Tapestry announces $3 billion share buyback, sets new financial targets

Published 10/09/2025, 12:22
© Reuters.

Investing.com -- Tapestry has authorized a new $3 billion share buyback program and outlined fresh long-term financial targets through fiscal year 2028.

The company plans to return $4 billion to shareholders through fiscal 2028 via share repurchases and dividends, supported by its strong free cash flow generation. Tapestry will maintain its annual dividend of $1.60 per share in 2026 and expects to grow the dividend at least in line with earnings growth, targeting a payout ratio of approximately 30% through fiscal 2028.

For fiscal years 2027 to 2028, Tapestry is targeting mid-single-digit annual revenue growth and operating margin expansion to over 22% by fiscal 2028. The company aims to achieve low double-digit EPS growth in both fiscal 2027 and 2028.

The Coach brand is expected to deliver a three-year mid-single-digit revenue compound annual growth rate (CAGR) with operating margin expanding to a mid-30% rate over the planning horizon. Tapestry has a long-term ambition for Coach to reach $10 billion in revenue.

For Kate Spade, the company anticipates a return to profitable topline growth in fiscal 2027, accelerating to mid-single-digit revenue growth with a high single-digit operating margin in fiscal 2028.

Tapestry projects adjusted free cash flow of $4 billion cumulatively from fiscal 2026 to 2028, while maintaining its growth outlook for fiscal 2026.

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