Baird Applauds Tapestry's New CFO Pick

Tapestry Inc TPR announced its new chief financial officer hire Wednesday.

The Analyst 

Baird analyst Mark Altschwager reiterated an Outperform rating on Tapestry with a $43 price target.

The Thesis

Joanne Crevoiserat is the luxury fashion brand's new CFO effective Aug. 1. 

The announcement reaffirmed Baird's confidence in Tapestry, Altschwager said in a Wednesday note. (See his track record here.) 

“We believe Ms. Crevoiserat’s background will prove to be an asset to Tapestry as it evolves as a multi-brand organization — with her track record of financial discipline, transformational leadership experience, and understanding of next-generation consumers giving us increased confidence in Tapestry’s longer-term outlook,” the analyst said. 

Most recently, Crevoiserat served as executive vice president and COO at Abercrombie & Fitch Co. ANF from February 2017 to June 2019.

She's also held senior management roles at Kohl’s Corporation KSS, Walmart Inc WMT and the now-defunct May Department Stores.

Baird is familiar with the exec from her time at Kohl’s and Abercrombie & Fitch, two companies the firm covers, Altschwager said. 

“She is joining an organization that is in a much stronger position than its current valuation would suggest in our view," he said. 

Crevoiserat's financial and strategic leadership skills will be an asset to the parent company  of Coach New York, and lend increased confidence to Tapestry's earnings power, the analyst said. 

Price Action

Tapestry shares were 0.82% higher at $30.73 at the time of publication Thursday. 

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