Tapestry Appoints Jide Zeitlin as New CEO
Tapestry, the parent company of brands Coach, Stuart Weitzman, and Kate Spade, announced the appointment of Jide Zeitlin as its new CEO, effective immediately, reports CNBC. Zeitlin replaces Victor Luis, who worked at the company for 13 years and became CEO in 2014. During his tenure, Luis oversaw the transformation of the company name from Coach to Tapestry, as well as the acquisitions of brands Stuart Weitzman and Kate Spade, the latter of which has struggled in recent months. Zeitlin will continue to serve as chairman of the board, a role he's held since November 2014.
Total Retail's Take: Retail is a fast-moving industry, and leaders unable to sustain change are being replaced. Luis successfully acquired new brands for Tapestry, but struggled to revive the Kate Spade business and build Tapestry's acquisitions into a powerhouse of brands. Of the changes, Zeitlin said in an interview Wednesday that the company's board made a difficult decision, "but one we ultimately believe allows us to further unlock the potential in our business." Tapestry recently released a stagnant earnings report and lowered its next year forecast, expecting low single-digit increases in revenue and flat earnings. Zeitlin is now charged with speeding up the growth process among the individual brands while creating a stronger overall company. “The board remains committed to Tapestry’s multibrand model, while recognizing the need to sharpen our focus on execution." Tapestry will need to move forward with fresh strategies to be successful, especially considering the slow growth in luxury and the struggles of other high-end retailers like Barneys New York, which filed for bankruptcy last month.