After taking the reins at Tapestry last fall, Jide Zeitlin said today he will stay on board as chairman and CEO for the next three years. But Josh Schulman — the CEO and president of Coach, the company’s flagship brand — is on his way out.
Schulman’s departure means that all of the company’s three brands — Coach, Kate Spade and Stuart Weitzman — will have new leaders at the helm.
“Since becoming CEO, I have had the opportunity to immerse myself in the company, including leading an in-depth review of the brands and businesses,” Zeitlin said in a statement. “The review revealed attractive growth opportunities for Coach, Kate Spade and Stuart Weitzman, which we will unlock by further leveraging each brand’s differentiated positioning and strong consumer connections, powered by a modern, agile Tapestry platform.”
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In the statement, Zeitlin thanked Schulman for his leadership and said he was looking forward to partnering with creative director Stuart Vevers.
Schulman’s departure is a surprise given Coach’s winning streak of late. With Stuart Weitzman and Kate Spade challenged, Coach, which represents more than 70% of overall revenues, continued to forge ahead under Schulman.
Last month, the brand made its biggest shoe statement yet with the launch of the CitySoles collection, and Schulman outlined the opportunities in footwear.
While it warned the market about coronavirus-induced headwinds, Tapestry delivered a second-quarter earnings and sales beat, posting adjusted EPS of $1.10, versus consensus bets of 99 cents, on profits of $298.8 million. Revenues rose 1% to $1.82 billion, compared with estimates of $1.81 billion.
The New York-based company — parent to Kate Spade, Coach and Stuart Weitzman — said the deadly disease could impact its second-half results, expecting a $200 million to $250 million dent in sales and a reduction in earnings per share of 35 cents to 45 cents. It downwardly revised its guidance, now projecting full-year revenues of roughly $5.9 billion and EPS in the range of $2.15 to $2.25.
“We had anticipated maintaining our fiscal-year guidance despite continuing headwinds in Hong Kong and challenges at Stuart Weitzman. However, the escalating coronavirus outbreak is now significantly impacting our business in China, resulting in the closure of the majority of our stores on the mainland,” said Zeitlin. “If the situation further deteriorates, or the outbreak affects demand outside the country, this impact could be worse.”
Last month, Tapestry named Liz Fraser CEO of Kate Spade. She replaced Anna Bakst, who left the company at the end of 2019. At Stuart Weitzman, Giorgio Sarné is now leading the charge. CEO and brand president Eraldo Poletto has departed.