Tapestry aims for Coach to be a $10 billion brand
Tapestry Inc. is launching a three-year strategic plan that is focused on profitable growth and strong shareholder returns as it doubles down on Gen Z and its Coach brand.
The company, whose planned $8.5 billion acquisition of Michael Kors parent Capri Holdings fell through amid regulatory hurdles, unveiled its new plan, dubbed “Amplfy,” at its 2025 Investor Day in New York City. Its fiscal 2027-2028 financial targets include revenue growth of mid-single digits annually; operating margin expansion to over 22% by fiscal 2028, and earnings per share growth in the low double-digits in fiscal 2027 and fiscal 2028.
“At the same time, we remain disciplined allocators of capital and expect to return $4 billion to shareholders over our three-year planning horizon, underscoring the strength and flexibility of our balance sheet and confidence in driving sustained value creation,” said Tapestry CFO and COO Scott Roe.
By brand, Tapestry expects Coach, which has been on a hot streak, to deliver a three-year mid-single-digit revenue CAGR with operating margin expanding to a mid-30% rate over the planning horizon. It has a “longer-term” goal for the brand to reach $10 billion in revenue. (Coach had revenue of $5.6 billion in its most recent fiscal year, which ended June 28.)
“We’re winning with a new generation of consumers, particularly with the momentum we’re seeing in the Coach brand,” Tapestry CEO Joanne Crevoiserat said in an interview with WWD.
Tapestry expects Kate Spade to return to profitable top-line growth in fiscal 2027 and accelerate to mid-single-digit revenue growth and a high single-digit operating margin in fiscal 2028.
Tapestry said its growth strategy is focused on four key pillars:
- Build Emotional Connections with Consumers – Driving new customer acquisition, with a focus on Gen Z consumers entering the market to build brand love and lifetime value;
- Fuel Fashion Innovation & Product Excellence – Leading with handbags and leather goods with targeted lifestyle expansion in footwear;
- Deliver Compelling Experiences to Drive Global Growth – Sustaining growth in North America and accelerating momentum in international markets, prioritizing Greater China and Europe; and
- Ignite the Power of Our People – Future-proofing growth by continuing to develop a consumer-obsessed culture that is agile and always looking forward.