Kate Spade, the brand, burst onto the New York fashion scene in the 1990s with a fresh approach to luxury handbags that quickly defined a new American luxe style. The look was minimalist and effortless yet bright and colorful. It scored big with the younger set and has remained popular over the last three decades, creating a kingdom of millennial fans.
Coach, on the other hand, was the epitome of classic, Upper East Side ladies, popular with an older crowd. Cognizant of its shortcomings, however, the brand, now known as Tapestry (NYSE: TPR), made a strategic acquisition of Kate Spade in 2017 to round out its merchandise selection and reach another cohort.
So far, the venture has failed miserably, and the CEO of Kate Spade is making an exit.