Tapestry, Inc. (NYSE:TPR) Q2 2023 Earnings Call Transcript

So the teams are making progress at Kate Spade and building on the foundation. We have a very passionate customer base at Kate Spade. And we are expanding that customer base. We are seeing higher spend per customer. We’re leveraging the full complement of lifestyle categories. We saw mid-teens growth in lifestyle categories at Kate, which we think is an important driver of long-term customer value as we go forward. So we feel good about the progress at Kate and we are investing in the future because we are confident in the future runway ahead.

Scott Rowe: Yes, Mark, just to address your question on churn. The short answer is, yes, we think as we work through the very unusual dynamics that we’ve seen at play this year with elongated lead times by an early disruptions in supply demand stuff, all the things that we’ve been talking about now over the last number of quarters, We are targeting, and we would expect a return to pre-COVID churn levels as we move into the next year. I don’t know exactly when we hit those levels, but that’s certainly in our line of sight, and that’s certainly our intent. And I can tell you internally, we are focusing on that just about every time we get together from Todd from Joanne from myself. So that’s our expectation, and that’s what we’re driving to.

Mark Altschwager: Thank you.

Operator: Thank you. This does conclude our question-and-answer session. I’d be happy to return it — the call over to Joanne for some concluding remarks.

Joanne Crevoiserat: Thank you, and thank you for joining us and for your interest in our story. Today, we delivered record holiday earnings, outperforming our expectations and positioning us to raise our outlook for the fiscal year. A huge thank you to our talented team around the world who continue to drive our results. Importantly, our performance highlights Tapestry’s competitive advantages, the power of our iconic brands and strong consumer engagement platform as well as our globally diversified direct-to-consumer business model. We have a clear strategy to drive significant long-term sustainable growth across our portfolio, and we’re confident in the runway ahead. Thanks again, and have a great day.

Operator: This concludes Tapestry’s earnings conference call. We thank you for your participation.