01—Abstract
Summary
Summary of the 8-K filed August 1, 2024. Cited figures are marked; the original filing is the authoritative source.
Tapestry, Inc. (NYSE: TPR) filed this Current Report on Form 8-K on August 1, 2024 to disclose a leadership change at its Kate Spade brand.
Liz Fraser, CEO & Brand President of Kate Spade, is leaving the Company. She is eligible for twelve months of base salary, her fiscal year 2024 annual incentive plan payment, and severance treatment of her outstanding equity awards, subject to signing a separation and release agreement. She is expected to remain employed through September 1, 2024.
The same day, the Company announced that Eva Erdmann, formerly Global President of Urban Decay at L'Oréal, will join Kate Spade as CEO & Brand President in October 2024. Ms. Erdmann will report directly to Joanne Crevoiserat, Chief Executive Officer of Tapestry, and will join the Company's Executive Committee. The press release describes her as having oversight of all aspects of the Kate Spade business, with a focus on accelerating innovation and sustainable global growth.
The filing also states that Tapestry is maintaining its Fiscal 2024 financial outlook and expects to report fourth-quarter and full-year Fiscal 2024 results on August 15, 2024. The filing further references the proposed acquisition of Capri Holdings Limited and a Federal Trade Commission antitrust lawsuit related to that acquisition, both listed among forward-looking risk factors.
02—Key points
Key Highlights
- Kate Spade CEO & Brand President Liz Fraser is leaving the Company; she remains employed through September 1, 2024.
- Fraser's severance eligibility includes twelve months of base salary, her fiscal year 2024 annual incentive plan payment, and severance treatment of outstanding equity awards, conditioned on a separation and release agreement.
- Eva Erdmann, formerly Global President of Urban Decay at L'Oréal, is appointed CEO & Brand President of Kate Spade, joining in October.
- Erdmann will report directly to CEO Joanne Crevoiserat and join the Company's Executive Committee.
- Tapestry is maintaining its Fiscal 2024 financial outlook.
- Fourth-quarter and full-year Fiscal 2024 results are expected to be reported on August 15, 2024.
- The filing references the proposed acquisition of Capri Holdings Limited and an FTC antitrust lawsuit related to it.
03—Questions
Frequently Asked Questions
Why is Liz Fraser leaving Kate Spade?
The filing announces her departure but does not state the reason for it. The press release quotes CEO Joanne Crevoiserat thanking Fraser for her passion and dedication and noting the advances made under her leadership in refocusing the brand.
What severance is Liz Fraser eligible to receive?
Under her employment offer letter and the Company's severance plan, she is eligible for twelve months of base salary, her fiscal year 2024 annual incentive plan payment, and severance event treatment of her outstanding equity awards. These payments are subject to her signing a separation and release agreement.
Who is replacing Liz Fraser and when do they start?
Eva Erdmann, previously Global President of Urban Decay at L'Oréal since 2018, is appointed CEO & Brand President of Kate Spade. She will join the brand in October, succeeding Fraser, who leaves in September.
Is Tapestry changing its financial guidance?
No. The filing states that the Company is maintaining its Fiscal 2024 financial outlook and expects to report fourth-quarter and full-year Fiscal 2024 results on August 15, 2024.
What forward-looking risks does the filing mention related to Capri?
The filing's forward-looking statements reference the proposed acquisition of Capri Holdings Limited, including the ability to secure U.S. regulatory approval on the expected terms and in a timely manner, and the outcome of a Federal Trade Commission antitrust lawsuit against Tapestry and Capri related to the acquisition.
04—Continue