Tapestry Inc. (TPR) F4Q26 Earnings Review Consistently healthy execution as Coach brand growth normalization in focus

Equity Research 13 August 2026 | 8:38PM MDT

Tapestry Inc. (TPR) F4Q26 Earnings Review: Consistently healthy execution as Coach brand growth normalization in focus

TPR 12m Price Target: $169.00 Price: $128.39 Upside: 31.6% BUY Brooke Roach, CFA TPR underperformed the market on Thursday August 13th, 2026 | Goldman Sachs & Co. LLC (TPR -16.5% vs. S&P 500 +0.7%). The company delivered a F4Q26 Mentesnot Adamu earnings beat and introduced FY27 guidance in line with | Goldman Sachs & Co. LLC expectations (FY27 EPS guided at $7.80-$7.90 vs. GS/consensus at $7.70/$7.87). Coach brand is forecasted to grow despite tough Carly Chasen | Goldman Sachs & Co. LLC compares (globally guided up HSD% and NA guided up MSD% for the year), but the pace and magnitude of normalization following FY26’s strong 22% ex-FX growth rate remains in focus. Key Data _____________________________________ Market cap: $25.6bn Enterprise value: $26.8bn Execution remained strong this quarter, though we acknowledge the 3m ADTV: $379.5mn United States magnitude of the beat was smaller and less revenue-driven than Americas Apparel & Accessories Brands prior quarters. Coach brand revenue grew 15% Y/Y (+14% ex-FX) to M&A Rank: 3

$1.64bn, in line with consensus, driven by continued strength across GS Forecast __________________________________ 6/26 6/27E 6/28E 6/29E geographies, including +28% ex-FX growth in Greater China, +19% Revenue ($ mn) New 8,004.2 8,559.1 9,212.2 9,810.2

ex-FX growth in Europe, and +10% growth in North America (though Revenue ($ mn) Old 7,983.3 8,388.5 8,787.0 -- EBITDA ($ mn) 2,026.6 2,201.3 2,464.2 2,696.3 we acknowledge investor expectations here were elevated). Core EBIT ($ mn) 1,865.8 2,035.7 2,293.6 2,520.6

leathergoods growth was driven by strong handbag AUR gains EPS ($) New EPS ($) Old -- (+mid-teens globally), while unit volumes were flat, reflecting P/E (X) Dividend yield (%) 1.3 1.4 1.6 1.8 management’s strategy to prioritize brand health and reduce Net debt/EBITDA (X) 0.6 0.5 0.3 0.2 promotional days. While Kate Spade revenues declined -7% Y/Y 6/26 9/26E 12/26E 3/27E (modestly beating consensus of -8.4%), management highlighted EPS ($) continued customer acquisition, particularly among Gen Z GS Factor Profile ______________________________ consumers, with new customers transacting at higher AURs than the Growth

broader customer base. Financial Returns

On profits, adjusted gross margin expanded ~180bps Y/Y to 78.1%, Multiple

outperforming GS/consensus of 77.8%/77.3%. Cost control also Integrated remains a bright spot. This led to an adjusted operating margin of 19.3% (above GS/consensus of 17.7%/18.0%). Management also Percentile 20th 40th 60th 80th 100th

outlined its FY27 capital return framework, including plans to return TPR relative to Americas Coverage

$1.7bn to shareholders (16% dividend increase to $1.85/share and TPR relative to Americas Apparel & Accessories Brands

$1.35bn of share repurchases). Source: Company data, Goldman Sachs Research estimates. See disclosures for details. We remain constructive on TPR. The Coach brand continues to

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Tapestry Inc. (TPR)

Tapestry Inc. (TPR) Balance Sheet ($ mn) _______________________________________ BUY Rating since Dec 11, 2022 6/26 6/27E 6/28E 6/29E Cash & cash equivalents 974.7 1,025.5 1,341.3 1,755.8 Accounts receivable Inventory Ratios & Valuation __________________________________________ Other current assets /26 6/27E 6/28E 6/29E Total current assets 2,882.3 2,933.7 3,283.1 3,722.8 P/E (X) Net PP&E 1,919.3 2,053.7 2,123.1 2,247.4 EV/EBITDA (X) Net intangibles 1,674.2 1,674.2 1,674.2 1,674.2 EV/sales (X) 3.4 3.1 2.7 2.4 Total investments 0.0 0.0 0.0 0.0…