TPR's Fiscal 2027 Outlook Pits Margin Expansion Against Tariff Risk

Tapestry (TPR) projects fiscal 2027 revenues of $8.4-$8.5 billion with mid-single-digit growth, down from 17% prior year growth. The company targets 50 basis points of operating margin expansion despite tariff headwinds, expecting tariffs to be neutral year-over-year. Coach brand remains strong at 86% of revenues with ~36% operating margins, while Kate Spade continues to post operating losses. TPR expects adjusted EPS of $7.80-$7.90, representing low-double-digit growth.