Atlantic Islander
09-18-2013, 07:14 PM
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Coach Taps Victor Luis for CEO
By DANA MATTIOLI
Lew Frankfort will step down as chief executive of Coach Inc. COH +0.25% after the end of the year, handing off leadership of the handbag and accessory maker to the executive in charge of its fast-growing international operations.
Victor Luis, who joined Coach in 2006, will take over as CEO in January. Mr. Frankfort, a 35-year veteran of the company, will then become executive chairman.
The choice is symbolic. Coach's sales at home faltered during its fiscal first quarter, with North American sales growing more slowly than the broader market for women's handbags and accessories for the first time since the company went public in 2000.
Meanwhile, international sales grew 12%. Sales in China, which Coach has made the cornerstone of its international strategy, climbed 40%. Mr. Victor has spearheaded the company's growth in Asia.
Mr. Frankfort, 66 years old, said Coach had been working on a succession plan since 2008. The company considered external and internal candidates, but ultimately decided on Mr. Luis, who has spent most of his career outside the U.S. and comes from a luxury background.
Mr. Luis is 46. He previously held executive roles at Baccarat Inc. BCRA.FR -1.63% and LVMH Moët Hennessy Louis Vuitton MC.FR +1.50% SA. He became president of the Coach International Group a year ago. He is being named president and chief commercial officer.
The company has faced heightened competition and promotions in the market for women's bags and accessories, especially in the weeks leading up to Christmas. Rivals including Michael Kors Holdings Ltd., KORS +0.65% which has posted surging sales, as well as brands like Kate Spade and Tory Burch, have put pressure on Coach.
Shares were down 1.2% at $48.20 in 4 p.m. composite trading on the New York Stock Exchange. The stock has fallen by more than a third over the past year.
Mr. Frankfort said he plans on mentoring Mr. Luis through the transition. The company has given the younger executive added responsibilities such as licensing, strategy and consumer insights.
Mr. Frankfort said his executive chairman role is an "indefinite and full-time role." "Retirement is not part of my next chapter," he said.
source (http://online.wsj.com/article/SB10001424127887323478004578303753395641748.html)
UPDATE: Coach Names Victor Luis President; to Become CEO in 2014
--Coach announces succession plan
--International chief to become CEO next year
--Transition comes at critical time for company
By Karen Talley and Melodie Warner
Coach Inc. (COH) unveiled its succession plan for Chairman and Chief Executive Lew Frankfort amid broader restructuring efforts to become known for more than just handbags.
The company named Victor Luis president and chief commercial officer and said Mr. Luis will become CEO in January 2014. Mr. Frankfort, a 35-year veteran of Coach, will then become executive chairman of the luxury handbag and accessories maker.
Mr. Luis, a veteran of Coach's robust international operations, will be taking the reins at a critical time for the company.
Competitors like Michael Kors Holdings Ltd. (KORS) and Tory Burch "feature a broader and more robust fashion platform than Coach, which is still too bag-centric," said Craig Johnson, president of Customer Growth Partners.
Coach has said it aims to expand into clothing and other areas, "transforming (the company) into a global lifestyle brand."
Coach also "suffers in part due to its ubiquity," Mr. Johnson said. "Part of the magic of luxury is the value of scarcity, and since Coach is in virtually every A and B mall and every outlet mall in the country, it has become too ubiquitous."
Mr. Luis joined Coach in 2006 as president and chief executive of Coach Japan and became president of the Coach International Group in February 2012, where he had oversight of all of Coach's businesses outside North America.
Coach's North American same-store sales declined for the first time in three years in the most recent quarter, while international sales increased sharply.
Competition and promotions intensified in women's bags and accessories, especially in the weeks leading up to Christmas. Analysts said competition from the likes of Michael Kors, which has posted surging sales, Kate Spade and Tory Burch was dogging the company.
Coach has made sales in China the cornerstone of its international strategy and Coach said Thursday Mr. Luis has spearheaded its growth in Asia.
Coach shares were off 0.4% to $48.57 in recent trading. The stock has fallen 36% over the past year.
source (http://online.wsj.com/article/BT-CO-20130214-710603.html)
Coach Hires New CEO
VICTOR LUIS has been appointed Coach's new CEO, but will not start in his new role until January. He succeeds Lew Frankfort, who has held the position for 33 years.
"This is an exciting day for Coach," Frankfort told WWD. "It's a result of a several-year succession process, which has led us to Victor Luis. I couldn't be happier with the appointment. I'm looking forward to being tied at the hip with Victor during this transition process."
Currently president of the brand's international group, Luis will act as president and chief commercial officer as Frankfort helps him make the transition to CEO. The news comes as the US label undergoes an overhaul, relaunching itself as a lifestyle brand. Reed Krakoff remains the label's creative director.
"Lew will always be a part of Coach," he noted. "When you have in essence been the founder of the company, he never leaves. Very few people have impacted an industry in North America like Lew has."
source (http://www.vogue.co.uk/news/2013/02/15/coach-hires-new-ceo---victor-luis)
Coach Taps Victor Luis for CEO
By DANA MATTIOLI
Lew Frankfort will step down as chief executive of Coach Inc. COH +0.25% after the end of the year, handing off leadership of the handbag and accessory maker to the executive in charge of its fast-growing international operations.
Victor Luis, who joined Coach in 2006, will take over as CEO in January. Mr. Frankfort, a 35-year veteran of the company, will then become executive chairman.
The choice is symbolic. Coach's sales at home faltered during its fiscal first quarter, with North American sales growing more slowly than the broader market for women's handbags and accessories for the first time since the company went public in 2000.
Meanwhile, international sales grew 12%. Sales in China, which Coach has made the cornerstone of its international strategy, climbed 40%. Mr. Victor has spearheaded the company's growth in Asia.
Mr. Frankfort, 66 years old, said Coach had been working on a succession plan since 2008. The company considered external and internal candidates, but ultimately decided on Mr. Luis, who has spent most of his career outside the U.S. and comes from a luxury background.
Mr. Luis is 46. He previously held executive roles at Baccarat Inc. BCRA.FR -1.63% and LVMH Moët Hennessy Louis Vuitton MC.FR +1.50% SA. He became president of the Coach International Group a year ago. He is being named president and chief commercial officer.
The company has faced heightened competition and promotions in the market for women's bags and accessories, especially in the weeks leading up to Christmas. Rivals including Michael Kors Holdings Ltd., KORS +0.65% which has posted surging sales, as well as brands like Kate Spade and Tory Burch, have put pressure on Coach.
Shares were down 1.2% at $48.20 in 4 p.m. composite trading on the New York Stock Exchange. The stock has fallen by more than a third over the past year.
Mr. Frankfort said he plans on mentoring Mr. Luis through the transition. The company has given the younger executive added responsibilities such as licensing, strategy and consumer insights.
Mr. Frankfort said his executive chairman role is an "indefinite and full-time role." "Retirement is not part of my next chapter," he said.
source (http://online.wsj.com/article/SB10001424127887323478004578303753395641748.html)
UPDATE: Coach Names Victor Luis President; to Become CEO in 2014
--Coach announces succession plan
--International chief to become CEO next year
--Transition comes at critical time for company
By Karen Talley and Melodie Warner
Coach Inc. (COH) unveiled its succession plan for Chairman and Chief Executive Lew Frankfort amid broader restructuring efforts to become known for more than just handbags.
The company named Victor Luis president and chief commercial officer and said Mr. Luis will become CEO in January 2014. Mr. Frankfort, a 35-year veteran of Coach, will then become executive chairman of the luxury handbag and accessories maker.
Mr. Luis, a veteran of Coach's robust international operations, will be taking the reins at a critical time for the company.
Competitors like Michael Kors Holdings Ltd. (KORS) and Tory Burch "feature a broader and more robust fashion platform than Coach, which is still too bag-centric," said Craig Johnson, president of Customer Growth Partners.
Coach has said it aims to expand into clothing and other areas, "transforming (the company) into a global lifestyle brand."
Coach also "suffers in part due to its ubiquity," Mr. Johnson said. "Part of the magic of luxury is the value of scarcity, and since Coach is in virtually every A and B mall and every outlet mall in the country, it has become too ubiquitous."
Mr. Luis joined Coach in 2006 as president and chief executive of Coach Japan and became president of the Coach International Group in February 2012, where he had oversight of all of Coach's businesses outside North America.
Coach's North American same-store sales declined for the first time in three years in the most recent quarter, while international sales increased sharply.
Competition and promotions intensified in women's bags and accessories, especially in the weeks leading up to Christmas. Analysts said competition from the likes of Michael Kors, which has posted surging sales, Kate Spade and Tory Burch was dogging the company.
Coach has made sales in China the cornerstone of its international strategy and Coach said Thursday Mr. Luis has spearheaded its growth in Asia.
Coach shares were off 0.4% to $48.57 in recent trading. The stock has fallen 36% over the past year.
source (http://online.wsj.com/article/BT-CO-20130214-710603.html)
Coach Hires New CEO
VICTOR LUIS has been appointed Coach's new CEO, but will not start in his new role until January. He succeeds Lew Frankfort, who has held the position for 33 years.
"This is an exciting day for Coach," Frankfort told WWD. "It's a result of a several-year succession process, which has led us to Victor Luis. I couldn't be happier with the appointment. I'm looking forward to being tied at the hip with Victor during this transition process."
Currently president of the brand's international group, Luis will act as president and chief commercial officer as Frankfort helps him make the transition to CEO. The news comes as the US label undergoes an overhaul, relaunching itself as a lifestyle brand. Reed Krakoff remains the label's creative director.
"Lew will always be a part of Coach," he noted. "When you have in essence been the founder of the company, he never leaves. Very few people have impacted an industry in North America like Lew has."
source (http://www.vogue.co.uk/news/2013/02/15/coach-hires-new-ceo---victor-luis)