Tapestry, Inc. TPR has entered into Accelerated Share Repurchase agreements with Bank of America N.A. and Morgan Stanley & Co. LLC to repurchase $2.0 billion shares of common stock.
While recently announcing its termination of Capri Holdings merger agreement, the company revealed that its Board approved an additional $2 billion share repurchase program to be implemented at least in part through an Accelerated Share Repurchase program.
Related: Tapestry And Capri Call Off $8.5B Deal Amid Legal Hurdles
The ASRs will be completed under the company’s recently expanded $2.8 billion share repurchase authorization.
In addition to the $2 billion ASR program, Tapestry still has $800 million in remaining capacity under its share repurchase authorization for future buybacks.
This move is part of Tapestry’s broader plan to return over 100% of its free cash flow in fiscal 2025 to shareholders through dividends and share repurchases.
As part of the agreements, Tapestry expects to receive an initial delivery of 28.4 million shares of common stock on November 26, representing about 80% of the shares to be repurchased.
The final number of shares repurchased will depend on the volume-weighted average price of Tapestry’s stock during the term of the agreements, subject to adjustments.
The final settlement is expected by the first quarter of fiscal 2026, ending September 27, 2025.
To fund the share repurchases, Tapestry is utilizing a mix of financing sources, including $750 million in borrowings under a new term loan agreement, $1.0 billion under its revolving credit facility, and $250 million in cash on hand.
Price Action: TPR shares are trading higher by 4.84% to $59.14 at last check Friday.
Image: Shutterstock/ bangoland
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