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Coach Parent Tapestry Targets Gen Z, Margin Expansion And Buybacks Through 2028
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Coach Parent Tapestry Targets Gen Z, Margin Expansion And Buybacks Through 2028
Sep 10, 2025 6:12 AM

Tapestry Inc. ( TPR ) , the owner of Coach and Kate Spade, outlined its long-term growth strategy on Wednesday at its 2025 Investor Day in New York. The plan, called Amplify, focuses on increasing revenue, expanding margins, and boosting shareholder returns through 2028.

The company expects mid-single-digit annual revenue growth and low double-digit earnings per share gains in fiscal years 2027 and 2028. It also pledged to return $4 billion to shareholders during the three-year period through dividends and buybacks.

CEO Joanne Crevoiserat said the strategy is designed to attract younger consumers, strengthen brand loyalty and expand internationally. "Our innovation, creativity, and brand-building capabilities will deliver significant value," she said.

Also Read: Coach Parent Tapestry Navigates Tariff Pressures With Strong Core Business

Scott Roe, Chief Financial Officer and Chief Operating Officer, said operating margins are projected to rise above 22% by fiscal 2028, an increase of more than 200 basis points from 2025. He added that disciplined capital allocation will support long-term shareholder value.

Tapestry announced a new $3 billion share repurchase authorization and plans to maintain an annual dividend of $1.60 per share in fiscal 2026. Growth is expected to track earnings through 2028.

By brand, Coach is forecast to achieve steady mid-single-digit revenue growth and expand margins, with longer-term goals of reaching $10 billion in sales. Kate Spade is expected to return to profitable revenue growth in fiscal 2027 and accelerate further in 2028.

The company reaffirmed its fiscal 2026 outlook, which assumes current U.S. trade policies, stable consumer confidence and no significant inflationary pressures. The guidance excludes costs tied to the sale of Stuart Weitzman and restructuring initiatives.

Investors can gain sector exposure through the Consumer Discretionary Select Sector SPDR Fund ( XLY ) and the SPDR S&P Retail ETF ( XRT ) , both of which track trends in consumer spending.

Price Action: At last check Wednesday, TPR shares were trading higher by 0.49% to $105.70 premarket.

Read Next:

Klarna Raises $1.37 Billion In US IPO, Sets Stage For Fintech Listings Revival: Oversubscribed 25x, But Valuation Slumps 66% From 2021 Peak

Image via Shutterstock

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