Tapestry ended the day with some big news: Joshua Schulman, the CEO and brand president of Coach, is leaving the company.
Tapestry, which also owns Kate Spade and Stuart Weitzman, announced that its chairman and CEO, Jide Zeitlin, will oversee Coach on an interim basis as the company searches for a new CEO, and that Zeitlin had committed to remain with Tapestry for the next three years.
Zeitlin, the long-time chairman of Tapestry, took on the CEO role in September, replacing Victor Luis, just weeks after the company cut its full-year forecast. Luis was responsible for changing the company’s name to Tapestry and the acquisitions of Kate Spade and Stuart Weitzman.
“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.”
Zeitlin said over the next several years, the company will be a more “consumer-centric and data-driven organization.”
Despite the change. Coach continues to be a solid performer. As of its fiscal second quarter ending Dec. 28, the brand generated net sales of $1.27 billion, 2% above the same period a year prior, while comparable sales were also up 2%.
Both gross profit and operating income at Coach grew, respectively, to $877 million versus $860 million for the year prior, and to $383 million versus $374 million for the year prior.
Since Schulman joined Coach in 2017, he presided over nine quarters of consecutive comparable sales growth.
Schulman’s departure is the latest in a series of executive changes at Tapestry. Liz Fraser was named CEO of Kate Spade effective March 1, taking over from interim Joanne Crevoiserat, who continues to be the brand’s CFO. Fraser was previously president of Lafayette 148 and CEO of Anne Klein.
Giorgio Sarné, meanwhile, was named CEO of Stuart Weitzman, also effective March 1, taking over from Eraldo Poletto. Sarné was previously president of both Tapestry Asia and Coach Asia.