AI is now part of Coach and Kate Spade designers' workflow

Designers at Coach and Kate Spade are embracing artificial intelligence as part of their creative workflow. During a recent earnings call, Tapestry's CEO Joanne Crevoiserat discussed the company's investment in AI technology. She revealed that while designers begin their work with traditional hand-drawn sketches, AI plays a crucial role in enhancing the design process. Crevoiserat explained that AI assists designers in iterating on their sketches, allowing them to make quicker adjustments and explore color variations that were previously time-consuming. "There is still a human and a need for design eye, right?" she remarked, emphasizing the importance of the initial human touch in design. The integration of AI tools has not only accelerated creative processes but has also improved supply chain efficiency and product development timelines, ultimately contributing to the company's growth. Coach and Kate Spade are renowned for their luxurious yet affordable handbags, which appeal to consumers seeking aspirational luxury. Tapestry is not alone in this trend; other fashion brands are also leveraging AI in their design studios. For instance, a designer from Alice + Olivia described AI as a "creativity explosion," noting that their latest collection featured prints inspired by tarot cards, crafted with AI tools like Leonardo AI and Adobe Firefly. Furthermore, LVMH's IT director revealed that their design teams are using AI for mood board generation. Independent designers are also tapping into AI's capabilities. Singapore-based silk designer Jasline Ang shared that she utilizes ChatGPT and Midjourney for social media visuals, although she finds these tools less effective for her core artistic processes. In its latest financial report, Tapestry announced a second-quarter revenue of $2.5 billion, marking a 14% increase from the previous year. The company's stock surged by over 10% following the positive earnings report, reflecting a remarkable 95% increase over the last year. Coach's sales were a significant driver of this success, with a notable 25% year-over-year increase, largely attributed to the popularity of the Tabby handbag collection among Gen Z consumers. In contrast, Kate Spade experienced a 14% revenue decline to $360 million, which Crevoiserat attributed to a strategic reduction in promotional activities.