Just one month into ownership of Kate Spade, Coach, Inc. identifies the synergies and opportunities that it says reinforce its decision to bring the brand on board.
During yesterday’s earnings call, the Coach team outlined its initial vision for the Kate Spade brand, and how its three businesses would work together to provide value for shareholders.
In looking at its portfolio, Coach, Inc. CEO Victor Luis highlighted the benefits of having three distinct brands, starting with the company’s consumer reach. With only a 10 percent overlap in the customer basis for each business, Luis said Coach, Stuart Weitzman and Kate Spade each bring something—and someone—new to the table.
“This speaks to our initial views going into this which is we were adding an incremental business given the very unique brand attitude that Kate has, a much stronger leaning into a millennial consumer at 60 percent compared to just over 30 for the Coach brand and a very differentiated brand attitude positioning globally, although nascent in international markets,” Luis said, adding there’s no worry that one brand will cannibalize the other.
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