Coach Inc COH 1.03% announced it will be changing its name to Tapestry, Inc. to better reflect its transition from a "mono-brand specialty retailer" to become a "true house of emotional, desirable brands."
Initial reaction to the name change sent Coach's stock lower by 3 percent on Wednesday but perhaps more important, some of the brand's most loyal customers have taken to social media to express their disappointment. A Tweet by user "@VioletaRGamez" said, "@Coach Disappointed to hear name change to "Tapestry"! Name dznt flow & sounds like smthng u find in an old old house! #KeeptheName."
Another Tweet by user "@any1townusa" read: "@Coach Not sure abt name change to Tapestry. I hear Tapestry, I think upholstery not designer brand? Rethink before you sink your brand."
Some of the social media reaction is "misplaced," Coach CEO Victor Luis told Reuters. At the end of the day, the only change being made is to the company's name and many customers are wrongfully assuming the Coach brand itself will be renamed to Tapestry.
The decision to change its corporate name was made after its 2017 acquisition of smaller rival Kate Spade, Luis explained.
Nevertheless, even industry experts are left confused as well, Reuters added. Andrea Wasserman, a former executive with Nordstrom and Hudson's Bay was quoted as saying that the name change is "bizarre" and is "dying to know the logic" behind the move.
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