New York-based luxury accessories and lifestyle house Tapestry has ousted its CEO suddenly due to the company’s poor sales results and plunging share price. 

Tapestry – parent of Coach, Stuart Weitzman and Kate Spade – has lost more than half of its value within the last year, from US$50 to $20.44 on Tuesday. 

The company announced overnight that CEO Victor Luis would leave both his executive role and his seat on the board with immediate effect. He has been replaced by Jide Zeitlin (pictured above) as CEO, the board’s current chairman who will continue in that role as well.

The company has also named Susan Kropf, a current member of the Tapestry board, as lead independent director.

Luis has led Tapestry for five years and in its announcement, Zietlin paid tribute to Luis’ achievements. 

“Early in his tenure, he was a critical part of Coach’s development outside of North America, first as president and CEO of Coach Japan and then assuming responsibility for the brand’s entire international organisation. Over the past five years as CEO, Victor was instrumental in the successful transformation of Coach and the establishment of Tapestry as New York’s first house of modern luxury lifestyle brands.”

Luis oversaw the acquisition of luxury footwear brand Stuart Weitzman. However, three weeks ago Tapestry disappointed shareholders and analysts after its latest add-on Kate Spade, showed weak growth. Fourth-quarter profit fell from $212 million to $149 million on sales of $1.5 billion.

Zeitlin said the board remains committed to Tapestry’s multi-brand model, while recognising the need to sharpen its focus on execution, 

“Given the continued strength and momentum at Coach – the largest brand at Tapestry – our top priority remains driving significantly improved performance at our acquired brands.”