Tapestry sees FY27 and FY28 EPS growth in low double-digits

The Company is introducing FY27 to FY28 financial targets, which are provided on a non-GAAP basis: Revenue growth of mid-single digits annually; Operating margin expansion to over 22% by FY28, an increase of over 200 basis points versus FY25, which includes gross margin gains and continued investment in marketing; EPS growth of low double-digits in FY27 and FY28. By brand, the Company expects: Coach to deliver a three-year mid-single-digit revenue CAGR with operating margin expanding to a mid-30% rate over the planning horizon; the Company has a longer-term ambition for the brand to reach $10B in revenue; and Kate Spade to return to profitable topline growth in FY27 and accelerate to mid-single-digit revenue growth and a high single-digit operating margin in FY28. Over the three-year planning horizon, adjusted free cash flow is expected to be $4B acumulatively from FY26 through FY28. These long-term targets incorporate the Company’s previously announced FY26 outlook, which was provided with its fiscal fourth quarter earnings results in mid-August, and is unchanged. This outlook: Embeds U.S. trade and tax policies as of August 1, 2025 including the elimination of Section 321 benefits as of August 29, 2025; Includes foreign currency exchange rates using spot rates at the time of forecast; Assumes no material worsening of inflationary pressures or consumer confidence; Excludes one-time costs associated with the sale of Stuart Weitzman, which closed on August 4, 2025, as well as the brand’s results for the period under ownership in FY26; Excludes non-recurring costs associated with the Company’s organizational efficiency efforts.