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Fashioning A New Future For Tapestry

July 25, 2025

Tapestry owns a fashion brand called Coach, which has been struggling for years. I am alerting the shares for two reasons. First is the power of the chart breakout, which comes after 19 years of sideways trading. Second is the appointment, in July 2020, of Joanne Crevoiserat as chief executive. She arrived at Tapestry in 2019 as CFO, but made a great impression because within a year she became chief executive, since then the shares have not looked back.

In the latest quarterly report, which shows strong growth in customers and sales, and a 27% increase in earnings per share, Joanne Crevoiserat constantly refers to brand heat, a concept I haven’t encountered before.

“Brand heat” refers to the level of excitement, buzz, and positive perception surrounding a brand, often measured by its ability to capture consumer attention and generate positive word-of-mouth. It’s about creating moments that resonate with consumers, making them feel connected to the brand and prompting them to talk about it. Essentially, it’s a measure of how “hot” a brand is in the eyes of its target audience. 

AI Overview

Brand heat is at the heart of the group’s strategy.

Our strategies are informed by Tapestry’s growth model with a focus on building brand heat, relevant product innovation, and compelling experiences. As we build a healthier brand, we will be closely tracking leading indicators of progress along the way, informed by our learnings and success at Coach. These include first, increasing unaided brand awareness and search interest followed by an improvement in traffic and customer acquisition, which will ultimately compound to drive top line growth.

Joanne Cervoiserat, CEO, Tapestry, Q3 2025, 8 May 2025

Coming up on 10 September is an Investor Day.

Tapestry, Inc. (TPR), a house of iconic accessories and lifestyle brands, will host an Investor Day on Wednesday, September 10, 2025 in New York City. The event will highlight Tapestry’s long-term strategic growth initiatives and financial outlook, featuring a series of presentations as well as a question and answer session with members of the Company’s senior leadership team, including Joanne Crevoiserat, Chief Executive Officer, and Scott Roe, Chief Financial Officer and Chief Operating Officer.

Tapestry news, 2 July 2025

I like investor days first because the company needs to work out exactly what its long-term plans are, which is always a valuable exercise. Secondly, because they must believe that investors will find those plans exciting, which is likely to be positive for the shares.

The other good news is that when a struggling company begins to perform dramatically better under new leadership, this is often a sign that the business is entering a virtuous circle of growth. Fashion businesses can do extremely well if new leadership can create a new perception of the brand, just as appears to be happening.

Coach is mainly about accessories and is having great success with its Coach Tabby bags. There are many different ones, 100s I think, and each bag has notes like ‘almost gone’, ‘sold out’, ‘best seller’ against the picture.

How can a bag be sold out? They are not made in limited quantities, so it must be all about whipping up brand heat. They look attractive, and they are extremely reasonably priced, which, I guess, is why they are having such success with Gen Z (13 to 28 years old) and millennials (29 to 44 years old).

I can imagine that they could sell stupendous quantities of these bags to women who need an attractive, status symbol, good quality bag and to women who buy more than one bag for different types of occasions.

The company has its retail locations.

Yes, Coach has its own retail stores. These are separate from department stores and outlet locations. Coach operates over 1,000 directly operated locations globally, including North America, Japan, China, Singapore, Taiwan, Malaysia, Korea, and Europe. In London, specifically, there are several Coach stores, including locations in Westfield Stratford, Regent Street, Canary Wharf, St Pancras, Brompton Road, and Heathrow T2. 

AI Overview

It also sells wholesale through department stores and the like, and has a direct-to-consumer operation.

I can see that it is all about brand heat. Affordable ‘hot’ bags are going to sell in huge numbers, and there will be spin-off benefits to the rest of the brand. If Coach is making the transition from ‘cold’ to ‘hot’ under a management team that knows what it is doing, no wonder the shares are performing so well.

I suppose an excellent way to decide whether you want to buy the shares is to look online or visit a shop and see if you want to buy the bags. I can easily imagine buying bags for my daughters, although my eldest daughter, for historical reasons, already has a vast collection. It seems women can never have enough bags. Victoria Beckham has invested millions in Hermes bags.

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Tapestry TPRY

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