After the acquisition of Kate Spade Coach Group ambition is greater, the US version of LVMH ready. According to Bloomberg News, the United States light brand Coach Group will be renamed Tapestry, to reflect its multi-brand light luxury group as a new form. Entered into force on October 31, after the renaming of the Group's code on the New York Stock Exchange will change from 'COH' to 'TPR'.
Group CEO Victor Luis said in the statement, the current group to Coach independence situation has changed to become a three independent brands of integrated light luxury group, so the original name is no longer applicable.Currently in addition to Coach, The group also has Stuart Weitzman and Kate Spade two brands.
Victor Luis joined Coach Group as its chief executive in 2013. Under its leadership, Coach Group, which is more than $ 10 billion in market capitalization, has launched a comprehensive acquisition strategy to enrich its brand matrix in 2015. Victor Luis stressed that the new name 'Tapestry' The future of the Group will be no longer limited to the field of clothing, will have unlimited possibilities. Analysts, Coach Group, the name of the United States said the first light luxury fashion group was born.
In 2015, the Coach Group spent $ 574 million to buy Stuart Weitzman. On May 8, the group retreated Michael Kors for $ 2.4 billion. Kate Spade said that the deal would further optimize the Coach Group Of the portfolio, and for the Group to introduce new brand attitudes and consumer groups.
In order to make Victor Luis more focused on the design and implementation of the Coach Group's acquisition strategy, the former Group also appointed Joshua Schulman to succeed Victor Luis as the CEO of the brand, Joshua Schulman will be responsible for all the business in the brand, joined Bergdorf Goodman Five years later, Joshua Schulman officially left office on May 10, when he also served as Jimmy Choo's chief executive officer, and has served as executive vice president of Gucci, its strength has been recognized by many industry people.
Victor Luis believes that Asia is Kate Spade's most promising market, with consumer awareness of 10% in China and 23% for Coach. In the Japanese market, Kate Spade has a recognition of 11% and Coach is 50%. According to the data show that the global handbag and accessories market value of 41 billion US dollars, while the footwear market value of up to 28 billion US dollars, so the footwear products will be the focus of the development of the Coach Group, a department, while Coach is also developing outdoor clothing business , The market value of the market amounted to 10 billion US dollars.
Victor Luis stressed that after the completion of the acquisition of Kate Spade, Coach Group will face a value of up to 80 billion US dollars in the light of the market, need to Coach, Stuart Weitzman and Kate Spade three brands to seek leverage.
On 12 July, Kate Spade officially withdrew from the NYSE to become a wholly-owned subsidiary of the Coach Group. Under the terms of the transaction, Kate Spade's shareholders received $ 18.5 per share in cash, totaling $ 2.4 billion, and the Coach Group Bank loans with $ 1.2 billion in cash payments are worth noting that, after announcing the acquisition of Kate Spade, Coach Group CEO Victor Luis has said it does not want too many consumers to know the deal, and said the next two The brand will remain independent operations.According to the data show, Kate Spade last year net profit recorded $ 153.6 million, revenue was $ 1.38 billion.
Although the first to launch the acquisition, but the Coach Group is still facing from the main rival Michael Kors step by step pressing the market pressure in the Coach Group acquisition of Kate Spade just two months later, Michael Kors announced $ 1.2 billion acquisition of British luxury shoes Jimmy Choo Michael Kors Chairman and CEO John D.Idol said in an interview that the acquisition of Jimmy Choo marks the company officially began to transition to the global multi-brand group.
In the fourth quarter ended July 1, Coach Group net profit rose 85% year on year to $ 152 million, sales rose 6% to $ 1.13 billion, far lower than analysts had expected $ 1.53 billion .2012 fiscal year, Coach Group sales were also lower than analysts expected, with the previous fiscal year was flat at $ 4.49 billion, net profit rose 28.2% to $ 591 million after the news came, Coach Group Day market value of evaporation of 2 billion US dollars.
As of the end of the reporting period, Coach brand in the world a total of 962 stores, of which 199 are located in Hong Kong, Macau, including Greater China, Stuart Weitzman in the world has 81 stores.
For the fiscal year 2018, the Coach Group will continue to strategically continue to focus on Stuart Weitzman's past performance by reducing its promotional activities and closing some of the outstanding stores to enhance the Coach brand's channel in North America. Kate Spade's future development is also quite confident.
According to Coach's recent 14A file submitted to the SEC, its chief executive, Victor Luis, rose 30 percent from $ 9.88 million to $ 12.86 million last year, and the analysis said Victor Luis's rise in salaries means that under his administration, Coach Group in the past year sales performance gradually stabilized in the Kate Spade incurred under the command, Coach Group successfully transformed into the United States the first multi-brand light luxury group.
However, some analysts believe that Coach is still in the transition period, its income is frustrated because the company in order to maintain the brand's high-end positioning, the product from the department store shelves to withdraw, which means that the Group's revenue growth has been suppressed.
In addition, the industry said Victor Luis' ultimate goal was to build the Coach Group into the US version of LVMH. Victor Luis himself also admitted that the LVMH Group, Kai Yun Group and Richemont Group's three major luxury giants For potential competitors.
It is reported that the renamed Tapestry Group will be in the annual report to its three brand performance together, not a separate announcement after the news, Coach Group shares fell 2.67% to $ 38.9 per share, the current market value of about 110 Billion dollars.
