Designers at Coach and Kate Spade have added AI to their design workflows.
During Thursday’s earnings call, CEO Joan Crevoissera was asked where and how Tapestry is investing in AI.
She answered that while Coach and Kate Spade designers now use AI in their daily work, the design process begins with hand-drawn sketches.
“It shows that humans still exist and need an eye for design,” Crevoissera said. “They do a sketch. But what AI helps with is being able to iterate on that sketch.”
“They can do color multiplication. They can do design tweaks much faster than before,” she added.
He said AI tools have shortened supply chain and product development timelines, which is driving the company’s growth.
Coach and Kate Spade are both known for their affordable luxury handbags and are popular with luxury shoppers.
Tapestry isn’t the only fashion company implementing AI in its design studio.
Designers at fashion label Alice + Olivia told The Wall Street Journal in January that they consider AI an “explosion of creativity,” and that the brand’s recent collections include prints inspired by tarot cards generated by AI tools such as Leonardo AI and Adobe Firefly.
LVMH’s IT and technology director told the Journal in June that the French luxury goods giant’s design team uses AI to generate mood boards for inspiration.
Smaller independent designers are also using AI in their processes. Business Insider reported in September that Jaslyn Ang, a Singaporean silk designer who has worked at Goyard and Louis Vuitton, uses ChatGPT and Midjourney to create visuals for social media campaigns. However, Anne said that these tools are not helping her with the production itself.
Tapestry’s second quarter revenue was $2.5 billion, up 14% year over year. The company’s stock rose more than 10% on the positive results. 95% increase over the past year.
Coach sales were a major contributor to the company’s success last quarter, increasing approximately 25% year-over-year. Crevoisella said this was driven by Coach’s Tabby handbag collection, which is popular with Gen Z customers, Tapestry’s target demographic.
However, Kate Spade reported a 14% year-over-year drop in revenue last quarter to $360 million. Crevoisserat said this was due to a deliberate attempt to reduce Kate Spade’s promotional efforts.
