Tapestry Revives Kate Spade, Q2 Sales Up 14% and EPS Jumps 34%
Tapestry CEO Joanne Crevoiserat outlined plans to revitalize Kate Spade and drive Coach's organic growth after a 559% stock gain since October 2020. Fiscal Q2 net sales rose 14% to $2.5B, Coach revenue climbed 25% to $2.14B and EPS surged 34% to $2.69, prompting a full-year EPS outlook above 25%.
1. CEO Strategy and Brand Revamp
Joanne Crevoiserat is spearheading a strategic overhaul at Tapestry focused on strengthening emotional connections with consumers and optimizing brand positioning. Her initiatives target a turnaround for Kate Spade and further expansion of Coach’s market share following a 559% stock increase since her appointment as permanent CEO in October 2020.
2. Fiscal Q2 Financial Highlights
In the second quarter, Tapestry delivered net sales of $2.5 billion, up 14% year-over-year, driven by a 25% surge in Coach revenue to $2.14 billion. Adjusted EPS rose 34% to $2.69, supported by strong Gen Z demand in North America (+27%) and Greater China (+35%) during the holiday season.
3. Outlook and Growth Prospects
Capitalizing on its momentum, Tapestry raised its full-year EPS outlook to exceed 25% growth, reflecting confidence in continued organic expansion across both Coach and Kate Spade. The leadership team anticipates exponential growth through digital innovation, higher quality products and targeted consumer engagement.