American retailer Coach, known for its leather handbags and accessories, is renaming itself Tapestry, looking to change its image as it seeks sales growth among younger customers.
"We are now at a defining moment in our corporate reinvention, having evolved from a mono-brand specialty retailer to a true house of emotional, desirable brands, all leveraging our strong operational foundation," CEO Victor Luis said in a statement Wednesday
The New York-based company acquired luxury shoe retailer Stuart Weitzman for $574 million in 2015 and bought Kate Spade & Co., known for its colorful and kitschy handbags, for $2.4 billion earlier this year. Luis said of the acquisition at the time that Kate Spade's "strong awareness among consumers, especially millennials," was a driving factor behind the buy.
Other efforts to grow customers in a younger demographic include Coach signing music star Selena Gomez as the face of the brand in late 2016, for a deal worth $10 million, the New York Post reported. Gomez is the most followed person on social media platform Instagram with 128 million followers. The collaboration also included a limited edition line of handbags and other merchandise.
The corporate name change, effective Oct. 31, is part of Coach's pursuit of younger shoppers who may not feel the same draw to store windows on Manhattan's Fifth Avenue. Coach began as a small workshop in Manhattan in 1941 and became a fashion powerhouse in the early 1960s though innovate designs.
Coach Inc. will also be changing its ticker symbol on the New York Stock Exchange from "COH," to "TPR." Shares of the company declined more than 2 percent to $39.11 in morning trading.