Will Tapestry’s (TPR) Aggressive Buyback and Dividend Hike Signal a Shift in Growth Priorities?

• Tapestry, Inc. announced that Board member John P. (JP) Bilbrey advised the company in September 2025 that he would not stand for re-election at the upcoming annual meeting on November 13, 2025, though he will continue to serve until that date.
• This decision comes shortly after Tapestry reported record fiscal 2025 results and introduced an $800-million share repurchase program and a 14% dividend increase, reinforcing management’s confidence in ongoing growth.
• We'll explore how Tapestry's enhanced capital return initiatives following strong results may influence the company’s future investment narrative.

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Tapestry Investment Narrative Recap

To be a Tapestry shareholder today, you need to believe that Coach’s strong momentum with younger shoppers and international markets can offset persistent risks in turnaround at Kate Spade, tariff impacts, and the reduced brand diversification following the Stuart Weitzman divestiture. The recent announcement of JP Bilbrey leaving the Board is not expected to materially affect these near-term drivers or the main risk posed by Kate Spade’s underperformance and ongoing tariff pressures.

Among the latest developments, the newly expanded $800 million share repurchase program stands out. This initiative complements Tapestry’s robust fiscal 2025 results and a rising dividend, reinforcing management’s confidence in the company’s growth outlook at a time when margin risks and brand concentration remain in focus.

However, if Coach’s current “brand heat” starts to cool, the impact on the whole business could be greater than some investors realize...

Read the full narrative on Tapestry (it's free!)

Tapestry's outlook anticipates $7.8 billion in revenue and $1.4 billion in earnings by 2028. This is based on a 3.6% annual revenue growth rate and an earnings increase of $1.2 billion from the current $183.2 million.

Uncover how Tapestry's forecasts yield a $116.44 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community members estimate Tapestry’s fair value between US$113.63 and US$128.93 across three viewpoints. While many expect significant earnings growth ahead, opinions differ widely on whether current profitability and reliance on Coach can drive lasting returns.

Explore 3 other fair value estimates on Tapestry - why the stock might be worth just $113.63!

Build Your Own Tapestry Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Tapestry research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Tapestry research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Tapestry's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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