As if leather goods retailer Tapestry (TPR -1.60%) didn't have enough to worry about with the coronavirus pandemic wrecking its business, its executive offices have also been involved in a whirlwind of turmoil for over a year.
The abrupt departure of Tapestry's newest CEO last month over what turned out to be an investigation into a decade-old misconduct allegation continued what has become a revolving door in the C-suite.
Image source: Tapestry.
No-confidence vote
The owner of Coach, Kate Spade, and Stuart Weitzman brands saw sales more than halved during its fiscal fourth quarter earlier this month, but despite the company beating top- and bottom-line estimates, the market has not rewarded its stock.
Tapestry has been an ailing retail stock. Although its prior fiscal year ended on a positive note, with sales rising 4% on a currency-adjusted basis, it soon after cut its earnings forecast for the coming year and said the Kate Spade brand would continue experiencing difficulties. Long-time CEO Victor Luis suddenly resigned as a result, with board chairman Jide Zeitlin taking his place.
But allegations that resurfaced of Zeitlin luring a woman into a relationship using an alias years ago resulted in his resignation in July and cast a pall over the retailer.
Anyone who put $10,000 into Tapestry on Jan. 1 would have seen their investment begin to plummet even before the pandemic was declared and fall even further during the market rout.
Tapestry's stock has lost 46% of its value since the beginning of the year, meaning you would have lost over $4,600 in that timeframe, leaving you with just $5,391 for your trouble.
