Tapestry Brands Reports Q1 Results and Names Joanne Crevoiserat CEO Permanently

Tapestry Inc., the parent company of Coach and Kate Spade, has named Joanne Crevoiserat as its new CEO on a permanent basis.

Crevoiserat will become CEO of the luxury goods company, effective immediately. She had already been serving in the role on an interim basis after former CEO Jide Zeitlin resigned back in July.

Zeitlin was the focus of an investigation into allegations about his personal behavior.
It was only in August of 2019 that Crevoiserat joined Tapestry as its CFO. She had previously held the role of COO at Abercrombie & Fitch Co.

Susan Kropf, an independent member of Tapestry’s Board of Directors since June 2006, will continue to serve as Chair of the Board. Kropt remarked, “After completing a comprehensive internal and external search, the Board unanimously concluded that Joanne is the best candidate to lead Tapestry’s next chapter of growth as CEO. Since taking on the role of Interim CEO in July, Joanne has led with a customer-centric, data-driven approach, an understanding of the unique needs and advantages of our house of brands and a focus on execution and growth. Joanne has a passion for our brands and our Company, deep financial and operational expertise and a belief in the power of our teams. She has been instrumental in setting Tapestry’s strategic agenda and has a clear vision for what is needed to drive our success in the future.”

Ms. Crevoiserat said, “I am thrilled to be leading Tapestry, with its three powerful brands, exceptional people and tremendous growth potential. Since joining the Company over a year ago, I have been focused on unlocking the power of our talented teams by establishing clear priorities and building a culture of trust and empowerment. I am excited about the opportunities ahead as we execute on our Acceleration Program, which I am confident will create stronger connections with our customers and fuel long-term growth and improved profitability.”

This week the company also reported fiscal 2021 first quarter results.

Gross margins had increased by over 300 basis points and SG&A declined significantly, driving over 700 basis points of operating margin expansion year-over-year.

GAAP Operating income was $202 million versus $52 million a year ago; Non-GAAP Operating Income was $229 million versus $167 million a year ago.

GAAP EPS was $0.83 versus $0.07 a year ago and Non-GAAP EPS was $0.58 versus $0.40 a year ago.
Ms. Crevoiserat commented, “We are very pleased with our first quarter results, which exceeded expectations and demonstrated the bold actions we are implementing as part of our Acceleration Program. We delivered strong profit growth across our portfolio of brands in the face of an unprecedented and challenging backdrop. We drove a meaningful sequential improvement in topline trends, supported by strength in Digital and China. At the same time, we expanded gross margin by deliberately reducing promotional activity and raising AUR, while also tightly controlling SG&A expense. Taken together, we achieved a significant increase in EPS and generated positive free cash flow.”

She continued, “Our performance underscores the power of our brands, the agility of our talented teams and the competitive advantage of Tapestry’s enabling platform. Importantly, it also reinforces the potential of our Acceleration Program. Guided by an unwavering focus on the consumer and supported by new ways of working, we are positioning the Company to successfully navigate the dynamic environment and drive long-term, sustainable growth.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.