Plus   Neg

Why Is Coach Changing Its Name?


New York-based luxury retailer Coach, Inc. (COH) said Wednesday that it is changing its name to Tapestry Inc. (TPR), effective October 31, 2017. The company noted that the move will help to better include the two other brands that it owns - Stuart Weitzman and Kate Spade.

Three years ago, Coach laid its vision to transform the company and announced its intention to grow beyond the Coach brand.

The company noted that through the execution of its strategic plan, and with the acquisition of Stuart Weitzman in 2015 in a deal valued up to $574 million as well as the acquisition of Kate Spade & Co. for $2.4 billion this summer, it has realized these goals.

Stuart Weitzman is an upscale shoe brand, while Kate Spade is a high-end handbag and apparel maker. According to Coach, the acquisition of these brands have enabled it to evolve from a mono-brand specialty retailer to a "house of emotional, desirable brands."

Coach noted that each of its brands are unique and independent, and are built upon the shared values of optimism, inclusivity and innovation.

"We searched for a name to reflect these values while also expressing the cultural diversity of our people and our brands for today and tomorrow. In Tapestry, we found a name that speaks to creativity, craftsmanship, authenticity and inclusivity on a shared platform and values," Victor Luis, Chief Executive Officer of Coach, said.

Coach said it partnered with brand agency Carbone Smolan Agency on all aspects of the rebrand.

Coach's decision to change its name was initially met with customer outrage, but the anger subsided after customers realized that they would still be able to buy Coach-branded products.

The company's common stock, currently traded on the New York Stock Exchange under the symbol "COH,"z which will change to "TPR" on October 31, 2017.

Shares of Coach declined 2.8 percent on Wednesday to close at $38.87 following the announcement.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Follow RTT