Tapestry's stock fell 16.5% in a single session after it reported, and is down 30% over the past month, against a quarter that beat on the top and bottom lines with 28% earnings growth.
Chief executives usually explain a share-price collapse by pointing at the guidance. Joanne Crevoiserat declined the premise altogether — she said she is not an expert on the stock, then spent the segment on the size of the customer base rather than the size of the forecast.
"Did you know that this year, Jim, in the markets we currently serve, 25 million women will turn 18 this year, this year, and every year for the next ten years."
Crevoiserat runs the parent of Coach and Kate Spade, and Jim Cramer noted that her team hit the financial targets set at the company's investor day two years early.
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Here are the 6 arguments that matter.
👤 Guest: Joanne Crevoiserat, Chief Executive Officer of Tapestry, the parent of Coach and Kate Spade
🎙️ Host: Jim Cramer, host of Mad Money and manager of the CNBC Investing Club's charitable trust
📰 Published: 9 September 2026 on CNBC
🔴 CNBC | ⏱️ 44 min
Key Takeaways
The company added 11M new customers last year while raising profitability
25M women turn 18 each year in the markets Tapestry already serves, and will for the next ten years
Win the first luxury handbag purchase, she said, and the customer is won for life
More than 70% of the planned growth is meant to come from outside North America
The growth is not being bought with discounts — she said the company trades on emotion, value and versatility rather than price
$1.7B of cash went back to shareholders last year, against a $4B commitment made at the investor day
She said the company is well ahead of that pace
Young customers give a Kate Spade store about 60 seconds to convince them it is a brand for them
1. A 30% Drawdown On A Beat
Cramer opened by describing a result the market appeared to ignore, and asked her to explain the disconnect.
The stock plunged 16.5% in a single session when the company reported and has kept falling, down 30% over the past month
Cramer's account of the quarter itself: "It's down 30% over the past month, even though Tapestry posted a healthy top and bottom line beat 28% earnings growth, driven by incredibly robust results from Coach." — and he raised the possibility that the forecast was light
He also noted that the financial targets set at the investor day were hit two years early
Crevoiserat said she is not an expert on what moves the stock: "I'm not an expert." She answered on the business instead: "In that department, Jim, but what I can tell you is there are so many good things happening at Tapestry right now."
What she counted as the year's evidence: "We delivered double digit growth around the world. We acquired 11 million new customers to our brands. We did that at increasing profitability."
On the guidance the market did not like: "And we provided an outlook that showed growth on top of the year we just delivered. And we see that well into the future"
2. 25M Women Turn 18
Cramer asked whether analysts simply doubt the company can follow a year that good — the law of large numbers. Crevoiserat answered by redefining the size of the market.
She said: "And as we've redefined our market, our purpose is to give more people the power to bring their own style and story into the world." She put the weight of that sentence on the words "more people"
The figure she used as proof the pool is not exhausted: "Did you know that this year, Jim, in the markets we currently serve, 25 million women will turn 18 this year, this year, and every year for the next ten years."
Those women are the first-purchase opportunity, and she said the payoff compounds: "And when we win with that consumer, not only do we win their first luxury bag purchase, we win a customer for life."
She described that entry-level buyer as a place the company has always played rather than a new strategy
3. Where The Growth Comes From
Cramer said his read of the last conference call is that the biggest opportunity is overseas — China and Europe in particular — at a price point that is premium without being super premium.
She agreed: "And as we talked about during our investor day, over 70% of our growth will come from international markets."
North America remains an opportunity alongside it, she said, rather than being written off
The traction so far is in the two markets Cramer named: she said the company is driving strong double-digit growth in China and in Europe, and that this is what is powering group growth
What she credited it to was capability rather than demand — marketing investment, knowing how to make that investment, and delivering new experiences in those markets
She said the opportunity extends well beyond the near term
4. Not Trading On Price
Cramer pointed out that none of this is being achieved with markdowns, which is unusual in a soft retail tape.
Her answer separated the price point from the reason people buy: "And so we're not trading on price. We're trading on emotion and value and versatility and meeting the consumers where they are."
The process behind it starts with what she called an obsession around the consumer — understanding what they want, where their values are, and where the tensions in their life are
Price is one element of the offer, alongside the innovation and creativity she said the customer is asking for
She described that as a capability built over the last five years and one the company will keep exercising
5. $1.7B Back To Holders
Cramer said he cannot find anything to justify the stock's decline, and that a company in that position has an opportunity in its own shares. Crevoiserat did not argue.
"We see Tapestry as a great investment and we're putting our money where our mouth is. We have returned $1.7 billion of cash to our shareholders last year."
The commitment made at the investor day was $4 billion of cash returned to investors, and she said the company is "well ahead of that pace right now"
She tied the buyback capacity back to operations, margin expansion delivered alongside top-line growth: "It's the disciplines of operating our business with real intention."
That discipline, in her framing, is what makes new customer acquisition profitable rather than expensive, and what produces the cash flow and optionality behind the returns
6. 3 Reasons On Kate Spade
Cramer said he knows she cannot be satisfied with Kate Spade's numbers but believes it is a great brand, and asked what she intends to do. She gave three reasons for confidence, in order.
The first was a customer who stopped her at the stock exchange to describe a bag she owns. Crevoiserat quoted the customer's own words back: the bag "brings me outsized joy," and opening and closing the kiss lock at the top gives her "this uplifting feeling"
The second is a hire: "And the second reason I'm confident is we just hired Jonathan Saunders as our new creative director." She said he values the brand's heritage and will bring it forward with his understanding of color and pattern
The third is the store, and it comes with a clock: "You know, we hear from young customers, they give us 60s. They'll walk into a store, it'll take them a minute to decide whether they want to stay in that store, whether it's a brand for them."
The response to that minute is money in two places — the physical elements of the store, to make it inviting and warm, and training and development for store teams
Her stated aim: "With all of this consumer knowledge that we have, we're bringing it forward and making that experience even better so that we can grab her the second she walks in our door."
Bonus Insights
Cramer introduced her as Joanne, then slipped: "Mr. Bosworth, will you please help us here?" — a mix-up that went unremarked by either speaker
Cramer closed the segment saying he wants to be with the company and that it is very rare to see a stock this far down with fundamentals this far up
Crevoiserat twice used the word muscle to describe capabilities the company has built — pricing and brand-building in one answer, capital return in the next — and Cramer picked the word up and used it back to her
Crevoiserat's bottom line is that the sell-off has nothing she can identify in the business behind it: the company added 11 million customers at higher profitability, guided to growth on top of that, is putting more than 70% of its future growth in international markets, and is buying its own stock well ahead of the $4 billion pace it committed to.
Products, Companies & Tools Mentioned
Tapestry (Crevoiserat's company, down 30% in a month despite 28% earnings growth; returned $1.7 billion to shareholders last year against a $4 billion commitment)
Coach (The brand Cramer said drove the robust results in the most recent quarter)
Kate Spade (The underperforming brand; a new creative director, a store-experience investment and what she called real emotional resonance are her three reasons for confidence)
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