross profit, partially
offset by higher SG&A expenses.

                                       40
--------------------------------------------------------------------------------
Kate Spade
                                          Nine Months Ended
                  March 31, 2018(1)               April 1, 2017             Variance
                                             (millions)
                                % of                            % of
                 Amount      net sales         Amount         net sales    Amount   %
Net sales      $   972.8       100.0  %   $     -                - %           NM   NM
Gross profit       506.6        52.1            -                -             NM   NM
SG&A expenses      592.4        60.9            -                -             NM   NM
Operating loss     (85.8 )      (8.8 )          -                -             NM   NM




NM - Not meaningful (1) On July 11, 2017, the Company completed its acquisition of Kate Spade. The

operating results of the Kate Spade brand have been consolidated in the

Company's operating results commencing on July 11, 2017.


Kate Spade Net Sales totaled $972.8 million in the first nine months of fiscal
2018. Comparable store sales for the period declined 8.4% primarily due to the
strategic pullback in Internet flash sales. Excluding the impact of the Internet
business, comparable store sales declined 2.5%.
Kate Spade Gross Profit totaled $506.6 million in the first nine months of
fiscal 2018, resulting in a gross margin of 52.1%. Excluding non-GAAP charges of
$106.4 million, gross profit totaled $613.0 million, resulting in a gross margin
of 63.0%.
Kate Spade SG&A Expenses were $592.4 million in the first nine months of fiscal
2018. As a percentage of net sales, SG&A expenses were 60.9% during the first
nine months of fiscal 2018. Excluding non-GAAP charges of $106.6 million, SG&A
expenses were $485.8 million, or 49.9% of sales.
Kate Spade Operating Loss totaled $85.8 million in the first nine months of
fiscal 2018, resulting in an operating margin of (8.8)%. Excluding non-GAAP
charges, Kate Spade operating income totaled $127.2 million, resulting in an
operating margin of 13.1%.
Stuart Weitzman
                                          Nine Months Ended
                     March 31, 2018           April 1, 2017            Variance
                                             (millions)
                                % of                    % of
                  Amount     net sales     Amount    net sales     Amount       %
Net sales        $  300.9       100.0 %   $ 285.7       100.0 %   $ 15.2      5.3  %
Gross profit        174.7        58.1       176.7        61.8       (2.0 )   (1.1 )
SG&A expenses       156.6        52.1       158.3        55.4       (1.7 )   (1.1 )
Operating income     18.1         6.0        18.4         6.4       (0.3 )   (1.9 )





NM - Not meaningful
Stuart Weitzman Net Sales increased 5.3% or $15.2 million to $300.9 million in
the first nine months of fiscal 2018. Excluding the favorable impact of foreign
currency, net sales increased 3.5% or $9.9 million. This increase was primarily
due to higher sales in the retail business of $10.4 million, primarily due to
the impact of net store openings, the direct ownership of the Northern China
distributor and higher comparable store sales, as well as a $0.7 million
increase in wholesale sales primarily due to timing of shipments.
Stuart Weitzman Gross Profit decreased 1.1% or $2.0 million to $174.7 million
during the first nine months of fiscal 2018 from $176.7 million in the first
nine months of fiscal 2017. Gross margin decreased 370 basis points to 58.1% in
the first nine months of fiscal 2018 from 61.8% in the first nine months of
fiscal 2017. Excluding non-GAAP charges of $3.5 million and $0.6 million in the
first nine months of fiscal 2018 and fiscal 2017, respectively, Stuart Weitzman
gross profit increased 0.5% or $0.9 million to $178.2 million from $177.3
million in the first nine months of fiscal 2017, and gross margin decreased 280
basis points to 59.2% from 62.0% in the first nine months of fiscal 2017. The
year over year change in gross margin was negatively impacted

                                       41
--------------------------------------------------------------------------------


by foreign currency rates by 70 basis points, primarily due to the Euro.
Excluding the impact of foreign currency, there was a decrease in gross margin
of 210 basis points primarily due to the impact of promotional activity, channel
mix and lower wholesale margins.
Stuart Weitzman SG&A Expenses decreased 1.1% or $1.7 million to $156.6 million
in the first nine months of fiscal 2018 as compared to $158.3 million in the
first nine months of fiscal 2017. As a percentage of net sales, SG&A expenses
decreased to 52.1% during the first nine months of fiscal 2018 as compared to
55.4% during the first nine months of fiscal 2017. Excluding non-GAAP charges of
$6.5 million and $12.7 million in the first nine months of fiscal 2018 and 2017,
respectively, SG&A expenses increased 3.2% or $4.5 million to $150.1 million in
the first nine months of fiscal 2018; and SG&A expenses as a percentage of net
sales decreased, to 49.9% in the first nine months of fiscal 2018 from 50.9% in
the first nine months of fiscal 2017. This increase is primarily due to timing
of marketing expenses, as well as growth in the business and the direct
ownership of the Northern China distributor, partially offset by reduced
employee-related costs.
Stuart Weitzman Operating Income decreased 1.9% or $0.3 million to $18.1 million
in the first nine months of fiscal 2018, resulting in an operating margin of
6.0%, as compared to $18.4 million and 6.4%, respectively in fiscal 2017.
Excluding non-GAAP charges, Stuart Weitzman operating income decreased 11.6% or
$3.6 million to $28.1 million from $31.7 million in the first nine months of
fiscal 2017; and operating margin was 9.3% in the first nine months of fiscal
2018 as compared to 11.1% in the first nine months of fiscal 2017. The decrease
in operating income was due to a decrease in gross profit and higher SG&A
expenses.

                                       42
--------------------------------------------------------------------------------


NON-GAAP MEASURES
The Company's reported results are presented in accordance with GAAP. The
reported gross profit, SG&A expenses, operating income, provision for income
taxes, net income and earnings per diluted share in the third quarter and first
nine months of fiscal 2018 and fiscal 2017 reflect certain items, including the
impact of the Integration and Acquisition for Tapestry, the Operational
Efficiency Plan and the impact of the new tax legislation in the second quarter
of fiscal 2018. As a supplement to the Company's reported results, these metrics
are also reported on a non-GAAP basis to exclude the impact of these items,
along with a reconciliation to the most directly comparable GAAP measures.
Comparable store sales, which is a non-GAAP measure, reflects sales performance
at stores that have been open for at least 12 months, and includes sales from
the Internet. In certain instances, orders placed via the Internet are fulfilled
by a physical store; such sales are recorded by the physical store. The Company
excludes new locations, including newly acquired locations, from the comparable
store base for the first twelve months of operation. Comparable store sales have
not been adjusted for store expansions. Kate Spade comparable store sales have
been calculated using this methodology by comparing current period sales to
sales during the equivalent pre-acquisition period.
These non-GAAP performance measures were used by management to conduct and
evaluate its business during its regular review of operating results for the
periods affected. Management and the Company's Board utilized these non-GAAP
measures to make decisions about the uses of Company resources, analyze
performance between periods, develop internal projections and measure management
performance. The Company's internal management reporting excluded these items.
In addition, the human resources committee of the Company's Board uses these
non-GAAP measures when setting and assessing achievement of incentive
compensation goals.
The Company operates on a global basis and reports financial results in U.S.
dollars in accordance with GAAP. Fluctuations in foreign currency exchange rates
can affect the amounts reported by the Company in U.S. dollars with respect to
its foreign revenues and profit. Accordingly, certain material increases and
decreases in operating results have been presented both including and excluding
currency fluctuation effects from translating foreign-denominated amounts into
U.S. dollars as compared to the same period in the prior fiscal year. Constant
currency information compares results between periods as if exchange rates had
remained constant period-over-period. The Company calculates constant currency
revenue results by translating current period revenue in local currency using
the prior year period's monthly average currency conversion rate.
We believe these non-GAAP measures are 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, we believe presenting certain increases and decreases
in constant currency provides a framework for assessing the performance of the
Company's business outside the United States and helps investors and analysts
understand the effect of significant year-over-year currency fluctuations. We
believe excluding these items assists investors and others in developing
expectations of future performance.
By providing the non-GAAP measures, as a supplement to GAAP information, we
believe we are enhancing investors' understanding of our business and our
results of operations. The non-GAAP financial measures are limited in their
usefulness and should be considered in addition to, and not in lieu of, U.S.
GAAP financial measures. Further, these non-GAAP measures may be unique to the
Company, as they may be different from non-GAAP measures used by other
companies.
For a detailed discussion on these non-GAAP measures, see Item 2. "Management's
Discussion and Analysis of Financial Condition and Results of Operations."


                                       43
--------------------------------------------------------------------------------


LIQUIDITY AND CAPITAL RESOURCES
Cash Flows
                                                               Nine Months Ended
                                                   March 31,       April 1,
                                                      2018           2017           Change
                                                                  (millions)

Net cash provided by operating activities         $    586.5$     530.0$     56.5
Net cash (used in) provided by investing
activities                                          (2,081.1 )         562.5       (2,643.6 )
Net cash used in financing activities                 (158.4 )        (550.2 )        391.8
Effect of exchange rate changes on cash and
cash equivalents                                        11.8            (6.8 )         18.6
Net (decrease) increase in cash and cash
equivalents                                       $ (1,641.2 )   $     

535.5 $ (2,176.7 )


The Company's cash and cash equivalents decreased by $1.64 billion in the first
nine months of fiscal 2018 as compared to an increase of $535.5 million in the
first nine months of fiscal 2017, as discussed below.
Net cash provided by operating activities
Net cash provided by operating activities increased $56.5 million due to changes
in operating assets and liabilities of $265.0 million and higher non-cash
charges of $45.0 million, partially offset by lower net income of $253.5
million.
The $265.0 million increase in changes in operating asset and liability balances
was primarily driven by changes in other liabilities, accrued liabilities,
inventories and accounts receivable, partially offset by changes in accounts
payable. Other liabilities were a source of cash of $168.6 million in the first
nine months of fiscal 2018 compared to a use of cash of $26.9 million in the
first nine months of fiscal 2017, primarily related to an increase in the
Company's long-term income tax payable as a result of the Transition Tax.
Accrued liabilities were a use of cash of $40.0 million in the first nine months
of fiscal 2018 as compared to a use of cash of $101.7 million in the first nine
months of fiscal 2017, primarily driven by changes in derivative positions due
to foreign currency fluctuations and the timing of interest payments.
Inventories were a source of cash of $12.0 million in the first nine months of
fiscal 2018 as compared to a use of cash of $31.1 million in the first nine
months of fiscal 2017, primarily driven by Kate Spade inventory balances as a
result of seasonality. Accounts receivable was a source of cash of $78.6 million
in the first nine months of fiscal 2018 as compared to a source of cash of $35.9
million in the first nine months of fiscal 2017, primarily driven by a smaller
build in receivables compared to prior year due to lower Coach wholesale sales,
timing of Kate Spade wholesale sales and lower licensing royalties as a result
of bringing the footwear business in-house. Accounts payable was a use of cash
of $136.7 million in the first nine months of fiscal 2018 as compared to a use
of cash of $51.9 million in the first nine months of fiscal 2017, primarily
driven by the timing of Kate Spade inventory payments.
Net cash (used in) provided by investing activities
Net cash used in investing activities in the first nine months of fiscal 2018
was $2.08 billion as compared to a source of cash of $562.5 million in the first
nine months of fiscal 2017. The $2.64 billion increase in net cash used in
investing activities is primarily due to the $2.37 billion purchase of Kate
Spade and other acquisitions, net of cash acquired in the first nine months of
fiscal 2018, as well as the prior year proceeds from the sale of the Company's
investment in Hudson Yards of $680.6 million and the sale of our prior
headquarters of $126.0 million in the first nine months of fiscal 2017. This was
partially offset by the impact of net cash proceeds from maturities and sales of
investments of $478.7 million in the first nine months of fiscal 2018, compared
to net purchases of investments of $47.5 million in the first nine months of
fiscal 2017.
Net cash used in financing activities
Net cash used in financing activities was $158.4 million in the first nine
months of fiscal 2018 as compared to a use of cash of $550.2 million in the
first nine months of fiscal 2017. The $391.8 million decrease in net cash used
in financing activities was primarily due to the proceeds from the issuance of
debt of $1.10 billion during the first nine months of fiscal 2018, partially
offset by the increase in long-term debt repayments of $815.0 million during the
first nine months of fiscal 2018 as compared to prior year.

                                       44
--------------------------------------------------------------------------------


Working Capital and Capital Expenditures
As of March 31, 2018, in addition to our cash flows from operations, our sources
of liquidity and capital resources were comprised of the following:
                                              Sources of         Outstanding       Total Available
                                               Liquidity        Indebtedness         Liquidity(1)
                                                                   (millions)
Cash and cash equivalents(1)                $     1,031.7     $             -     $        1,031.7
Short-term investments(1)                             6.6                   -                  6.6
Long-term investments                                 0.1                   -                  0.1
Revolving Credit Facility(2)(3)                     900.0                   -                900.0
3.000% Senior Notes due 2022(4)                     400.0               400.0                    -
4.250% Senior Notes due 2025(4)                     600.0               600.0                    -
4.125% Senior Notes due 2027(4)                     600.0               600.0                    -
Total                                       $     3,538.4$       1,600.0$        1,938.4





(1)  As of March 31, 2018, approximately 67% of our cash and short-term
     investments were held outside the U.S. in jurisdictions. Prior to the
     reporting period in which the Tax Legislation was enacted, the Company did
     not recognize a deferred tax liability related to unremitted foreign

earnings because it overcame the presumption of the repatriation of foreign

earnings. As a result of the enactment of the Tax Legislation, the Company

has recorded a provisional Transition Tax related to all post-1986 earnings

of its non-U.S. subsidiaries. The Company is still evaluating whether those

earnings will be repatriated to the U.S. and if there are any additional tax

     consequences resulting from the repatriation. Due to the complexity
     surrounding the application of new Tax Legislation, the Company will
     continue to evaluate outside basis differences and any related impact.

(2) In May 2017, the Company entered into a definitive credit agreement whereby

Bank of America, N.A., as administrative agent, the other agents party

thereto, and a syndicate of banks and financial institutions have made

available to the Company a $900.0 million revolving credit facility,

including sub-facilities for letters of credit, with a maturity date of May

30, 2022 (the "Revolving Credit Facility" and collectively with the Term

Loan Facilities, the "Facility").

(3) In May 2017, the Revolving Credit Facility replaced the Company's previously

existing revolving credit facility agreement under the Amendment and

Restatement Agreement, dated as of March 18, 2015, by and between the

Company, certain lenders and JPMorgan Chase Bank, N.A., as administrative

agent. Borrowings under the Facility bear interest at a rate per annum equal

to, at the Borrowers' option, either (a) an alternate base rate (which is a

rate equal to the greatest of (i) the Prime Rate in effect on such day, (ii)

the Federal Funds Effective Rate in effect on such day plus ½ of 1% or (iii)

the Adjusted LIBO Rate for a one month Interest Period on such day plus 1%)

or (b) a rate based on the rates applicable for deposits in the interbank 47

market for U.S. Dollars or the applicable currency in which the loans are

made plus, in each case, an applicable margin. The applicable margin will be

determined by reference to a grid, defined in the Credit Agreement, based on

the ratio of (a) consolidated debt plus 600% of consolidated lease expense

to (b) consolidated EBITDAR. Additionally, the Company pays a commitment fee

at a rate determined by the reference to the aforementioned pricing grid.

     The Company had no outstanding borrowings under the Revolving Credit
     Facility as of March 31, 2018. Refer to Note 11, "Debt," for further
     information on our existing debt instruments.


(4) In March 2015, the Company issued $600.0 million aggregate principal amount
of 4.250% senior unsecured notes due April 1, 2025 at 99.445% of par (the "2025
Senior Notes"). Furthermore, on June 20, 2017, the Company issued $400.0 million
aggregate principal amount of 3.000% senior unsecured notes due July 15, 2022 at
99.505% of par (the "2022 Senior Notes"), and $600.0 million aggregate principal
amount of 4.125% senior unsecured notes due July 15, 2027 at 99.858% of par (the
"2027 Senior Notes"). Furthermore, the indenture for the 2025 Senior Notes, 2022
Senior Notes and 2027 Senior Notes contain certain covenants limiting the
Company's ability to: (i) create certain liens, (ii) enter into certain sale and
leaseback transactions and (iii) merge, or consolidate or transfer, sell or
lease all or substantially all of the Company's assets. As of March 31, 2018, no
known events of default have occurred. Refer to Note 11, "Debt," for further
information on our existing debt instruments.
We believe that our Revolving Credit Facility is adequately diversified with no
undue concentrations in any one financial institution. As of March 31, 2018,
there were 13 financial institutions participating in the Revolving Credit
Facility, with no one participant maintaining a maximum commitment percentage in
excess of 13%. We have no reason at this time to believe that the participating
institutions will be unable to fulfill their obligations to provide financing in
accordance with the terms of the facility in the event we elect to draw funds in
the foreseeable future.

                                       45
--------------------------------------------------------------------------------


We have the ability to draw on our credit facilities or access other sources of
financing options available to us in the credit and capital markets for, among
other things, our restructuring initiatives, acquisition or integration-related
costs, settlement of a material contingency, or a material adverse business or
macroeconomic development, as well as for other general corporate business
purposes.
Management believes that cash flows from operations, access to the credit and
capital markets and our credit lines, on-hand cash and cash equivalents and our
investments will provide adequate funds to support our operating, capital, and
debt service requirements for the foreseeable future, our plans for
acquisitions, further business expansion and restructuring-related initiatives.
Future events, such as acquisitions or joint ventures, and other similar
transactions may require additional capital. There can be no assurance that any
such capital will be available to the Company on acceptable terms or at all. Our
ability to fund working capital needs, planned capital expenditures, dividend
payments and scheduled debt payments, as well as to comply with all of the
financial covenants under our debt agreements, depends on future operating
performance and cash flow, which in turn are subject to prevailing economic
conditions and to financial, business and other factors, some of which are
beyond the Company's control.
Reference should be made to our most recent Annual Report on Form 10-K and other
filings with the SEC for additional information regarding liquidity and capital
resources. The Company expects total fiscal 2018 capital expenditures to be
approximately $300 million.
Kate Spade & Company Acquisition
On July 11, 2017, the Company completed its acquisition of Kate Spade & Company
for $18.50 per share in cash for a total of approximately $2.4 billion. As a
result, Kate Spade has become a wholly owned subsidiary. The combination of the
Company and Kate Spade & Company creates 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.
Seasonality
The Company's results are typically affected by seasonal trends. During the
first fiscal quarter, we build inventory for the holiday selling season. In the
second fiscal quarter, working capital requirements are reduced substantially as
we generate higher net sales and operating income, especially during the holiday
months of November and December. Accordingly, the Company's net sales, operating
income and operating cash flows for the three months ended March 31, 2018 are
not necessarily indicative of that expected for the full fiscal 2018. However,
fluctuations in net sales, operating income and operating cash flows of the
Company in any fiscal quarter may be affected by the timing of wholesale
shipments and other events affecting retail sales, including adverse weather
conditions or other macroeconomic events.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Our significant accounting policies are described in Note 2 to the audited
consolidated financial statements in our fiscal 2017 10-K. Our discussion of
results of operations and financial condition relies on our condensed
consolidated financial statements that are prepared based on certain critical
accounting policies that require management to make judgments and estimates
which are subject to varying degrees of uncertainty. While we believe that these
accounting policies are based on sound measurement criteria, actual future
events can and often do result in outcomes that can be materially different from
these estimates or forecasts.
For a complete discussion of our critical accounting policies and estimates, see
the "Critical Accounting Policies and Estimates" section of the MD&A in our
fiscal 2017 10-K. As of March 31, 2018, there have been no material changes to
any of the critical accounting policies.
As disclosed in our fiscal 2017 10-K, the Company performs its annual impairment
assessment of goodwill, including trademarks and trade names, during the fourth
quarter of each fiscal year. Furthermore, as previously disclosed, given the
recency of our Stuart Weitzman acquisition, the fair values of the Stuart
Weitzman brand reporting unit and indefinite-lived trademarks and trade names
exceeded the respective carrying values by approximately 20%. Several factors
could impact the brand's ability to achieve future cash flows, including
optimization of the store fleet productivity, the impact of promotional activity
in department stores, the consolidation or take-back of certain distributor
relationships, the simplification of certain corporate overhead structures and
other initiatives aimed at expanding certain higher performing categories of the
business. While there was no impairment recorded in the three-month and
nine-month periods ended March 31, 2018, given the relatively small excess of
fair value over carrying value as noted above, if profitability trends decline
during fiscal 2018 from those that are expected, it is possible that an interim
test or our annual impairment test could result in an impairment of these
assets.

                                       46

--------------------------------------------------------------------------------

© Edgar Online, source Glimpses

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TAPESTRY INC
05/17TAPESTRY, INC. : Declares Quarterly Cash Dividend
BU
05/09TAPESTRY : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESUL..
AQ
05/03Amazon Loosens Its Grip on Retail Stocks
DJ
05/02TAPESTRY : Is now the time to buy, sell, or hold Apple, Advanced Micro Devices, ..
PR
05/02S&P 500 climbs on trade talk optimism, dollar positive for 2018
RE
05/01Seagate, Pfizer and Cummins skid while AbbVie jumps
AQ
05/01TAPESTRY : Maker of Coach Handbags Suffers as It Digests Acquisitions -- 2nd Upd..
DJ
05/01TAPESTRY : Kate Spade and Stuart Weitzman Are Struggling a Bit Under Tapestry, I..
AQ
05/01TAPESTRY : 3Q results top Street, Stuart Weitzman stumbles
AQ
05/01TAPESTRY : Net Rises as Revenue Increases on Kate Spade Deal -- Update
DJ
More news
News from SeekingAlpha
05/17Tapestry declares $0.3375 dividend 
05/1650 'Safer' Dividend Wall St. Favored Consumer Cyclical Stocks Topped By Entra.. 
05/15Greenlight added IAC/InterActiveCorp, exited Chemours in Q1 
05/02RiverPark Long/Short Opportunity Fund Q1 2018 Performance Summary 
05/01Susquehanna updates on Tapestry