Bitcoin price today: hovers around $115k amid rate cut bets, but caution remains
NEW YORK - Tapestry, Inc. (NYSE:TPR), the parent company of Coach and Kate Spade, announced plans to return $4 billion to shareholders through fiscal year 2028 and forecasts low double-digit earnings growth for fiscal years 2027 and 2028. The company’s stock has delivered impressive returns, surging over 160% in the past year, though according to InvestingPro analysis, the stock appears to be trading above its Fair Value at current levels.
During its 2025 Investor Day on Wednesday, the accessories and lifestyle brand house unveiled its "Amplify" growth strategy, which focuses on building emotional connections with consumers, fueling fashion innovation, delivering compelling experiences globally, and developing its workforce.
The company expects mid-single-digit revenue growth annually through fiscal 2028, with operating margins expanding to over 22% by fiscal 2028, representing a 200 basis point increase from fiscal 2025.
Tapestry also announced a new $3 billion share repurchase authorization as part of its capital return plan, which includes maintaining its annual dividend of $1.60 per share for fiscal 2026 with expectations to grow dividends at least in line with earnings moving forward.
"We are confident that our strengths are structural, and that our innovation, creativity, and brand-building capabilities will deliver significant value for our customers, employees, and shareholders for years to come," said Joanne Crevoiserat, Chief Executive Officer of Tapestry.
For its Coach brand, Tapestry projects a three-year mid-single-digit revenue compound annual growth rate with operating margins expanding to a mid-30% rate. The company stated it has a longer-term ambition for Coach to reach $10 billion in revenue.
Kate Spade is expected to return to profitable growth in fiscal 2027 and accelerate to mid-single-digit revenue growth with high single-digit operating margins by fiscal 2028.
The company’s financial targets incorporate its previously announced fiscal 2026 outlook provided in mid-August, which remains unchanged. The outlook excludes one-time costs associated with the sale of Stuart Weitzman, which closed on August 4, 2025.
The information was shared in a press release statement issued by the company. With analyst consensus remaining bullish and multiple upward earnings revisions, investors seeking deeper insights can access comprehensive analysis and 18 additional ProTips through InvestingPro’s detailed research report, part of its coverage of over 1,400 US stocks.
In other recent news, Tapestry, Inc. has been in the spotlight with several developments affecting the company. The board of directors approved a one-time special equity grant valued at $15 million for CEO Joanne Crevoiserat, which is split between performance-based and time-based restricted stock units. This grant is contingent on achieving a target non-GAAP earnings per share for fiscal year 2028. Meanwhile, Tapestry’s recent earnings report revealed a normalized earnings per share of $1.04 for the fourth quarter, surpassing last year’s $0.92 and exceeding consensus estimates by $0.02.
In analyst updates, Bernstein raised its price target for Tapestry to $112 from $100, citing strong fourth-quarter performance despite tariff-related challenges. Morgan Stanley maintained an Overweight rating with a price target of $115, highlighting the company’s strong market positioning. However, BofA Securities lowered its price target to $110 due to increased tariff pressure impacting earnings per share by $0.60. CFRA also adjusted its price target to $96 from $93, maintaining a Hold rating on the stock despite recent share declines. These developments reflect a mixed outlook on Tapestry amid tariff concerns and strategic decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.