Tapestry Announces New $3 Billion Share Repurchase Authorization

Tapestry Inc. (TPR) said on Wednesday it expects to buy back about $3 billion in common stock cumulatively from fiscal 2026 through fiscal 2028. 

The luxury handbag maker also said it plans to return $4 billion cumulatively to shareholders through fiscal 2028 in the form of share buybacks and dividends. Tapestry noted that this is expected to represent 100% of the company’s adjusted free cash flow generation over the three years beginning fiscal 2026.

Ahead of the company’s investor day on Wednesday, Tapestry outlined its long-term growth plans, which include a strategy to drive new customer acquisition, focusing on Gen Z consumers, as well as sustaining growth in North America and accelerating momentum in international markets, with a priority on Greater China and Europe.

Retail sentiment on Tapestry dipped to ‘bearish’ from ‘neutral’ territory a day ago, with chatter at ‘low’ levels, according to Stocktwits data. Shares of the company were up marginally in premarket trading.

“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,” Tapestry’s CFO and COO Scott Roe said.

Tapestry said it expects Coach to deliver a three-year mid-single-digit revenue compounded annual growth rate with operating margin expanding to a mid-30% rate over the planning horizon. The company said it has a longer-term ambition for the brand to reach $10 billion in revenue.

The company also added that it expects Kate Spade to return to profitable topline growth in fiscal 2027 and accelerate to mid-single-digit revenue growth and a high single-digit operating margin in Fiscal 2028.

Tapestry shares have jumped 61% this year and gained over 155% in the last 12 months. 

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