The Company maintains several share-based compensation plans which are more fully described below. The following table shows the total compensation cost charged against income for these plans and the related tax benefits recognized in the Consolidated Statements of Operations:


	June 27, 2026(1)		June 28, 2025(1)		June 29, 2024
	(millions)
Share-based compensation expense	$	107.4	$	91.4	$	85.9
Income tax benefit related to share-based compensation expense	22.9		18.7		17.5

(1)During fiscal years ended June 27, 2026 and June 28, 2025, the Company incurred $0.4 million and $2.7 million, respectively, of share-based compensation expense related to the modification of award terms in connection with the sale of the Stuart Weitzman Business as well as $2.5 million and $1.4 million, respectively, of share-based compensation expense related to its Organizational Efficiency Costs.

The Company maintains the Amended and Restated Tapestry, Inc. 2018 Stock Incentive Plan to award stock options and shares to certain members of management and the outside members of its Board of Directors (“Board”). The Company maintains the 2010 Stock Incentive Plan for awards granted prior to the establishment of the 2018 Stock Incentive Plan. These plans were approved by the Company's stockholders. The exercise price of each stock option equals 100% of the market price of the Company's stock on the date of grant and generally has a maximum term of ten years. Stock options and service-based share awards that are granted as part of the annual compensation process generally vest ratably over four years. Stock option and share awards are subject to forfeiture until completion of the vesting period, which ranges from one to four years. The Company issues new shares upon the exercise of stock options or vesting of share awards.


	Number of Options Outstanding	Weighted- Average Exercise Price per Option		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
	(millions)				(millions)
Outstanding at June 28, 2025	5.2	$	33.97
Granted	0.2	99.91
Exercised	(1.6)	32.60
Forfeited or expired	—	38.93
Outstanding at June 27, 2026	3.8	38.29		6.2	$	406.1
Vested and expected to vest at June 27, 2026	3.8	38.25		6.2	404.1
Exercisable at June 27, 2026	2.1	32.63		5.0	241.5


	June 27, 2026		June 28, 2025		June 29, 2024
Expected term (years)	5.0		4.9		5.0
Expected volatility	41.5	%	40.9	%	44.8	%
Risk-free interest rate	3.9	%	3.8	%	4.5	%
Dividend yield	1.4	%	3.4	%	4.2	%

The expected term of options represents the period of time that the options granted are expected to be outstanding and is based on historical experience. Expected volatility is based on historical volatility of the Company’s stock as well as the

implied volatility from publicly traded options on the Company's stock. The risk-free interest rate is based on the zero-coupon U.S. Treasury issue as of the date of the grant. Dividend yield is based on the expected annual dividend per share and the Company’s stock price as of the grant date.

The weighted-average grant-date fair value of options granted during fiscal 2026, fiscal 2025 and fiscal 2024 was $36.74, $12.11 and $10.35, respectively. The total intrinsic value of options exercised during fiscal 2026, fiscal 2025 and fiscal 2024 was $153.5 million, $106.9 million and $11.1 million, respectively. The total cash received from option exercises was $51.7 million, $121.3 million and $23.0 million in fiscal 2026, fiscal 2025 and fiscal 2024, respectively, and the cash tax benefit realized for the tax deductions from these option exercises was $17.3 million, $18.4 million and $2.0 million, respectively.


	Number of Non-vested RSUs	Weighted- Average Grant- Date Fair Value per RSU
	(millions)
Non-vested at June 28, 2025	4.5	$	37.62
Granted	0.9	102.89

Vested	(1.8)	37.59
Forfeited	(0.3)	44.75
Non-vested at June 27, 2026	3.3	54.32

The weighted-average grant-date fair value of share awards granted during fiscal 2026, fiscal 2025 and fiscal 2024 was $102.89, $42.39 and $34.19, respectively. The total fair value of shares vested during fiscal 2026, fiscal 2025 and fiscal 2024 was $183.4 million, $92.6 million and $95.3 million, respectively.

The Company grants PRSUs to key executives, the vesting of which is subject to the executive’s continuing employment and the Company's achievement of certain performance goals. A summary of PRSU activity during the fiscal year ended June 27, 2026 is as follows:


	Number of Non-vested PRSUs	Weighted- Average Grant- Date Fair Value per PRSU
	(millions)
Non-vested at June 28, 2025	1.1	$	36.34
Granted	0.3	112.38
Change due to performance condition achievement	0.1	41.56
Vested	(0.5)	35.41
Forfeited	—	45.45
Non-vested at June 27, 2026	1.0	$	59.78

The weighted-average grant-date fair value per share of PRSU awards granted during fiscal 2026, fiscal 2025 and fiscal 2024 was $112.38, $47.73 and $33.99, respectively. The total fair value of awards that vested during fiscal 2026, fiscal 2025 and fiscal 2024 was $46.1 million, $13.4 million and $0.0 million, respectively.

PRSUs are subject to a two-year and three-year cliff vesting contingent on the employee's continuing employment and the Company's achievement of the performance goals established at the beginning of the performance period. The fair value of the PRSUs is based on the price of the Company's common stock on the date of grant.

In fiscal 2026, fiscal 2025 and fiscal 2024, the cash tax benefit realized for the tax deductions from all RSUs (service and performance-based) was $35.1 million, $16.7 million and $15.3 million, respectively.

Under the 2001 Employee Stock Purchase Plan, eligible employees are permitted to purchase a limited number of Company common shares at 85% of market value. Under this plan, the Company sold 0.1 million, 0.1 million and 0.2 million shares to employees in fiscal 2026, fiscal 2025 and fiscal 2024, respectively. Compensation expense is calculated for the fair value of employees’ purchase rights using the Black-Scholes model and the following weighted-average assumptions:


	Fiscal Year Ended
	June 27, 2026		June 28, 2025		June 29, 2024
Expected term (years)	0.5		0.5		0.5
Expected volatility	37.0	%	35.7	%	32.5	%
Risk-free interest rate	4.0	%	4.9	%	5.4	%
Dividend yield	1.6	%	2.7	%	3.9	%

The weighted-average fair value of the purchase rights granted during fiscal 2026, fiscal 2025 and fiscal 2024 was $24.15, $13.48 and $8.45, respectively. The Company issues new shares for employee stock purchases.