Fashion

Coach Inc. Announces Name Change to Tapestry Inc.

By Donovan | October 13, 2017 0 Comments

(Above photo): Coach 1941 Fall 2017 at New York Fashion Week.

NEW YORK — Last May, DM Fashion Book published an article, entitled “Could Coach be the next LVMH or Kering?” (see it here). Back then, we also reported that “Coach now wants to transition into a sort of mini-conglomerate, along the lines of French multinational luxury goods conglomerate LVMH and Kering SA, French luxury goods holding company owner of Alexander McQueen, Balenciaga, Brioni, Gucci, Puma, Volcom, Saint Laurent Paris, and other luxury brands.”

We also confirmed that the American multinational luxury fashion company had purchased Kate Spade & Company for $2.4 billion (see it here). Coach brought luxury goods company shoemaker Stuart Weitzman in January 2015 for more than $500 million in cash. Coach was said to also have explored purchasing New York-based brands Diane von Furstenberg and Rebecca Minkoff, the latter of which sold a minority stake to private equity firm TSG Consumer Partners in 2012. (Coach declined to comment).

Does LVMH Moët Hennessy Louis Vuitton SE, better known as LVMH and Kering SA have some serious competition coming?

In the latest round of news, Coach, Inc. will change its corporate name to Tapestry Inc, it said on earlier in the week, as it creates a broader umbrella for its high-end brands without diluting the iconic name known mainly for selling luxury handbags.

According to BoF, The company’s shares were down 2 percent in early trading following the announcement in which Tapestry will be the holding company that will house its Coach, Kate Spade and Stuart Weitzman brands.

“Founded in a loft in Manhattan in 1941, Coach has grown into a multi-billion dollar company, building its business on the success of its Coach handbags that for many years were widely coveted by upscale women shoppers around the world.”

“Coach, however, has lost some of its shine in recent years in part due to the financial recession and increased online shopping. The company is trying to regain its former glory by buying new brands, keeping a tight lid on discounting and pulling back from department stores.”

“We are now at a defining moment in our corporate reinvention, having evolved from a mono-brand specialty retailer to a true house of emotional, desirable brands,” said chief executive officer Victor Luis.

The company said on Wednesday the name change will go into effect on Oct. 31 and will start trading under the ticker symbol “TPR” on the New York Stock Exchange.