Coach announced that is changing its name to Tapestry. The company now owns three brands: Coach, Stuart Weitzman and Kate Spade. Victor Luis and his team considered that in order to build a house of fashion company, they needed to change the organizational matrix.
Creating an umbrella company clearly indicates that the company is now pursuing a growth through acquisitions strategy, and other targets may follow the recent acquisition of Kate Spade.
In my opinion, after turning around the Coach brand, this strategy makes sense. The company still as plenty cash reserves to bring valuable brands under its control. If done right, the stock market will sooner or later handsomely reward the new Tapestry.