Coach Inc. (NYSE: COH) has officially announced its decision to rename itself and the new name of the brand will be Tapestry Inc. The move comes after a couple of acquisitions expanded the brand's product well beyond what it originally started out with. The change of name is being undertaken to reflect the broader product range that now falls under its umbrella.
As readers may remember, the Coach brand acquired Kate Spade New York for a sum of $2.4 billion last year and also acquired the Stuart Weitzman accessories company in 2015. The latter deal was concluded at a price of $574 million. With these two brands now falling under its own brand umbrella, Coach has decided to go in for a makeover of the name to reflect the two new brands it now has.
Tapestry Inc represents a multi-brand company
According to the CEO of the well-known luxury brand, the new name represents the multi-brand organization that Coach has now evolved into. The idea is to also avoid confusion between the Coach brand products and other brands. However, it has also been confirmed that all the brands will continue to sport their individual names as of now. Coach or Tapestry as it will be known soon, is now officially a brand that will house different high-end products. The move comes as the management accepts that the Coach, Kate Spade, and Stuart Weitzman brands all have very distinct personalities and niche audiences that cannot be clubbed under one of these names. The new name does not have roots in any of the individual brands and thus is hoped to work well.
Hoping to end oversaturation woes
Coach has not exactly been witnessing its best period in recent times. A major reason for a dip in its sales and profits is that it oversaturated the market with too many outlets, leading to poor sales. As early as in June, the company had already started taking a serious look at its books and thinking about revival plans to give the brand a new lease of life. The sign up of Selena Gomez as brand ambassador seems to have been a step in the right direction in this respect. Since then, the company appears to have regained some of its lost footings, and today, its value is slightly over $11 billion.