Fashion
US’ Tapestry outlines FY27–28 goals, Coach eyes $10 bn revenue
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)
“This bill protects Louisiana workers and American businesses, ensuring loopholes don’t hold them back,” Dr Cassidy said in a press release.
US Senators Bill Cassidy and Sheldon Whitehouse have introduced the Last Sale Valuation Act to close the ‘first sale’ customs loophole that lets importers underpay duties.
The bipartisan bill would base tariffs on final sale values, strengthen US Customs enforcement and curb duty evasion.
Supporters say it will protect American manufacturers, workers and federal revenue.
If passed, the bipartisan measure would grant clearer enforcement authority to US Customs and Border Protection (CBP), streamline valuation reviews and reduce disputes over documentation, while curbing mis-invoicing and related-party pricing schemes linked to tariff evasion and illicit financial activity.
The legislation has drawn support from the American Compass, the Coalition for a Prosperous America and the Southern Shrimp Alliance.
“Cassidy’s ‘Last Sale Valuation Act’ strengthens customs valuation by assessing duties on the final transaction value of goods entering the US,” said Mark A DiPlacido, senior political economist at the American Compass, adding that closing the judicially created ‘first sale’ loophole would reduce duty evasion, simplify enforcement and increase customs revenue.
Jon Toomey, president of the Coalition for a Prosperous America, said the bill is “an important first step in restoring customs integrity,” ensuring duties are paid on the true commercial value of imported goods and helping level the playing field for American manufacturers and workers.
Fibre2Fashion News Desk (CG)
Rising global political and economic tensions have driven sustained increases in raw material and energy costs, impacting the textile machinery sector.
Rieter has faced mounting input expenses amid strong demand and price hikes for various materials.
The company has so far absorbed the additional costs but will implement price adjustments from March 2026 as pressures persist.
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“Running continues to gain extraordinary momentum around the world as more people choose movement as part of their approach to health and wellness,” said Dan Sheridan, Brooks CEO. “Our opportunity ahead is incredibly exciting and I have great confidence in the entire Brooks global team. Following a record 2025, we enter 2026 energised by the innovations and programmes we’ll deliver to runners and retailers worldwide.”
Brooks Running closed 2025 with record global revenue, up 16 per cent year-over-year, marking its ninth straight year of growth.
Strong gains came from North America, EMEA, and Asia Pacific–Latin America, led by a surge in China.
Growth was driven by performance innovation, strong footwear sales, and new lifestyle collections and collaborations.
In EMEA in 2025, the performance running footwear market grew 14 per cent in France and 21 per cent in Germany with Brooks outpacing both 22 per cent and 28 per cent, respectively, the company said in a press release.
In 2025, ten Brooks footwear styles posted year-over-year revenue growth of 20 per cent or more. The Glycerin series, featuring Brooks’ new DNA Tuned midsole foam, delivered 33 per cent revenue growth and a 27 per cent increase in unit sales year over year, accelerated by a 46 per cent year-over-year revenue surge in Q4.
At Paris Fashion Week in January 2025, Brooks unveiled its new lifestyle footwear collection, which celebrates the brand’s 112-year heritage as a leader in sport and answers customer desire for performance-inspired silhouettes to wear on and off the run. Brooks partnered with streetwear pioneers and visionaries to launch multiple sought-after collaborations including the Brooks x STAPLE Adrenaline GTS 4 with New York-based Jeff Staple and the Brooks x RSVP Gallery Caldera 8 with the renowned Don C.
Fibre2Fashion News Desk (RR)
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