Coach, Inc.

From Wikipedia, the free encyclopedia
  (Redirected from Coach Inc)
Jump to: navigation, search
Coach, Inc.
Type Public
Traded as NYSECOH
SEHK6388
S&P 500 Component
Industry Apparel, accessories
Founded New York City, New York (1941)
Headquarters 516 West 34th Street
New York City,
United States
Number of locations 730 (July 2011)[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) [3]
  • Increase US$ 5.07539 billion (2013) [4]
Operating income
  • Decrease US$ 1.2516 billion (2014) [5]
  • Increase US$ 1.577743 billion (2013) [6]
Net income
  • Decrease US$ 869.617 million (2014) [7]
  • Decrease US$ 1.066988 billion (2013) [8]
Total assets
  • Increase US$ 3.663131 billion (2014) [9]
  • Increase US$ 3.531897 billion (2013) [10]
Total equity
  • Increase US$ 2.420653 billion (2014) [11]
  • Increase US$ 2.409158 billion (2013) [12]
Employees approx. 17,200 (2014)[13]
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. [14] 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[edit]

Founding[edit]

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,[15][16] with six leatherworkers who made wallets and billfolds by hand.[17]

1946: Miles & Lillian Cahn join Coach[edit]

In 1946, Miles Cahn and his wife Lillian joined the company.[18] Miles and Lillian Cahn were owners of a leather handbag manufacturing business, and were knowledgeable about leatherworks and business.[17]

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.[19] Lillian Cahn suggested to Miles that the company supplement the factory's men’s accessories business by adding women's leather handbags.[17] The "sturdy cowhide bags were an immediate hit."[17]

Miles and Lillian Cahn bought the company through a leveraged buyout in 1961.[17]

1961–1974: Bonnie Cashin designs for Coach[edit]

In 1961, Cahn hired Bonnie Cashin, a sportswear pioneer, to design handbags for Coach.[17] Cashin "revolutionized the product's design," working as creative head for Coach from 1962 through 1974.[17]

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.[17] Cashin also designed matching shoes, pens, key fobs, and eyewear,[17] 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[edit]

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.[18]

In 1981, under Frankfort's leadership, the company opened its first directly-operated retail location on Madison Avenue in Manhattan.[20]

1985: Sale to Sara Lee[edit]

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".[17] Coach was then sold to Sara Lee Corporation for a reported $30 million.[17] Lew Frankfort succeeded Cahn as president.[17]

Sara Lee structured Coach under its Hanes Group.[17] 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[edit]

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.[15] Krakoff's design transformed Coach from the relatively small company that it was in 1985 into the worldwide known brand that it is today.[15][21]

2013–Present: Leadership Changes[edit]

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.[22] 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.[23]

In 2014, the company announced Stuart Vevers as the new Executive Creative Director, replacing Reed Krakoff.[24]

Corporate affairs[edit]

Name[edit]

Around the mid-1970s, the company changed its name to Coach Products, Inc.[25] In 1980, the company changed its name yet again to Coach Leatherware Company, Inc.[citation needed]

Executives[edit]

Lewis Frankfort has been involved with Coach for more than 30 years. He has served as Chairman and Chief Executive Officer of Coach since November 1995. He has served as a member of Coach's Board of Directors since June 1, 2000, the date of incorporation.

Ownership[edit]

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.[26]

Brand[edit]

In 1959, Coach introduced its logo.[18]

Operations[edit]

Locations[edit]

As of july 2013, there are over 920 Coach stores in the United States and Canada, 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.

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

e-commerce[edit]

In 1999, Coach launched its online store at www.coach.com.[27]

References[edit]

  1. ^ Coach Reports Fourth Quarter and Fiscal Year Earnings Per Share of $0.68 and $2.92, Respectively
  2. ^ Karimzadeh, Marc (4 February 2014). "Stuart Vevers Ready to Unveil First Coach Collection". WWD. Retrieved 4 February 2014. 
  3. ^ "Coach, Inc. FY14 Annual Report Form 10-K". United States Securities and Exchange Commission. 
  4. ^ Cite error: The named reference xbrlus_1 was invoked but never defined (see the help page).
  5. ^ "Coach, Inc. FY14 Annual Report Form 10-K". United States Securities and Exchange Commission. 
  6. ^ "Coach, Inc. FY13 Annual Report Form 10-K". United States Securities and Exchange Commission. 
  7. ^ "Coach, Inc. FY14 Annual Report Form 10-K". United States Securities and Exchange Commission. 
  8. ^ "Coach, Inc. FY13 Annual Report Form 10-K". United States Securities and Exchange Commission. 
  9. ^ "Coach, Inc. FY14 Annual Report Form 10-K". United States Securities and Exchange Commission. 
  10. ^ "Coach, Inc. FY13 Annual Report Form 10-K". United States Securities and Exchange Commission. 
  11. ^ "Coach, Inc. FY14 Annual Report Form 10-K". United States Securities and Exchange Commission. 
  12. ^ "Coach, Inc. FY13 Annual Report Form 10-K". United States Securities and Exchange Commission. 
  13. ^ "Coach, Inc. FY14 Annual Report Form 10-K". United States Securities and Exchange Commission. 
  14. ^ ""Coach, Inc. FY13 Annual Report Form 10-K"". United States Securities and Exchange Commission. Retrieved 24 September 2014. 
  15. ^ a b c Tan, Cheryl Lu-Lien (August 10, 2003). "In the Bag". The Baltimore Sun. Retrieved January 22, 2012. 
  16. ^ DK Publishing (17 August 2009). 1000 CEOs. Penguin. pp. 350–. ISBN 978-0-7566-7057-3. Retrieved 23 January 2013. 
  17. ^ a b c d e f g h i j k l m Lockwood, Lisa (September 26, 2011). "The Early Years". Women's Wear Daily. Retrieved January 22, 2012. 
  18. ^ a b c Pogoda, Dianne M. (September 26, 2011). "Leather Road". Women's Wear Daily. Retrieved January 22, 2012. 
  19. ^ "Coach Inc Company History". 
  20. ^ "Coach". Vogue. 
  21. ^ Levy, Ariell. "Brand-New Bag - The man from Coach goes upscale.". newyorker.com. The New Yorker. Retrieved 2013-03-08. 
  22. ^ Steigrad, Alexandra. "Victor Luis Named Coach CEO-Designate". Women's Wear Daily. 
  23. ^ "Coach, Inc. Fy13 Annual Report Form 10-K". United States Securities and Exchange Commission. 
  24. ^ "Stuart Vever's Vision: Coach's New Man Talks Heritage". Women's Wear Daily. Retrieved 9 July 2014. 
  25. ^ New York State Department of State. "Entity Information". Retrieved 4 October 2010. 
  26. ^ "FAQ: Coach", Thomson Reuters
  27. ^ "Company Profile". Coach Official Site. Accessed 12 February 2012.

External links[edit]

Coordinates: 40°45′17″N 74°00′01″W / 40.754734°N 74.00028°W / 40.754734; -74.00028