Tapestry, Inc.

Q3 performance: “record quarter” with clear beats and margin expansion - Tapestry reported pro forma revenue up 23% at constant currency, with operating margin up 490 bps and EPS up 62% YoY (also “exceeding expectations”). - Free cash flow (Q3 adjusted) inflow: $229M; gross margin 76.9%, up 80 bps YoY (driven by operations + favorable divestiture impact). - Operating income/profit/free cash flow all grew double digits vs prior year, reinforcing “structural, durable and diversified” growth.

Brand momentum & customer acquisition: Coach strongly ahead; kate spade still turning - Coach (key driver): CC revenue +29%, welcoming ~2.0M new customers in the quarter; Gen Z acquisition accelerated. - Core leather goods: unit volume +20%+; AUR up low double digits—positioned as sustainable and diversified. - Geography: North America +27%, Greater China +58%, Europe +27% (also said to be gaining market share with low regional penetration). - Footwear: ~20% growth, led by the Soho family. - kate spade: revenue -11%, below expectations due to retail promotional pullback strategy, but gross margin & profitability exceeded plan and +400k new customers in Q3. - Opportunity: Coach’s “low share of a large TAM” framing; kate spade turnaround depends on execution and marketing/handbag assortment improvements.

Outlook upgraded for FY’26 (forecasts/expectations) - Management raised full-year guidance, citing Q3 outperformance and stronger Q4 outlook. - FY’26 revenue: expected ~$7.95B, +16% pro forma constant currency (FX planned as ~80 bps tailwind). - FY’26 EPS: ~$6.95, >35% growth YoY (previously ~$6.40–$6.45). - Operating margin: expected ~23%, ~+300 bps YoY and +120 bps vs prior outlook. - Gross margin: +~110 bps vs prior outlook (drivers: operational improvements + ~60 bps structural tailwind from Stuart Weitzman disposition; partly offset by tariffs). - Q4: low double-digit pro forma revenue growth for Tapestry/Coach; Coach low teens growth; kate spade high single-digit decline.