Bloomberg Talks
00:10:12 · Romaine Bostick, Kailey Leinz, Joanne Crevoiserat
[00:10:12] S0: Come for Keystone. Well, I'm curious about that. [00:10:14] S2: I saw you guys said that there was something like 500,000 thousand new customer acquisitions for Kate Spade brand specifically, even though sales still down. When we talk about that type of customer acquisition, are you looking for folks that are already in the tapestry ecosystem, meaning coach customers that maybe will become Kate Spade customers? Or are you looking for a completely new entrance into the Kate Spade universe? [00:10:34] S3: Well, there are two different customer segments. Coach has a timeless Gen Z that really resonates with the timeless nature of the offering at Coach. And Kate has what we call the Gen Z Connector, who is a customer who really resonates with the feminine, joyful aspects of the Kate Spade brand. So they're very different segments, but both Gen Z... And what we're interested in at Kate is to build that brand and the customer acquisition back with a younger consumer and one who is there for the brand and not for the discount. And so we're being very disciplined about how we step through the phases of this. We have a streamlining phase where we're stepping away from discounts. We're closing unproductive stores. We're really resetting it to a healthier foundation. [00:11:21] S0: Mm-hmm.
00:11:21 · Romaine Bostick, Joanne Crevoiserat, Kailey Leinz
[00:11:21] S0: Mm-hmm. [00:11:21] S3: And then what Jonathan is doing is spending time really understanding the DNA of the brand, the core DNA of what the brand was at its founding, which is very distinctive. When Kate created this brand in the 90s, it was bringing something to the market that didn't exist, something feminine, something joyful, something a little bit different. We're going to take that DNA and make it current and relevant for a young consumer. And that's the sweet spot that we are moving towards. We're sharpening our creative execution. As I said, I got a sneak peek. And I'm really excited for what's to come for Kate. [00:11:56] S0: All right, Joanne. We really appreciate you joining us. [00:11:58] S3: It's been great to be here. [00:11:59] S0: Thank you. Joanne Crevoiserat, the CEO over at Tapestry. [00:12:02] S2: Fresh off that company's earnings, the share is higher by about 6% here on a day where pretty much everything is down.