#1COACH 1941 STUART WENZMAN kate spade NEW YORK Creating the First New York-Based House of Modern Luxury May 8, 2017#2Additional Information and Where You Can Find It The tender offer referred to in this presentation has not yet commenced. This presentation is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell, securities, nor is it a substitute for the tender offer materials that will be filed with the U.S. Securities and Exchange Commission ("SEC"). The solicitation and offer to buy the issued and outstanding shares of Kate Spade common stock will only be made pursuant to an offer to purchase and related tender offer materials described more fully below. At the time the tender offer is commenced, a subsidiary of Coach will file a tender offer statement with the SEC on Schedule TO containing an offer to purchase, form of letter of transmittal and related materials, and Kate Spade will file with the SEC a tender offer solicitation/recommendation statement on Schedule 14D-9 with respect to the tender offer. INVESTORS AND STOCKHOLDERS ARE URGED TO READ THE TENDER OFFER STATEMENT AND RELATED MATERIALS (INCLUDING THE OFFER TO PURCHASE, RELATED LETTER OF TRANSMITTAL AND OTHER TENDER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT CAREFULLY (WHEN THEY BECOME AVAILABLE) AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TENDER OFFER THAT SHOULD BE READ PRIOR TO MAKING A DECISION TO TENDER SHARES. These materials will be sent free of charge to all Kate Spade stockholders. In addition, all of those materials (and all other tender offer documents filed or furnished by Kate Spade, Coach or its subsidiaries with the SEC) will be available at no charge from the SEC through its website at www.sec.gov. The Schedule TO (including the offer to purchase and related materials) and the Schedule 14D-9 (including the solicitation/recommendation statement), once filed, may also be obtained for free by contacting the Information Agent for the tender offer which will be named in the Schedule TO. Neither the Hong Kong Depositary Receipts nor the Hong Kong Depositary Shares evidenced thereby have been or will be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States or to, or for the account of, a U.S. Person (within the meaning of Regulation S under the Securities Act), absent registration or an applicable exemption from the registration requirements. Hedging transactions involving these securities may not be conducted unless in compliance with the Securities Act. In addition to the offer to purchase, the related letter of transmittal and certain other tender offer documents, as well as the Solicitation/Recommendation Statement, Coach and Kate Spade file annual, quarterly and current reports and other information with the SEC. You may read and copy any reports or other information filed by Coach or Kate Spade at the SEC public reference room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. Coach's and Kate Spade's filings with the SEC are also available to the public from commercial document-retrieval services and at the SEC's website at www.sec.gov. Cautionary Statement Regarding Forward-Looking Statements This presentation may contain "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend,” “plan,” “believe," "seek," "see," "will," "would," "target," similar expressions, and variations or negatives of these words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the consummation of the proposed transaction and the anticipated benefits thereof. Such statements involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of Coach and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any statements regarding the expected benefits and costs of the tender offer, the merger and the other transactions contemplated by the merger agreement; the expected timing of the completion of the tender offer and the merger; the ability of Coach, its subsidiary and Kate Spade to complete the tender offer and the merger considering the various conditions to the tender offer and the merger, some of which are outside the parties' control, including those conditions related to regulatory approvals; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits may not materialize as expected; that the tender offer and the merger may not be timely completed, if at all; that, prior to the completion of the transaction, Kate Spade's business may not perform as expected due to transaction-related uncertainty or other factors; that the parties are unable to successfully implement integration strategies; and other risks that are described in Coach's latest Annual Report on Form 10-K and its other filings with the SEC. Coach assumes no obligation and does not intend to update these forward-looking statements.#3Compelling Strategic Acquisition of Kate Spade Brand Highlights 1. Strong, distinctive brand Fashionable, fun and feminine positioning Growing share of millennials Attractive growth profile COACH INC. kate spade NEW YORK Excludes charges related to integration-related activities and the limited life impact of purchase accounting adjustments, primarily due to the amortization of the inventory step-up COACH STUART WEITZMAN Transaction Highlights Attractive all cash acquisition at $18.50 per share $2.4bn enterprise value Fully committed financing in place Expected to close calendar Q3 2017 Acquisition expected to be accretive to EPS in fiscal 2018 and to reach double-digit accretion by fiscal 2019 on a non-GAAP¹ basis 3#4Defining Modern Luxury COACH COACH INC. COACH STUART WEITZMAN STUART WEITZMAN kate spade NEW YORK Luxury that is based on inclusiveness and approachability Authentic expression of quality and fashion at exceptional value Personal relationship with a trusted brand kate spade HOW THE 4#5Coach and Kate Spade: Complementary Modern Luxury Brands Brand Essence Brand Highlights Core Products Geographic Reach COACH INC. EST 1947 NEW YORK COACH STUART WEITZMAN America's original house of leather, fusing New York attitude and design with a history and heritage of craftsmanship A global leader in premium handbags and lifestyle accessories Strong presence in North America, China and Japan with customers in ~55 countries kate spade NEW YORK Crisp color, graphic prints and playful sophistication are the hallmarks of Kate Spade, endearing attributes of fashionable, fun and feminine Distinctive handbags and accessories with growth in lifestyle categories Building a focused multi-brand House of Modern Luxury brands defined by authentic, distinctive products with a reputation for craftsmanship and innovation Strong domestic presence, particularly with millennials, and growing international relevance particularly in China and Japan LO 5#6Repositioning the Brand for Sustained Growth Key Elements of Coach's Transformation Drive brand relevance through product innovation Optimize fleet and elevate store environments globally Create desire for our brand through compelling marketing Reduce promotional impressions Invest and reset: return to growth after repositioning Maintain financial flexibility and continue to return capital to shareholders COACH INC. COACH STUART WEITZMAN ● Applying Coach's Learning to Guide Strategy for Kate Spade To ensure the long-term health of Kate Spade's brand, we plan to reduce sales in the wholesale disposition and online flash sales channels Similar to the steps Coach has taken over the last three years in pulling back from brand-damaging channels, we expect a near-term impact to Kate Spade's profitability as we position the brand for sustainable growth Optimize fleet globally Coach intends to leverage the core elements of its own successful brand transformation strategy to drive Kate Spade's brand momentum and long-term growth kate CO#7Compelling Financial Opportunity to Create Shareholder Value ● ● ● ● Clear and Achievable Synergies Meaningful cost synergies through operational efficiencies, improved scale and inventory management, and the optimization of Kate Spade's supply chain network Estimated run-rate cost synergies of approximately $50 million within three years following the closing Will provide transparency going forward on any additional synergies identified Accretive to Earnings Assuming an early July 2017 closing, acquisition expected to be accretive to EPS in fiscal 2018 on a non-GAAP basis Expected to reach double-digit accretion on a non-GAAP basis by fiscal 2019 COACH INC. ● COACH STUART WEITZMAN ● ● Robust Credit Profile On a Debt-to-EBITDA basis, expect to reduce leverage from approximately 2.2x to about one-turn lower by end of FY2018 Expect to operate at moderate leverage to maintain financial flexibility Will maintain ample liquidity on the balance sheet Committed to dividend The combination of Coach and Kate Spade expected to create substantial value for shareholders Significant Tax Asset Opportunity to utilize Kate Spade's estimated gross NOLs of approximately $475 million over the near-term 7#8Powerful Portfolio of Complementary Brands LTM Sales LFQ Store Count COACH INC. СОАСН ACH COACH STUART WEITZMAN $4.1 billion Sales 955 $5.9 billion STUART WEITZMAN 1,308 Store Count $370 million 82 СОАСH Pro Forma Sales by Product Category ▪ Handbags/ Accessories ■ Men's ■SW Other 11% 6% 13% 70% kate spade NEW YORK $1.4 billion 271 Sales by Geography ■ Domestic International 38% The Kate Spade transaction builds upon the successful acquisition and integration of Stuart Weitzman and continues Coach's evolution into a multi-brand design house 62% CO#9The First New York-Based House of Modern Luxury Strong Platform of Distinctive Affordable Luxury Brands COACH INC. COACH STUART WEITZMAN Experienced Management Team with Integration Experience Committed to Dividend Meaningful Synergies СОАСH STUART WEITZMAN kate spade NEW YORK Enhanced Growth Potential Diversified Geographic Reach Diversified Across Channels with Global Distribution Diversified Product Mix 9#10Compelling Strategic Acquisition of Kate Spade 00000 COACH INC. COACH STUART WEITZMAN COACH STUART WEITZMAN Highly complementary brands All cash acquisition at $18.50 per share kate spade NEW YORK Meaningful run-rate cost synergies of approximately $50 million expected by year 3 Expected to close calendar Q3 2017 10