Kate Spade CEO and Brand President Anna Baskt will leave the company at the end of this year, marking the industry’s latest top executive departure. CFO Joanne Crevoiserat will work closely with the brand’s senior leadership to oversee Kate Spade’s strategy and operations while parent company Tapestry searches for Baskt’s successor.
“We thank Anna for the passion and commitment she has brought to her work at Kate Spade,” said Jide Zeitlin, Chairman and CEO of Tapestry in a statement. “We are moving ahead quickly with a search process. Our strong Kate Spade leadership team, working with Joanne, will take the business forward aligned with [Creative Director] Nicola Glass’ creative vision.”
Kate Spade’s performance is currently on track for the company’s goals, and Tapestry is “confident in our ability to meet our holiday season goals,” according to Zeitlin. This could represent the start of a turnaround for the luxury fashion house, which saw net sales drop 2% year-over-year to $1.36 billion during its latest quarter. Additionally, net income sank from $122.3 million to $20 million, excluding $76 million in charges related to a change in how it accounts for store leases.
The decline was spurred by the Kate Spade brand, which saw global same-store sales drop 16% during the quarter. Kate Spade generated $306 million in revenue during the quarter, but Zeitlin said that the business has the potential to reach more than $2 billion in annual sales.