When Tapestry announced two years ago it was buying Michael Kors-owner Capri Holdings in a deal regulators ultimately scuttled, the fashion company argued that the tech and supply chain infrastructure it had built for its Coach brand would allow it to turn around underperforming brands more quickly.

It turns out Tapestry can’t even turn around an acquired brand it has owned for years, well before that Capri news was announced in 2023. Tapestry said on Thursday it had taken a $855 million write-down on Kate Spade largely because of a decline in both current and future expected cash flows along with investments the company is making.

Yet the company keeps claiming Kate Spade, where sales fell 10% last year, can flourish with just a bit more work. But Tapestry bought Kate Spade, beloved

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