Creative Departures, Market Rebounds, and Tapestry’s Strong Earnings Signal a Shifting Landscape
This week has been a whirlwind of major industry moves, from leadership shakeups to shifting market momentum.
At Ferragamo, CEO Marco Gobbetti has exited after a three-year effort to revitalize the house, leaving behind a brand still searching for solid footing after its shares lost 66% of their value under his tenure. Over at Kering, Gucci finds itself at a creative crossroads yet again, as Creative Director Sabato De Sarno departs just days before the house’s upcoming Milan runway show. To now be led by the in-house design studio. Meanwhile, OTB has appointed Serge Brunschwig as CEO of Jil Sander, fueling speculation that designers Luke and Lucie Meier may be stepping away after their forthcoming show.
On the runway, PVH’s Calvin Klein marked a pivotal moment with Veronica Leoni’s debut collection, signaling a renewed push for the brand under President’s Eva Serrano’s direction. Yet in an era dominated by quiet luxury, evolving the codes of power minimalism—so intrinsic to Calvin Klein’s legacy—remains a delicate balancing act. It is a crowded field, that yes he invented, but how the house creates ‘must-have’ looks, remains to be seen.
Beyond creative shifts, the market saw Tapestry deliver an unexpectedly strong earnings report, raising its annual outlook on the strength of Coach’s continued momentum. The company now expects full-year revenue to exceed $6.85 billion, a 3% increase from the prior year, after already raising its sales guidance in November. The quarter saw an 11% sales increase at Coach, surpassing analyst expectations and reinforcing its position as a dominant player in accessible luxury.
Investors reacted swiftly to the positive news—Tapestry’s shares surged 11% for the week. The company also raised its earnings per share guidance to between $4.85 and $4.90, up from its previous estimate of $4.50 to $4.55. The increase comes, in part, due to a $2 billion accelerated share buyback announced in November.
Tapestry’s focus now turns to improving performance at Kate Spade and Stuart Weitzman. While Coach continues to thrive, Kate Spade’s sales fell 10% in the most recent quarter, and Stuart Weitzman saw a 16% decline. The company must refine its strategy to bring these brands back on track.
This week, NYFW winds down, and the industry has a rare moment of breathing room before the London shows begin. Given the rapid-fire shifts of the past few weeks, that pause couldn’t come at a better time.
Warm Regards,
Kenneth Richard
Chief Impressionist
The Impression
