American fashion holding company Tapestry, Inc has announced new long-term financial targets for fiscal 2027 (FY27) and FY28, projecting mid-single-digit annual revenue growth, operating margin expansion to above 22 per cent by FY28—more than 200 basis points higher than FY25—and low double-digit EPS growth over the period.

Across FY26–FY28, Tapestry expects adjusted free cash flow of $4 billion. The company reaffirmed its previously issued FY26 outlook, provided with its fourth-quarter results in August, which remains unchanged.

Tapestry, Inc has outlined its long-term growth strategy, projecting mid-single-digit annual revenue growth, operating margin expansion above 22 per cent, and low double-digit EPS growth in FY27–FY28.
It expects $4 billion in free cash flow across FY26–FY28, all returned to shareholders via dividends and buybacks.
Coach targets $10 billion revenue, while Kate Spade to return to profitability in FY27.

By brand, Coach is expected to achieve a three-year mid-single-digit revenue CAGR, with margins expanding to the mid-30 per cent range. The company also set an ambition for Coach to reach $10 billion in revenue. Kate Spade is forecast to return to profitable topline growth in FY27, accelerating to mid-single-digit revenue growth and a high single-digit margin in FY28, Tapestry said in a press release.

“Our focused strategies and consistent execution position us to generate compounding growth. We expect to deliver durable mid-single digit revenue gains annually, expand our operating margins, and achieve double-digit earnings per share growth in fiscal years 2027 and 2028,” said Scott Roe, chief financial officer (CFO) and chief operating officer (COO) of Tapestry, Inc.

The company also planned to return $4 billion to shareholders by fiscal 2028, representing 100 per cent of its adjusted free cash flow over FY26–FY28. The company expects to maintain an annual dividend of $1.60 per share in FY26, with future increases aligned to earnings growth and a payout ratio of about 30 per cent. It also aims to repurchase roughly $3 billion in stock under a newly authorised buyback programme.

Tapestry unveiled these long-term financial targets in its 2025 Investor Day along with the ‘Amplify’ growth strategy, aiming to deliver durable, profitable growth and strong shareholder returns over the next three years.

It said that the growth strategy will be built around four key pillars: Building emotional connections with consumers by focusing on Gen Z to drive brand love and lifetime value; fuelling fashion innovation and product excellence with leadership in handbags and leathergoods and expanding into footwear; delivering compelling experiences to sustain North American growth while accelerating momentum in Greater China and Europe; and igniting the power of its people by fostering a forward-looking, consumer-obsessed culture.

“Tapestry is a consumer-obsessed, data-driven organisation, driving meaningful durable growth. From this strong foundation, we are introducing our Amplify plan, building on our proven strategies to bring our iconic brands to new generations of consumers. 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 (CEO) at Tapestry, Inc.

Fibre2Fashion News Desk (SG)