The US fashion group Tapestry Inc. announced new growth targets on Friday as part of its annual investor day in New York. Accordingly, annual sales are to be increased to eight billion US dollars by 2025. The parent company of the Coach, Kate Spade and Stuart Weitzman brands said it is targeting average growth of six to seven percent per year. In the most recent fiscal year 2021/22, Tapestry had achieved a sales increase of 16 percent to 6.7 billion US dollars (6.6 billion euros).
The group also wants to improve its earnings significantly: The target for diluted earnings per share for 2025 is “at least five US dollars”. This is based on a compound annual growth rate in the “low to mid teens”. The shareholders should also benefit from this: the company announced that it would distribute a total of three billion US dollars to shareholders over the next three years through buybacks and dividends.
Various strategic initiatives are intended to help achieve the goals. The group is focusing on “continued growth” in the core categories of handbags and small leather goods, but also wants to “accelerate” sales development in shoes and lifestyle products.
The company is also planning targeted expansion. The focus should be on the largest markets, North America and China, but at the same time opportunities in regions that have not yet been well developed, such as Southeast Asia and Europe, should also be exploited. In addition, Tapestry announced the further expansion of its omnichannel sales model. The aim is to increase revenues both in e-commerce and in stationary boutiques, the group explained.
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