Tapestry doubles down on Gen Z and growth: New strategy targets $4 billion in shareholder returns, says CFO

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Sheryl Estrada is a senior

Good morning. New York City-based Tapestry, Inc., parent of luxury brands Coach and Kate Spade New York, is executing a three-year strategy focused on profitable growth and strong shareholder returns.

The “Amplify” strategy is anchored on four pillars: building emotional connections with consumers (especially Gen Z), advancing fashion innovation, delivering compelling global experiences, and fostering an agile, consumer-focused culture.

These priorities build on proven strategies, especially at Coach, according to CFO and COO Scott Roe, who spoke with me on Tuesday ahead of the company’s investor day.

Millennials and Gen Z are increasingly choosing Coach, driving a beat for the quarter that ended June 28, fueled

“The long-term value of acquiring customers at this initial entry point is substantial,” he said. “While others talk to millions, we’re talking to billions of potential consumers.”

In the same quarter, Tapestry reported a non-cash impairment charge of $855 million related to Kate Spade and a 13% revenue decline for the brand, Fortune reported. Despite this, having achieved previous goals, the company is confident its strategy can drive future growth for both Coach and Kate Spade, Roe said.

Tapestry plans for Coach to deliver mid-single-digit annual revenue growth (CAGR) and expand its operating margin to the mid-30% range over the next three years, with a longer-term goal of reaching $10 billion in annual revenue.

And the company expects Kate Spade to return to profitable top-line growth in Fiscal 2027 and target mid-single-digit revenue growth and high single-digit operating margin

“Scale and investment in marketing have never been more important,” Roe emphasized. “There are no barriers to entry in our category, but significant barriers to scale.” Over the past three years, Tapestry’s marketing investment has grown from 3.5% to more than 11% of revenue, with plans to increase it

Tapestry plans to return $4 billion to shareholders

This performance enables significant reinvestment in the business, resulting in robust earnings and cash flow, Roe said. Capital allocation priorities include growing the dividend (targeting a 30% payout ratio) and a recently

“This is a powerful message that truly reflects our conviction in the future,” Roe said.

Sheryl Estradasheryl.estrada.com

Ranjith Roy has been promoted to CFO of Yum! Brands (No. 491), the parent company of household-name brands including KFC, Taco Bell, and Pizza Hut. Roy is taking over from Chris Turner, promoted to CEO, effective Oct. 1. Roy joined Yum! in 2024 as chief strategy officer and treasurer, overseeing strategy, mergers and acquisitions and treasury operations. Before joining Yum!, he served as CFO of the e-commerce marketplace Goldbelly, where he helped scale operations. He also spent more than 15 years with Goldman Sachs, where he led investment banking relationships for restaurant, food and food tech businesses, building industry expertise.

Roy brings to the CFO role a “blend of commercial acumen, strategic insight on Yum!, and the restaurant industry,” Turner said in a statement. “He has a proven ability to navigate fast-paced and complex environments with a sharp focus on long-term value creation.”

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