Coach Inc, the iconic New York purveyor of leather goods, is changing its corporate name to Tapestry Inc, a bid to broaden its image after acquiring the Kate Spade and Stuart Weitzman brands.
The new moniker is to take effect at the end of this month, and Coach also plans to change its stock symbol to TPR from COH.
“We are now at a defining moment in our corporate reinvention,” chief executive officer Victor Luis said on Wednesday in a statement. “In Tapestry, we found a name that speaks to creativity, craftsmanship, authenticity and inclusivity on a shared platform.”
The fashion house is building a multibrand company at a time when the handbag industry is facing waning demand and retailers are struggling with declining traffic at brick-and-mortar stores.
Coach bought Kate Spade earlier this year and shoemaker Stuart Weitzman in 2015 to grow into a broader lifestyle company.
The Coach brand is not going anywhere, even as the company changes its corporate identity, but executives are striving to show that they are not dependent on the Coach business to fuel growth, Luis said in an interview, adding that the name was partly aimed at reducing the confusion that consumers have over the Coach and Kate Spade brands.
“When Coach was one brand, that was very easy — the company and the brand were one and the same,” Luis said. “That’s no longer the case.”
However, the name change did not go over well with investors.
Coach shares on Wednesday fell as much as 3.2 percent to US$38.72 in New York, the biggest intraday drop in two months. The stock had gained 14 percent this year through Tuesday’s close.
Founded in 1941, Coach has relied on its New York heritage and prestige to fend off European imports. However, sales have begun to dwindle in recent years amid competition from Kate Spade and Michael Kors Holdings Ltd.
It has been selling less to department stores, a channel battered by deep discounts. Coach also has stepped up its digital marketing and tapped actress and singer Selena Gomez as brand ambassador to build buzz.
The Tapestry name, wrapped in a yellow “happy color,” is supposed to project a bright and fresh image, Luis said.
“We made a commitment to be approachable,” he said. “It’s not something so exclusive and off-putting, but quite inviting.”
SELF-SUFFICIENCY: Alibaba is one of a number of Chinese firms that has answered Beijing’s call to invest in the development of cutting-edge technologies Alibaba Group Holding Ltd (阿里巴巴) yesterday unveiled a new server chip that is based on advanced 5-nanometer technology, marking a milestone in China’s pursuit of semiconductor self-sufficiency. The Chinese tech giant’s newest chip is based on micro-architecture provided by the SoftBank Group Corp-owned Arm Ltd, it said. Alibaba, which is holding its annual cloud summit in Hangzhou, China, said that the chip is to be used in its own data centers in the “near future” and would not, for the time being, be sold commercially. “Customizing our own server chips is consistent with our ongoing efforts toward boosting our computing capabilities with better
Production at Taiwan Semiconductor Manufacturing Corp’s (TSMC, 台積電) fabs was not affected by a fire at a construction site for a water recycling facility in the Southern Taiwan Science Park in Tainan. The world’s biggest contract chipmaker said that the construction site is not adjacent to its fabs, which were unaffected. CTCI Corp (中鼎工程) is responsible for the construction of the facility, which it is to operate itself once it is completed, the chipmaker said. The facility caught fire at about 11am, and the blaze was brought under control about 30 minutes after the incident was reported, the Southern Taiwan Science Park Administration
‘SHORT-TERM ECONOMIC PAIN’: A military takeover would only temporarily weigh on wafer production on both sides of the Taiwan Strait, IC Insights said Taiwan has more chip manufacturing capacity than any other economy in the world, US-based market information advisory firm IC Insights said in a research paper last week, cautioning that the nation’s strength could prompt China to attempt to take over Taiwan. Taiwan commanded 21.4 percent of global installed IC capacity, ahead of South Korea’s 20.4 percent, Japan’s 15.8 percent and China’s 15.3 percent, North America’s 12.6 percent and Europe’s 5.7 percent, IC Insights said. Taiwan is one of two countries that uses 10-nanometer technology or better to produce wafers, holding 62.8 percent of global capacity, with South Korea holding the remaining 37.2
AGGRESSIVE STEP: With the new processors, Apple is aiming at the high-end chips Intel has provided for the MacBook Pro and other top-end Macs for about 15 years Apple Inc on Monday took the most aggressive step yet to strip Intel Corp chips from its computers, announcing more powerful homegrown Mac processors alongside a total revamp of its MacBook Pro laptop computers. The company showcased the chips at an event called “Unleashed,” which also included its latest audio products. The new components, called the M1 Pro and M1 Max chips, are 70 percent faster than its M1 predecessors, Apple said. It also unveiled a redesigned MacBook Pro, adding larger screens, MagSafe charging and better resolution. With the new processors and devices, Apple is aiming squarely at the high-end chips that Intel has