Tapestry (TPR) investor relations material

Executive summary

• Achieved FY26 revenue, operating margin, and EPS targets two years ahead of plan, with annual revenue of $8.0B and 17% global sales growth, led by Coach's 24% increase and strong Gen Z-led customer acquisition.

• Welcomed 11 million new customers globally, 35% of whom were Gen Z, with double-digit growth in North America, Europe, and APAC.

• Continued investment in brands, people, and proprietary AI and technology, securing the first AI patent and building on data fabric technology.

• Returned $1.7B to shareholders via dividends and share repurchases; Board approved a 16% dividend increase.

Financial highlights

• FY26 revenue reached $8.0B, up 17% pro forma constant currency; gross margin expanded to 76.6% (up 120 bps), and operating margin to 23.4% (up 340 bps); EPS increased 38% to $7.05.

• Q4 revenue was $1.88B, up 11% year-over-year; gross margin for Q4 was 78.1%, up 180 bps; Q4 operating margin 19.3%, with EPS up 28% to $1.32.

• Adjusted free cash flow for FY26 was $1.86B, up from $1.35B prior year; year-end inventory 4% below prior year.

Outlook and guidance

• FY27 revenue guidance: $8.4–$8.5B, representing mid-single-digit growth; operating margin expected to expand by 50 bps to nearly 24%.

• FY27 EPS guidance: $7.80–$7.90, reflecting low double-digit growth; adjusted free cash flow approaching $1.7B.

• CapEx and cloud computing costs projected at $300M, with 70% allocated to store fleet growth and enhancements.

• Plan to return $1.7B to shareholders in FY27, including a 16% dividend increase and continued share repurchases.