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    How A New Kate Spade CMO At Tapestry (TPR) Has Changed Its Investment Story

    Simply Wall St·07/18/2026 23:22:25
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    • Kate Spade New York, owned by Tapestry, recently appointed Allison Badea as its new Chief Marketing Officer, replacing interim CMO Kaisy Mae O'Reilly after 14 consecutive quarters of sales declines.
    • This leadership change highlights Tapestry’s renewed focus on reviving a persistently underperforming label that has already prompted a very large noncash impairment charge.
    • We’ll now examine how appointing a new CMO at Kate Spade could influence Tapestry’s investment narrative and brand turnaround efforts.

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    Tapestry Investment Narrative Recap

    To own Tapestry, you have to believe that Coach’s strength, international expansion, and direct to consumer investments can offset Kate Spade’s drag, tariff pressures, and high debt. The new Kate Spade CMO is directly tied to the biggest near term swing factor: whether that underperforming brand can stop eroding margins after a very large noncash impairment. The appointment matters for sentiment, but it does not change the immediate tariff and cost headwinds.

    The most relevant recent development is Tapestry’s US$850 million noncash impairment tied to Kate Spade, which underscored how deeply the brand has struggled. Combined with the 14 straight quarters of sales declines, it frames the new CMO hire as a test of whether increased marketing and omnichannel spending can eventually pay off instead of just inflating SG&A. How this plays out will feed directly into the key catalysts around margin improvement and operational efficiency across the group.

    Yet beneath the leadership headlines, there is a separate risk investors should be aware of around Kate Spade’s long term relevance and its exposure to shifting consumer tastes...

    Read the full narrative on Tapestry (it's free!)

    Tapestry's narrative projects $9.1 billion revenue and $1.6 billion earnings by 2029. This requires 5.0% yearly revenue growth and an earnings increase of about $0.9 billion from $662.8 million today.

    Uncover how Tapestry's forecasts yield a $166.60 fair value, a 18% upside to its current price.

    Exploring Other Perspectives

    TPR 1-Year Stock Price Chart
    TPR 1-Year Stock Price Chart

    While this CMO change aims at brand revival, the lowest estimate analysts were already projecting about US$8.6 billion of revenue and US$1.7 billion of earnings, so you can see how much more cautious they were on margin execution and long term brand strength compared with the baseline view.

    Explore 5 other fair value estimates on Tapestry - why the stock might be worth 21% less than the current price!

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.