Tapestry CEO: Kate Spade brand reset is underway, Coach brand still outperforming

Core Insights - Tapestry, the owner of Coach and Kate Spade, reported record revenue and a 16% sales growth for its fiscal Q1, yet shares fell by double digits despite these strong results [1][3][4] Financial Performance - The company achieved broad-based growth with double-digit increases, including high teens growth in North America and China, and over 30% growth in Europe [3] - Tapestry raised its outlook for the year, indicating confidence in both topline and earnings growth [4] Brand Performance - Coach was the primary driver of revenue, showing a standout performance with 21% growth, while Kate Spade experienced a 9% decline in sales [4][6] - Kate Spade's performance was slightly ahead of expectations, with ongoing efforts to reset the brand and a new marketing campaign launched [5][6] Consumer Trends - The consumer landscape shows resilience, with consumers being active and responsive to innovation and emotional connections with brands [7] - Tapestry is successfully acquiring younger consumers, leading to higher retention rates and increased frequency of purchases [8] Market Positioning - The company is expanding its market share by targeting young consumers, which is seen as a strategic move to grow the overall market [14] - Tapestry's handbags are positioned at a competitive price point, attracting consumers from higher-priced luxury brands [13][16] Holiday Outlook - The company remains optimistic about the holiday season, with strong performance continuing into Q2 and a focus on delivering value to consumers [10][11][12]