Coach Cuts Jobs, Shakes Up Management in Turnaround Effortby
Coach Inc., the maker of luxury handbags and Stuart Weitzman shoes, is cutting jobs and shaking up its management as it seeks to continue its nascent turnaround.
Chief Operating Officer Gebhard Rainer and David Duplantis, president of global marketing, digital, and customer experience, will be stepping down, the New York-based company said Tuesday in a statement. Andre Cohen will become president of North America and global marketing, while Todd Kahn will become president, chief administrative officer and secretary. The company also said it’s reducing global corporate staffing levels and improving its supply chain. Those moves will result in pretax charges of $65 million to $80 million.
Coach is looking to “emerge as a brand-led company with fewer layers, larger spans of responsibility and a consistent global voice across merchandising and marketing,” Chief Executive Officer Victor Luis said in the statement.
After falling for two years, Coach’s sales have rebounded in recent quarters, helped by new designs, updated stores and last year’s acquisition of Stuart Weitzman. Profit in the quarter ended March 26 rose to 44 cents a share, excluding some items, the company said Tuesday. That topped analysts’ 41-cent average estimate.
Coach’s operational efficiency plan includes eliminating more than 300 positions globally, reducing the total workforce by about 2 percent, the company said.
The shares were little changed at $40.19 at 10:03 a.m. in New York. Coach already had gained 23 percent this year through Monday.