By Nicholas G. Miller

Tapestry said Wednesday it expected to record mid-single-digit sales growth and low-double-digit profit growth in fiscal 2027 and 2028, and that its Kate Spade brand would return to profitable topline growth in 2027.

The luxury apparel company said it is aiming for Kate Spade to accelerate to mid-single-digit revenue growth in 2028 and for its Coach brand to reach $10 billion in revenue long term.

The company will also return $4 billion to shareholders through 2028, including $3 billion in share repurchases.

Kate Spade fourth-quarter sales this year fell 13%, with Tapestry saying in August it would reset the brand for long-term growth through marketing that targets Gen Z customers and the strengthening of the brand's handbag offerings.

"While these actions will pressure revenue and profitability in fiscal 2026, they are essential to strengthening the brand's foundation and unlocking sustainable, profitable growth," Chief Executive Joanne Crevoiserat said in the company's earnings call.

The company also said tariffs would pressure profitability in the near term and that it expected a $160 million hit to its bottom line in 2026.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

September 10, 2025 07:14 ET (11:14 GMT)

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