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)
The gross profit reached SEK 25,138 million (~$2.39 billion), with the gross margin improving to 50.7 per cent from 49.1 per cent a year earlier, supported by lower markdown costs and more efficient sourcing.
H&M has reported net sales of SEK 49,607 million (~$4.72 billion) in Q1 FY26, with sales down 1 per cent in local currencies.
Improved cost control lifted gross margin to 50.7 per cent and operating profit rose 26 per cent.
The net profit increased to SEK 704 million (~$75.05 million), while inventory fell 16 per cent.
Currency effects weighed on revenue despite stronger margins and improving sales.
The operating profit rose by 26 per cent to SEK 1,512 million, lifting the operating margin to 3 per cent from 2.2 per cent. Selling and administrative expenses declined by 1 per cent in local currencies and by 9 per cent in SEK terms, reflecting continued cost discipline, H&M said in a press release.
The net profit after tax (PAT) increased to SEK 704 million (~$75.05 million), with earnings per share (EPS) improving to SEK 0.45 from SEK 0.37. Inventory management also showed progress, with stock-in-trade falling 16 per cent to SEK 34,608 million, indicating improved inventory productivity.
However, sales in SEK terms were impacted by a currency translation effect of just over 9 percentage points due to the strengthened Swedish krona. The quarter began with weaker demand following strong Black Friday trading, though sales trends improved towards the end, supported by spring collections.
“Good cost control and improved gross margin contributed to strengthened profitability in a quarter marked by cautious consumption and large currency translation effects,” said Daniel Erver, CEO at H&M.
Looking ahead, H&M expects March 2026 sales to rise by 1 per cent in local currencies. The company also highlighted its sustainability progress, noting that 32 per cent of materials used in 2025 were recycled, while 91 per cent were either recycled or sustainably sourced.
Fibre2Fashion News Desk (SG)
A total of 25 pilot investments led by small and medium enterprises (SMEs) have progressed from the lab to near-market stage under RegioGreenTex, a three-year European Union (EU)-funded project that recently concluded. Most of these are expected to be commercialised within one to three years.
Twenty five pilot investments led by SMEs moved from lab to near‑market under RegioGreenTex, an EU-funded project that ended recently.
Most of these are expected to commercialise in one to three years.
Five regional hubs mapped SME needs and developed services and value chains as well as tools to help SMEs.
These are now open for collaboration and the pilot portfolio is primed for investors and adopters.
At least 70 per cent of the EU grant was allocated to SMEs. A total of 43 partners from 11 regions across eight countries participated in the project, leveraging their expertise towards a common goal of advancing industry and research.
RegioGreenTex was one of the first projects funded under the Interregional Innovation Investments (I3) Instrument programme that focused on process, service and business model innovation, developing advanced textile recycling technologies, regional recycling hubs, and a digital ecosystem for matchmaking and capacity building.
Five regional hubs mapped SME needs and developed services and value chains as well as tools that keep helping SMEs, an official release said.
The RegioGreenTex Digital Tool keeps matchmaking, sharing trainings and hosting the participants’ knowledge base.
The Waste Wizard shows how artificial intelligence-enhanced matchmaking can link leftover textiles with the right reuse or recycling routes.
From recycled-content yarn processes (Tintex) to Recycrom low-impact dyeing (Officina39), ultrasonic quilting for full recyclability (Rovitex) and hybrid recycled-fibre yarns (Hilaturas Mar), the pilots showed concrete, repeatable ways to cut impact without losing performance.
The hubs are now open for collaboration, the digital tools are live and the pilot portfolio is primed for investors and adopters.
Fibre2Fashion News Desk (DS)
While trends in high frequency indicators for January-February 2026 appear favourable, the heightened uncertainty around the duration of the Middle East conflict casts a shadow on the near-term macroeconomic outlook for India amid high import dependency for items like crude oil, natural gas and fertilisers, it noted.
India’s FY27 GDP growth is likely to slow to 6.5 per cent from the projected 7.5 per cent in FY26 owing to the impact of higher energy prices and concerns around energy availability, ICRA Ratings said.
The heightened uncertainty around the duration of the Iran war casts a shadow on the near-term macroeconomic outlook for India.
If the conflict lasts longer, the adverse effects could widen across sectors.
If the conflict lasts for an extended period, the adverse implications of the same could widen across sectors, amid an uptick in input costs and the consequent impact on profitability of the India corporate sector.
Amid the projected uptrend in the consumer price index-based inflation in FY27 with risks tilted to the upside, ICRA Ratings expects an extended pause on the policy rates by the central bank’s monetary policy committee in the fiscal despite the anticipated softening in the GDP growth. However, it expects the Reserve Bank of India to continue to intervene on the liquidity front during FY27.
The available data for January–February FY2026 indicate a positive trend across most non-agricultural indicators, with the year-on-year performance of 12 out of 18 indicators improving compared to the third quarter of FY26, while the remaining six deteriorated.
Fibre2Fashion News Desk (DS)
Sweden’s H&M’s Q1 FY26 sales dip but margins improve on cost control
Iran war worries fail to dampen business sentiment in Japan
EU-funded RegioGreenTex pushes 25 SME pilots to commercialisation
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