Tapestry chief quits after 10 months in charge

Tapestry’s chief executive has left the New York-based luxury group with immediate effect after less than a year in the job, resulting in a complete management shake-up at the company behind Coach and Kate Spade.

Jide Zeitlin, who is also the chairman, resigned from the company and its board for “personal reasons”, according to a statement on Tuesday. The former Goldman Sachs banker took over in September from his predecessor Victor Luis who had been at the helm for five years, while Mr Zeitlin had been chairman since November 2014.

Chief financial officer Joanne Crevoiserat will act as interim leader. Todd Kahn is to take over as acting chief executive and brand president of Coach, while Susan Kropf, an independent director, will chair the board of directors. Tapestry is to start a search for a permanent chief executive, considering candidates within and outside the group.

The group’s shares have shed more than a fifth of their value this year. Before his own departure, Mr Luis had sought to transform the group from a handbag brand into a luxury conglomerate. Mr Zeitlin told the Financial Times last year that his leadership did not mean there would be a strategic shift and singled out China as a market where the group wanted to grow.

Tapestry expects its fiscal fourth-quarter earnings to exceed its own expectations when they are reported in August, despite some pressure from the coronavirus pandemic.

Its inventory has declined from a year earlier while it has a cash balance of about $1.4bn.