Tapestry — May 7, 2026 release

Financial Outlook Tapestry is raising its Fiscal 2026 outlook, incorporating the Company’s fiscal third quarter outperformance as well as an increased outlook for the fiscal fourth quarter.  The following outlook is provided on a non-GAAP basis: • Revenue in the area of $7.95 billion, representing reported growth of approximately 14% versus prior year on a nominal basis and 13% in constant currency; excluding Stuart Weitzman, pro forma revenue is expected to grow approximately 17% on a nominal basis and 16% in constant currency.  Foreign currency is expected to be an 80-basis point benefit to topline results in the fiscal year.  This is above prior guidance for revenue to be over $7.75 billion; • Operating margin of approximately 23%, representing expansion of approximately 300 basis points versus prior year.  This is above previous guidance for an increase of approximately 180 basis points versus prior year.  Based on the strength of the underlying business, the Company expects to more than offset a negative tariff and duty headwind of approximately 120 basis points, resulting in both gross margin expansion and SG&A leverage anticipated for Fiscal 2026; • Net interest expense of approximately $60 million, compared to prior guidance of approximately $65 million; • Tax rate of approximately 17.5%, compared to prior guidance of approximately 17%; 8 • Weighted average diluted share count of approximately 210 million, compared to prior guidance of approximately 211 million; • Earnings per diluted share in the area of $6.95, representing growth of over 35% versus prior year, and exceeding previous guidance of $6.40 to $6.45; • Adjusted free cash flow approaching $1.6 billion, an increase from prior guidance of in the area of $1.5 billion. Please note this outlook: • Embeds U.S. trade policies as of May 1, 2026 and current global tax policies, including the impact of OECD’s Pillar Two guidance; • 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