Coach Inc. is changing its name to Tapestry Inc. to reflect the company’s broader brand umbrella.
The New York-based luxury company, most famous for its designer leather handbags, acquired Kate Spade New York last summer for $2.4 billion, along with the shoe and accessory company Stuart Weitzman in May 2015 for $574 million.
“Following the acquisition of Stuart Weitzman and later Kate Spade, we’ve evolved into a multi-brand organization,” Coach Chief Executive Officer Victor Luis told USA TODAY. “With that evolution we made the decision to change our corporate name to Tapestry Inc. with the objective to create a platform for our shared values and to avoid any confusion between the company and any specific names and the belief that the brands would meld together.”
As the company becomes a collective house of high-end products, Luis confirmed that all of the brands will retain their individual names.
“The Coach and Kate Spade and Stuart Weitzman brands are very distinct brands and entities that have consumers with different attitudes and styles,” he said. “Tapestry is a name that is not rooted in any of these brands. Instead, it is expressive and representative of all three. It’s truly a brand to allow employers and investors to feel like they are part of one company.”
The company’s long-term goals include adding more brands while preserving its upscale image.
“The men's and women's premium market of bags, accessories, footwear and outerwear is the category we’ve chosen to stay in,” Resnick said. The global premium market of handbags, accessories, footwear and outer wear is worth more than $80 billion.
Coach Inc., founded in 1941 in New York, was once a status symbol among luxury shoppers. But in recent years, the oversaturation of Coach bags at outlet shops and malls across the U.S. has caused the company to lose some of its footing with falling sales and profits.
In June 2014, the company announced a three-year strategic plan to revive the brand, according to Luis. This included signing performer Selena Gomez as Coach brand ambassador in December 2016. The actress and singer, who has 128 million followers on Instagram, debuted in her first ad campaign this summer, has helped move Coach back into the spotlight.
Troubled times may be behind the company. Today the company is valued at more than $11 billion.
“The effects of the transformation we put in place three years ago speak for themselves,” Resnick said.
The new name and stock ticker (from COH on the New York Stock Exchange to TPR) will go into effect Oct. 31.