01—Abstract
Summary
Summary of the 8-K filed September 10, 2025. Cited figures are marked; the original filing is the authoritative source.
On September 10, 2025, Tapestry, Inc. (NYSE: TPR) held its 2025 Investor Day in New York City, where it introduced its "Amplify" growth strategy and long-term financial targets covering Fiscal 2027 and Fiscal 2028.
The company expects mid-single-digit annual revenue growth, operating margin expansion to over 22%a by Fiscal 2028 (an increase of over 200 basis points versus Fiscal 2025), and low-double-digit diluted EPS growth in Fiscal 2027 and Fiscal 2028. The Fiscal 2026 outlook provided with fourth-quarter results in mid-August is unchanged, and the targets exclude one-time costs tied to the sale of Stuart Weitzman, which closed on August 4, 2025, as well as non-recurring costs from organizational efficiency efforts. Capital returns are a central part of the plan.
Tapestry plans to return $4 billionb to shareholders through Fiscal 2028 via dividends and share repurchases, which the company expects to represent 100% of adjusted free cash flow over FY26 through FY28. The annual dividend is expected to remain $1.60 per share in Fiscal 2026, with a payout ratio of approximately 30% through Fiscal 2028. The Board authorized a new share repurchase program of up to $3.00 billion, which replaces the program reported on the company's November 12, 2021 Form 8-K.
By brand, Coach is expected to deliver a three-year mid-single-digit revenue CAGR with operating margin expanding to a mid-30% rate, and the company has a longer-term ambition for Coach to reach $10 billionc in revenue. Kate Spade is expected to return to profitable topline growth in Fiscal 2027, accelerate to mid-single-digit revenue growth, and reach a high single-digit operating margin in Fiscal 2028. The company notes that the non-GAAP targets cannot be fully reconciled to GAAP because certain items have not yet occurred and cannot be reasonably estimated.
02—Key points
Key Highlights
- Introduced "Amplify" growth strategy at 2025 Investor Day, built on four pillars including Gen Z customer acquisition, handbag and leathergoods innovation, and global growth prioritizing Greater China and Europe.
- Long-term targets for Fiscal 2027–2028: mid-single-digit annual revenue growth, operating margin above 22% by Fiscal 2028, and low-double-digit diluted EPS growth in both years.
- Plans to return $4 billion to shareholders through Fiscal 2028 via dividends and share repurchases, equal to 100% of adjusted free cash flow over FY26–FY28.
- Announced a new $3.00 billion share repurchase authorization, replacing the prior program from November 2021; the company expects about $3 billion in buybacks cumulatively from FY26 through FY28.
- Annual dividend expected to remain $1.60 per share in Fiscal 2026, with dividend growth at least in line with earnings and a payout ratio of approximately 30% through Fiscal 2028.
- Coach targets a mid-single-digit three-year revenue CAGR and operating margin expansion to a mid-30% rate, with a longer-term ambition of $10 billion in revenue.
- Kate Spade expected to return to profitable topline growth in Fiscal 2027 and reach mid-single-digit revenue growth and a high single-digit operating margin in Fiscal 2028.
03—Questions
Frequently Asked Questions
How much capital does Tapestry plan to return to shareholders, and in what form?
Tapestry plans to return $4 billion to shareholders through Fiscal Year 2028 via dividends and share repurchases. The company expects this to represent 100% of its adjusted free cash flow generation over FY26 through FY28, with about $3 billion in cumulative share repurchases over that period.
What is the new share repurchase authorization and how does it affect the prior program?
The Board authorized the repurchase of up to $3.00 billion of outstanding common stock. Purchases may occur through open market transactions, privately negotiated deals, or accelerated share repurchase programs, subject to market conditions. The new authorization replaces the existing program reported in the company's November 12, 2021 Form 8-K. The company may terminate or limit the program at any time.
What financial targets did Tapestry set for Fiscal 2027 and 2028?
The company targets mid-single-digit annual revenue growth, operating margin expansion to over 22% by Fiscal 2028 (an increase of over 200 basis points versus Fiscal 2025), and low-double-digit diluted EPS growth in both Fiscal 2027 and Fiscal 2028. These targets are presented on a non-GAAP basis.
Does the outlook change the Fiscal 2026 guidance?
No. The long-term targets incorporate the Fiscal 2026 outlook provided with fourth-quarter earnings in mid-August, which the company states is unchanged. That outlook excludes one-time costs tied to the sale of Stuart Weitzman, which closed on August 4, 2025, and non-recurring costs from organizational efficiency efforts.
What are the key risks to these targets?
The company states that results could differ materially from the outlook due to factors including international trade and tariff policies, economic conditions and inflation, currency fluctuations, consumer preference shifts, competition, cybersecurity threats, and the ability to execute its Amplify strategy and e-commerce initiatives. The outlook assumes no material worsening of inflationary pressures or consumer confidence.
04—Continue