“Loyalists” are said to be unhappy with Coach Inc., after the New York-based parent of Coach, Kate Spade and Stuart Weitzman announced on Wednesday that it will change its corporate name to Tapestry Inc., to lessen its ties to the Coach brand and make it clear that it is, in fact, a conglomerate in the making.
As noted by Reuters on Wednesday, “The company’s shares fell as much as 3 percent in early trading,” which analysts have tied to factors external to the name change. However, on social media, users reacted harshly to the 76-year old company changing its well-known corporate identity. “This is bizarre & a strategy departure. Dying to know the logic,” Andrea Wasserman, a former Nordstrom and Hudson’s Bay executive, wrote on Twitter following the news.
Chief Executive Victor Luis, however, downplayed the social media backlash, telling Reuters: “At the end of the day some of the social media reaction is misplaced because people think we are changing the name of the Coach brand, which we are not doing. It’s really about creating a new corporate identity for Coach as a house of brands.”
Luis added that the management had been thinking about changing the company’s corporate name for a while, but made the decision to change it after the acquisition of Kate Spade. The company said the name change will go into effect on October 31 and will start trading under the ticker symbol “TPR” on the New York Stock Exchange.