Coach, Inc.

Coach, Inc.
Public
Traded as NYSE: COH
SEHK: 6388
S&P 500 Component
Industry Apparel, accessories
Founded 1941
Headquarters 516 West 34th Street
New York City,
United States
Number of locations
 1,014 (2014)[1]
Key people
 Lew Frankfort, Executive Chairman
Victor Luis (CEO)
Stuart Vevers[2] (Executive Creative Director)
Lew Frankfort (Chairman of the Board)
Jane Nielsen (CFO)
Products Women's and men's bags, women's and men's accessories, women's and men's apparel, watches, footwear, jewelry, eyewear, and fragrance
Revenue
  • Decrease US$ 4.806226 billion (2014) [1]
  • Increase US$ 5.07539 billion (2013) [3]
  • Decrease US$ 1.2516 billion (2014) [1]
  • Increase US$ 1.577743 billion (2013) [3]
  • Decrease US$ 869.617 million (2014) [1]
  • Decrease US$ 1.066988 billion (2013) [3]
Total assets
  • Increase US$ 3.663131 billion (2014) [1]
  • Increase US$ 3.531897 billion (2013) [3]
Total equity
  • Increase US$ 2.420653 billion (2014) [1]
  • Increase US$ 2.409158 billion (2013) [3]
Number of employees
 approx. 17,200 (2014)[1]
Website Coach.com
Coach modern style logo

Coach, Inc. is a New York-based luxury fashion company that got its start manufacturing small leather goods.[3] Coach is known for accessories and gifts for women and men, including handbags, men's bags, women's and men's small leather goods, footwear, outerwear, ready-to-wear, watches, travel accessories, scarves, sunwear, fragrance, jewelry, and other accessories.

History

Founding

Coach store on Bleecker Street in New York City

Coach was founded in 1941, as a family-run workshop in a loft on Manhattan's 34th street, New York City,[4][5] with six leatherworkers who made wallets and billfolds by hand.[6]

1946: Miles & Lillian Cahn join Coach

In 1946, Miles Cahn and his wife Lillian joined the company.[7] Miles and Lillian Cahn were owners of a leather handbag manufacturing business, and were knowledgeable about leatherworks and business.[6]

By 1950, Cahn had taken over the business. During the early years, Cahn noticed the distinctive properties and qualities of the leather used to make baseball gloves. With wear and use, the leather in a glove became softer and suppler. Attempting to mimic this process, Cahn created a way of processing the leather to make it stronger, softer, and more flexible, along with being deeper-toned in color, since the leather absorbed the dye very well.[8] Lillian Cahn suggested to Miles that the company supplement the factory's men’s accessories business by adding women's leather handbags.[6] The "sturdy cowhide bags were an immediate hit."[6]

Miles and Lillian Cahn bought the company through a leveraged buyout in 1961.[6]

1961–1974: Bonnie Cashin designs for Coach

In 1961, Cahn hired Bonnie Cashin, a sportswear pioneer, to design handbags for Coach.[6] Cashin "revolutionized the product's design," working as creative head for Coach from 1962 through 1974.[6]

Cashin instituted the inclusion of side pockets, coin purses, and brighter colors (as opposed to the usual hues of browns and tans) in the products.[6] Cashin also designed matching shoes, pens, key fobs, and eyewear,[6] and added hardware to both her clothes and accessories–particularly the silver toggle that became the Coach hallmark–declaring that she had been inspired by a memory of quickly fastening the top on her convertible sports car.

1979: Lewis Frankfort Joins Coach

In 1979, Lewis Frankfort joined the company as vice-president of business development when the business was making $6 million in sales and products were being distributed through the domestic wholesale channel, primarily in the Northeast.[7] He was mentored by the then Executive VP of Sales Richard Rose. Richard Rose is credited with making Coach a household name after putting the product in department stores across the United States and abroad. Richard was with Coach from 1965 to 1995 when he retired.

In 1981, under Frankfort's leadership, the company opened its first directly-operated retail location on Madison Avenue in Manhattan.[9]

1985: Sale to Sara Lee

In 1985, the Cahns decided to sell Coach Leatherware after determining they wanted to "devote more time to their growing goat farm and cheese production business called Coach Farm in Gallatinville, New York, which they began in 1983".[6] Coach was then sold to Sara Lee Corporation for a reported $30 million.[6] Lew Frankfort succeeded Cahn as president.[6]

Sara Lee structured Coach under its Hanes Group.[6] In early 1986, new boutiques were opened in Macy's stores in New York and San Francisco. Additional Coach stores were under construction, and similar boutiques were to be opened in other major department stores later in the year. By November 1986, the company was operating 12 stores, along with nearly 50 boutiques within larger department stores.

1996: Reed Krakoff leads design

In 1996, Lew Frankfort was named Chairman and CEO of Coach. The following year, under Frankfort's leadership Coach hired Reed Krakoff, whose creative and commercials instincts aimed to make Coach products functional, lightweight, and stylish.[4] Krakoff's design transformed Coach from the relatively small company that it was in 1985 into the worldwide known brand that it is today.[4][10]

2013–present: Leadership changes

In February 2013, Coach named Victor Luis President and Chief Commercial Officer and announced that he would become Chief Executive Officer in January 2014, with Lew Frankfort continuing as Executive Chairman.[11] In 2013, Coach generated $5 billion in sales and operated approximately 1,000 directly operated locations globally, including North America, Japan, China, Singapore, Taiwan, Malaysia, Korea, and Europe.[3]

In 2014, the company announced Stuart Vevers as the new Executive Creative Director, replacing Reed Krakoff.[12]

In 2014, Coach announced that Lew Frankfort will retire as Executive Chairman at the expiration of his term in November 2014.[13]

In January 2015, Coach agreed to buy shoemaker, Stuart Weitzman, for up to $574 million in cash.[14]

Corporate affairs

Name

Coach purse with the branded circles

On June 1, 2000, the company changed its name to Coach, Inc.[15]

Executives

Lewis Frankfort has been involved with Coach for more than 30 years.[16] He was named Chairman and CEO in 1995, and in 2014 became Executive Chairman. During 2000, he oversaw Coach’s transition to a publicly traded company listed on the NYSE and in 2011 became the first American issuer to list on the Stock Exchange of Hong Kong.

Victor Luis was named Chief Executive Officer of Coach, Inc. in January 2014.[17] Prior to his appointment and beginning in February 2013, he held the role of President and Chief Commercial Officer of Coach, Inc., also serving on Coach’s Board of Directors.

Luis has been a member of Coach’s senior leadership team since joining the company in 2006, holding a number of international management roles and leading Coach’s expansion in Asia.[17] Most recently, he served as President, International Group, and was responsible for Coach’s operations outside of North America. Prior, he was President of Coach Retail International, where he oversaw the company’s directly-operated businesses in China (Hong Kong, Macau, and Mainland), Japan, Singapore, and Taiwan, and President & CEO of Coach China and Coach Japan. Luis originally joined Coach as President & CEO, Coach Japan, Inc.

Prior to joining Coach, from 2002 to 2006, Luis was President and Chief Executive Officer for Baccarat, Inc., leading North American operation of the French luxury brand.[18] Earlier in his career, Luis held marketing and sales positions within the Moët-Hennessy Louis Vuitton (LVMH) Group.

Stuart Vevers joined Coach in the fall of 2013 as Executive Creative Director. Vevers joined Coach from Loewe, where he held the role of Creative Director since 2008.[19] Prior to Loewe, he served as Creative Director of Mulberry from 2005 to 2008. He began his career at Calvin Klein, and has contributed in creative roles with Bottega Veneta, Givenchy, and Louis Vuitton. In 2006, Vevers won the British Fashion Council’s Accessory Designer of the Year award.

The Coach Foundation

The Coach Foundation was established in 2008 to support organizations that empower and educate women and children around the world.[20] According to the foundation’s website via Coach.com, the program has two areas of focus:

Additionally, Coach, Inc. funds select projects that enhance the environment in communities where it conducts principal business operations.[21]

Ownership

Sara Lee divested itself of Coach first by selling 19.5% of their shares of Coach at the Coach IPO in October 2000, followed in April 2001 with the distribution of their remaining shares to Sara Lee’s stockholders through an exchange offer.[22]

Brand

A store with the logo of Coach Inc.

In 1959, Coach introduced its logo.[7]

Operations

Locations

As of 2013, there are approximately 1,000 Coach stores in North America, with more expected to open. In addition, Coach has built a strong presence in the U.S. through Coach boutiques located within select department stores and specialty retailer locations.[22]

Today, Coach’s corporate headquarters remain in mid-town Manhattan on 34th Street, in the location of their former factory lofts.

eCommerce

In 1999, Coach launched its online store at www.coach.com.[23]

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 "Coach, Inc. FY14 Annual Report Form 10-K". United States Securities and Exchange Commission.
  2. ↑ Karimzadeh, Marc (4 February 2014). "Stuart Vevers Ready to Unveil First Coach Collection". WWD. Retrieved 4 February 2014.
  3. ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 "Coach, Inc.2013 Annual Report Form (10-K)" (XBRL). United States Securities and Exchange Commission. August 22, 2013.
  4. ↑ 4.0 4.1 4.2 Tan, Cheryl Lu-Lien (August 10, 2003). "In the Bag". The Baltimore Sun. Retrieved January 22, 2012.
  5. ↑ DK Publishing (17 August 2009). 1000 CEOs. Penguin. pp. 350–. ISBN 978-0-7566-7057-3. Retrieved 23 January 2013.
  6. ↑ 6.0 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 Lockwood, Lisa (September 26, 2011). "The Early Years". Women's Wear Daily. Retrieved January 22, 2012.
  7. ↑ 7.0 7.1 7.2 Pogoda, Dianne M. (September 26, 2011). "Leather Road". Women's Wear Daily. Retrieved January 22, 2012.
  8. ↑ "Coach Inc Company History".
  9. ↑ "Coach". Vogue.
  10. ↑ Levy, Ariell. "Brand-New Bag - The man from Coach goes upscale.". newyorker.com. The New Yorker. Retrieved 2013-03-08.
  11. ↑ Steigrad, Alexandra. "Victor Luis Named Coach CEO-Designate". Women's Wear Daily.
  12. ↑ "Stuart Vever's Vision: Coach's New Man Talks Heritage". Women's Wear Daily. Retrieved 9 July 2014.
  13. ↑ "Coach Announce the Retirement of Lew Frankfort, Executive Chairman" (PRESS RELEASE). Business Wire. 25 September 2014. Retrieved 8 October 2014.
  14. ↑ Michael J. de la Merced; Hiroko Tabuchi (January 6, 2015). "Coach Expands Luxury Fashion Brand Buying Shoemaker Stuart Weitzman". New York Times. Retrieved January 10, 2015.
  15. ↑ "Coach, Inc. Common Stock". Goldman Sachs, & Co.
  16. ↑ "Lew Frankfort". Columbia University.
  17. ↑ 17.0 17.1 "Coach Fy13 Current Report Form 8-K". United States Securities and Exchange Commission.
  18. ↑ "Coach, Inc. Announces Management Succession" (PRESS RELEASE). Coach, Inc. February 14, 2013.
  19. ↑ "Stuart Vevers to Join Coach". Vogue.
  20. ↑ 20.0 20.1 "The Coach Foundation". Coach Official Site.
  21. ↑ Nord, Dylan Nord. "The Coach Foundation". We-Care.
  22. ↑ 22.0 22.1 "FAQ: Coach", Thomson Reuters
  23. ↑ "Company Profile". Coach Official Site. Accessed 12 February 2012.

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