Tapestry sets aggressive long-term financial targets ahead of its Investor Day presentation

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Tapestry (NYSE:TPR [https://seekingalpha.com/symbol/TPR]) unveiled its new Amplify growth strategy on Wednesday ahead of the global luxury lifestyle company's management presentations at its Investor Day event.

The apparel giant said it plans to position itself for consistent, profitable growth over the next three years. The Amplify plan revolves around the themes of building stronger emotional engagement with consumers, especially Gen Z; advancing product innovation with an emphasis on handbags and expanding into footwear; enhancing global experiences, particularly in Greater China and Europe; and empowering its workforce to maintain agility and a consumer-centric culture.

On the financial front, the Coach brand is expected to sustain a mid-single-digit three-year revenue CAGR with operating margins rising to the mid-30% range, with an aspiration for $10 billion in revenue over the longer term. Meanwhile, Kate Spade is forecast to return to profitable growth in 2027 and accelerate to mid-single-digit revenue growth with high single-digit operating margins in 2028.

Overall, Tapestry (NYSE:TPR [https://seekingalpha.com/symbol/TPR]) forecasts annual mid-single-digit revenue growth and expects to expand operating margins to over 22% by FY28. Tapestry (TPR [https://seekingalpha.com/symbol/TPR]) also aims for low double-digit earnings per share growth in FY27 and FY28.

"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," highlighted CEO Joanne Crevoiserat.

In terms of capital allocation, Tapestry (TPR [https://seekingalpha.com/symbol/TPR]) will return $4 billion to shareholders through FY28 via dividends and share repurchases, including a new $3 billion buyback authorization. The annual dividend is set to remain at $1.60 per share for 2026, with anticipated growth aligned to earnings and a target payout ratio of around 30% through 2028.

Shares of Tapestry (TPR [https://seekingalpha.com/symbol/TPR]) edged 0.2% lower in premarket trading. The stock is up more than 60% on a year-to-date basis.

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