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Speaker 1: One of the big stories of the day and really

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Speaker 1: of the past week involves Tapestry at the luxury goods

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Speaker 1: company out with this latest earnings reports, this just after

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Speaker 1: announcing that acquisition of a big rival, Capri. Joining us

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Speaker 1: right now for an exclusive interview is the CEO of Tapestry,

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Speaker 1: Joanne Cravoica joining us and Joanne, There's been a lot

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Speaker 1: of discussion here about the tie up that was announced

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Speaker 1: with Capri, and I know that's still a long way

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Speaker 1: coming before that finally gets done and more importantly, whatever

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Speaker 1: integration needs to take place gets done. But I am

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Speaker 1: curious as to how you're preparing for that integration here,

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Speaker 1: what type of overlaps are there, and how do you

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Speaker 1: plan on addressing them?

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Speaker 2: Well, in many ways, Romaine, and thank you for having me.

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Speaker 2: It's great to be here. We've been preparing for this

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Speaker 2: for at least the last three years. We've undergone a

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Speaker 2: fundamental transformation in our business to really focus on our

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Speaker 2: brands and brand building and really focus on engaging with

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Speaker 2: consumers at a deeper level and meeting them where they

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Speaker 2: are in an environment where the consumer shopping behaviors are

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Speaker 2: changing rapidly. Transformed our business over the last three years

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Speaker 2: and continue to perform leveraging the power of our brands

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Speaker 2: and the power of our globally diversified direct.

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Speaker 3: To consumer business model.

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Speaker 2: So all of that work that we've done have prepared

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Speaker 2: us for this moment. We've been performing consistently delivering earnings

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Speaker 2: in amid a very volatile backdrop for the last three years,

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Speaker 2: so really showing the power of this model. And we

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Speaker 2: came out with earnings today, so I'd be remiss and

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Speaker 2: not mentioning that we're operating.

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Speaker 3: From a position of strengths.

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Speaker 2: Yeah, we delivered record earnings per share, and we have

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Speaker 2: a platform that we think is scalable, and we're excited

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Speaker 2: about the acquisition of Capri to put those brands on

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Speaker 2: our platform.

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Speaker 1: We'll give us a sense here of like what specifically applies.

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Speaker 1: I mean we talk about we've been talking a lot

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Speaker 1: on this network about the big turnaround and Coach and

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Speaker 1: some of the other brands under the Tapestry umbrella. We

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Speaker 1: know that Capri has some of its brands, particularly Michael Core's,

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Speaker 1: has a lot of catching up to do in that space.

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Speaker 1: Why is whatever the secret sauce was that maybe helped

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Speaker 1: Coach out, Why is that secret sauce somehow also going

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Speaker 1: to be applicable to something like Michael Cores or its

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Speaker 1: other brands.

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Speaker 2: Because it's very clear today that the power of brands

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Speaker 2: and engaging with consumers and what's great about this portfolio

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Speaker 2: and the potential that we see with the Michael Cores

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Speaker 2: or with the pre portfolio overall, First, we play in

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Speaker 2: an incredibly dynamic and large market. It's a two hundred

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Speaker 2: billion dollar market and the accessories, footwear and apparel categories,

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Speaker 2: and it's a market that's proven to be durable and

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Speaker 2: resilient over time.

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Speaker 3: So we love the place we play.

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Speaker 2: And importantly, brands matter, and we're acquiring differentiated brands with

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Speaker 2: clearly differentiated positioning in the market, and brands that give

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Speaker 2: us access to new consumer segments and higher end luxury consumer,

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Speaker 2: which is an incredibly resilient consumer. And as I said,

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Speaker 2: the work that we've done over the last three years

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Speaker 2: to transform our company is really to focus on brand

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Speaker 2: building number one.

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Speaker 3: We have made that focus.

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Speaker 2: We've made investments in being able to engage consumers in

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Speaker 2: digital channels that requires capabilities, investment technology. We've made those

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Speaker 2: investments and we're ready to scale those investments We've also

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Speaker 2: put data in the hands of decision makers and that's

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Speaker 2: enabled us to get closer to our consumer and acquire consumers,

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Speaker 2: and importantly acquire younger consumers, which is important for every

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Speaker 2: brand in the market. Today we talked about we just

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Speaker 2: delivered our results the customer acquisition we've done. Half of

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Speaker 2: those customers have been young, millennial and Gen Z consumers

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Speaker 2: this year.

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Speaker 4: Well, Joanne, let's talk about some of those brands. Because

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Speaker 4: as part of the portfolio that you're acquiring with Capri,

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Speaker 4: you have Michael Cores. What are some of the things

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Speaker 4: we're going to be prioritizing in Michael Core's turnaround, for example,

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Speaker 4: are you going to hire a new creative director.

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Speaker 2: Well, it's certainly early to talk about our specific strategies.

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Speaker 2: We're working very hard towards the closing of this transaction,

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Speaker 2: but I'll tell you what we saw. We've done a

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Speaker 2: lot of work leading up to this transaction and true

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Speaker 2: Tapestry Fashion, we're data led, right, We've done a lot

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Speaker 2: of research in the market. These are strong brands, including

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Speaker 2: Michael Cores. They're strong brands. They're well positioned in their

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Speaker 2: market with unique and distinctive customer segments. That's a great

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Speaker 2: place to be to start with brands that have tremendous

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Speaker 2: awareness and tremendous brand equity.

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Speaker 3: That's a great starting point.

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Speaker 2: We think as we take the learnings that we've had

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Speaker 2: over the last three years and the investments that we're making.

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Speaker 2: Remember we've doubled our marketing investments over the last three

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Speaker 2: years in our own portfolio. Right, We've developed the capabilities

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Speaker 2: to reach consumers where they are. So that is the

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Speaker 2: focus we're bringing to the brands. It's too early to

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Speaker 2: talk about leadership management all of that. That we see

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Speaker 2: tremendous runway ahead and all of that is in front

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Speaker 2: of us.

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Speaker 4: Well, Joanne, we are up against the clock. But I

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Speaker 4: am curious, if curious, if you're worried at all about

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Speaker 4: regulator scrutiny here as you try to close this deal.

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Speaker 2: Well, we're confident in our ability to close this deal.

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Speaker 2: And as I said, we play in a very fragmented,

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Speaker 2: large market, two hundred billion dollar market, very fragmented, and

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Speaker 2: as I said, this combination one of the best things

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Speaker 2: about this for Tapestry.

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Speaker 3: It's a highly complementary.

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Speaker 2: Acquisition in that it stretches our reach into new consumer

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Speaker 2: segments and it's complementary from a geographic perspective as well

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Speaker 2: as at product categories. So they have strengthened product categories

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Speaker 2: that we can learn from. They have strengthened geographic regions

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Speaker 2: that we can leverage, and vice versus. So we're excited

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Speaker 2: about the opportunities ahead.

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Speaker 1: All Right, jo, I really appreciate you taking time for us.

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Speaker 1: I know you've got a lot of work ahead of you.

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Speaker 1: Here join okor Voice Sarachi is the CEO over at

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Speaker 1: Tapestry