Tapestry, Inc. (TPR), a prominent player in the fashion industry, announced on Friday its engagement in Accelerated Share Repurchase (ASR) agreements with Bank of America N.A. and Morgan Stanley & Co. LLC. This strategic move will facilitate the repurchase of shares totaling $2 billion.
This initiative is part of the company's recently increased share repurchase authorization, now set at $2.8 billion.
To finance this ASR, Tapestry plans to utilize a combination of financial resources: $750 million from a new term loan, $1 billion drawn from its revolving credit facility, and $250 million of available cash.
Upon executing the ASR, Tapestry will disburse $2 billion to the dealers and anticipates the initial receipt of 28.4 million shares by November 26, representing approximately 80% of the total shares earmarked for repurchase under these agreements.
The finalization of this ASR transaction is projected to take place by the first quarter of fiscal 2026, concluding on September 27, 2025.
Additionally, Tapestry disclosed an entitlement of $800 million under its share repurchase authorization, providing leeway for further share acquisitions over time.
