Tapestry (TPR) Investor Day 2025 summary

Strategic vision and growth agenda

• Pursuing an amplified, consumer-obsessed growth agenda focused on scaling proven strategies, targeting mid-single-digit revenue growth, operating margin expansion to over 22%, and low double-digit EPS growth annually through fiscal 2028.

• Emphasizing data-driven decision-making, analytics, and consumer-centric brand building, especially targeting Gen Z and point of market entry consumers, with 85% of new customer acquisition expected from this segment.

• Expanding internationally, with 75% of growth over the next three years projected to come from markets outside North America, particularly Greater China and Europe.

• Investing in marketing (up from 4% to 11% of sales since 2019), digital capabilities, and targeted store expansion, while maintaining financial discipline and a variable cost structure.

• Sustainability and responsible choices are core ambitions, aiming to uplift communities and sustain the planet.

Brand strategies and operational execution

• Coach aims to reach $10 billion in annual sales, leveraging emotional connections, product icons, and a unified One Coach strategy across channels, with a focus on Gen Z and international expansion.

• Kate Spade is resetting for durable, profitable growth by building brand heat, focusing on blockbusters, and targeting Gen Z connectors, aiming for profitable growth by 2027 and accelerated growth in 2028.

• Both brands are reducing assortment complexity, focusing on fewer, more impactful products, increasing full-price sales, and shifting from discount-driven to desire-driven models to grow AUR and margins.

• Supply chain resilience is a competitive advantage, with less than 6% of products now made in China (down from 95% twenty years ago), and ongoing investment in automation, AI, and sustainable materials.

• Delivers craftsmanship at scale, producing over 50 million leather goods annually across 45 manufacturing locations in 11 countries, supporting international growth and reducing single-country risk.

Financial outlook and capital allocation

• Achieved a 10% top-line CAGR and 180 basis points of operating margin expansion over the past three years, with nearly 50% EPS growth.

• Expects to return $4 billion in cumulative cash to shareholders through 2028, including dividends and share repurchases, with a $3 billion buyback authorization.

• Gross margin expansion is supported by continued AUR growth, supply chain efficiencies, and a favorable mix shift toward higher-margin international sales.

• Marketing investment will continue to rise, but spending will remain disciplined and KPI-driven, with a focus on measurable returns.

• M&A is deprioritized in the near term; the focus is on organic growth and brand-building, with strict financial criteria for any future acquisitions.