When Eva Erdmann stepped into the role of chief executive officer at Kate Spade New York in the fall of 2024, she walked into a heritage brand facing a familiar challenge in the modern retail landscape. Owned by Tapestry Inc., the iconic fashion house had seen its revenue decline over multiple consecutive quarters, prompting the parent company to seek a strategic shift. Erdmann was tasked with leading a comprehensive turnaround, aiming to right the ship by streamlining operations, reducing reliance on heavy promotional discounting, and refocusing the brand on the demographic she believes is the most influential in history: Gen Z.

For Erdmann, who spent much of her career in the beauty industry—most recently serving as global president of Urban Decay at L’Oréal—the transition to the fashion sector felt remarkably natural. Despite the differing operational specifics of beauty versus apparel and accessories, she recognized a fundamental commonality between the two industries: they both deal in emotional products. According to Erdmann, great brands do far more than simply move merchandise; they shape culture, project a distinct vision of the world, help people feel differently about themselves, and offer solutions to their emotional needs.

The strategy under her leadership involves leaning heavily into the playful, whimsical DNA that originally defined Kate Spade when it launched in 1993 with just six foundational handbag designs. Founded by co-founder Kate Spade—who later changed her name to Kate Valentine in 2016 to separate her personal identity from the global business—the brand quickly became a social phenomenon in the 1990s. The company’s trajectory saw it sold to Neiman Marcus in 2006, followed by a subsequent acquisition by Liz Claiborne, before Tapestry acquired the business for $2.4 billion in 2017. Tragically, designer Kate Spade died in 2018, leaving behind a legacy that continues to resonate globally.

Today, Erdmann is seeking to channel that original 1990s spirit not through hollow nostalgia, but by capturing the underlying feeling of the era—an era before smartphones dominated high schools, when human connection and real-life moments took center stage. In a fragmented and uncertain world where many young consumers feel isolated and anxious, Erdmann believes a brand anchored in optimism, lightness, and joy has a vital role to play.

This philosophy is physically manifesting in the brand’s product offerings, which range from quirky animal-shaped bags to accessories nodding heavily to New York City heritage, such as a bagel-shaped bag charm or a wallet cleverly designed to resemble a subway MetroCard. These whimsical touches are paired with high-profile marketing campaigns designed to capture youth culture. South African singer Tyla recently became a global brand ambassador, while other recent marketing efforts have featured prominent cultural figures including Ice Spice, Laufey, and Charli D’Amelio.

Navigating this transition has required bridging lessons learned from the consumer packaged goods and beauty sectors with the distinct creative demands of fashion. Erdmann brought a rigorous discipline around consumer-centricity to Kate Spade, emphasizing the importance of testing ideas before making heavy financial investments and focusing on the creation of "hero products." Building a hero product establishes long-term trust with consumers, assuring them that their investment will remain relevant season after season.

One of the most striking discoveries Erdmann made upon joining the company was the depth of emotional attachment consumers hold toward the brand. While casual acquaintances discussing other labels might comment purely on aesthetics, people speaking about Kate Spade almost invariably share personal narratives—the first handbag purchased for a first job, a graduation gift from a mother, or an engagement present from a sister. This unique emotional connection is further underscored by the thousands of heartfelt letters the brand receives every month from consumers expressing their affection rather than asking for discounts. These letters now adorn a wall in the company’s offices, serving as both a daily reminder of the brand’s core equity and a testament to its enduring cultural footprint.

Balancing this rich heritage with a necessary business turnaround requires a delicate touch. Erdmann often reminds her teams to look both forward and backward—respecting the true essence of the brand by studying vintage archives, hardware, and interior details from the company’s earliest years, while modernizing those elements for today’s market. She notes that when Kate Spade first emerged in the 1990s, it offered a revolutionary alternative to the prevailing corporate uniform for women, which often required mimicking traditional masculine attire with heavy shoulder pads and severe suits. Instead, the brand provided functional work bags infused with wit and femininity, granting women the freedom to be both professional and feminine, career-driven and maternal, all at once.

Addressing the competitive pressures of the current market, particularly at the accessible luxury price point, Erdmann points to the brand’s enviable position regarding market entry. With millions of young consumers turning 18 each year and searching for their first serious luxury handbag, Kate Spade is strategically positioned to capture that critical milestone.

The ongoing turnaround effort has intentionally impacted short-term financial results as leadership implements sweeping operational changes. These include closing unprofitable retail stores, elevating the overall in-store and digital customer experience, rebuilding marketing investments for long-term brand health, and dialing back on promotional markdowns. To support these strategic shifts, Erdmann has reinforced internal teams across design, consumer insights, and marketing, ensuring that the brand maintains agility while prioritizing rigorous consumer testing.

While the primary acquisition focus centers on Gen Z—a demographic Erdmann describes as remarkably homogeneous globally in its craving for real-life connection and moments of joy—the brand continues to cater to its multi-generational following across Millennials and Gen X. Data indicates a powerful "halo effect": when a brand successfully captures the obsession of Gen Z, a trickle-down effect naturally stimulates growth across all other age groups.

As she oversees this multi-faceted transformation, Erdmann tracks both traditional lagging financial indicators like sales and customer acquisition alongside critical leading indicators of brand health, including consumer consideration, engagement metrics, and organic search interest. Equally important to her monitoring process is the internal culture of the company, recognizing that a sustainable brand transformation ultimately depends on fostering a human environment where teams feel empowered to test new ideas, express creativity, and share a deep passion for the iconic house they are working to reinvent.