(Reuters) - Tapestry Inc (N:TPR) replaced Chief Executive Officer Victor Luis with long-time Chairman Jide Zeitlin on Wednesday, just weeks after the high-end fashion house cut its full-year earnings forecast and warned of troubles at its Kate Spade brand.
Luis, 51, stepped into the CEO role more than five years ago with the aim of transforming Tapestry into a global fashion house after successfully building the company's business in China, the world's fastest-growing market for luxury goods.
Under Luis, the company changed its name to Tapestry from Coach and added shoemaker Stuart Weitzman and millennial-focused Kate Spade.
But his tenure at the helm has been fraught with challenges as the company struggled to integrate the brands and keep up with latest fashion trends.
Shares have halved during Luis' term as CEO. They were up about 3% in trading before the bell.
"We ultimately came to the conclusion that as much as we believe in our strategy, there was a gap between our strategic intent and operational delivery," Zeitlin told Reuters.
"It made sense to change leadership at the very top."
A former Goldman Sachs (NYSE:GS) executive, Zeitlin has been chairman since 2014 and a director since 2006.
The 55-year-old said he would continue to focus on integrating the two brands, Stuart Weitzman and Kate Spade, with no plans of adding more labels through acquisitions in the near future.
"We feel quite good about where the Coach brand is ... A lot of growth opportunities will come from Kate Spade," Zeitlin said.
Tapestry's board now holds eight members after the departure of Luis and will lead a search for a future CEO, the company said.