Tapestry introduces new growth strategy and long-term financial targets at Investor Day (105.18)
- Co is hosting its 2025 Investor Day in New York City. At the event, the Company will present its long-term growth strategy and financial targets.
- Amplify Growth Strategy
- Build Emotional Connections with Consumers
- Fuel Fashion Innovation & Product Excellence
- Deliver Compelling Experiences to Drive Global Growth
- Shareholder Return Programs - Tapestry plans to return $4 billion to shareholders through Fiscal Year 2028, which is expected to represent 100% of the Company's adjusted free cash flow generation over the three-year period (FY26 -- FY28):
- Dividend: In Fiscal 2026, the Company continues to anticipate an annual dividend of $1.60 per share. Moving forward, Tapestry expects to grow its dividend at least in-line with earnings growth, with a payout ratio of approximately 30% through Fiscal 2028.
- Share Repurchases: The Company expects to buy back approximately $3 billion in common stock cumulatively from Fiscal 2026 through Fiscal 2028. Consistent with this strategy, the Company announced a new $3 billion share repurchase authorization.
- Long-Term Financial Targets - The Company is introducing Fiscal 2027 to Fiscal 2028 financial targets, which are provided on a non-GAAP basis:
- Revenue growth of mid-single digits annually;
- Operating margin expansion to over 22% by Fiscal 2028, an increase of over 200 basis points versus Fiscal 2025, which includes gross margin gains and continued investment in marketing;
- Earnings per diluted share growth of low double-digits in Fiscal 2027 and Fiscal 2028.
- By brand, the Company expects:
- Coach to deliver a three-year mid-single-digit revenue CAGR with operating margin expanding to a mid-30% rate over the planning horizon; the Company has a longer-term ambition for the brand to reach $10 billion in revenue; and
- Kate Spade to return to profitable topline growth in Fiscal 2027 and accelerate to mid-single-digit revenue growth and a high single-digit operating margin in Fiscal 2028.
- By brand, the Company expects:
- Over the three-year planning horizon, adjusted free cash flow is expected to be $4 billion cumulatively from Fiscal 2026 through Fiscal 2028.
- These long-term targets incorporate the Company's previously announced Fiscal 2026 outlook, which was provided with its fiscal fourth quarter earnings results in mid-August, and is unchanged.